Ingles Sees Net Sales, Income Decline in Q1

Regional grocer’s expenses were higher, but it narrowed its debt
Bridget Goldschmidt
Managing Editor
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According to Ingles, its financial resources will be enough to meet planned cap ex, debt service and working capital requirements for the foreseeable future.

For the three months ended Dec. 30, 2023 – Q1 of its fiscal 2024 – Ingles Markets Inc. reported net sales of $1.48 billion, a decline of 0.8% compared with $1.49 billion for the quarter ended Dec. 24, 2022. Gross profit for the first quarter of fiscal 2024 came to $348.8 million, or 23.6% of sales, versus $371.2 million, or 24.9% of sales, for the year-ago period.

Operating and administrative expenses for the first quarter of fiscal 2024 were $289.8 million, compared with $276.2 million for the first quarter of fiscal 2023. Interest expense totaled $5.7 million for the first quarter of fiscal 2024 compared with $5.3 million for the first quarter of fiscal 2023. Total debt at the end of the first quarter of fiscal 2024 was $546.9 million, compared with $564.5 million last year.

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Net income was $43.4 million for the first quarter of fiscal 2024, compared with $69.4 million for the year-ago period. Basic and diluted earnings per share for Class A Common Stock were $2.33 and $2.28, respectively, for the quarter ended Dec. 30, 2023, versus $3.73 and $3.65, respectively, for the quarter ended Dec. 24, 2022.

Capital expenditures for the first quarter of fiscal 2024 came to $63.2 million, compared with $59.3 million for the first quarter of fiscal 2023. The company has no outstanding borrowings under its $150.0 million line of credit. According to Ingles, its financial resources, including the line of credit and other internal and anticipated external sources of funds, will be enough to meet planned cap ex, debt service and working capital requirements for the foreseeable future.

“During the quarter, we remained focused on providing service and value to our customers,” said Chairman of the Board Robert P. Ingle II. “We are grateful to our associates for their continued dedication and service.”

Asheville, N.C.-based Ingles operates 198 supermarkets in six southeastern states. In conjunction with its supermarket operations, the company operates neighborhood shopping centers, most of which contain an Ingles supermarket. It also owns a fluid-dairy facility that supplies its supermarkets and unaffiliated customers. Ingles is No. 56 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America.

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