Profit Up 167% at Ingles Markets in Q3
Strong demand for groceries pushed sales and profit way up at Ingles Markets in the third quarter.
Net sales for the third quarter ended June 27 totaled $1.19 billion, an increase of 12% compared with $1.06 billion in the prior year quarter. Net income for the period was $62.8 million, compared with $23.5 million for the prior year quarter, or a 167% increase.
“We are proud to provide service to our customers during such a disruptive time," said Robert P. Ingle II, chairman of the board. "This is made possible by the dedication of our associates, who continue to maintain store conditions at the highest level.”
Operating and administrative expenses for the third quarter totaled $234.6 million, compared with $216.5 million for the 2019 quarter. Most of the increase was due to higher personnel costs incurred to support additional safety measures related to the pandemic, including a second appreciation bonus payment to full and part-time associates.
In June, Ingles announced a second bonus payment of $300 to full-time and $150 to part-time active retail, distribution, and corporate associates who were hired on or before April 24, 2020. The bonus payment was made at the end of July 2020.
For the nine months ended June 27, net sales at Ingles totaled $3.41 billion, an increase of 9.2% compared with $3.13 billion for the nine months ended June 29, 2019. Operating and administrative expenses totaled $685 million for the period, compared to $651.6 million for prior year period.
Net income totaled $120.7 million for the nine-month period ended June 27, 2020, compared with $60.7 million for the nine-month period ended June 29, 2019.
Basic and diluted earnings per share for Class A Common Stock were $6.13 and $5.96, respectively, for the nine months ended June 27, 2020, compared with $3.07 and $2.99, respectively, for the nine months ended June 29, 2019.
The company says it continues to make ongoing improvements to the existing store base.
The company also said it currently has $165.5 million available under its $175 million line of credit. The company believes its financial resources, including the line of credit and other internal and anticipated external sources of funds, will be sufficient to meet planned capital expenditures, debt service and working capital requirements into the future.
Asheville, N.C.-based Ingles operates is No. 52 on The PG 100, Progressive Grocer's list of the top food retailers in North America.
