Skip to main content

Sales Dip at Ingles Markets During Q2

Regional retailer tallies lower gross profits and net income versus 2023
Lynn Petrak, Progressive Grocer
Ingles Storefront Georgia Main Image
Reflecting an era of thin margins for many grocers, Ingles Markets reported a decline in sales and profits during the recent second quarter.

Ingles Markets, Inc. wrapped a wobbly second quarter, which brought declines in sales and net income. According to the regional grocer’s latest financial report, net sales fell slightly during the quarter ending March 30, dropping from $1.38 billion in Q2 last year to $1.37 billion this year.  

Gross profits and net income also took a bit of a hit. The grocer rang up $321.9 million in gross profits during the second quarter versus $325.9 million during the prior-year period. Net income likewise fell, coming in at $31.9 million compared to $40.5 million in the second fiscal quarter of 2023.

[RELATED: The 8 Retailers Worthy of Being Called Top Regional Grocers]

Ingles reported on its half-year performance, too. For the first half of FY 2024, net sales reached $2.85 billion, off 0.88% from last year. Gross profits for the first half hit $670.7 million, down from the $697.1 million for the first six months of last fiscal year. Capital expenditures, meanwhile, rose from $91.4 million in the first half of 2023 to $98.4 million in the comparable period this fiscal year. 

While the numbers were off on a year-over-year basis, it has been a period of continued industry headwinds with elevated inflation and greater omnichannel competition. Additionally, Ingles shared that it believes its financial resources, including its line of credit and other internal and external sources of funds, will be “sufficient” to meet planned capital expenditures, debt service and working capital requirements or the foreseeable future. 

Overall, Chairman Robert P. Ingle II said of the quarterly performance: “We are pleased with our results and thank all our associates for their continued service to our customers and company.”

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

This ad will auto-close in 10 seconds