Ingles Markets Inc (IMKTA, Financial) released its 8-K filing on December 27, 2024, detailing the financial results for the fourth quarter and fiscal year ending September 28, 2024. The company, a prominent supermarket chain operating in the southeastern United States, faced significant challenges due to Hurricane Helene, which severely impacted its operations in western North Carolina.
Company Overview
Ingles Markets Inc is a U.S.-based company primarily engaged in operating a supermarket chain. It serves customers in Georgia, North Carolina, South Carolina, Tennessee, Virginia, and Alabama, focusing on suburban, small town, and neighborhood locations. The company offers a wide range of products, including food, health and beauty care, and general merchandise, with the retail business being the main revenue driver. Additionally, Ingles Markets owns a substantial portion of its store real estate, generating rental income.
Fourth Quarter Financial Performance
For the fourth quarter of fiscal 2024, Ingles Markets reported net sales of $1.40 billion, a decrease from $1.58 billion in the same period of the previous year. The reduction in sales can be attributed to the impact of Hurricane Helene and the fact that the quarter had 13 weeks compared to 14 weeks in the prior year. Gross profit for the quarter was $299.4 million, representing 21.4% of sales, down from $369.7 million or 23.3% of sales in the fourth quarter of fiscal 2023.
Operating and administrative expenses increased slightly to $301.0 million from $299.4 million in the previous year. The company reported a net loss of $1.5 million for the quarter, compared to a net income of $52.6 million in the same period last year. This resulted in a basic and diluted loss per share of $0.08 for Class A Common Stock, compared to earnings per share of $2.83 and $2.77, respectively, in the previous year.
Annual Financial Performance
For the fiscal year 2024, Ingles Markets reported net sales of $5.64 billion, a decline from $5.89 billion in fiscal 2023. The fiscal year 2024 had 52 weeks compared to 53 weeks in fiscal 2023. Gross profit for the year was $1.3 billion, or 23.1% of sales, compared to $1.4 billion or 23.8% of sales in the previous year.
Operating and administrative expenses for the year totaled $1.2 billion, up from $1.1 billion in fiscal 2023. Net income for the year was $105.5 million, a significant decrease from $210.8 million in the previous year. Basic and diluted earnings per share for Class A Common Stock were $5.68 and $5.56, respectively, compared to $11.35 and $11.10 in fiscal 2023.
Impact of Hurricane Helene
The financial results were notably affected by Hurricane Helene, which caused catastrophic flooding in western North Carolina. The company recognized an impairment loss of $30.4 million related to inventory damage and a $4.5 million impairment loss on property and equipment. Despite these challenges, Ingles Markets demonstrated resilience in managing its operations and financial resources.
Financial Position and Capital Expenditures
Ingles Markets ended fiscal 2024 with total assets of $2.53 billion, up from $2.47 billion in the previous year. The company reduced its total debt to $532.6 million from $550.2 million at the end of fiscal 2023. Capital expenditures for the year increased to $210.9 million from $173.6 million in fiscal 2023, reflecting the company's ongoing investment in its infrastructure and operations.
Conclusion
Ingles Markets Inc faced a challenging fiscal year 2024, marked by the adverse effects of Hurricane Helene. Despite these hurdles, the company maintained a strong financial position and continued to invest in its operations. The resilience demonstrated by Ingles Markets highlights its commitment to serving its communities and adapting to unforeseen challenges in the retail industry.
Explore the complete 8-K earnings release (here) from Ingles Markets Inc for further details.
