Ingles Posts Improved Q3 Results

Ingles Markets Inc. reported net income of $13.8 million for its third quarter 2015 ended June 27, while the nine months ended the same date brought in $43.1 million, an increase of 27.5 percent. The grocer’s Q3 sales increased 1 percent and comparable-store sales grew 1.6 percent, excluding gas.

According to Ingles, per-gallon gas prices were considerably lower in fiscal 2015 than in the year-ago periods, leading to lower total sales. Comparing the three- and nine-month periods of 2015 with the same periods last year, the company found that gasoline gallons sold increased while the average price per gallon declined by 31 percent and 27 percent, respectively.

"Our store sales continue to grow, helped by continuous improvement to our in-store experience," said Robert P. Ingle II, CEO of Asheville, N.C.-based Ingles, which operates more than 200 stores in the Southeast.

Ingles Q3 Results

Q3 2015 sales (excluding gas) were $817.4 million, an $8 million increase from last year's Q3 sales, while comps edged up 1.6 percent. 

Gross profit for the quarter increased 3.3 percent to $222.2 million, versus $215.2 last year. Gross profit as a percentage of sales grew to 23.5 percent for the June 2015 quarter, compared with 22 percent for the June 2014 quarter. Gasoline gross profit was lower for the current fiscal quarter compared with the year-ago period.

Net income was $13.8 million for each of the three-month periods ended June 27, 2015 and June 28, 2014. Net income as a percentage of sales rose to 1.5 percent for the June 2015 quarter, compared with 1.4 percent for the June 2014 quarter. 

Ingles Nine-month Results

Nine-month fiscal 2015 sales (excluding gas) rose 1.7 percent to $2.46 billion, a $40.3 million increase from last year. Comps went up 1.7 percent.

Gross profit for the nine months ended June 27 totaled $665.2 million compared with $624.8 million in the year-ago period. Gross profit as a percentage of sales increased to 23.5 percent for the June 2015 nine-month period, versus 21.8% percent for the June 2014 nine-month period.

Net income was $43.1 million for the June 2015 nine-month period, compared with $33.8 million last year. Net income as a percentage of sales was 1.5 percent for the June 2015 nine-month period, versus 1.2 percent for the June 2014 nine-month period. 

Capital expenditures for the June 2015 nine-month period totaled $73.5 million, compared with $73.1 million last year. Cap ex for the entire fiscal year is expected to be about $100 million to $120 million, including a new store anticipated to open just before the end of fiscal 2015.