Ingles Posts Higher Q2, 1st-half Sales, Income

Ingles Markets Inc. has reported higher sales and net income for the three and six months ended March 30, 2013. Second-quarter net sales rose $36.9 million to $918.6 million, and net income increased to $8.1 million compared with $6.5 million for the year-ago period. For the first six months of fiscal 2013, net sales grew $51.5 million to $1.85 billion, and net income rose 14.9 percent to $19.7 million, compared with last year.

“We celebrated the 50th anniversary of the first Ingles store this quarter,” noted Robert P. Ingle II, CEO of the Asheville, N.C.-based grocer, which operates 204 stores in six southeastern states. “These results are a fine tribute to our customers and associates, who are the reason for our success over five decades.”

Net sales went up 4.2 percent to $918.6 million for the three months ended March 30, from $881.7 million in the year-ago period. Ingles attributed the sales growth to the Easter holiday, which occurred in the second quarter of fiscal 2013 and the third quarter of fiscal 2012. Comparable-store sales, excluding gasoline and extra Easter sales, rose 2.7 percent over the comparable quarters. The number of customer transactions, excluding gas, increased 3.3 percent, while the comparable average transaction size, excluding gas, edged up 1.9 percent from the same quarter last year.

Gross profit for the March 2013 quarter grew 3.1 percent to $198.3 million, versus $192.4 million last year. Gross profit, as a percentage of sales, was 21.6 percent for the March 2013 quarter, compared with 21.8 percent in the year-ago period. Gross profit contributed by gas sales was lower this quarter. Excluding gas sales, grocery segment gross profit as a percentage of sales fell 32 basis points compared with last year.

Net income came to $8.1 million compared with $6.5 million last year. Net income, as a percentage of sales, was 0.9 percent for the quarter ended March 30, compared with 0.7 percent in the year-ago period.

Net sales went up $51.5 million to $1.85 billion for the six months ended March 30, from $1.80 billion for the year-ago period. Excluding gas and extra Easter 2013 sales, grocery-segment comps grew 2.4 percent. Comparing the six-month fiscal 2013 and 2012 periods, gas gallons sold increased 4.3 percent, customer transactions, excluding gas, rose 2.3 percent, and the comparable average transaction size, excluding gas, edged up 0.6 percent.

Gross profit for the six months ended March 30, grew 3.1 percent to $406.2 million, an increase of $12 million compared with last year. Gross profit, as a percentage of sales, was 21.9 percent for both the March 2013 and 2012 six-month periods. Excluding gas sales, grocery-segment gross profit as a percentage of sales rose eight basis points compared with the year-ago period.

Net income was $19.7 million versus $17.1 million for the year-ago period. Net income, as a percentage of sales, was 1.1 percent for the six months ended March 30 and 1 percent for the six months ended March 24, 2012.

Capital expenditures for the March 2013 six-month period totaled $47 million, compared with $103.5 million last year. According to Ingles, the decrease was due to the construction of a new distribution center that opened in mid-2012. The company said its cap ex for the entire fiscal year is expected to be about $100 million to $130 million, including expenditures for stores slated to open in fiscal 2013 and 2014, as well as for the rollout of Ingles’ continuing remodeling program to multiple stores.