Ingles’ Q1 Sales, Net Income Grow

As it continues to grow its business, Ingles Markets Inc. posted higher first-quarter sales and net income for the period ended Dec. 30, 2017, compared with the year-ago period ended Dec. 24, 2016.

Total sales grew 3.2 percent over the comparative quarters. Net income came to $45.1 million for the quarter ended Dec. 30, 2017, versus last year. Ingles’ current-quarter net income includes a reduction in noncash deferred tax expense of $26.7 million from changes to federal income tax law.

“We are pleased with our sales during the important holiday season,” said Chairman of the Board Robert P. Ingle II. “We opened two new stores and will continue to invest capital, improve our store base and bring the best to our loyal customers.”

Q1 net sales were $1.01 billion for the period ended Dec. 30, 2017, compared with $982.8 million last year, a $31 million increase. Comparable-store sales, excluding gasoline, rose 2.2 percent. Gasoline gallons sold rose, while the average price per gallon was stable comparing the December 2017 quarter with the December 2016 quarter. The number of customer transactions (excluding gas) was similarly stable, while the comparable average transaction size (excluding gas) grew from the same quarter last year, Ingles noted.

Gross profit for the December 2017 quarter increased to $244.7 million, or 24.1 percent of sales. In the year-ago period it was $237.1 million, also 24.1 percent of sales. Retail gross margin (excluding gas) was unchanged comparing the December 2017 and December 2016 quarters.

Capital expenditures came to $56.8 million for the December 2017 quarter, compared with $29.3 million for the December 2016 quarter. Ingles attributed the increase to the timing of cap ex on real estate, new stores and store remodels. The company expects total fiscal 2018 capital expenditures to be between $120 million and $160 million.

Asheville, N.C.-based Ingles operates 200 supermarkets in six southeastern states. The company also operates neighborhood shopping centers, most of which contain an Ingles supermarket, and owns a fluid dairy facility that supplies company supermarkets and unaffiliated customers.