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Milwaukee-based Roundy’s Inc. reported net sales increased 2.4 percent to $938.2 million for the first quarter ending March 31, while adjusted net income – excluding the impact of debt extinguishment and one-time IPO expenses – grew 20.4 percent to $10.6 million, or 28 cents per share.
The initial public offering earlier this year raised about $111.9 million and reduced total debt by more than 14 percent, to about $702 million.
“Our first quarter results reflect the strength of our overall business strategy,” said Robert Mariano, Roundy’s chairman, president and CEO. “Despite continued weakness in consumer discretionary spending, which negatively impacted our same store sales, we were pleased with our total sales growth and solid performance in the Chicago market. In addition, our focus on maintaining an efficient operating structure led to strong cost controls during the quarter. While the economic environment in many of our markets remains challenging, we believe our commitment to providing high quality products and a differentiated customer experience at a great value for our customers will continue to serve our business well.”
Same-store sales decreased 2.1 percent from the prior year due to continued weakness in the consumer environment and the effect of competitive store openings. As anticipated, results were also negatively affected by lower sales during the 2012 pro football postseason playoffs, compared to 2011 when the Green Bay Packers appeared in the Super Bowl and the quarterly calendar shift of the New Year’s holiday, when sales are typically slow, which fell in first quarter this year while last year it fell in the fourth quarter of 2010.
Gross profit for the first quarter of 2012 increased 0.6 percent to $256.8 million over the year-ago period, while operating and administrative expenses increased to $226.1 million, from $222.4 million in the same period last year.
During the first quarter, Roundy’s opened one new store, a Mariano’s Fresh Market in the Chicago area, and relocated one store in Wisconsin.
Roundy’s operates 159 retail grocery stores and 98 pharmacies under the Pick ’n Save, Rainbow, Copps, Metro Market and Mariano’s Fresh Market retail banners in Wisconsin, Minnesota and Illinois.