Ingles Markets boosted its net sales to $1.45 billion for the company's fourth quarter.
Southeast supermarket chain Ingles Markets Inc. has reported increased sales for the three and 12 months ended Sept. 24.
For its fourth quarter, Ingles’ net sales totaled $1.45 billion, compared with $1.34 billion for the quarter ended Sept. 25, 2021. Excluding gasoline sales, comparable-store sales increased 5.2% over the comparative fiscal quarter.
Gross profit for the fourth quarter was $364.8 million, or 25.1% of sales. Gross profit last year was $341.3 million, or 25.6% of sales.
The food retailer’s operating and administrative expenses this latest quarter totaled $268.0 million, compared with last year’s $248.9 million.
Robert P. Ingle II, chairman of the board, said: "Ingles delivered strong results as we continue our focus on fresh, affordable offerings to our customers. We would like to thank all our dedicated associates for maintaining outstanding shopper conditions and providing value to our customers."
Interest expense totaled $5.4 million for the fourth quarter, compared with $6.2 million for the fourth quarter last year. Total debt at the end of fiscal 2022 was $571.9 million, compared with $589.5 million at the end of fiscal 2021.
Ingles’ net income was $70.2 million for the September 2022 quarter, a slight dip compared with $71.7 million for the September 2021 quarter. Basic and diluted earnings per share for Class A Common Stock were $3.78 and $3.69, respectively, for the fourth quarter, compared with $3.86 and $3.78, respectively, for the quarter ended Sept. 25, 2021. Basic and diluted earnings per share for Class B Common Stock were each $3.43 for the fourth quarter. Last year, they were $3.51.
Meanwhile, for its 2022 fiscal year, Ingles reported net sales of $5.68 billion, compared with last year’s $4.99 billion. Excluding gasoline sales, comparable-store sales increased 7.7% over the comparative fiscal year.
Gross profit for this fiscal year totaled $1.42 billion, or 24.9% of sales. Gross profit for the fiscal year ended Sept. 25, 2021, totaled $1.30 billion, or 26.1% of sales.Grocery-segment gross profit as a percentage of total sales (excluding gasoline) decreased 11 basis points in fiscal year 2022 compared with fiscal year 2021. According to Ingles, the gross margin decrease was primarily due to inflation and supply chain factors that affected prices and product mix. In general, product cost inflation was incorporated into higher sales prices.
Ingles reported that its net income totaled $272.8 million this year, a rise compared with last year’s $249.7 million.
Operating and administrative expenses were $1.0 billion, while last year’s were $963.3 million.Interest expense was $21.5 million for the fiscal year, compared with last year’s $24.3 million.
Basic and diluted earnings per share for Class A Common Stock were $14.69 and $14.36, respectively, for this fiscal year, compared with $13.06 and $12.73, respectively, for the fiscal year ended Sept. 25, 2021. Basic and diluted earnings per share for Class B Common Stock were each $13.35 for 2022 fiscal year, compared with $11.87 of basic and diluted earnings per share for the 2021 fiscal year.
Capital expenditures for the September 2022 fiscal year totaled $119.6 million, compared with last year’s $140.6 million
Ingles currently has the full amount available under its $150.0 million line of credit. The company believes that its financial resources, including the line of credit and other internal and anticipated external sources of funds, will be sufficient to meet planned cap ex, debt service and working capital requirements for the foreseeable future.
During fiscal year 2022, Ingles slowed some of its new store and remodeling plans due to inflation and supply chain issues in building materials and equipment, as well as tight labor market conditions for construction labor. The company has continued to build and remodel stores, albeit at what management believes will be a temporarily slower pace.
The Asheville, N.C.-based company anticipates adding new stores in fiscal year 2023, expects to remodel a significant number of existing stores, and plans to add more fuel stations and pharmacies.
Employing approximately, 26,000 associates, Ingles Markets operates 198 supermarkets in North Carolina, Georgia, South Carolina, Tennessee, Virginia and Alabama. As Sept. 24, the company operated 112 in-store pharmacies and 107 fuel centers. Ingles is No. 58 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.