Ingles Markets’ Q3 profits fall 17.4%

The results marked a slight improvement in profitability compared with second-quarter results, as the retailer continues to struggle in the wake of the closure of four stores that were heavily damaged during last year’s hurricane that caused extensive flooding in North Carolina. Ingles Markets

You can find original article here Supermarketnews. Subscribe to our free daily Supermarketnews newsletter.

Ingles Markets on Thursday said its sales and profits were below year-ago levels, although the company appears to be slowly recovering from the impact of Hurricane Helene.

Net income was down about 17.4% for the third quarter, to $26.2 million, and its revenues were down about 3%, to $1.35 billion. The results marked a slight improvement in profitability compared with second-quarter results, as the retailer continues to struggle in the wake of the closure of four stores that were heavily damaged during last year’s hurricane that caused extensive flooding in North Carolina.

Three of those stores remain closed, although Ingles previously said it hopes to reopen them late this year or in 2026. The company is planning to build a replacement for the store that remains closed in Swannanoa, N.C., said Pat Jackson, chief financial officer, Ingles, in a statement to Supermarket News.

“Plans are in the process of being approved for the new Ingles Swannanoa Valley shopping center,” she said. “The project will include demolition of existing shops, raising the site elevation and construction of Ingles’ newest prototype grocery store.

“In addition, there will be new expanded small and large tenant space opportunities along with a new i Market,” Jackson said, referring to Ingles’ convenience-store format.

Local residents there had been frustrated with the lack of information about the future of the Swannanoa store, leading them to launch an online petition demanding more communication from Ingles. The community has reportedly struggled to access groceries since the storm last September.

The other two stores that remain closed are in Morganton and Spruce Pine, N.C. The retailer, which is based in Asheville, N.C., continues to operate 197 supermarkets in the region.

Gross profits improve as percent of sales

In the Q3 earnings report, Ingles said its gross profits for the quarter increased as a percent of sales compared with a year ago, to $327.3 million, or 24.3% of sales, compared with $329.8 million, or 23.7% of sales, in the year-ago period.

Operating and administrative expenses increased slightly in the quarter, to $290.1 million, compared with $286.3 million for the third quarter of fiscal 2024.

Through three quarters, Ingles said its net income was down about 45.9%, to $57.9 million, compared with the year-ago, nine-month span. Sales through three quarters totaled $3.97 billion, down about 6.4% compared with the first three quarters of last year.

View Comments