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For the fiscal year ended Sept. 30, 2024, AMCON Distributing Company DIT reported an earnings per share (EPS) of $7.15, a notable decline from the previous year's EPS of $19.46.
Total revenues increased to $2.7 billion, up from $2.5 billion in fiscal 2023, indicating a growth in sales yet a drop in profitability.
AMCON’s fiscal 2024 reflects a mixed performance, with revenue growth overshadowed by a significant reduction in net income and EPS. Despite the increase in total sales, the company's operational expenses and interest costs have risen, impacting the bottom line.
AMCON Distributing Company Price, Consensus and EPS Surprise
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Key Business Metrics
Wholesale Distribution Segment
The wholesale distribution segment, a key driver of AMCON’s business, posted revenues of $2.7 billion and an operating income of $31.3 million in fiscal 2024, highlighting effective scale expansion and operational efficiency.
Retail Health Food Segment
This segment reported revenues of $42.5 million with a marginal operating income of $0.1 million, suggesting challenges in profitability despite contributing to the revenue stream.
Gross Profit
In fiscal 2024, AMCON reported a gross profit of $182.4 million, an improvement from the $170.8 million recorded in the previous year. This increase in gross profit by 6.7% reflects positively on the company’s ability to manage the cost of sales amid its revenue growth. The gross profit margin has seen a slight enhancement, suggesting a better alignment between the sales and cost of goods sold, even as the company expands its operational scope and scale.
Operating Income
The operating income for AMCON for the fiscal year 2024 was reported at $18 million, a decrease from the $26 million observed in fiscal 2023. This represents a significant decline of 30.8% in operating income, primarily driven by higher selling, general, and administrative (SG&A) expenses, which surged from $137.3 million to $154.9 million. Additionally, depreciation and amortization expenses also increased, further impacting the operating income. Despite the revenue growth, these rising operational costs have notably affected the company's operational efficiency and profitability during the fiscal year.
Interest Expenses
Interest expenses increased to $10.4 million from $8.6 million, reflecting higher debt levels primarily used to finance expansions and acquisitions. The balance sheet shows an increase in long-term debt and credit facilities, indicating a leveraged strategy to support growth.