In This Article:
-
Net Sales: $1.37 billion for Q2 2024, reflecting a decrease of 0.95% year-over-year.
-
Gross Profit: $321.9 million in Q2 2024, with a gross margin of 23.5%.
-
Net Income: $31.9 million in Q2 2024, down from $40.5 million in Q2 2023.
-
Earnings Per Share: Basic and diluted EPS for Class A Common Stock at $1.72 and $1.68 respectively in Q2 2024.
-
First Half Net Sales: $2.85 billion in the first half of 2024, a slight decrease of 0.88% from the previous year.
-
First Half Net Income: $75.3 million, a decrease from $109.9 million in the first half of 2023.
-
Capital Expenditures: Increased to $98.4 million in the first half of 2024 from $91.4 million in the first half of 2023.
On May 9, 2024, Ingles Markets Inc (NASDAQ:IMKTA) disclosed its financial results for the second quarter and the first half of fiscal year 2024 through its 8-K filing. The company, a prominent supermarket chain operating primarily in the southeastern United States, reported a decrease in net sales and net income compared to the previous year, reflecting various operational and economic challenges.
Financial Highlights and Performance Analysis
In the second quarter of fiscal 2024, Ingles Markets saw its net sales decrease by 0.95% to $1.37 billion from $1.38 billion in the corresponding quarter of the previous year. Similarly, the first half of fiscal 2024 also saw a slight decrease in net sales by 0.88%, totaling $2.85 billion. This decline in sales reflects the challenging market conditions and competitive pressures the company faces.
The gross profit margin slightly decreased to 23.5% in the second quarter from 23.6% in the same period last year. This marginal decline indicates relatively stable pricing and cost management strategies despite the sales drop. However, operating and administrative expenses showed a notable increase, rising to $284.8 million in the second quarter of fiscal 2024 from $268.9 million in the prior year, indicating rising operational costs that could impact profitability.
Net income for the second quarter decreased significantly to $31.9 million from $40.5 million in the second quarter of fiscal 2023. This represents a decrease in earnings per share (EPS) for Class A Common Stock from $2.18 to $1.72 on a basic level and from $2.13 to $1.68 on a diluted level. The first half of fiscal 2024 also mirrored this downward trend, with net income totaling $75.3 million compared to $109.9 million in the previous year, and a decrease in EPS from $5.92 to $4.05 on a basic level and from $5.79 to $3.96 on a diluted level.