AMCON Distributing Company Reports Q2 2025 Revenue Growth but Net Loss

AMCON Distributing Company reported its financial results for the second quarter of fiscal 2025, revealing a total revenue of $619.5 million, a 2.9% increase from $601.9 million in the same period last year. For the six months ending March 31, 2025, revenue reached $1.33 billion, up 6.7% from $1.25 billion in the prior year. However, the company experienced a net loss available to common shareholders of $1.59 million for the quarter, compared to a profit of $539,543 in Q2 2024. The loss per share was $(2.58), a significant decline from earnings of $0.90 per share in the previous year.

The company's gross profit for the second quarter was $43 million, slightly up from $42.3 million a year earlier, while the gross profit margin decreased to 6.9% from 7.0%. Operating expenses rose by 9.2% to $42.6 million, primarily due to increased costs associated with acquisitions and operational expenses. The company’s operating income fell sharply to $461,905 from $3.34 million in Q2 2024, reflecting the impact of rising costs and a challenging market environment.

AMCON's strategic developments included the acquisition of Arrowrock Supply in January 2025 for approximately $6.1 million, which is expected to enhance the company's service capabilities in the Inter-Mountain region. The wholesale segment, which serves around 7,900 retail outlets, reported a revenue increase of $16.9 million, driven by the Arrowrock acquisition and price increases in cigarette products. The retail segment also saw a revenue increase of 6.0%, attributed to the opening of a new store in Florida and higher sales volumes in existing locations.

Operationally, AMCON's total assets increased to $392 million as of March 31, 2025, compared to $374.1 million at the end of the previous fiscal year. The company reported a total of 645,462 shares of common stock outstanding, reflecting a slight increase from 630,362 shares at the end of September 2024. The company continues to face challenges from inflationary pressures and changing consumer behaviors, particularly in the convenience retail sector, which may impact future performance. Looking ahead, AMCON remains focused on strategic investments to enhance its competitive position and is closely monitoring regulatory developments that could affect its operations.