Ingles Markets Reports Modest Sales Growth and Increased Net Income for Third Quarter

Ingles Markets, Incorporated reported its financial results for the third quarter and nine months ended June 27, 2026, revealing a modest increase in net sales and net income compared to the same period last year. For the three months ended June 27, 2026, net sales reached $1.37 billion, a 1.6% increase from $1.35 billion in the prior year. Net income for the quarter was $25.9 million, slightly down from $26.2 million in the same quarter of 2025. For the nine-month period, net sales totaled $4.05 billion, up 2.1% from $3.97 billion, while net income surged to $78.3 million from $57.9 million in the previous year.

The company's gross profit for the third quarter was $332.4 million, reflecting a 1.6% increase from $327.3 million a year earlier, maintaining a gross profit margin of 24.3%. Operating and administrative expenses rose to $298.0 million, up 2.7% from $290.1 million, primarily due to increased salaries and wages, miscellaneous expenses, and bank charges. The company reported a decrease in the gain from the sale or disposal of assets, totaling $44.1 thousand in the latest quarter compared to $143.2 thousand in the prior year. Interest expenses decreased to $4.5 million from $4.9 million, attributed to a reduction in total debt.

Ingles Markets operates 195 supermarkets across several states, including North Carolina, Georgia, and South Carolina. The company opened one new store in North Carolina during the quarter, while three stores remain temporarily closed due to damage from Hurricane Helene. The impact of the hurricane continues to affect operations, with the company estimating a revenue loss of approximately $55 to $65 million in the immediate aftermath of the storm. Despite these challenges, comparable store sales increased by 0.4% for the nine-month period, excluding fuel sales.

The company’s balance sheet showed total assets of $2.63 billion as of June 27, 2026, an increase from $2.57 billion a year earlier. Total liabilities decreased slightly to $948.7 million from $950.1 million. Stockholders' equity rose to $1.68 billion, up from $1.62 billion, driven by retained earnings growth. Ingles Markets continues to maintain a strong liquidity position, generating $189.2 million in net cash from operations for the nine-month period, compared to $94.2 million in the prior year.

Looking ahead, Ingles Markets plans to invest approximately $120 to $130 million in capital expenditures for fiscal 2026, focusing on store improvements, technology upgrades, and the reopening of stores affected by Hurricane Helene. The company remains committed to paying regular quarterly dividends, with cash dividends of $0.165 per share for Class A Common Stock and $0.15 for Class B Common Stock. The outlook for the company remains cautiously optimistic, with management acknowledging potential risks from economic conditions, competition, and the ongoing effects of the hurricane.