Ingles Markets Reports Decline in Q3 and Nine-Month Financial Performance Due to Hurricane Helene

Ingles Markets, Incorporated reported a decline in financial performance for the third quarter and nine months ended June 28, 2025, compared to the same periods in the previous fiscal year. For the third quarter, net sales decreased by 3.4% to $1.35 billion, down from $1.39 billion, while net income fell to $26.2 million from $31.7 million. The nine-month figures showed a more significant drop, with net sales of $3.97 billion, a 6.5% decrease from $4.24 billion, and net income of $57.9 million, down from $107.0 million. The decline in revenue and profitability was attributed to the impact of Hurricane Helene, which caused store closures and disrupted operations.

The company's gross profit for the third quarter was $327.3 million, slightly lower than the $329.8 million reported in the prior year, but gross profit as a percentage of sales improved to 24.3% from 23.7%. Operating and administrative expenses increased to $290.1 million, representing 21.5% of sales, up from 20.5% in the previous year. The increase in expenses was primarily due to higher insurance costs, depreciation, and maintenance expenses related to the hurricane's aftermath. The company also reported a gain from asset sales of $143,235, down from $643,003 in the prior year.

Ingles Markets operates 197 supermarkets across several states, including North Carolina, Georgia, and South Carolina. The company faced challenges due to the temporary closure of three stores affected by Hurricane Helene, which are expected to reopen in late 2025 or 2026. The company has focused on enhancing its product offerings, including organic products and prepared foods, while also investing in technology and store improvements. Capital expenditures for the nine months ended June 28, 2025, totaled $91.4 million, with plans for continued investment in store upgrades and technology.

The company’s balance sheet showed total assets of $2.55 billion as of June 28, 2025, with total liabilities of $953.3 million, resulting in stockholders' equity of $1.59 billion. Cash and cash equivalents decreased to $336.1 million from $353.7 million a year earlier. The company maintained a $150 million line of credit, which was amended in June 2025 and is set to mature in June 2030. Despite the challenges faced, Ingles Markets remains committed to its growth strategy and expects to continue paying regular quarterly dividends, reflecting its ongoing financial stability.