Ingles Markets Reports Decline in Q2 and First Half Fiscal 2025 Financial Performance

Ingles Markets, Incorporated reported a decline in financial performance for the second quarter and first half of fiscal 2025, as detailed in its latest 10-Q filing. For the three months ended March 29, 2025, net sales reached $1.33 billion, a decrease of 2.7% from $1.37 billion in the same period last year. The company's net income also fell significantly to $15.1 million, down from $31.9 million in the prior year, reflecting a decrease in sales and increased operational expenses. For the six-month period, net sales totaled $2.62 billion, an 8.0% decline from $2.85 billion, with net income dropping to $31.7 million from $75.3 million.

The filing highlights several operational challenges, particularly the impact of Hurricane Helene, which caused significant disruptions. The company estimates a revenue loss of approximately $55 to $65 million due to store closures and operational interruptions following the storm. As of March 29, 2025, three of the four stores affected by the hurricane remained closed, although they are expected to reopen in the coming years. The company incurred about $6.7 million in cleanup and repair costs related to the hurricane during the reporting period.

Ingles Markets also reported changes in its expense structure. Operating and administrative expenses increased to $289.1 million for the three months ended March 29, 2025, compared to $284.8 million in the previous year. This increase was attributed to higher repair and maintenance costs due to hurricane-related damages, as well as increased professional fees associated with technology investments. Conversely, interest expenses decreased to $4.9 million from $5.6 million, primarily due to lower interest rates on variable rate debt.

The company continues to focus on capital expenditures, totaling $62.0 million for the first half of fiscal 2025, which includes investments in store improvements and technology upgrades. Looking ahead, Ingles Markets plans to allocate approximately $120 to $160 million for capital expenditures in fiscal 2025, aimed at enhancing its store base and reopening locations affected by the hurricane. Despite the current challenges, the company remains committed to maintaining its dividend payments, having consistently paid quarterly dividends of $0.165 per share for Class A Common Stock and $0.15 for Class B Common Stock.