SpartanNash Q2 Net Sales Down 3.5%

By Tamara Parker • Thursday, August 15 07:54 • Permanent Link

SpartanNash (NASDAQ: SPTN) has released its financial results for the second quarter ended July 13, 2024, showing a 3.5% decrease in net sales to $2.23 billion compared to the same period last year. The wholesale segment net sales decreased by 4.8% to $1.55 billion, while the retail segment net sales decreased by 0.4% to $676.1 million, with comparable store sales down 2.5%.

The company reported net earnings of $0.34 per diluted share, a decrease compared to $0.57 per diluted share in the previous period. Adjusted EPS came in at $0.59, down from $0.65, while adjusted EBITDA was $64.5 million, compared to $66.1 million.

SpartanNash's cash generated from operating activities increased by 166.0% to $132.1 million, compared to $49.7 million in the previous period. The net long-term debt to adjusted EBITDA ratio improved sequentially to 2.2x from 2.4x at the end of the first quarter. The company also returned $30.4 million to shareholders through $15.1 million in share repurchases and $15.4 million in dividends.

Looking at the outlook for fiscal 2024, SpartanNash reaffirmed its previous guidance, with total net sales expected to range between $9.5 billion and $9.7 billion, adjusted EBITDA between $255 million and $270 million, and adjusted EPS between $1.85 and $2.10. Capital expenditures and IT capital are projected to range between $135 million and $145 million.

SpartanNash's President and CEO, Tony Sarsam, expressed satisfaction with the company's progression of investments in margin-enhancing programs, despite the challenges in lower unit volumes and higher restructuring and asset impairment charges. The company is also piloting a customer value proposition initiative aimed at enhancing freshness, value, and convenience.

It is important to note that comparisons are for the second quarter of 2024 compared with the second quarter of 2023 unless otherwise noted, and all fiscal 2024 outlook comparisons are with the fiscal year-to-date 2023 unless otherwise noted.

SpartanNash is a food solutions company operating two business segments – food wholesale and grocery retail, serving various customers and offering a full suite of support services for independent grocers. Following these announcements, the company's shares moved 0.2%, and are now trading at a price of $19.55. If you want to know more, read the company's complete 8-K report here.

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