SpartanNash Reports Strong Q4 Results

By Tamara Parker • Wednesday, February 12 10:21 • Permanent Link

SpartanNash, a food solutions company, reported its financial results for the fourth quarter and fiscal year 2024, and provided a robust outlook for fiscal 2025. The company's net sales for the 12-week fourth quarter ended Dec. 28, 2024, increased by 0.7% to $2.26 billion. The retail segment's net sales saw a significant increase of 7.7% to $697.1 million, while comparable store sales were down 0.7%. However, the wholesale segment experienced a decrease in net sales by 2.1% to $1.56 billion due to reduced case volumes.

The company reported a net loss of $1.04 per diluted share for the fourth quarter, compared to net earnings of $0.30 per diluted share in the same period the previous year. Adjusted EPS increased to $0.42 from $0.35, and adjusted EBITDA reached $58.6 million, up from $53.6 million.

For the full fiscal year 2024, net sales decreased by 1.9% to $9.55 billion. The wholesale segment's net sales decreased by 3.0% to $6.71 billion, while the retail segment's net sales increased by 1.1% to $2.84 billion, with comparable store sales decreasing by 1.7%. The company reported net earnings of $0.01 per diluted share, a decrease from $1.50 per diluted share in the previous year. Adjusted EPS decreased to $2.03 from $2.18, while adjusted EBITDA increased to $258.5 million from $257.4 million. Cash generated from operating activities increased significantly by 130.5% to $205.9 million.

SpartanNash's net long-term debt to adjusted EBITDA ratio increased to 2.8x from 2.4x at the end of the third quarter, primarily due to inorganic growth investments in the fourth quarter. The company's capital expenditures and IT capital reached $144.4 million compared to $127.4 million in the previous period. Additionally, SpartanNash returned $45.0 million to shareholders through $15.1 million in share repurchases and $29.9 million in dividends.

Looking ahead to fiscal 2025, SpartanNash provided its guidance, expecting total net sales to range between $9.8 billion and $10 billion, with adjusted EBITDA between $263 million and $278 million. The company also provided adjusted EPS guidance of $1.60 to $1.85 and anticipates capital expenditures and IT capital to range between $150 million and $165 million.

The company's outlook for fiscal 2025 incorporates investments and benefits from its long-term strategic initiatives, including transformational programs and tuck-in acquisitions. SpartanNash expects the 53rd week to contribute to net sales, adjusted EBITDA, and adjusted EPS.

For further details, SpartanNash will host a conference call to discuss its quarterly results on Wednesday, Feb. 12, 2025, at 8:30 a.m. ET, and a supplemental quarterly earnings presentation will be available on the company's website. The market has reacted to these announcements by moving the company's shares 9.5% to a price of $20.61. For the full picture, make sure to review SpartanNash's 8-K report.

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