SpartanNash, a food solutions company, has reported its financial results for the first quarter of fiscal 2025. The highlights from the report include a 3.7% increase in net sales to $2.91 billion. This growth was driven by a 19.6% increase in the retail segment's net sales, amounting to $947.2 million, primarily due to incremental sales from acquired stores. Additionally, retail comparable store sales saw a 1.6% increase.
However, net earnings decreased to $2.1 million or $0.06 per diluted share, compared to $13.0 million or $0.37 per diluted share in the same period last year. Adjusted EPS also decreased to $0.35 from $0.53.
On a positive note, adjusted EBITDA increased to $76.9 million from $74.9 million, driven by improved wholesale margins, lower restructuring and asset impairment charges, and decreased corporate administrative costs.
It's worth noting that cash generated from operating activities decreased to $25.8 million from $36.5 million, and capital expenditures and IT capital decreased to $34.6 million from $44.1 million. SpartanNash also returned $8.0 million to shareholders through dividends.
Looking ahead, SpartanNash reaffirmed its previous fiscal 2025 guidance provided on February 12, 2025. The company expects total net sales to be between $9.8 billion and $10.0 billion, adjusted EBITDA to be between $263 million and $278 million, and adjusted EPS to be between $1.60 and $1.85. The guidance incorporates the investments and benefits from the company’s long-term strategic initiatives, including all transformational programs and tuck-in acquisitions.
Following these announcements, the company's shares moved 9.03%, and are now trading at a price of $21.2399. For more information, read the company's full 8-K submission here.
