On August 15, 2024, SpartanNash Co (SPTN, Financial) released its 8-K filing reporting financial results for the 12-week second quarter ended July 13, 2024. SpartanNash Co is a food solutions company that delivers the ingredients for a better life. Its principal business activities include distributing grocery products to a diverse group of independent and chain retailers, its corporate-owned retail stores, and U.S. military commissaries and exchanges. The company operates in two segments: Retail and Wholesale, with the majority of revenue earned from its Wholesale segment.
Performance Overview
SpartanNash Co (SPTN, Financial) reported net sales of $2.23 billion for the second quarter of fiscal 2024, a 3.5% decrease from the same period last year, missing the analyst estimate of $2.27 billion. The decline was driven by lower volumes in both the Wholesale and Retail segments. The Wholesale segment saw a 4.8% decrease in net sales to $1.55 billion, primarily due to reduced volumes in the national accounts customer channel. The Retail segment experienced a slight decline of 0.4% to $676.1 million, with comparable store sales down 2.5%.
Financial Achievements and Challenges
Despite the decline in net sales, SpartanNash Co (SPTN, Financial) reported net earnings of $0.34 per diluted share, compared to $0.57 per diluted share in the same period last year. The decrease was primarily due to lower unit volumes and higher restructuring and asset impairment charges. However, the company achieved an adjusted EPS of $0.59, surpassing the analyst estimate of $0.53. Adjusted EBITDA was $64.5 million, compared to $66.1 million in the previous year.
The team’s execution of our transformational initiatives has created a foundation for future growth while contributing to our margin gains year-to-date," said SpartanNash President and CEO Tony Sarsam.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $2,230,756 | $2,312,394 |
| Gross Profit | $353,003 | $352,382 |
| Operating Earnings | $26,126 | $35,786 |
| Net Earnings | $11,489 | $19,468 |
| Net Earnings per Diluted Share | $0.34 | $0.57 |
Balance Sheet and Cash Flow Highlights
SpartanNash Co (SPTN, Financial) reported a significant increase in cash generated from operating activities, amounting to $132.1 million compared to $49.7 million in the previous year. This 166.0% increase is attributed to ongoing working capital management initiatives. The company's net long-term debt to adjusted EBITDA ratio improved sequentially to 2.2x from 2.4x at the end of the first quarter. Capital expenditures and IT capital were $73.4 million, compared to $63.5 million in the previous year. Additionally, SpartanNash returned $30.4 million to shareholders through $15.1 million in share repurchases and $15.4 million in dividends.
Fiscal 2024 Outlook
Based on the company's performance to date and the current outlook for the remainder of fiscal 2024, SpartanNash Co (SPTN, Financial) reaffirmed its previous guidance. The company expects total net sales 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.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from SpartanNash Co for further details.
