Southeastern grocer Ingles Markets on Thursday reported a more than 7% increase in net sales during its first fiscal quarter, though its profit margin took a slight dip.
For the quarter ended Dec. 24, Asheville, North Carolina-based Ingles reported net sales of $1.49 billion, up 7.3% from the year-ago period.
Gross profit for the first quarter of 2023 totaled $371.2 million, or 24.9% of sales. A year ago, Ingles’ gross profit was $350.5 million, or 25.2% of sales.
“Ingles had strong performance results for the quarter,” Board Chairman Robert P. Ingle II said in a statement. “We are thankful for our customers and our associates as we continue to focus on fresh and affordable food offerings.
Ingles significantly increased its capital expenditures during the quarter, spending $59.3 million during the period compared with $21.3 million during Q1 2022.
The grocer’s net income totaled $69.4 million during the quarter, up 4.7% from a year ago.
Ingles’ debt load decreased during Q1, down to $564.5 million versus $586.1 million during the same period last year.
Ingles, which was founded in 1963, operates nearly 200 supermarkets in six states. The company also operates neighborhood shopping centers, most of which contain an Ingles Market, as well as a dairy facility that supplies its grocery stores and other customers. The grocer self distributes to its stores from a distribution center near its headquarters. All of its stores are within 250 miles of that center.