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SpartanNash
🇺🇸 NASDAQ:SPTN
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OverviewEarningsDividends
•
Apr 18, 2020

SpartanNash Q1 2020 Earnings Report

SpartanNash's Q1 2020 financial performance was marked by significant sales growth and increased profitability, driven by strong consumer demand and effective cost management.

Key Takeaways

SpartanNash reported a 12.4% increase in net sales, reaching $2.86 billion, and a 15.6% rise in retail comparable store sales. EPS increased by 105% to $0.43, with adjusted EPS up 179% to $0.67. The company also improved its leverage ratio by paying down over $90 million in long-term debt and raised its fiscal year 2020 outlook.

Net sales increased by 12.4% to $2.86 billion, driven by COVID-19 impacts and growth with existing customers.

Retail comparable store sales rose by 15.6%, reflecting a significant acceleration due to the COVID-19 pandemic.

EPS increased by 105% to $0.43 per share, and adjusted EPS increased by 179% to $0.67 per share.

Adjusted EBITDA increased by 35% to $74.0 million, driven by increased sales volume and cost management.

Total Revenue
$2.86B
Previous year: $2.54B
+12.4%
EPS
$0.67
Previous year: $0.24
+179.2%
Retail Comp Sales
15.6%
Gross Profit
$424M
Previous year: $378M
+12.1%
Cash and Equivalents
$21.3M
Previous year: $21.4M
-0.5%
Free Cash Flow
$111M
Total Assets
$2.31B
Previous year: $2.36B
-1.9%

SpartanNash

SpartanNash

SpartanNash Revenue by Segment

Forward Guidance

The Company expects to continue to benefit from higher consumer food-at-home consumption related to COVID-19, however, the duration and magnitude of the impact are uncertain.

Positive Outlook

  • Company believes that its sales for fiscal 2020 will materially exceed its initial 2020 guidance.
  • Updates include incremental adjusted earnings per share from continuing operations for the COVID-19 impact experienced to-date.
  • Benefits associated with cost reduction initiatives.
  • Increased sales and earnings trends the Company was experiencing prior to the onset of the pandemic.
  • Company currently anticipates any incremental costs related to COVID-19 will be more than offset by the improved food-at-home sales trend.

Challenges Ahead

  • The duration and magnitude of the impact are uncertain.
  • Company is unable to fully estimate the impact COVID-19 will have on the remainder of 2020.
  • Updated outlook for the second half of the year does not include any adjustment for future impacts from the COVID-19 pandemic.
  • Uncertainty of the COVID-19 pandemic.
  • The Company's ability to compete in the highly competitive grocery distribution, retail grocery, and military distribution industries.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View SpartanNash