Jul 16, 2022

SpartanNash Q2 2022 Earnings Report

Announced strong second quarter fiscal 2022 results with net sales increased by 7.9% and raised guidance for full year 2022.

Key Takeaways

SpartanNash reported a strong second quarter in fiscal year 2022, with net sales increasing by 7.9% to $2.3 billion compared to the prior year quarter. The company's adjusted EBITDA increased by 13.7% to $61.8 million, and retail comparable sales rose by 6.5%.

Net sales increased 7.9% to $2.3 billion compared to the prior year quarter.

Retail comparable sales increased 6.5% for the quarter.

Adjusted EBITDA increased 13.7% to $61.8 million compared to the prior year quarter.

The company made progress on its Supply Chain Transformation, with a 9% improvement in throughput rate year-over-year.

Total Revenue
$2.27B
Previous year: $2.11B
+7.9%
EPS
$0.66
Previous year: $0.54
+22.2%
Gross Profit
$354M
Previous year: $334M
+6.2%
Cash and Equivalents
$21.2M
Previous year: $24.1M
-12.1%
Free Cash Flow
$2.06M
Total Assets
$2.32B

SpartanNash

SpartanNash

SpartanNash Revenue by Segment

Forward Guidance

The Company expects a stable earnings pace for the back half of fiscal 2022, inclusive of the net incremental costs associated with the Merchandising Transformation initiative, currently estimated to be between $11.0 million to $14.0 million.

Positive Outlook

  • Total net sales between $9,300 million and $9,600 million
  • Retail comp sales increase between 4.0% and 7.0%
  • Food Distribution sales increase between 4.0% and 7.0%
  • Military sales increase between 5.0% and 8.0%
  • Adjusted EBITDA between $227 million and $240 million

Challenges Ahead

  • Capital expenditures and IT capital between $100,000 thousand and $110,000 thousand
  • Depreciation and amortization between $90,000 thousand and $100,000 thousand
  • Interest expense between $19,000 thousand and $21,000 thousand
  • Income tax rate between 24.5% and 25.5%
  • Merchandising Transformation initiative costs between $11.0 million to $14.0 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income