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Dec 31, 2022
SpartanNash Q4 2022 Earnings Report
Reported solid fourth-quarter results and fiscal 2022 performance that exceeded expectations.
Key Takeaways
SpartanNash reported a 10.3% increase in net sales for the quarter, reaching $2.3 billion. However, net earnings decreased to $0.7 million compared to $22.2 million in the prior year quarter. Adjusted EBITDA increased to $47.2 million from $43.0 million in the prior year quarter.
Net sales increased 10.3% to $2.3 billion.
Retail comparable sales increased 9.1%.
Net earnings were $0.7 million, compared to $22.2 million in the prior year quarter.
Adjusted EBITDA increased to $47.2 million from $43.0 million in the prior year quarter.
SpartanNash
SpartanNash
SpartanNash Revenue by Segment
Forward Guidance
The Company provided guidance for fiscal year 2023, expecting net sales between $9.9 billion and $10.2 billion, adjusted EBITDA between $248 million and $263 million, and adjusted EPS between $2.20 and $2.35.
Positive Outlook
- Wholesale net sales to grow 4.0% to 7.0%, inclusive of the net sales from a recently acquired grocery wholesaler, Great Lakes Foods.
- Retail comparable sales to grow 2.0% to 5.0%.
- Net sales to more than $10.5 billion (previously $10 billion), an increase of at least 17% from fiscal 2021
- Adjusted EBITDA to more than $300 million, an increase of at least 40% from fiscal 2021
- Increasing net sales by more than $1 billion through customer acquisition and continued expansion into value-add offerings
Challenges Ahead
- Annual interest expense will range from $37 million to $42 million.
- During the first quarter of 2023, the Company will cycle a significant inflation-related price change benefit of nearly $10 million
- During the first quarter of 2023, $4 million in Retail wage investments.
- The Company expects the benefits from its supply chain and merchandising transformation initiatives will not fully offset these headwinds in the first quarter of 2023.