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Dec 28, 2024
SpartanNash Q4 2024 Earnings Report
SpartanNash's profitability and cash flow were significantly boosted by growth and cost savings.
Key Takeaways
SpartanNash reported a 0.7% increase in net sales to $2.26 billion for the fourth quarter of fiscal year 2024, driven by an increase in the Retail segment, partially offset by lower volume in the Wholesale segment. The company reported a net loss of $1.04 per diluted share, compared to net earnings of $0.30 per diluted share, which included the write-off of $45.7 million of goodwill within the Retail segment. Adjusted EPS was $0.42, compared to $0.35, and Adjusted EBITDA was $58.6 million, compared to $53.6 million.
Net sales increased 0.7% to $2.26 billion, driven by an increase in volume in the Retail segment, partially offset by lower volume in the Wholesale segment.
Wholesale segment net sales decreased 2.1% to $1.56 billion primarily due to reduced case volumes in both the independent retailers and national accounts customer channels.
Retail segment net sales increased 7.7% to $697.1 million, while comparable store sales were down 0.7%.
Adjusted EPS of $0.42, compared to $0.35. Adjusted EBITDA of $58.6 million, compared to $53.6 million.
SpartanNash
SpartanNash
SpartanNash Revenue by Segment
Revenue by Segment
Wholesale Revenue
CapyFin.comRetail Revenue
CapyFin.com Forward Guidance
SpartanNash provided its outlook for fiscal year 2025, projecting net sales between $9.8 billion and $10.0 billion, adjusted EBITDA between $263 million and $278 million, and adjusted EPS between $1.60 and $1.85.
Positive Outlook
- Guidance incorporates both the investments and benefits from the Company’s long-term strategic initiatives, including all transformational programs and tuck-in acquisitions.
- The Company estimates that the 53rd week will contribute net sales of $0.2 billion
- The Company estimates that the 53rd week will contribute adjusted EBITDA of $4.0 million
- The Company estimates that the 53rd week will contribute adjusted EPS of $0.06.
- Capital expenditures and IT capital between $150 million and $165 million
Challenges Ahead
- Adjusted EPS guidance reflects an approximate $0.30 impact due to an increase in non-cash expenses primarily depreciation and amortization
- Adjusted EPS guidance reflects an approximate $0.30 impact due to incremental interest costs associated with recent acquisitions.
- Adjusted EPS guidance reflects an approximate $0.30 impact due to incremental interest costs associated with capital investments.
- Macroeconomic uncertainty, including rising inflation
- Potential economic recession, and increasing interest rates
Revenue & Expenses
Visualization of income flow from segment revenue to net income