Natural Grocers by Vitamin Cottage (NGVC) Investor presentation summary

Company overview and strategy

• Operates 168 stores in 21 states, specializing in natural and organic groceries, body care, and supplements.

• Focuses on high-quality products, affordable pricing, nutrition education, and community outreach.

• Adheres to five founding principles: quality, nutrition education, affordability, community, and crew well-being.

• All produce is 100% organic, with strict product standards and a dedicated quality standards team.

• Stores are small format (~11,000 sq ft), offering a curated assortment and best-in-class customer service.

Market position and growth opportunity

• Well-positioned in the fast-growing U.S. natural and organic market, which reached $325B in 2024 and is projected to grow 4-6% annually.

• Organic fresh produce sales rose 5.7% to $9.5B in 2024; dietary supplement sales grew 5.2% to $69.3B.

• Plans to open 6-8 new stores in FY26, targeting 4-5% annual unit growth beyond FY26.

• New stores are profitable across market types, with a cash-on-cash return target of 25-30% by year 5.

• Rewards program penetration is 83% of sales, with private label products representing 9.6% of Q1 2026 sales.

Financial performance and outlook

• TTM net sales as of 12/31/25 were $1.34B, up 5.2%; TTM adjusted EBITDA was $98.6M (7.4% margin).

• Q1 2026 net sales were $336M (+1.6%), with 1.7% comp sales growth and 14% net income growth to $11.3M.

• Diluted EPS for Q1 2026 rose 14% to $0.49; gross margin declined 40 bps, operating margin improved 40 bps.

• Fiscal 2026 outlook: 6-8 new stores, 1.5-4.0% comp sales growth, $2.00-$2.15 EPS, $50-55M in capex.

• Strong balance sheet with $23.2M cash, $67.6M available credit, and 0.5x debt/adjusted EBITDA.