Natural Grocers by Vitamin Cottage (NGVC) Q4 2024 earnings summary

Executive summary

• Achieved record net sales and earnings for Q4 and fiscal 2024, with balanced growth in sales, margin, and net income, and 21 consecutive years of positive comparable store sales.

• Daily average comparable store sales grew 7.1% in Q4 and 7% for the year, driven by increased transactions, items per basket, modest inflation, and new store contributions.

• Net income increased 53.2% in Q4 and 46% for the year; diluted EPS grew 44% for the year.

• Increased quarterly cash dividend by 20% to $0.12 per share, reflecting confidence in ongoing performance.

• Opened four new stores and relocated/remodeled four stores in fiscal 2024, ending the year with 169 stores in 21 states.

Financial highlights

• Q4 net sales rose 9.3% year-over-year to $322.7 million; full year net sales up 8.9% to $1.24 billion.

• Q4 net income was $9 million, diluted EPS $0.39; full year net income $33.9 million, diluted EPS $1.47.

• Q4 Adjusted EBITDA up 41% to $22.6 million; full year Adjusted EBITDA up 31.4% to $83.3 million.

• Q4 gross margin increased 100 bps to 29.6%; full year gross margin up 70 bps to 29.4%.

• Free cash flow for the year was $35.2 million; operating cash flow $73.8 million.

Outlook and guidance

• Fiscal 2025 guidance: 4–6 new stores, 2–4 relocations/remodels, 4–6% comparable store sales growth.

• Diluted EPS expected between $1.52 and $1.60; capital expenditures of $36–44 million.

• Sales comps expected to be stronger in H1, moderating in H2; modest inflation anticipated.

• Gross margin and store expenses as a percentage of sales expected to be flat to slightly lower year-over-year.