SpartanNash Company (SPTN) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 decreased 0.6% year-over-year to $2.25 billion, with Wholesale down 1.6% and Retail up 1.9% due to inorganic growth; net earnings per diluted share remained flat at $0.32.

• Adjusted EPS was $0.48, down from $0.54, and adjusted EBITDA was $60.5 million, nearly flat year-over-year.

• Cash from operating activities rose 28.8% to $123.3 million, driven by working capital management.

• $37.7 million was returned to shareholders year-to-date via $15.1 million in share repurchases and $22.6 million in dividends.

• Announced upcoming acquisitions of Fresh Encounter and Markham to support growth.

Financial highlights

• Q3 net sales: $2.25 billion (down 0.6% year-over-year); net earnings: $10.9 million (down from $11.1 million).

• Gross profit for Q3 increased to $354.6 million (15.8% of sales) from $347.5 million (15.3%).

• Adjusted EBITDA for Q3: $60.5 million; adjusted EPS: $0.48.

• Operating earnings rose 8.0% to $24.9 million; year-to-date operating earnings decreased 1.8% to $81.7 million.

• Interest expense increased 6.8% to $9.9 million for the quarter.

Outlook and guidance

• Fiscal 2024 net sales guidance updated to $9.5–$9.7 billion; adjusted EBITDA guidance: $252–$257 million; adjusted EPS: $1.85–$1.95.

• Capital expenditures and IT capital expected at $135–$140 million for 2024.

• Fiscal 2025 preview: expects low-single-digit topline growth and mid-single-digit adjusted EBITDA growth, with benefits from acquisitions.