Village Super Market (VLGE.A) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 sales rose 3.2% to $2.24 billion, with same store sales up 2.3% and digital sales up 12%.

• Net income was $50.5 million; adjusted net income increased 7% to $52.6 million year-over-year.

• Fourth quarter sales grew 4.4% to $578.2 million, with same store sales up 2.7%.

Financial highlights

• Gross profit margin improved to 28.70% from 28.45% year-over-year, driven by higher departmental margins and increased patronage dividends from Wakefern.

• Operating and administrative expenses as a percentage of sales increased to 24.34% from 23.86%, mainly due to higher labor and benefit costs.

• Interest expense declined due to lower average debt balances; interest income rose on higher rates and larger investments with Wakefern.

• Effective tax rate decreased to 30.6% from 31.6% year-over-year.

Outlook and guidance

• Same store sales growth expected between 1.0% and 3.0% for fiscal 2025.

• Capital expenditures budgeted at $75 million for fiscal 2025, including new and replacement stores, remodels, and technology upgrades.

• Quarterly dividends are expected to continue at $0.25 per Class A and $0.1625 per Class B share.

• Management expects liquidity and credit facilities to be sufficient for foreseeable needs.