SpartanNash Preliminary Q1 Results Show Growth in Sales, Net Income
SpartanNash’s preliminary first quarter sales and net income show year-over-year increases driven by the company’s efforts to transform its supply chain and revenue growth in its retail division.
For the quarter ended April 23, net sales are expected to be between $2.74 billion and $2.77 billion, up from net sales of $2.66 billion in the comparable quarter the previous year. Net earnings are anticipated to be between $18.7 million and $19.7 million, as compared to $19.5 million in the same quarter the prior year. Adjusted EBITDA is expected to be between $75.6 million and $77.6 million, compared to $64.8 million in the prior year quarter.
“We kicked off 2022 with significant momentum, achieving solid preliminary results in the first quarter and surpassing our internal expectations,” said Tony Sarsam, SpartanNash president and CEO.
The company said its preliminary results were driven by several factors, including:
- Further transforming its supply chain, securing more than $15 million in run-rate cost savings and meeting its initial full-year commitment of $15 million to $30 million of annualized savings during the first quarter, while delivering an approximate 7% improvement in throughput rate year-over-year.
- Building on its strong momentum in retail, with preliminary comparable store sales increasing to 7.2%.
- Achieving preliminary military operating margin between 0.21% and 0.25% and preliminary military adjusted EBITDA margin between 1.5% and 1.6%, in excess of its turnaround target of 1% as the operational and supply chain improvements take hold.
The company has also raised its guidance for the remainder of its fiscal year, which ends December 31.
- Net sales guidance to a range of $9.0 billion to $9.3 billion, compared to the prior guidance of $8.9 billion to $9.1 billion.
- Adjusted EBITDA guidance to a range of $224 million to $239 million, compared to the prior guidance of $214 million to $229 million.