Ingles Reports 13% Drop in Sales and Profits for Last Quarter of 2024
In the aftermath of Tropical Storm Helene, Ingles Markets faced a significant decrease in both sales and profits in the last quarter of 2024. The Black Mountain-based grocery chain reported a 13 percent decline in net sales, amounting to $193 million, compared to the same period in 2023. This information was disclosed in a filing with the U.S. Securities and Exchange Commission.
The repercussions of the storm were severe for Ingles, resulting in revenue losses ranging from $55 million to $65 million in the three weeks following the storm. Stores were unable to operate normally due to road and power outages, with some facing closures or reduced hours. Additionally, electronic payment disruptions further exacerbated the financial impact on the company.
The effects of Helene were visible on Ingles’ operations, particularly on its distribution center in Black Mountain, which sustained damages, including to the railroad tracks in front of the building. As a result, power outages affected 80 out of the company’s 198 stores, prompting the closure of four stores in North Carolina. While one of the closed stores in Newland had reopened by the year’s end, the other three in Swannanoa, Morganton, and Spruce Pine were expected to resume operations in 2025.
Initial assessments following the storm revealed losses amounting to nearly $35 million due to inventory and property damage, offset in part by insurance. Sales declined by $14 million, with additional losses expected to be documented in future filings. The first quarter report indicated that Ingles’ gross profit saw a significant decrease of $47.7 million, or 13.7 percent, from the previous year, while net income dropped to $16.6 million from $43.4 million.
Aside from the storm’s impact, Ingles Markets also attributed its lower profits and net income for 2024 to inflation and increased operating expenses resulting from heightened labor market competition. The closure of the storm-damaged stores and the subsequent inability of associates to return to work led to a reduction in operating expenses in the first quarter of the following year.
Despite these challenges, Ingles Markets remains a significant employer in the region with 24,285 employees earning a median salary of $22,801 in 2024. The company’s board chairman, Robert P. Ingle II, received $7.4 million in compensation, including a substantial bonus, while Chief Executive Officer and President James W. Lanning received $3.1 million, including a notable bonus.
In light of the financial setbacks experienced due to the storm and other factors, Ingles Markets’ Class A shares saw a decline, reaching a 52-week low before a slight rebound. The stock has depreciated by 29.6 percent over the past three years, coinciding with a notable increase in executive compensation.
