Ingles Markets reports higher earnings despite sales dip

Ingles Market reported higher second-quarter and first-half earnings despite a slight decline in quarterly sales, driven by improved profit margins and lower interest expenses.

The grocery chain said net income for the quarter ending March 28 rose to $24.3 million, or $1.28 per diluted share, compared with $15.1 million, or 80 cents per diluted share, in the same period a year earlier.

Quarterly net sales fell 1.8% to $1.31 billion from $1.33 billion in the second quarter of fiscal 2025.

Gross profit increased to $325.3 million, or 24.9% of sales, from $311 million, or 23.4% of sales, a year earlier. Operating and administrative expenses were relatively unchanged at $291.2 million.

Interest expense declined to $4.5 million from $4.9 million in the prior-year quarter.

Chairman Robert P. Ingle II credited company employees for the results, saying the performance reflected associates’ commitment to customers and local communities.

For the first six months of fiscal 2026, Ingles reported net income of $52.4 million, or $2.76 per diluted share, compared with $31.7 million, or $1.67 per diluted share, during the same period last year.

First-half sales rose 2.4% to $2.68 billion from $2.62 billion.

Gross profit for the six-month period increased to $659.8 million, or 24.6% of sales, from $612.1 million, or 23.4% of sales, in the prior year.

Operating and administrative expenses increased to $586.6 million from $569.9 million, while interest expense fell to $9.1 million from $9.9 million.

Total debt stood at $503.8 million as of March 28, down from $521.6 million a year earlier.

Capital expenditures for the first half of fiscal 2026 totaled $53 million, compared with $62 million during the same period in fiscal 2025.