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SpartanNash Reports Fourth Quarter and Fiscal Year 2024 Results

In a recent announcement, food solutions company SpartanNash (Nasdaq: SPTN) unveiled its financial achievements for the fourth quarter of its fiscal year 2024 ending December 28, 2024. The company continues to make strides in its strategic growth plan, reporting key financial metrics, including net sales performance and adjusted earnings per share.

Financial Highlights

Fourth Quarter Summary

For the fourth quarter, SpartanNash recorded net sales reaching $2.26 billion, reflecting a 0.7% increase compared to the same period last year. This growth was primarily driven by higher volumes within the retail segment, despite a 2.1% decrease in sales within the wholesale segment.

By segment, the retail division saw net sales climb to $697.1 million, an increase of 7.7%. However, comparable store sales within this segment dipped by 0.7%. This indicates that while newly acquired stores are contributing positively, overall consumer demand trends are presenting challenges.

On the contrary, the wholesale segment experienced a decline, with net sales falling to $1.56 billion due to reduced case volumes. The company’s overall profitability for the quarter was impacted, posting a net loss of $1.04 per diluted share compared to $0.30 in earnings from the previous year.

Annual Performance Review

In terms of the full fiscal year 2024, SpartanNash noted that total net sales dropped 1.9%, amounting to $9.55 billion. The wholesale segment's year-end performance was notably weaker, reporting a 3.0% decrease in sales, while retail modestly increased by 1.1%. Specific figures disclose that the retail net sales reached $2.84 billion, although comparable store sales declined by 1.7%.

Despite a challenging landscape, adjusted earnings per share for the entire fiscal year were $2.03, down from $2.18 in 2023. However, adjusted EBITDA improved slightly to $258.5 million, illustrating efficiency in operations and focus on margin-enhancement tactics.

Strategic Outlook for 2025

Looking ahead, SpartanNash is optimistic about its growth trajectory for fiscal year 2025. The company anticipates achieving net sales between $9.8 billion and $10 billion, with adjusted EBITDA projected to fall between $263 million and $278 million. Additionally, the adjusted EPS is expected to range from $1.60 to $1.85 with a new capital expenditure strategy ranging from $150 million to $165 million.

The strategies include integrating recently acquired entities—specifically grocery and convenience store businesses—aimed at augmenting both revenue and operational quality. SpartanNash CEO Tony Sarsam expressed pride in the company’s continued progress, emphasizing the successful execution of margin-enhancing programs.

In his remarks, he stated, "We are energized by the momentum going into 2025... We are also investing in organic growth, fueled by a focus on our transformational initiatives, which are expected to further drive results and maximize long-term shareholder value."

Closing Thoughts

As SpartanNash navigates a competitive food solutions landscape, its commitment to strategic acquisitions, combined with innovation and efficiency, positions the company for a resilient and adaptive operational future. Stakeholders will be keen to follow the company's forthcoming conference call for further insights and detailed discussions on performance metrics and the strategy for achieving its fiscal goals.

For further details, visit SpartanNash's official website and stay updated on their financial progress.