Executive Summary

Q2 2025 headline: Sales (incl. excise taxes) rose 2.9% YoY to $619.5M, but DIT posted a net loss of $1.6M (diluted EPS $(2.58)) as operating expense growth outpaced gross profit and interest burden remained elevated; operating income fell to $0.5M from $3.3M YoY .
Wholesale revenue grew modestly YoY (+$16.9M) aided by acquisitions (Arrowrock, Burklund, Richmond Master) and cigarette price increases, but cigarette volume/mix and promotions pressured margins; consolidated gross margin slipped to 6.9% from 7.0% .
No formal financial guidance provided; Board maintained the regular $0.18 quarterly dividend (Apr 29, 2025 declaration; payable May 30, 2025), consistent with the prior $0.18 declared Jan 28, 2025 .
Consensus estimates: S&P Global shows no Wall Street consensus EPS or revenue estimates for Q2 2025; analyst coverage appears minimal. Values from S&P Global were unavailable for comparison; investors should anchor on company-reported results [functions.GetEstimates output – no consensus returned: Primary EPS/Revenue].

What Went Well and What Went Wrong

What Went Well
- Acquisition-driven footprint expansion and integration: DIT closed the Arrowrock Supply acquisition in mid‑January, extending into the Intermountain region; management emphasized integration efforts and the company’s rank as the 3rd largest convenience distributor by territory .
- Foodservice momentum as a strategic focus: “We now have the capability to offer turn‑key solutions that will enable our retail partners the ability to compete head‑on with the Quick Service Restaurant industry,” noted President/COO Andrew Plummer; retail segment gross profit rose YoY and retail gross margin held strong (37.6%) .
- Balance sheet access/liquidity: Shareholders’ equity stood at $111.4M at 3/31/25; combined facilities had $78.4M available with $142.3M outstanding at quarter‑end, supporting ongoing investments (e.g., Colorado City, CO 250k sq. ft. DC) .
What Went Wrong
- Earnings pressure from cost inflation and integration costs: Operating expenses rose $3.6M YoY; drivers included acquisition‑related cost additions and higher health insurance and other wholesale operating costs, compressing operating income .
- Cigarette volume/mix headwinds and promotions: Wholesale gross profit was dampened by a $1.0M decrease tied to cigarette carton volume/mix and a $0.8M decrease from Other Products promotions/mix, partially offsetting acquisition benefits .
- Interest burden and negative bottom line: Interest expense remained high ($2.27M for the quarter), swinging results to a net loss of $1.59M vs. $0.54M profit in Q2 2024; diluted EPS fell to $(2.58) from $0.89 YoY .

Financial Results

Income statement (company-reported; sales include excise taxes)

Metric	Q2 2024	Q1 2025	Q2 2025
Sales (incl. excise taxes) ($)	$601,877,306	$711,273,256	$619,503,087
Gross Profit ($)	$42,310,867	$46,893,552	$43,027,885
Gross Profit %	7.0%	6.6% (calc not disclosed)	6.9%
Operating Income ($)	$3,343,663	$3,670,321	$461,905
Interest Expense ($)	$2,247,737	$2,846,621	$2,266,407
Net Income ($)	$539,543	$348,419	$(1,589,960)
Diluted EPS ($)	$0.89	$0.57	$(2.58)

Notes: Excise taxes embedded in Sales were $127.4M (Q2’24), $143.4M (Q1’25), and $126.1M (Q2’25) .

Segment and category mix (Q2 2025 vs. Q2 2024)

Metric	Q2 2024	Q2 2025
Wholesale External Revenue ($)	$590,652,977	$607,600,563
Retail External Revenue ($)	$11,224,329	$11,902,524
Wholesale Operating Income ($)	$5,813,354	$2,821,616
Retail Operating Income ($)	$456,722	$430,846
Wholesale Gross Profit ($)	$38,155,508	$38,556,563
Wholesale Gross Margin (%)	6.5%	6.3%
Retail Gross Profit ($)	$4,155,359	$4,471,322
Retail Gross Margin (%)	37.0%	37.6%

Q2 2025 Wholesale category detail

Category (Wholesale)	Q2 2024 ($)	Q2 2025 ($)
Cigarettes	$367,878,538	$374,341,125
Tobacco	$114,832,151	$121,839,251
Confectionery	$37,862,439	$39,765,350
Foodservice & Other	$70,079,849	$71,654,837

KPIs and balance sheet/liquidity

KPI	Q2 2024	Q1 2025	Q2 2025
Shareholders’ Equity ($)	$107,951,634	$112,419,153	$111,350,872
Credit Facilities Outstanding ($)	n/a	$165,900,612	$142,291,571
Availability on Facilities ($)	n/a	n/a	$78,400,000
Inventories, net ($)	$121,324,279	$174,523,527	$160,544,902
Capex (quarter) ($)	$14,957,270 (incl. CO facility)	$3,453,711	$3,066,260
Dividend per share (quarter) ($)	$0.46	$0.18	$0.46

Guidance Changes

DIT did not issue quantitative revenue/EPS/margin guidance. The following corporate actions are relevant:

Metric	Period	Previous	Current	Change
Regular Dividend	Q2 2025	$0.18/sh (declared Jan 28, 2025; paid Feb 28, 2025)	$0.18/sh (declared Apr 29, 2025; payable May 30, 2025)	Maintained
Formal Financial Guidance	FY/Q	None provided	None provided	n/a

Earnings Call Themes & Trends

No earnings-call transcript was available in the source set; themes are drawn from the 10‑Q MD&A and press releases.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
Macro inflation/cost structure	Noted labor, supply chain, inflation, energy, rates as challenges; customer-centric advantage	Customer service focus; winter logistics resilience implied	Inflation has increased product, labor/benefits, equipment, insurance; continued sector consolidation	Persistent pressure
Acquisitions/footprint	Announced Richmond Master agreement (expansion)	Closed Arrowrock (Boise); expanding Intermountain	Arrowrock closed mid‑Jan; integrating recent acquisitions; 3rd‑largest by territory	Expanding/integrating
Foodservice strategy	Emphasis on foodservice and tech platforms	Henry’s programs; turn‑key QSR‑competitive solutions	Continued strategic focus; proprietary programs and merchandising breadth	Strengthening
Technology/advertising	Investing in platforms and staffing	Integrated advertising/design/print/e‑display	Customers “increasingly enthusiastic” about integrated programs	Positive adoption
Regulatory (FDA/tobacco)	Ongoing environment noted broadly	—	Monitoring potential FDA actions (menthol/vaping/nicotine limits) and related risks to revenue/margins	Heightened monitoring
Tariffs/macro policy	—	—	Monitoring proposed tariffs for potential impacts	Watch item

Management Commentary

CEO Christopher H. Atayan: “The convenience retailing sector…continues to experience a challenging operating environment with consumer behavior and discretionary spending lagging…[and] inflation…in areas such as product costs, labor…equipment, and insurance…Our management team is integrating our recent acquisitions…We continue to actively seek strategic acquisition opportunities…” .
President/COO Andrew C. Plummer: “Foodservice continues to be a strategic focus…We now have the capability to offer turn‑key solutions that will enable our retail partners the ability to compete head‑on with the Quick Service Restaurant industry.” .
CFO Charles J. Schmaderer: “At March 31, 2025, our shareholders’ equity was $111.4 million…We are investing capital to develop our recently acquired 250,000 square foot distribution facility in Colorado City, Colorado…” .

Q&A Highlights

No call transcript was available in the filings set; key clarifications stem from MD&A:

Wholesale drivers: +$5.6M Arrowrock, +$37.7M Burklund/Richmond, +$25.3M cigarette price increases; offset by $(51.3)M cigarette volume/mix and $(0.4)M other product mix in Q2 .
Gross profit puts/takes: +$0.3M Arrowrock, +$2.1M acquisitions; offset by $(1.0)M cigarette volume/mix, $(0.8)M Other Products promotions/mix, $(0.2)M timing of cigarette price increases .
OpEx: +$3.6M YoY driven by acquisitions (+$3.0M combined), +$0.1M health insurance; partially offset by $(0.3)M lower employee comp/benefits .
Liquidity: Combined facilities credit limit $220.7M; $142.3M outstanding; $78.4M available; average rate 5.76% .

Estimates Context

S&P Global consensus: No Q2 2025 “Primary EPS Consensus Mean” or “Revenue Consensus Mean”/estimate counts were available; target price consensus also unavailable. Coverage appears sparse for DIT. Values retrieved from S&P Global.
Important: S&P Global’s “Revenue actual” often reflects net sales excluding excise taxes for distributors; company reports “Sales (including excise taxes).” Investors should compare like‑for‑like when using third‑party datasets . Values retrieved from S&P Global.

Key Takeaways for Investors

Integration/scale vs. margins: The platform is larger and more geographically diverse, but cigarette volume/mix headwinds, promotional intensity, and inflation in opex continue to compress margins; watch for cost synergies and mix improvements to restore operating income leverage .
Foodservice as growth vector: Management is leaning into proprietary foodservice programs and store‑level merchandising; sustained retail gross margins and category expansion could diversify away from cigarette dependence over time .
Balance sheet/liquidity adequate: $78.4M facility availability and 5.76% average rate support ongoing integration and DC investments, but interest expense remains a headwind; deleveraging/working capital normalization would aid EPS recovery .
Regulatory risk monitor: FDA actions on menthol/vaping/nicotine could impact revenue/margins; monitor product authorization outcomes and potential state actions .
Dividend maintained: Regular $0.18 quarterly distribution underscores commitment to shareholder returns amid near‑term earnings pressure .
Near‑term trading setup: Without guidance or visible estimate beats, stock moves may hinge on evidence of operating expense control, cigarette volume stabilization, and foodservice growth traction in upcoming quarters .

Citations:

Q2 2025 8‑K and press release: .
Q2 2025 10‑Q financials and MD&A: .
Q1 2025 8‑K (Dec 31, 2024 quarter): .
Q2 2024 8‑K (Mar 31, 2024 quarter): .
Dividends: .

S&P Global disclaimer: Where estimates or consensus values are referenced as unavailable, this reflects retrieval attempts via S&P Global. Values retrieved from S&P Global.

AMCON DISTRIBUTING CO (DIT)·Q2 2025 Earnings Summary