Executive Summary

Q1 FY2025 net sales were $1.29B, down 13.0% YoY amid Hurricane Helene disruptions; diluted Class A EPS was $0.87 vs $2.28 last year as traffic/payment outages and store closures pressured revenue and earnings .
Sequentially, results improved from Q4 FY2024’s loss (EPS $(0.08)), with Q1 returning to profitability ($16.6M net income) and gross margin rebounding to 23.4% from 21.4% in Q4, aided by normalization post-storm .
Balance sheet/liquidity remain solid: total debt $529.4M (down YoY) and $150M undrawn revolver; cash was $269.5M at quarter-end .
No formal financial guidance was issued; three hurricane-impacted stores remained closed at quarter-end but are expected to reopen during 2025—an operational catalyst as lost sales recover over time .

What Went Well and What Went Wrong

What Went Well
- Gross margin held firm at 23.4% vs 23.6% YoY despite revenue pressure, and improved meaningfully vs Q4’s 21.4% .
- Sequential earnings recovery: Q1 returned to positive net income of $16.6M after a Q4 net loss of $1.5M driven in part by storm-related impairments in Q4 .
- Management emphasized commitment to value and community recovery: “As recovery efforts progress…we remain dedicated to offering value and providing a wide range of high-quality products to our customers” (Robert P. Ingle II) .
What Went Wrong
- Sales and earnings declined materially YoY due to Helene’s impact: net sales fell 13.0% to $1.29B; diluted Class A EPS declined to $0.87 from $2.28 .
- Storm-related disruptions: ~$55–$65M of revenue was lost in the three weeks post-storm; Q1 included ~$5.4M in cleanup/repair costs .
- Three of four damaged stores remained closed at quarter-end, pushing out full revenue normalization to 2025 as reopenings progress .

Financial Results

Multi-quarter trend (oldest → newest)

Metric	Q3 FY2024	Q4 FY2024	Q1 FY2025
Net Sales	$1.39B	$1.40B	$1.29B
Gross Profit	$329.8M	$299.4M	$301.1M
Gross Margin %	23.7%	21.4%	23.4%
Operating & Admin Expenses	$286.3M	$301.0M	$280.7M
Income from Operations	$44.2M	$(1.4)M	$23.6M
Net Income	$31.7M	$(1.5)M	$16.6M
Diluted EPS (Class A)	$1.67	$(0.08)	$0.87

Q1 actual vs prior year and estimates

Metric	Q1 FY2024	Q1 FY2025	Consensus (S&P Global)
Net Sales	$1.48B	$1.29B	N/A – Consensus unavailable at time of analysis (see Estimates Context)
Gross Profit	$348.8M	$301.1M	N/A
Gross Margin %	23.6%	23.4%	N/A
Diluted EPS (Class A)	$2.28	$0.87	N/A

Company highlighted that Q1 sales decreased 13.0% YoY .

KPIs and balance sheet

KPI	Q4 FY2024	Q1 FY2025
Stores (at period-end)	198	198; three hurricane-damaged stores remained closed
Cash & Equivalents	$353.7M	$269.5M
Total Debt	$532.6M	$529.4M
Line of Credit Availability	$150.0M available	$150.0M available; no outstanding borrowings
Inventories	$462.1M	$490.8M
Capex (quarter)	—	$37.8M
D&A (quarter)	$34.1M	$30.9M
Interest Expense (quarter)	$5.2M	$5.0M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Action	Change
Store reopen timeline (post-Helene)	FY2025	Not previously specified	Three of four damaged stores expected to reopen during 2025	New detail
Dividend (Class A / Class B)	Q1/Q2 FY2025	$0.165 / $0.15 per share (Dec 30, 2024)	$0.165 / $0.15 per share (Mar 31, 2025)	Maintained
Liquidity (revolver)	Q1 FY2025	$150M available	$150M available; no borrowings	Maintained

Note: The company did not issue quantitative revenue/margin/expense guidance in the Q1 press release/8-K .

Earnings Call Themes & Trends

(Company did not furnish an earnings call transcript for Q1 FY2025; themes below reflect management disclosures in press releases.)

Topic	Q3 FY2024 (two quarters ago)	Q4 FY2024 (prior quarter)	Q1 FY2025 (current)	Trend
Hurricane Helene impact/recovery	Not applicable (pre-storm period)	Recognized $30.4M inventory impairment and $4.5M PPE impairment; noted severe regional impact	Estimated $55–$65M revenue lost in three weeks post-storm; ~$5.4M cleanup/repair costs; three stores still closed, expected to reopen in 2025	Recovery underway; operational normalization progressing
Gross margin	23.7%	21.4% (pressure from storm impacts)	23.4% (rebound)	Improving sequentially
Capex	$143.0M for 9M FY2024; FY24 plan $170–$190M	FY2024 capex $210.9M	Q1 FY2025 capex $37.8M	Elevated investment continuing
Liquidity/leverage	Cash $354.8M; debt $518.3M at 6/29/24	Cash $353.7M; total debt $532.6M at FY-end	Cash $269.5M; total debt $529.4M; $150M revolver undrawn	Liquidity ample; debt modestly lower YoY
Store network	198 supermarkets	198 supermarkets	198 supermarkets; 3 closed pending reopen in 2025	Temporary closures; reopen plan in 2025
Macro/risks	Standard risk factors disclosed	Standard risk factors disclosed; storm disclosures	Standard risk factors reiterated	Ongoing monitoring

Management Commentary

“As recovery efforts progress in the communities we support, we remain dedicated to offering value and providing a wide range of high-quality products to our customers. We deeply appreciate the focus, dedication and hard work of our associates in making this possible.” — Robert P. Ingle II, Chairman .
“After Hurricane Helene impacted our communities, I am proud of how not only our associates came together, but our entire region. We are truly thankful for all the volunteers and the outpouring of support for our region.” — Robert P. Ingle II (Q4 FY2024) .

Operational notes:

Helene impact quantified: ~$55–$65M revenue lost over three weeks, ~$5.4M cleanup/repair in Q1 .
Liquidity stance: $150M revolver fully available; confidence in funding capex, debt service and working capital .

Q&A Highlights

Ingles did not provide an earnings call transcript for Q1 FY2025, and we did not find a call record for the period; communications consisted of the earnings press release/8-K .

Estimates Context

We attempted to retrieve S&P Global consensus for Q1 FY2025; data was unavailable at the time of analysis due to request limits. As a result, we do not present comparisons vs consensus for revenue or EPS in this report. Third-party listings also show sparse/outstanding coverage (e.g., EPS estimate shown as “-” for the period) .

Key Takeaways for Investors

Q1 was a transition quarter: sales/earnings declined YoY due to Helene, but sequential margin/earnings improved vs storm-impacted Q4; gross margin recovered to 23.4% .
Revenue normalization depends on store reopen cadence; three damaged stores expected to reopen during 2025 should aid recapture of displaced sales as regions stabilize .
Balance sheet remains a support: $269.5M cash, $150M undrawn revolver, and total debt $529.4M provide flexibility to fund operations and capex through recovery .
Expense discipline helped offset some pressure: operating & admin expenses fell YoY to $280.7M despite disruption; watch for continued cost control as store volumes rebuild .
Capex continues (Q1: $37.8M); monitor ROI as stores are repaired/reopened and as longer-term projects progress .
With limited external estimate visibility, near-term positioning should focus on operational milestones (store reopenings, traffic/transaction normalization) and gross margin sustainability back toward pre-storm levels .
Risk checks: lingering regional infrastructure effects, inflation/gas volatility, and competitive pricing may affect traffic/mix; company reiterates standard risk factors .

Sources: Q1 FY2025 press release and 8-K (Feb 6, 2025) ; Q4 FY2024 press release (Dec 27, 2024) ; Q3 FY2024 press release (Aug 8, 2024) ; dividend releases (Dec 30, 2024; Mar 31, 2025) ; events/estimates availability checks .

INGLES MARKETS INC (IMKTA)·Q1 2025 Earnings Summary