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ASHEVILLE, N.C. — Hurricane Helene's devastating impact on western North Carolina had a significant impact on Ingles Markets Inc. and the communities it serves. The company, which recently reported its fiscal fourth-quarter and year-end results, saw significant financial impacts from the storm, including a $30.4 million inventory impairment and $4.5 million in property and equipment losses.
Company chairman Robert Ingle II commended the spirit of collaboration evident in the response to the storm.
“After Hurricane Helene impacted our communities, I am proud of how not only our associates came together, but our entire region," he said. "We are truly thankful for all the volunteers and the outpouring of support for our region.”
The September 27 storm brought catastrophic flooding, cutting off power, communications, and water services, and rendering key roads impassable. The immediate aftermath strained Ingles Markets, headquartered in Asheville, N.C., as it addressed widespread damage to its operations.
The financial toll was evident in the company’s results for the quarter ended September 28, 2024. Net sales fell to $1.40 billion, down from $1.58 billion in the same quarter the previous year. The reduced sales, compounded by a calendar variance of 13 weeks in 2024 versus 14 weeks in 2023, contributed to a net loss of $1.5 million for the quarter, compared with $52.6 million in net income for the prior-year period.
For the full fiscal year, Ingles Markets reported net sales of $5.64 billion, a 4.2% drop from $5.89 billion in fiscal 2023. Gross profit also declined, with the margin narrowing to 23.1% of sales from 23.8% the previous year. Net income for fiscal 2024 was $105.5 million, a sharp decline from $210.8 million in 2023.
Earnings per share reflected the downturn, with basic earnings for Class A Common Stock at $5.68 for 2024, compared to $11.35 in 2023.
Despite the challenges, Ingles Markets said it remains financially stable. The company ended the fiscal year with $532.6 million in total debt, down from $550.2 million in 2023, and has its entire $150 million line of credit available. Capital expenditures rose to $210.9 million in 2024, signaling continued investment in its infrastructure and operations.
“Ingles is confident in its ability to meet capital and operational demands moving forward,” the company stated.
