SpartanNash Sees Profitable Q4, But Decreased Sales for Fiscal Year
Food solutions company SpartanNash is still navigating its business transformation as it shares financial results for its fourth quarter and full fiscal year, both ended Dec. 28. While net sales in Q4 increased 0.7% to $2.26 billion, the full fiscal year saw net sales decrease 1.9% to $9.55 billion.
Net sales gains in Q4 were attributed to an increase in volume in the company’s retail segment, but partially offset by lower volume in its wholesale segment. Q4 also brought adjusted EPS of $0.42, compared to $0.35, and an adjusted EBITDA of $58.6 million, compared to $53.6 million.
According to SpartanNash, those increases were driven by higher gross margin rates in both retail and wholesale, including benefits from its merchandising transformation, as well as contributions from recently acquired retail stores.
As for the full fiscal year, adjusted EPS was $2.03, which was a decrease from $2.18, and adjusted EBITDA was $258.5 million, increased from $257.4 million. Cash generated from operating activities totaled $205.9 million, compared to $89.3 million, with the company attributing the increase primarily to working capital improvements.
"I am incredibly proud of the progress the team made on our strategic plan in 2024, achieving our third consecutive year of record adjusted EBITDA, bolstered by the delivery of our margin-enhancing programs a year ahead of schedule," said SpartanNash President and CEO Tony Sarsam. "We are energized by the momentum going into 2025, especially as we integrate the recently acquired grocery and c-store businesses – Fresh Encounter and Markham – into our retail portfolio. We are also investing into organic growth, fueled by a continued focus on our transformational initiatives, which are expected to further drive results, capture additional cost savings, enhance margin, and maximize long-term shareholder value."
On the heels of its acquisition of Fresh Encounter Inc. in October, SpartanNash announced its acquisition of Markham Enterprises, a fuel distributor and three-store chain of c-stores.
As for FY25, SpartanNash expects between $9.8 billion and $10 billion in total net sales, adjusted EBITDA between $263 million and $268 million, and capital expenditures and IT capital between $150 million and $165 million.
With 17,500 associates, SpartanNash operates two complementary business segments: food wholesale and grocery retail. Its global supply chain network serves wholesale customers that include independent and chain grocers, national retail brands, e-commerce platforms, and U.S. military commissaries and exchanges. On the retail side, SpartanNash operates 147 brick-and-mortar grocery stores, primarily under the banners of Family Fare, Martin's Super Markets, and D&W Fresh Market, in addition to dozens of pharmacies and fuel centers. The company is No. 45 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. SpartanNash is also among PG’s 2024 10 Most Sustainable Grocers.
