COMMERCE, CA - Discount retailer and foodservice supplier Smart & Final reported robust second quarter 2018 results this week, growing sales, margin and income—in part, according to the company’s President and CEO David Hirz, on the strength of a growing fresh produce program.
“Produce continues to be strong,” said Hirz, in a conference call reporting on the company’s results. “It was strong in the first quarter. Produce obviously—the move increase perishables—really, really helps margins because of that mix. The natural and organic, we haven't talked about it much, [it] continues to grow both in center store and in produce.”
Highlights from Smart & Final’s second quarter include the following:
- Net sales increased 4.4% to $1,125.5 million with a comparable store sales increase of 1.3%
- Business customer sales penetration in the Smart & Final banner increased to 30.1% of sales
- Gross margin increased 4.6% to $169.7 million
- Adjusted EBITDA increased 2.5% to $49.3 million
- Net income of $6.6 million or $0.09 per share
- Adjusted net income of $11.4 million or $0.16 per share
Throughout the quarter, Smart & Final noted in a press release, the company relocated one Smart & Final store, closed two Smart & Final stores, and opened one new Smart Foodservice Warehouse.
“In the second quarter, we were pleased to deliver positive comparable store sales in both our Smart & Final and Smart Foodservice Warehouse store banners,” said Hirz, in that press release. “This reflects how our unique assortment of business and club-pack items, our high-quality private label offerings, and rapidly expanding e-commerce channels resonate with shoppers. While investing in customer service initiatives, we also expanded merchandise margins, grew adjusted EBITDA, and reduced outstanding debt, resulting in an improved financial leverage ratio at quarter-end.”
To learn more, check out the company’s press release in its entirety, here.
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