Core Insights - Ingles Market (NASDAQ: IMKTA) is attractive to value investors primarily due to its substantial real estate holdings, which include ownership of many malls where its grocery stores are located [1] Group 1: Company Overview - Ingles Market is recognized for its value investment appeal, largely attributed to its real estate assets [1] Group 2: Investment Strategy - The company’s strategy focuses on long-term investment opportunities, with an emphasis on holding stocks for several years [1]

Group 1 - Ingles Markets, Incorporated (IMKTA) is a regional grocery chain known for its steady, family-owned approach, primarily operating in North Carolina, South Carolina, Georgia, and Tennessee [2] - The company's shares are currently trading at $68.77, with a trailing P/E of 23.08, indicating potential undervaluation [1][2] - IMKTA's extensive real estate holdings, including stores and surrounding shopping centers, provide a unique margin of safety, as the business trades near or below tangible book value while generating solid earnings [3][4] Group 2 - There is a belief that the real estate on IMKTA's balance sheet may be understated, suggesting additional potential upside for investors [4] - The company has shown consistent growth in asset values, tangible book value, earnings per share, and share price over decades, making it a classic example of long-term value accumulation [2][4] - IMKTA's stock price has appreciated approximately 12.5% since previous coverage, reinforcing the bullish thesis on its steady profitability and undervaluation [5]

Core Points - Ingles Markets, Incorporated has declared a cash dividend of $0.165 per share on Class A Common Stock and $0.15 per share on Class B Common Stock [1] - The annual dividend rate is $0.66 for Class A and $0.60 for Class B shares [1] - Dividends are payable on October 16, 2025, to shareholders of record on October 9, 2025 [1]

Group 1 - The core focus of Crude Value Insights is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] - Subscribers benefit from a 50+ stock model account, which provides a comprehensive overview of investment opportunities [1] - The service includes in-depth cash flow analyses of exploration and production (E&P) firms, enhancing understanding of the sector's financial health [1] Group 2 - The platform offers a live chat discussion feature, fostering community engagement and real-time information sharing among subscribers [1] - A promotional two-week free trial is available for new users, encouraging exploration of the oil and gas investment service [2]

Part I – Financial Information This part presents unaudited financial statements and related disclosures [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, statements of changes in stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, new pronouncements, and specific financial line items for the periods ended June 28, 2025, and June 29, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents financial position, including assets, liabilities, and equity, at specific points in time | Metric | June 28, 2025 | September 28, 2024 | | :-------------------------------- | :---------------- | :------------------- | | **Assets** | | | | Total Current Assets | $947,670,371 | $925,547,755 | | Property and Equipment - Net | $1,524,320,024 | $1,526,708,462 | | Total Assets | $2,547,149,175 | $2,527,882,715 | | **Liabilities & Equity** | | | | Total Current Liabilities | $301,418,026 | $320,621,944 | | Total Liabilities | $953,292,377 | $982,133,625 | | Total Stockholders' Equity | $1,593,856,798 | $1,545,749,090 | - **Total Assets** increased by approximately **$19.3 million** from September 28, 2024, to June 28, 2025, driven primarily by an increase in current assets, particularly receivables and inventories[8](index=8&type=chunk) - **Total Liabilities** decreased by approximately **$28.8 million**, mainly due to a reduction in current liabilities and long-term debt[8](index=8&type=chunk) - **Stockholders' Equity** increased by approximately **$48.1 million**, reflecting an increase in retained earnings[8](index=8&type=chunk) [Condensed Consolidated Statements of Income and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Details revenues, expenses, net income, and comprehensive income over specific periods | Metric | 3 Months Ended June 28, 2025 | 3 Months Ended June 29, 2024 | 9 Months Ended June 28, 2025 | 9 Months Ended June 29, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net sales | $1,346,221,519 | $1,393,539,073 | $3,965,609,341 | $4,242,080,604 | | Gross profit | $327,330,170 | $329,758,302 | $939,441,520 | $1,000,444,341 | | Income from operations | $37,341,660 | $44,150,866 | $82,553,943 | $148,587,332 | | Net income | $26,198,955 | $31,721,599 | $57,893,310 | $107,013,826 | | Comprehensive income | $25,111,306 | $31,458,989 | $57,309,748 | $104,063,131 | | Per Share Amounts (Class A) | 3 Months Ended June 28, 2025 | 3 Months Ended June 29, 2024 | 9 Months Ended June 28, 2025 | 9 Months Ended June 29, 2024 | | :---------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Basic EPS | $1.41 | $1.71 | $3.11 | $5.76 | | Diluted EPS | $1.38 | $1.67 | $3.05 | $5.63 | | Cash dividends per share | $0.165 | $0.165 | $0.495 | $0.495 | - **Net sales** decreased by **3.4%** for the three months and **6.5%** for the nine months ended June 28, 2025, compared to the prior year periods[9](index=9&type=chunk)[10](index=10&type=chunk) - **Net income** decreased by **17.4%** for the three months and **45.9%** for the nine months ended June 28, 2025, compared to the prior year periods[9](index=9&type=chunk)[10](index=10&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Outlines changes in equity accounts, including net income, dividends, and other comprehensive income - **Total Stockholders' Equity** increased from **$1,545,749,090** at September 28, 2024, to **$1,593,856,798** at June 28, 2025, primarily due to retained earnings from net income, partially offset by cash dividends and other comprehensive losses[12](index=12&type=chunk) - The company paid consistent cash dividends of **$0.165** per Class A share and **$0.15** per Class B share each quarter[12](index=12&type=chunk) - Common stock conversions from Class B to Class A shares occurred throughout the period, with **225** Class B shares converted in the most recent quarter[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities over specific periods | Cash Flow Activity | 9 Months Ended June 28, 2025 | 9 Months Ended June 29, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by Operating Activities | $94,198,138 | $189,256,009 | | Net Cash Used by Investing Activities | $(86,911,187) | $(138,520,320) | | Net Cash Used by Financing Activities | $(24,887,444) | $(24,516,654) | | Net (Decrease) Increase in Cash and Cash Equivalents | $(17,600,493) | $26,219,035 | | Cash and Cash Equivalents at End of Period | $336,087,418 | $354,758,957 | - **Net cash provided by operating activities** decreased significantly by **50.3%** for the nine months ended June 28, 2025, primarily due to lower net income and increased working capital needs[13](index=13&type=chunk) - **Cash used in investing activities** decreased by **37.2%**, mainly due to lower capital expenditures in the current nine-month period[13](index=13&type=chunk) [Notes to Unaudited Interim Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Interim%20Financial%20Statements) Provides detailed explanations and disclosures for the unaudited interim financial statements [A. BASIS OF PREPARATION](index=8&type=section&id=A.%20BASIS%20OF%20PREPARATION) Describes accounting principles and presentation methods for interim financial statements - The interim financial statements are unaudited and include all necessary normal recurring adjustments for fair presentation[15](index=15&type=chunk) - Certain information and footnote disclosures have been condensed or omitted per SEC Form 10-Q rules, and should be read with the annual 10-K[15](index=15&type=chunk) [B. NEW ACCOUNTING PRONOUNCEMENTS](index=8&type=section&id=B.%20NEW%20ACCOUNTING%20PRONOUNCEMENTS) Discusses new accounting standards and their potential impact on financial statements - ASU 2020-04 (Reference Rate Reform) provided optional guidance for LIBOR transition to SOFR, which did not materially impact the financial statements[17](index=17&type=chunk) - ASU 2023-09 (Income Taxes) requires greater disaggregation of income tax disclosures, effective for fiscal years after December 15, 2024. The Company is evaluating its impact[18](index=18&type=chunk) - ASU 2023-07 (Segment Reporting) requires enhanced disclosures about segment expenses and CODM, effective for fiscal years after December 15, 2023. The Company is evaluating its impact[19](index=19&type=chunk) - ASU 2024-03 (Disaggregation of Income Statement Expenses) requires disclosures about specific expense types, effective for annual periods after December 15, 2026. The Company is evaluating its impact[20](index=20&type=chunk) [C. SHORT TERM INVESTMENTS](index=8&type=section&id=C.%20SHORT%20TERM%20INVESTMENTS) Details short-term investment policies and fair value accounting - The Company purchases financial products (money market funds, bonds, mutual funds) that are readily convertible to cash and accounts for them as short-term investments[21](index=21&type=chunk) - The carrying values of these short-term investments approximate fair value due to their liquidity[21](index=21&type=chunk

[Executive Summary](index=1&type=section&id=Executive%20Summary) Ingles Markets reports Q3 and nine-month fiscal 2025 results, highlighting decreased sales and net income, and includes the Chairman's statement [Introduction and Key Highlights](index=1&type=section&id=Introduction%20and%20Key%20Highlights) Ingles Markets, Incorporated announced Q3 and nine-month fiscal 2025 results, reporting decreased net sales and net income year-over-year - **Ingles Markets, Incorporated (NASDAQ: IMKTA)** announced results for the three and nine months ended **June 28, 2025**[1](index=1&type=chunk) [Chairman's Statement](index=1&type=section&id=Chairman's%20Statement) Chairman Robert P. Ingle II thanked associates for delivering value and a positive shopping experience to customers - **Chairman Robert P. Ingle II** acknowledged associates for delivering value and a great shopping experience[2](index=2&type=chunk) [Third Quarter Fiscal 2025 Financial Performance](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Financial%20Performance) This section details Ingles Markets' Q3 fiscal 2025 financial performance, including net sales, gross profit, operating expenses, and net income [Net Sales and Gross Profit Analysis](index=1&type=section&id=Net%20Sales%20and%20Gross%20Profit%20Analysis) Q3 FY2025 net sales decreased by **2.68%**, with gross profit percentage of sales increasing, reflecting improved margin efficiency despite an absolute decrease Third Quarter Financial Highlights (YoY) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | Change (%) | | :------------------ | :------------------- | :------------------- | :--------- | | Net Sales | $1,346.2 | $1,393.5 | -2.68% | | Gross Profit | $327.3 | $329.8 | -0.76% | | Gross Profit % of Sales | 24.3% | 23.7% | +0.6 pp | [Operating Expenses and Interest Expense](index=1&type=section&id=Operating%20Expenses%20and%20Interest%20Expense) Q3 FY2025 operating and administrative expenses increased by **1.33%**, while interest expenses decreased by **9.31%**, positively impacting the bottom line Third Quarter Expenses (YoY) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | Change (%) | | :------------------------------ | :------------------- | :------------------- | :--------- | | Operating & Administrative Expenses | $290.1 | $286.3 | +1.33% | | Interest Expenses | $4.9 | $5.4 | -9.31% | [Net Income and Earnings Per Share](index=1&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) Q3 FY2025 net income decreased by **17.39%** year-over-year, resulting in a corresponding decline in basic and diluted EPS for both common stock classes Third Quarter Net Income and EPS (YoY) | Metric | Q3 FY2025 | Q3 FY2024 | Change (%) | | :--------------------------- | :-------- | :-------- | :--------- | | Net Income (Millions) | $26.2 | $31.7 | -17.39% | | Basic EPS – Class A | $1.41 | $1.71 | -17.54% | | Diluted EPS – Class A | $1.38 | $1.67 | -17.40% | | Basic EPS – Class B | $1.28 | $1.55 | -17.39% | | Diluted EPS – Class B | $1.28 | $1.55 | -17.39% | [Nine Months Fiscal 2025 Financial Performance](index=1&type=section&id=Nine%20Months%20Fiscal%202025%20Financial%20Performance) This section analyzes Ingles Markets' nine-month fiscal 2025 financial performance, covering sales, profits, expenses, debt, and capital expenditures [Net Sales and Gross Profit Analysis](index=1&type=section&id=Net%20Sales%20and%20Gross%20Profit%20Analysis) Nine-month FY2025 net sales decreased by **6.52%**, with gross profit also declining but maintaining a stable percentage of sales, indicating consistent margin performance Nine Month Financial Highlights (YoY) | Metric | 9M FY2025 (Millions) | 9M FY2024 (Millions) | Change (%) | | :------------------ | :------------------- | :------------------- | :--------- | | Net Sales | $3,965.6 | $4,242.1 | -6.52% | | Gross Profit | $939.4 | $1,000.4 | -6.10% | | Gross Profit % of Sales | 23.7% | 23.6% | +0.1 pp | [Operating Expenses, Interest Expense, and Debt](index=1&type=section&id=Operating%20Expenses%2C%20Interest%20Expense%2C%20and%20Debt) Nine-month FY2025 operating expenses remained stable, interest expense declined by **11.45%**, and total debt reduced by **3.34%**, reflecting improved financial management Nine Month Expenses and Debt (YoY) | Metric | 9M FY2025 (Millions) | 9M FY2024 (Millions) | Change (%) | | :------------------------------ | :------------------- | :------------------- | :--------- | | Operating & Administrative Expenses | $860.0 | $860.8 | -0.09% | | Interest Expense | $14.7 | $16.7 | -11.45% | | Total Debt (as of period end) | $518.0 | $535.9 | -3.34% | [Net Income and Earnings Per Share](index=2&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) Nine-month FY2025 net income significantly decreased by **45.89%**, leading to a substantial reduction in basic and diluted EPS for both common stock classes Nine Month Net Income and EPS (YoY) | Metric | 9M FY2025 | 9M FY2024 | Change (%) | | :--------------------------- | :-------- | :-------- | :--------- | | Net Income (Millions) | $57.9 | $107.0 | -45.89% | | Basic EPS – Class A | $3.11 | $5.76 | -46.01% | | Diluted EPS – Class A | $3.05 | $5.63 | -45.79% | | Basic EPS – Class B | $2.83 | $5.23 | -45.89% | | Diluted EPS – Class B | $2.83 | $5.23 | -45.89% | [Capital Expenditures and Liquidity](index=2&type=section&id=Capital%20Expenditures%20and%20Liquidity) Nine-month FY2025 capital expenditures decreased by **36%**, with full-year projections between **$120 million** and **$160 million**, and sufficient liquidity Capital Expenditures (YoY) | Metric | 9M FY2025 (Millions) | 9M FY2024 (Millions) | Change (%) | | :------------------------------ | :------------------- | :------------------- | :--------- | | Capital Expenditures | $91.4 | $143.0 | -36.08% | - Fiscal year 2025 capital expenditures are projected to be approximately **$120 million to $160 million**[8](index=8&type=chunk) - The Company has a **$150.0 million** line of credit with only **$500,000** outstanding and believes its financial resources are sufficient for foreseeable capital expenditures, debt service, and working capital[9](index=9&type=chunk) [Company Profile and Disclosures](index=2&type=section&id=Company%20Profile%20and%20Disclosures) This section outlines Ingles Markets' company profile, operations, and store network, alongside cautionary notes regarding forward-looking statements [About Ingles Markets, Incorporated](index=2&type=section&id=About%20Ingles%20Markets%2C%20Incorporated) Ingles Markets, Incorporated operates **197** supermarkets in six southeastern states, manages shopping centers, and expects three hurricane-closed stores to reopen - Ingles Markets operates **197** supermarkets in six southeastern states and is headquartered in Asheville, North Carolina[10](index=10&type=chunk) - The company also operates neighborhood shopping centers and owns a fluid dairy facility[10](index=10&type=chunk) - **Three** stores temporarily closed due to Hurricane Helene are expected to reopen in **late 2025 or 2026**[10](index=10&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=2&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section provides a cautionary note that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially - The press release contains forward-looking statements subject to risks and uncertainties, including business and economic conditions, inflation, labor shortages, competition, and financing[11](index=11&type=chunk) - Actual results may differ materially from expectations, and the company does not commit to updating forward-looking information[11](index=11&type=chunk) [Unaudited Financial Statements](index=3&type=section&id=Unaudited%20Financial%20Statements) This section presents the unaudited condensed consolidated statements of income and balance sheets for the reported periods [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the unaudited condensed consolidated statements of income for the three and nine months ended June 28, 2025, detailing revenue, expenses, and net income Condensed Consolidated Statements of Income (Unaudited) | Metric (Amounts in thousands) | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Nine Months Ended June 28, 2025 | Nine Months Ended June 29, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $1,346,222 | $1,393,539 | $3,965,609 | $4,242,081 | | Gross profit | 327,330 | 329,758 | 939,442 | 1,000,444 | | Operating and administrative expenses | 290,131 | 286,250 | 859,985 | 860,839 | | Gain from sale or disposal of assets | 143 | 643 | 3,097 | 8,982 | | Income from operations | 37,342 | 44,151 | 82,554 | 148,587 | | Other income, net | 2,769 | 3,554 | 8,909 | 10,542 | | Interest expense | 4,856 | 5,359 | 14,746 | 16,653 | | Income tax expense | 9,056 | 10,624 | 18,824 | 35,462 | | Net income | $26,199 | $31,722 | $57,893 | $107,014 | | Basic earnings per common share – Class A | $1.41 | $1.71 | $3.11 | $5.76 | | Diluted earnings per common share – Class A | $1.38 | $1.67 | $3.05 | $5.63 | | Basic earnings per common share – Class B | $1.28 | $1.55 | $2.83 | $5.23 | | Diluted earnings per common share – Class B | $1.28 | $1.55 | $2.83 | $5.23 | | Depreciation and amortization expense | $30,678 | $29,509 | $92,214 | $87,532 | | Rent expense | $1,779 | $2,534 | $5,507 | $7,591 | [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the unaudited condensed consolidated balance sheets as of June 28, 2025, and September 28, 2024, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (Unaudited) | Metric (Amounts in thousands) | June 28, 2025 | Sept. 28, 2024 | | :---------------------------- | :------------ | :------------- | | **ASSETS** | | | | Cash and cash equivalents | $336,087 | $353,688 | | Receivables-net | 102,278 | 78,266 | | Inventories | 487,545 | 462,085 | | Other current assets | 21,760 | 31,509 | | Property and equipment-net | 1,524,320 | 1,526,708 | | Other assets | 75,159 | 75,627 | | **TOTAL ASSETS** | **$2,547,149**| **$2,527,883** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Current maturities of long-term debt | $17,453 | $17,521 | | Accounts payable, accrued expenses and current portion of other long-term liabilities | 283,965 | 303,101 | | Deferred income taxes | 67,575 | 63,767 | | Long-term debt | 500,558 | 515,102 | | Other long-term liabilities | 83,741 | 82,643 | | Total Liabilities | 953,292 | 982,134 | | Stockholders' equity | 1,593,857 | 1,545,749 | | **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | **$2,547,149**| **$2,527,883** |

Group 1 - The core viewpoint is that Ingles Markets, Incorporated (NASDAQ: IMKTA) is reaffirmed as a 'strong buy' candidate despite experiencing some business weakness [1] - The company operates in the grocery sector, which has shown resilience even in challenging market conditions [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - Subscribers benefit from a stock model account, cash flow analyses of exploration and production firms, and live discussions about the sector [2]

[Part I – Financial Information](index=2&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) This section presents the unaudited financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures for the reporting period [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, statements of changes in stockholders' equity, and cash flow statements, along with detailed notes explaining the basis of preparation, significant accounting policies, and specific financial line items for the periods ended March 29, 2025, and March 30, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity at specific points in time Balance Sheet Summary | Metric | March 29, 2025 (in dollars) | September 28, 2024 (in dollars) | | :--------------------------------- | :------------- | :----------------- | | Total Assets | $2,506,421,683 | $2,527,882,715 | | Total Liabilities | $934,608,825 | $982,133,625 | | Total Stockholders' Equity | $1,571,812,858 | $1,545,749,090 | - Total Assets decreased by approximately **$21.46 million** from September 28, 2024, to March 29, 2025[8](index=8&type=chunk) - Total Liabilities decreased by approximately **$47.52 million**, while Total Stockholders' Equity increased by approximately **$26.06 million** during the same period[8](index=8&type=chunk) [Condensed Consolidated Statements of Income and Comprehensive Income (Three Months)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20(Three%20Months)) This section details the company's financial performance, including net sales, gross profit, and net income, for the three-month period Three-Month Income Statement Summary | Metric | March 29, 2025 (in dollars) | March 30, 2024 (in dollars) | Change (YoY) | | :--------------------------------- | :------------- | :------------- | :----------- | | Net sales | $1,331,273,155 | $1,367,479,701 | -2.65% | | Gross profit | $310,976,634 | $321,884,960 | -3.39% | | Income from operations | $21,640,338 | $44,809,057 | -51.70% | | Net income | $15,106,015 | $31,898,626 | -52.65% | | Basic EPS (Class A) | $0.81 | $1.72 | -52.91% | | Diluted EPS (Class A) | $0.80 | $1.68 | -52.38% | | Basic EPS (Class B) | $0.74 | $1.56 | -52.56% | | Diluted EPS (Class B) | $0.74 | $1.56 | -52.56% | - Net sales decreased by **$36.2 million**, or **2.7%**, for the three months ended March 29, 2025, compared to the prior year[10](index=10&type=chunk)[79](index=79&type=chunk) - Net income significantly declined by **52.65%** year-over-year, from **$31.9 million** to **$15.1 million**[10](index=10&type=chunk)[78](index=78&type=chunk) [Condensed Consolidated Statements of Income and Comprehensive Income (Six Months)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20(Six%20Months)) This section details the company's financial performance, including net sales, gross profit, and net income, for the six-month period Six-Month Income Statement Summary | Metric | March 29, 2025 (in dollars) | March 30, 2024 (in dollars) | Change (YoY) | | :--------------------------------- | :------------- | :------------- | :----------- | | Net sales | $2,619,387,821 | $2,848,541,531 | -8.04% | | Gross profit | $612,111,349 | $670,686,039 | -8.73% | | Income from operations | $45,212,282 | $104,436,466 | -56.70% | | Net income | $31,694,355 | $75,292,227 | -57.92% | | Basic EPS (Class A) | $1.70 | $4.05 | -58.02% | | Diluted EPS (Class A) | $1.67 | $3.96 | -57.83% | | Basic EPS (Class B) | $1.55 | $3.68 | -57.90% | | Diluted EPS (Class B) | $1.55 | $3.68 | -57.90% | - Net sales decreased by **$229.2 million**, or **8.0%**, for the six months ended March 29, 2025, compared to the prior year[12](index=12&type=chunk)[89](index=89&type=chunk) - Net income for the six-month period declined by **57.92%** year-over-year, from **$75.3 million** to **$31.7 million**[12](index=12&type=chunk)[88](index=88&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines changes in the company's equity components, including retained earnings and common stock, over the reporting period - Total Stockholders' Equity increased from **$1,545,749,090** at September 28, 2024, to **$1,571,812,858** at March 29, 2025[14](index=14&type=chunk) - Retained earnings increased by **$25.56 million** during the six-month period, primarily due to net income partially offset by cash dividends[14](index=14&type=chunk) - Common stock conversions from Class B to Class A shares occurred, with **1,305 Class A shares** issued and **1,305 Class B shares** converted during the three months ended March 29, 2025[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the cash inflows and outflows from operating, investing, and financing activities for the period Cash Flow Summary | Cash Flow Activity | Six Months Ended March 29, 2025 (in dollars) | Six Months Ended March 30, 2024 (in dollars) | Change (YoY) | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------- | | Net Cash Provided by Operating Activities | $19,412,573 | $85,973,987 | -77.42% | | Net Cash Used by Investing Activities | $(57,896,507) | $(94,644,183) | 38.79% | | Net Cash Used by Financing Activities | $(17,874,510) | $(17,851,878) | -0.13% | | Net Decrease in Cash and Cash Equivalents | $(56,358,444) | $(26,522,074) | -112.50% | | Cash and Cash Equivalents at End of Period | $297,329,467 | $302,017,848 | -1.55% | - Net cash provided by operating activities decreased significantly by **$66.6 million**, or **77.42%**, primarily due to lower net income and increased working capital needs[16](index=16&type=chunk)[104](index=104&type=chunk) - Cash used in investing activities decreased by **$36.7 million**, mainly due to lower capital expenditures[16](index=16&type=chunk)[105](index=105&type=chunk) [Notes to Unaudited Interim Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Interim%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited interim financial statements [A. BASIS OF PREPARATION](index=8&type=section&id=A.%20BASIS%20OF%20PREPARATION) This note describes the accounting principles and assumptions used in preparing the interim financial statements - The interim financial statements are unaudited and include all necessary adjustments of a normal recurring nature to fairly present the financial position and results of operations[18](index=18&type=chunk) - Results for the interim periods are not necessarily indicative of the full fiscal year[19](index=19&type=chunk) [B. NEW ACCOUNTING PRONOUNCEMENTS](index=8&type=section&id=B.%20NEW%20ACCOUNTING%20PRONOUNCEMENTS) This note outlines recently issued accounting standards and their potential impact on

[Press Release Details](index=1&type=section&id=Press%20Release%20Details) This section provides essential contact information and details the announcement of Ingles Markets' Q2 and H1 fiscal 2025 financial results [Contact Information](index=1&type=section&id=Contact%20Information) This section provides the contact details for media and investor inquiries regarding the press release - Contact Person: **Pat Jackson**, Chief Financial Officer[1](index=1&type=chunk) - Email: pjackson@ingles-markets.com[1](index=1&type=chunk) - Phone: (828) 669-2941 (Ext. 223)[1](index=1&type=chunk) [Announcement Date and Title](index=1&type=section&id=Announcement%20Date%20and%20Title) The press release, issued on May 8, 2025, announces Ingles Markets, Incorporated's financial results for the second quarter and first six months of fiscal year 2025 - Date of Release: **May 8, 2025**[1](index=1&type=chunk) - Announcement: Ingles Markets, Incorporated Reports Results for Second Quarter and First Six Months of Fiscal 2025[1](index=1&type=chunk) [Management Statement](index=1&type=section&id=Management%20Statement) This section presents remarks from the Chairman of the Board regarding the company's performance and commitment [Chairman's Remarks](index=1&type=section&id=Chairman's%20Remarks) Robert P. Ingle II, Chairman of the Board, expressed appreciation for the associates' hard work in delivering value to customers and reiterated the company's commitment to supporting its stores - Chairman **Robert P. Ingle II** thanked associates for their hard work in delivering value to customers[2](index=2&type=chunk) - The company continues to support its stores[2](index=2&type=chunk) [Summary of Financial Performance](index=1&type=section&id=Summary%20of%20Financial%20Performance) This section summarizes Ingles Markets' financial results for the second quarter and first half of fiscal 2025, highlighting key performance indicators [Second Quarter Fiscal 2025 Performance](index=1&type=section&id=Second%20Quarter%20Fiscal%202025%20Performance) Ingles Markets reported a decrease in net sales and a significant decline in net income for the second quarter of fiscal 2025 compared to the prior year, despite a slight increase in operating expenses and a stable gross profit margin Second Quarter Fiscal 2025 Key Financials (YoY Comparison) | Metric | Q2 Fiscal 2025 (Ended Mar 29, 2025) (Millions USD) | Q2 Fiscal 2024 (Ended Mar 30, 2024) (Millions USD) | Change (%) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :--------- | | Net Sales | $1,331.273 million | $1,367.480 million | -2.7% | | Gross Profit | $310.977 million | $321.885 million | -3.4% | | Gross Profit % of Sales | 23.4% | 23.5% | -0.1 pp | | Operating & Administrative Expenses | $289.144 million | $284.762 million | +1.5% | | Income from Operations | $21.641 million | $44.809 million | -51.7% | | Interest Expense | $4.879 million | $5.587 million | -12.7% | | Net Income | $15.106 million | $31.899 million | -52.7% | | Basic EPS (Class A) | $0.81 | $1.72 | -52.9% | | Diluted EPS (Class A) | $0.80 | $1.68 | -52.4% | - Net sales decreased by **2.7%** to **$1.33 billion**[2](index=2&type=chunk) - Net income fell by **52.7%** to **$15.1 million**[4](index=4&type=chunk) [First Half Fiscal 2025 Performance](index=1&type=section&id=First%20Half%20Fiscal%202025%20Performance) For the first six months of fiscal 2025, Ingles Markets experienced an 8.0% decline in net sales and a 57.9% decrease in net income compared to the previous year. The company also reduced capital expenditures and total debt First Half Fiscal 2025 Key Financials (YoY Comparison) | Metric | H1 Fiscal 2025 (Ended Mar 29, 2025) (Millions USD) | H1 Fiscal 2024 (Ended Mar 30, 2024) (Millions USD) | Change (%) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :--------- | | Net Sales | $2,619.388 million | $2,848.542 million | -8.0% | | Gross Profit | $612.111 million | $670.686 million | -8.7% | | Gross Profit % of Sales | 23.4% | 23.5% | -0.1 pp | | Operating & Administrative Expenses | $569.853 million | $574.589 million | -0.8% | | Income from Operations | $45.212 million | $104.436 million | -56.7% | | Interest Expense | $9.890 million | $11.294 million | -12.5% | | Net Income | $31.694 million | $75.292 million | -57.9% | | Basic EPS (Class A) | $1.70 | $4.05 | -58.0% | | Diluted EPS (Class A) | $1.67 | $3.96 | -57.8% | | Capital Expenditures | $62.0 million | $98.4 million | -37.0% | | Total Debt (as of period end) | $521.6 million (Mar 29, 2025) | $539.1 million (Mar 30, 2024) | -3.2% | - Net sales for the first half decreased by **8.0%** to **$2.62 billion**[5](index=5&type=chunk) - Net income for the first half decreased by **57.9%** to **$31.7 million**[9](index=9&type=chunk) - Total debt decreased to **$521.6 million** as of March 29, 2025, from $539.1 million as of March 30, 2024[8](index=8&type=chunk) - Capital expenditures for the first half of fiscal 2025 were **$62.0 million**, down from $98.4 million in the prior year[10](index=10&type=chunk) - The Company believes its financial resources are sufficient to meet planned capital expenditures, debt service, and working capital requirements for the foreseeable future[10](index=10&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of Ingles Markets' operations and a cautionary note regarding forward-looking statements [About Ingles Markets, Incorporated](index=2&type=section&id=About%20Ingles%20Markets%2C%20Incorporated) Ingles Markets is a prominent grocer operating 197 supermarkets across six southeastern states, headquartered in Asheville, North Carolina. The company also manages neighborhood shopping centers and a fluid dairy facility, with plans to reopen three hurricane-damaged stores in 2025 or 2026 - Ingles Markets operates **197 supermarkets** in six southeastern states[11](index=11&type=chunk) - The company is headquartered in **Asheville, North Carolina**[11](index=11&type=chunk) - Operations include neighborhood shopping centers and a fluid dairy facility[11](index=11&type=chunk) - Three stores temporarily closed due to Hurricane Helene damage are expected to reopen in **2025 or 2026**[11](index=11&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=2&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section highlights that the press release contains forward-looking statements, which are subject to various risks and uncertainties, including economic conditions, inflation, competition, and operational factors. Actual results may differ materially, and the company does not commit to updating these statements unless legally required - The press release includes forward-looking statements regarding financial and operational results[12](index=12&type=chunk) - These statements are subject to uncertainty and changes in circumstances, with actual results potentially differing materially due to factors like economic conditions, inflation, labor shortages, and competition[12](index=12&type=chunk) - The company does not undertake an obligation to update forward-looking information, except as required by applicable law[12](index=12&type=chunk) [Unaudited Financial Highlights](index=3&type=section&id=Unaudited%20Financial%20Highlights) This section presents the unaudited condensed consolidated statements of income and balance sheets for the specified periods [Condensed Consolidated Statements of Income (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Unaudited%29) This table presents the unaudited condensed consolidated statements of income for the three and six months ended March 29, 2025, and March 30, 2024, providing a detailed breakdown of revenues, expenses, and net income Condensed Consolidated Statements of Income (Unaudited) | | | | Three Months Ended (Thousands USD) | | | | Six Months Ended (Thousands USD) | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | March 29, | | | March 30, | March 29, | | | March 30, | | | 2025 | | | 2024 | 2025 | | | 2024 | | Net sales | $ 1,331,273 | | | $ 1,367,480 | $ 2,619,388 | | | $

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