Core Insights - Natural Grocers, founded in 1955, has been a reliable source for organic and natural groceries in Wheat Ridge, CO since 2015, emphasizing quality and affordability [1][5] - The company celebrates its 10th anniversary in Wheat Ridge, highlighting its commitment to community and healthy living [2] Company Overview - Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) specializes in natural and organic groceries, body care products, and dietary supplements, adhering to strict quality guidelines [5] - The company operates 169 stores across 21 states, with a focus on providing USDA-certified organic produce and pasture-raised dairy products [5] - Natural Grocers invests over $15 million in fiscal year 2024 for Crew compensation and discretionary payments, reflecting its commitment to its employees [5] Customer Engagement - The {N}power rewards program offers limited-time anniversary deals for members, including surprise offers and special pricing from May 16-18 [3][4] - Customers can join the {N}power program for free through various methods, including in-store QR codes and the Natural Grocers App [4] Promotional Offers - Specific promotional deals include 2 for $10 on select products like Natural Grocers® Brand Bulk Almond Butter and Organic Beef Jerky, and 6 for $10 on Organic Sparkling Teas [8]

Natural Grocers by Vitamin Cottage (NGVC) Q2 2025 Earnings Call May 08, 2025 04:30 PM ET Company Participants Jessica Thiessen - Vice President & TreasurerKemper Isely - Chairman, Director & Co-PresidentRichard Hallé - CFO Conference Call Participants None - Analyst Operator Good day, ladies and gentlemen. Welcome to the Natural Grocers Second Quarter Fiscal Year twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answe ...

Financial Data and Key Metrics Changes - For the second quarter, net sales increased by 9% year-over-year to $335.8 million [14] - Daily average comparable store sales rose by 8.9%, with a two-year increase of 16.4% [14] - Operating income increased by 55.9% to $17.6 million, and net income rose by 64.6% to $13.1 million [15] - Diluted earnings per share increased by 60% to $0.56, and adjusted EBITDA grew by 33.3% to $26.3 million [15] Business Line Data and Key Metrics Changes - Sales performance was strong across product categories, particularly in differentiated offerings such as humanely raised meats, 100% organic produce, and pasture-raised dairy [9] - Natural Grocers brand products accounted for 8.6% of total sales, up from 8.5% a year ago, driven by the launch of 22 new items [11] Market Data and Key Metrics Changes - Daily average comparable transaction count increased by 5.9%, and transaction size increased by 2.8%, with modest inflation estimated at 2% annually [14] - The company reported a gross margin increase of 100 basis points to 30.3%, attributed to higher product margins from effective promotions [15] Company Strategy and Development Direction - The company plans to open three to four new stores and relocate or remodel two to four stores during fiscal 2025, with a long-term goal of six to eight new stores per year [12][17] - Focus on enhancing customer engagement through the nPower Rewards program and expanding the selection of Natural Grocers brand products [10] Management's Comments on Operating Environment and Future Outlook - Management noted no indicators of softer demand for products, trade down, or fewer items per basket despite broader macroeconomic uncertainties [8] - The company is raising its fiscal 2025 outlook for daily average comparable store sales growth and diluted earnings per share based on strong second-quarter results [16][17] Other Important Information - The net sales penetration of the Empower Rewards program increased to 81%, reflecting positive trends in customer loyalty [11] - The company ended the quarter with $21.2 million in cash and cash equivalents, no outstanding borrowings, and $70.3 million available on its revolving credit facility [16] Q&A Session Summary Question: What perks and promotions are offered in the loyalty program? - The company offers individualized offers tailored to shopping habits, earning points in-store that equate to a 1% rebate, and exclusive deals for members [21][22] Question: Has the basket size decreased due to the economy? - The company reported that basket size has remained steady over the last several quarters [23] Question: Are there plans to expand into other markets? - The company is planning to enter another state, with an announcement expected in the coming months [24] Question: How are inventory and distribution levels? - Inventory levels are back to pre-pandemic levels, running at about 97% in stock [25] Question: Is delivery offered in-house or through a third party? - Delivery is provided through Instacart, and the company does not plan to bring it in-house due to profitability concerns [28] Question: Are there trends in the age demographic of customers? - The company has seen an increase in millennial customers, attracted by its authentic messaging [30]

Exhibit 99.1 Operating Results — Second Quarter Fiscal 2025 Compared to Second Quarter Fiscal 2024 Net sales during the second quarter of fiscal 2025 increased $27.7 million, or 9.0%, to $335.8 million, compared to the second quarter of fiscal 2024, due to a $27.2 million increase in comparable store sales and a $3.5 million increase in new store sales, partially offset by a $2.9 million decrease in net sales related to closed stores. Daily average comparable store sales increased 8.9% in the second quarter ...

Core Viewpoint - Natural Grocers by Vitamin Cottage, Inc. reported exceptional second quarter results for fiscal 2025, with record sales and earnings, leading to an increased fiscal outlook for the year [2][19]. Financial Performance - Net sales for the second quarter of fiscal 2025 increased by $27.7 million, or 9.0%, reaching $335.8 million compared to the same quarter in fiscal 2024 [3][8]. - Daily average comparable store sales rose by 8.9%, driven by a 5.9% increase in transaction count and a 2.8% increase in transaction size [3][8]. - Gross profit for the second quarter increased by $11.4 million, or 12.6%, to $101.7 million, with a gross margin improvement of 100 basis points to 30.3% [4][11]. - Operating income surged by 55.9% to $17.6 million, with an operating margin of 5.2%, up from 3.7% in the prior year [7][14]. - Net income increased by 64.6% to $13.1 million, translating to diluted earnings per share of $0.56, compared to $0.35 in the same quarter of fiscal 2024 [7][8]. Cost Management - Store expenses rose by 5.1% to $72.8 million, but as a percentage of net sales, they decreased to 21.7% from 22.5% in the previous year, indicating expense leverage [5][12]. - Administrative expenses increased by 15.8% to $11.0 million, with a slight rise in percentage of net sales to 3.3% from 3.1% [6][13]. Growth and Development - The company opened two new stores during the second quarter, bringing the total to 169 stores across 21 states [18][22]. - The fiscal 2025 outlook has been raised, with expected daily average comparable store sales growth adjusted to 6.5% to 7.5% and diluted earnings per share revised to $1.78 to $1.86 [19][20]. Cash Flow and Balance Sheet - As of March 31, 2025, the company had $21.2 million in cash and cash equivalents, with no outstanding borrowings on its revolving credit facility [16][28]. - The company generated $36.7 million in cash from operations during the first six months of fiscal 2025 [16][30].

Financial Performance - Net sales for the three months ended March 31, 2025, increased to $335.769 million, up 9.0% from $308.092 million in the same period of 2024[20] - Gross profit for the six months ended March 31, 2025, was $200.572 million, representing a 12.0% increase from $179.117 million in the prior year[20] - Net income for the three months ended March 31, 2025, was $13.101 million, a significant increase of 64.8% compared to $7.961 million in the same period of 2024[20] - Operating income for the six months ended March 31, 2025, was $30.901 million, up 40.2% from $22.064 million in the same period of 2024[20] - Revenue for the three months ended March 31, 2025, was $335.8 million, a 9% increase from $308.1 million in the same period of 2024[42] - Net income for the six months ended March 31, 2025, was $23.0 million, or $0.99 diluted earnings per share, compared to $15.7 million, or $0.68 diluted earnings per share, for the same period in 2024, representing a 46.6% increase[122] - EBITDA for the three months ended March 31, 2025, was $25.4 million, an increase of $6.5 million, or 34.2%, compared to $19.0 million for the same period in 2024[87] - Adjusted EBITDA for the three months ended March 31, 2025, was $26.3 million, an increase of $6.6 million, or 33.3%, compared to $19.7 million for the same period in 2024[89] Assets and Liabilities - Total current assets rose to $163.248 million as of March 31, 2025, compared to $147.058 million as of September 30, 2024, reflecting a 11.0% increase[18] - Total liabilities decreased to $471.615 million as of March 31, 2025, down from $481.222 million as of September 30, 2024, indicating a reduction of 2.5%[18] - Cash and cash equivalents increased to $21.209 million at the end of March 2025, compared to $8.871 million at the end of September 2024, marking a substantial increase of 139.0%[18] - Total stockholders' equity increased to $192.975 million as of March 31, 2025, up from $174.254 million as of September 30, 2024, representing an increase of 10.8%[18] - The Company had $70.3 million available for borrowing under its Credit Facility as of March 31, 2025, with no revolving loan amounts outstanding[48] - As of March 31, 2025, cash and cash equivalents were $21.2 million, with $70.3 million available for borrowing under the Credit Facility[89] Store Operations - The company operated 169 stores as of March 31, 2025, maintaining the same number of stores as of September 30, 2024[27] - The company operated 169 stores in 21 states as of March 31, 2025, with plans to open three to four new stores in fiscal year 2025[84] - The company opened 2 new stores during the period, bringing the total number of stores to 169[103] - The twelve-month store unit growth rate was 0.6%, down from 1.2% in the previous year[104] Expenses - Store expenses increased by $3.6 million, or 5.1%, to $72.8 million, with store expenses as a percentage of net sales decreasing from 22.5% to 21.7%[108] - Administrative expenses rose by $1.5 million, or 15.8%, to $11.0 million, with administrative expenses as a percentage of net sales increasing from 3.1% to 3.3%[109] - Total lease cost for the three months ended March 31, 2025, was $15.6 million, slightly up from $15.5 million in the same period of 2024, indicating a year-over-year increase of 0.6%[66] - Depreciation and amortization expense totaled $7.9 million for the three months ended March 31, 2025, compared to $7.7 million for the same period in 2024, representing an increase of approximately 2.4%[71] Credit Facility and Financing - The Credit Facility was amended on November 16, 2023, increasing aggregate revolving commitments from $50.0 million to $75.0 million and extending the maturity date to November 16, 2028[47] - The company is in compliance with all covenants under the Credit Facility as of March 31, 2025[146] - Interest expense, net of capitalized interest, decreased to $1.7 million for the six months ended March 31, 2025, down from $2.1 million in the same period of 2024[120] - Cash provided by operating activities decreased by $0.1 million, or 0.3%, to $36.7 million for the six months ended March 31, 2025, compared to $36.8 million for the same period in 2024[137] - Net cash used in financing activities was $8.5 million for the six months ended March 31, 2025, compared to $21.7 million for the same period in 2024, which included a special cash dividend of $22.7 million paid to stockholders in 2024[141] Future Outlook - The company anticipates future sales growth may vary due to increasing competitive conditions and economic factors, including inflationary trends[93] - The company plans to continue opening new stores and relocating/remodeling existing stores, which may require additional borrowings under the Credit Facility[135] - The company plans to spend approximately $20.1 million to $28.1 million on capital expenditures during the remainder of fiscal year 2025, primarily for new store openings and relocations/remodels[139] Accounting Changes - The Company adopted ASU 2016-13 effective October 1, 2023, which did not have a material impact on its consolidated financial statements[33] - The Company expects the adoption of ASU 2023-07, effective for the annual reporting period ending September 30, 2025, to impact its single reportable segment disclosures[34]

Core Insights - Natural Grocers has been operating in Washington since 2014, with five stores currently in Vancouver, Spokane, and Kennewick [1][6] - The company emphasizes its connection to Washington's communities and promotes healthy living and sustainability [2] - A celebration event for National Washington Day is planned from May 10-12, 2025, offering freebies and discounts for {N}power members [3][8] Company Overview - Natural Grocers, founded in 1955, specializes in natural and organic groceries, body care products, and dietary supplements, adhering to strict quality guidelines [6][10] - The company operates 169 stores across 21 states, with a commitment to community and employee well-being, investing over $15 million in Crew compensation in fiscal year 2024 [10] Customer Engagement - The {N}power rewards program offers exclusive discounts and rewards points for members, encouraging customer loyalty [4][12] - During the National Washington Day celebration, {N}power members will receive a limited-edition reusable shopping bag and a $5 off coupon for in-store purchases [8][12] Employment and Community Commitment - Natural Grocers employs approximately 120 local Crew members in Washington, focusing on their physical, emotional, and financial well-being through various programs [5][10] - The company is dedicated to providing high-quality, affordable products while fostering a healthy work-life balance for its employees [5][10]

Core Insights - Natural Grocers has launched a new skincare line that emphasizes affordable self-care with spa-inspired products made from vegan ingredients [1] - The skincare line includes body butters, sugar scrubs, body washes, and creams, all free from parabens, petroleum products, and synthetic fragrances [1] - The company aims to expand its house brand, which has over 800 products available exclusively at its stores [1] Product Attributes - Recent additions to the private-label line include Non-GMO Peruvian Chips and organic cheeses, with more premium products expected soon [3] - The new body care products include various scents and formulations, all priced affordably, such as body butters and sugar scrubs ranging from $5.99 to $13.99 [5] Company Overview - Natural Grocers, founded in 1955, is a specialty retailer focused on natural and organic groceries, body care products, and dietary supplements [4] - The company adheres to strict quality guidelines, ensuring products are free from artificial ingredients and only sell USDA-certified organic produce [4] - Natural Grocers operates 169 stores across 21 states, providing a clean and convenient shopping environment [6]

Core Points - Natural Grocers® is hosting its fifth annual Body Care & Beauty Bonanza from May 9 to May 30, 2025, focusing on promoting safer beauty and hygiene products with discounts of up to 25% [1][2][7] - The event aims to educate customers about the importance of ingredient transparency and environmental stewardship in personal care products [1][4][8] Group 1: Event Details - The Body Care & Beauty Bonanza features discounts of up to 25% on selected brands, free gifts, and educational resources [1][2][7] - The first 50 shoppers at each store will receive a free reusable bag with samples on May 9 [2][7] - Customers can enter the "Count the Combs Sweepstakes" for a chance to win a $500 gift card by counting mini comb illustrations in the May edition of the Natural Grocers magazine [7] Group 2: Product Standards - Natural Grocers has established Body Care Standards that prioritize health and environmental safety, disallowing products with harmful ingredients like phthalates and parabens [3][4] - The company emphasizes the importance of understanding the entire life cycle of ingredients used in products, ensuring they meet high standards for human health and environmental impact [4] Group 3: Customer Engagement - {N}power members receive exclusive benefits during the Bonanza, including a 25% discount on body care and beauty purchases from May 9 to May 11 [6][7] - Members spending $50 or more on body care items will be entered to win one of 30 beauty gift baskets valued at $300 each [7] Group 4: Educational Resources - Customers can obtain a free 2025 Body Care & Beauty Guide to learn about Natural Grocers' standards and the potential risks of certain cosmetic chemicals [8] - The guide aims to inform customers about the implications of low-dose exposure to harmful ingredients and the importance of thoughtful product selection [8] Group 5: Company Overview - Natural Grocers, founded in 1955, is a specialty retailer of natural and organic groceries, body care products, and dietary supplements, with 169 stores across 21 states [9] - The company is committed to strict quality guidelines, ensuring products do not contain artificial additives and are USDA-certified organic [9]

Core Insights - Natural Grocers is celebrating Mother's Day with exclusive deals and promotions from May 9-11, offering discounts up to 32% on select items to help customers show appreciation for mothers without overspending [3][4]. Company Overview - Founded in 1955, Natural Grocers by Vitamin Cottage, Inc. is a specialty retailer focused on natural and organic groceries, body care products, and dietary supplements, with a commitment to affordable nutrition and a healthy environment [2][7]. - The company operates 169 stores across 21 states, emphasizing community empowerment through free nutrition education and high-quality organic products [2][7]. Promotions and Offers - The Mother's Day event includes special promotions such as discounts on groceries, gifts, and a chance to win prizes through activities like "Count the Combs" [3][4]. - Members of the {N}power rewards program can access additional promotions, including discounts up to 43% on select products and exclusive offers on body care and beauty items [4][11]. - Customers can participate in a sweepstakes for a chance to win a $500 gift card by engaging with the company's promotional activities [4][10]. Community Engagement - Natural Grocers honors mothers and caregivers by providing thoughtful gifts, easy recipes, and healthy treats, reinforcing its commitment to community and customer service [2][6]. - The company offers free nutritional health coaching sessions and personalized shopping experiences, further enhancing customer engagement and education [7][21].