Village Super Market(US:VLGEA)2024-10-09 22:11Sales Performance - Sales increased to $2,236,566 in fiscal 2024, up from $2,166,654 in fiscal 2023, driven by a 2.3% increase in same store sales and the opening of a new ShopRite store[51]. - Total sales for the year ended July 27, 2024, were $2,236,566, an increase of 3.2% from $2,166,654 in the previous year[99]. - The pharmacy segment's sales increased to $82,276,000, accounting for 3.7% of total sales, up from 3.3% in the prior year[114]. Profitability - Gross profit as a percentage of sales rose to 28.70% in fiscal 2024 from 28.45% in fiscal 2023, attributed to improved departmental gross margins and increased patronage dividends[52]. - Gross profit for the same period was $641,975, up from $616,450, reflecting a gross margin improvement[99]. - Net income for fiscal 2024 was $50,462, compared to $49,716 in fiscal 2023, while adjusted net income increased to $52,554 from $48,888, reflecting a 7% year-over-year growth[59]. - Net income increased to $50,462, compared to $49,716 in the prior year, representing a growth of 1.5%[99]. - The net income available to Class A and Class B shareholders was $48,596 for the year ended July 27, 2024, compared to $48,126 for the year ended July 29, 2023, an increase of 1.0%[135]. Expenses - Operating and administrative expenses as a percentage of sales increased to 24.34% in fiscal 2024 from 23.86% in fiscal 2023, primarily due to higher labor costs and external fees related to digital sales[53]. - Adjusted operating and administrative expenses as a percentage of sales were 24.30% in fiscal 2024, up from 23.91% in fiscal 2023[47]. - Advertising expenses rose to $12,174 in fiscal 2024 from $10,658 in fiscal 2023, marking an increase of approximately 14.2%[123]. - The company experienced a non-cash share-based compensation expense of $3,993,000 in fiscal 2024, compared to $3,274,000 in fiscal 2023[106]. Taxation - The effective income tax rate decreased to 30.6% in fiscal 2024 from 31.6% in fiscal 2023, driven by increased work opportunity tax credits and favorable deferred tax asset revaluation[58]. - The effective income tax rate for fiscal 2025 is projected to be between 31.0% and 32.0%[82]. - The provision for income taxes totaled $22,255 for the year ended July 27, 2024, compared to $23,009 for the year ended July 29, 2023, reflecting a decrease of approximately 3.3%[161]. Capital Expenditures - In fiscal 2024, Village utilized cash for capital expenditures of $63,113, dividends of $13,341, and principal payments of long-term debt of $11,003[67]. - Capital expenditures in fiscal 2023 were $46,400, with significant investments in store remodels and technology upgrades[69]. - The company has budgeted $75,000 for capital expenditures in fiscal 2025, focusing on new store constructions and technology upgrades[70]. - Capital expenditures increased to $63,113,000 in fiscal 2024 from $46,400,000 in fiscal 2023, representing a rise of 35.9%[106]. Debt and Liquidity - Working capital decreased to $25,485 in fiscal 2024 from $67,714 in fiscal 2023, primarily due to $33,338 in matured notes receivable from Wakefern[70]. - As of July 27, 2024, Village had $67,664 available under its unsecured revolving line of credit[78]. - The Company’s total liabilities for finance and operating leases represent the present value of minimum lease payments not yet paid, reflecting the financial obligations associated with its lease agreements[122]. - As of July 27, 2024, the Company's total debt, excluding obligations under leases, was $72,245, down from $81,796 in the previous year, indicating a reduction of approximately 11.4%[148]. Investments and Assets - The company holds variable rate notes receivable from Wakefern totaling $33,740, maturing on August 15, 2027[73]. - The company’s total assets as of July 27, 2024, were $981,664, a slight increase from $967,706 in the previous year[98]. - The Company has invested $17,355 in a real estate partnership for the development of a retail center in Old Bridge, New Jersey[71]. - Total deferred tax assets increased to $99,206 as of July 27, 2024, from $96,617 as of July 29, 2023, representing a growth of about 2.6%[163]. Shareholder Returns - The company plans to maintain quarterly dividends at the current rate of $0.25 per Class A and $0.1625 per Class B share in 2025[82]. - Dividends paid increased slightly to $13,341,000 in fiscal 2024 from $13,193,000 in fiscal 2023[106]. - The Company declared cash dividends of $1.00 per share for Class A common stock and $0.65 per share for Class B common stock in fiscal 2024, totaling $13,341 compared to $13,193 in fiscal 2023[179]. Operational Changes - The company closed an 8,400 sq. ft. Gourmet Garage store in New York City on November 1, 2023, with no material impact on consolidated financial statements[45]. - The company opened an 83,000 sq. ft. replacement ShopRite store in Old Bridge, NJ, on March 17, 2024, replacing a smaller 32,000 sq. ft. store[44]. - The company operated an automated micro-fulfillment center in South New Jersey, which was closed on September 1, 2024, leading to non-cash impairment charges[55]. - The Company recognized an impairment charge of $2,125 related to the closure of the automated micro-fulfillment center in south NJ in Fiscal 2024[130].