SpartanNash Announces Second Quarter Fiscal 2025 Results

Core Insights - SpartanNash reported strong profitability driven by gross margin improvements and contributions from recent acquisitions [1][2] - The company is focused on closing the C&S Wholesale Grocers transaction, expected to finalize in late 2025 [1][8] - Financial results for the second quarter of fiscal 2025 showed a net sales increase of 1.8% to $2.27 billion, with notable performance in the retail segment [11] Financial Performance - Net sales increased to $2.27 billion, with retail segment net sales rising by 12.8% to $762.9 million, while wholesale segment net sales decreased by 3.0% to $1.51 billion [11] - Net earnings were reported at $6.2 million or $0.18 per diluted share, down from $11.5 million or $0.34 per diluted share in the previous year [11] - Adjusted EPS for the quarter was $0.54, compared to $0.59 in the same period last year [11] Transaction Details - SpartanNash entered into a merger agreement with C&S Wholesale Grocers for a purchase price of $26.90 per share, totaling $1.77 billion, which includes assumed net debt [7] - The transaction price represents a 52.5% premium over SpartanNash's closing price prior to the announcement [7] - The merger has been unanimously approved by the boards of both companies and is subject to shareholder and regulatory approvals [8] Operational Highlights - The company generated cash from operating activities amounting to $112.6 million, compared to $132.1 million in the previous year [11] - Capital expenditures and IT capital for the quarter were $56.2 million, down from $73.4 million [11] - The net long-term debt to adjusted EBITDA ratio improved to 2.7x from 2.9x in the previous quarter [11]