SpartanNash Company (SPTN) Q1 2025 Earnings Call May 29, 2025 08:30 AM ET Company Participants Kayleigh Campbell - Head - Investor RelationsTony Sarsam - President and CEOJason Monaco - EVP & CFOBenjamin Wood - VP - Equity ResearchPeter Saleh - MD - RestaurantsScott Mushkin - Founder, CEO, Managing Partner & Director of Research Conference Call Participants Chuck Cerankosky - Managing Director & Research AnalystAlexander Slagle - Stock AnalystAndrew Wolf - SVP & Senior Research Analyst Operator Thank you fo ...

Financial Data and Key Metrics Changes - The company reported a record adjusted EBITDA of nearly $77 million for Q1 2025, a 2.6% increase compared to Q1 2024's adjusted EBITDA of $74.9 million [6][21] - Consolidated net sales increased by 3.7% to over $2.9 billion compared to $2.8 billion in Q1 2024 [7][20] - Gross profit for the quarter rose to $481 million, representing 16.5% of net sales, up from 15.7% in the prior year [20] Business Line Data and Key Metrics Changes - Retail segment sales grew by 19.6% to $947.2 million, driven by recent acquisitions and a 1.6% increase in comparable store sales [23] - Wholesale segment net sales were nearly $2 billion, with military channel sales growing for 13 consecutive quarters, although there was softness in national accounts [9][22] - Retail adjusted EBITDA decreased to $15.1 million from $17.3 million in the prior year due to higher labor and occupancy costs [23] Market Data and Key Metrics Changes - The company experienced an 80 basis point headwind in comparable store sales due to temporary store closures from an ice storm [8][50] - Food at home inflation expectations were revised to 2% for the fiscal year, up from a previous expectation of 1% [28][72] Company Strategy and Development Direction - The company is focusing on a cost leadership program expected to deliver $50 million in annual benefits, with $20 million anticipated in the current year [11][19] - The strategic plan aims to unlock the potential of the retail business, with initiatives improving execution and enhancing the shopper experience [12][30] - Expansion plans include increasing capital deployment into store remodels, convenience store sector growth, and expanding the Hispanic food market footprint [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets despite challenging market conditions, reaffirming yearly guidance [16][25] - The company noted that inflationary pressures are stable, with a slight upward trend in food prices [72] - Management highlighted the importance of adapting to consumer trends, including a focus on health and value [80][82] Other Important Information - The company generated $25.8 million in cash from operating activities during the quarter, down from $36.5 million in Q1 2024 [24] - Liquidity at the end of the quarter was approximately $270 million, providing capacity for strategic growth plans [25] Q&A Session Summary Question: Expansion of Hispanic store format - The company currently has four Super Mercado stores in Omaha and plans to open two to three more in the Midwest this year [33][34] Question: Performance of newly acquired stores - Newly acquired Hispanic stores have shown strong performance, leading in both top and bottom line metrics [38] Question: Cost leadership program details - The cost leadership program is expected to deliver $20 million in benefits this year, with most impacts seen in the second half [45][46] Question: Retail profitability pressures in Q1 - The ice storm and pharmacy-related pressures significantly impacted profitability, with losses estimated between $1 million to $2 million due to spoilage [52][54] Question: Competitive environment differences - The company noted similar promotional activities in both wholesale and retail segments, with a strong military business performance [58][61] Question: Food at home inflation expectations - The increase to a 2% inflation expectation reflects a gradual upward trend in the marketplace [72][73] Question: Impact of food stamp changes - The impact from changes in food stamps was slightly negative in Q1, but not significantly amplified due to a low proportion of shoppers using SNAP [85] Question: M&A activity outlook - The company remains open to acquisition opportunities, actively seeking both smaller tuck-in acquisitions and larger opportunities [87]

Family Fare, D&W Fresh Market and Martin's Super Markets are ready for brat summer 2.0 with new in-store destination devoted to all things bratwurstGRAND RAPIDS, Mich., May 15, 2025 /PRNewswire/ -- Food solutions company SpartanNash® (the "Company") (Nasdaq: SPTN) is heating up summer grilling season with the launch of its new Brat Shop at all Family Fare®, D&W® Fresh Market and Martin's Super Market stores. The limited-time, in-store destination offers a taste of summer in a bun – featuring classic flavs a ...