SpartanNash Announces Q3 Results, Major Partnership and Initiatives
GRAND RAPIDS, MI - SpartanNash Company announced the financial results of the company’s third quarter fiscal 2018—noting top-line growth and teasing a new partnership and a company-wide initiative designed to transform the company’s culture.
“We continued to make good progress on our strategic business objectives during the third quarter with particular strength in our food distribution segment sales where we benefited from retention in our core customer base and expanded business with key customers,” said David Staples, President and Chief Executive Officer, in a press release. “We continue to work diligently to address the industry challenges that face the company and are pleased to have generated new business wins across our food distribution and military segments that are expected to commence in the mid to late fourth quarter, with the majority of the benefits to be realized in 2019.”
Highlights from the company’s Q3 include:
- Consolidated net sales for the third quarter increased $18.3 million, or 1.0%, to $1.89 billion from $1.87 billion in the prior year quarter
- Gross profit for the third quarter of fiscal 2018 of $256.1 million, or 13.6% of net sales, compared to $261.7 million, or 14.0% of net sales, in the prior year quarter
- Operating expenses for the third quarter of $229.3 million, or 12.2% of net sales, compared to $455.6 million, or 24.4% of net sales, in the prior year’s third quarter
- Operating earnings of $26.8 million compared to an operating loss $193.9 million in the prior year quarter
- Adjusted EBITDA of $48.3 million compared to $55.9 million in the prior year quarter
Among additional highlights the company noted plans to pilot a test program to deliver fresh product to smaller format stores in the fourth quarter of 2018 and to enhance food processing operations and offer new and innovative opportunities in value-added prepared product categories.
“In addition to these top line wins, I am excited to announce that we have partnered with a third party advisory firm to begin a company-wide initiative designed to transform our culture, empowering associates at all levels to drive substantial ongoing, sustainable improvements to our business processes and results,” Staples continued. “This initiative is intended to position the company to take full advantage of the opportunities we expect to see over the next one to two years.”
SpartanNash also noted work on its long-term strategic objective—to evolve into a growth company focused on developing a national, highly efficient distribution platform and servicing a diverse customer base. This work included efforts to improve the company’s core distribution network, enhance its supply chain capabilities, and better serve both the East and West Coasts.
For more information, read SpartanNash’s earnings statement in its entirety here.