SpartanNash (NASDAQ:SPTN), the food solutions company, exceeded analyst expectations in its second-quarter earnings on Thursday, benefiting from improved gross margins and contributions from recent acquisitions.
Following the announcement, the company’s shares remained flat in after-hours trading.
The company posted adjusted earnings per share of $0.54, beating the analyst consensus of $0.50. Revenue reached $2.27 billion, slightly below the $2.29 billion estimate but up 1.8% year-over-year.
“I’m proud of our team’s continued focus and efforts to execute on the strategic plan, which delivered strong profitability driven by cost savings and expanded margins,” said SpartanNash President and CEO Tony Sarsam.
Within the company’s Wholesale segment, net sales fell 3.0% to $1.51 billion due to lower case volumes in national accounts. Conversely, the Retail segment saw a 12.8% increase to $762.9 million, supported by recently acquired stores. Retail comparable store sales declined 0.5% as unit volumes dipped.
Adjusted EBITDA climbed to $68.7 million from $64.5 million in the year-ago period, reflecting higher gross margins in Wholesale and lower corporate administrative expenses.
SpartanNash is in the process of being acquired by C&S Wholesale Grocers in a $1.77 billion deal, representing a 52.5% premium over its June 20 closing price. The transaction is expected to close in late 2025, pending shareholder and regulatory approval.
Due to the ongoing acquisition, the company did not provide guidance for fiscal 2025.
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