Q2 2024 SpartanNash Co Earnings Call Transcript
Key Points
- SpartanNash Co (SPTN) introduced 400 new own brand products at their annual Food Solutions Expo, appealing to budget-conscious consumers.
- The company expects $20 million in run rate benefits from recent investments by the end of the year, with more benefits flowing through in 2025.
- The merchandising transformation, including enhanced category planning and own brands, is helping capture margin and create a platform for future growth.
- The Customer Value Proposition (CVP) pilot stores are showing promising early results, expected to deliver double-digit growth with lower prices and higher profit margins.
- The military channel has shown growth over the past 10 quarters, helping offset pressures within the wholesale segment.
- Net sales decreased by 3.5% to $2.23 billion, driven largely by a decline in the national accounts channel, particularly with Amazon.
- Comparable store sales in the retail segment were down 2.5%, reflecting macroeconomic pressures.
- Q2 adjusted EBITDA decreased slightly to $64.5 million, indicating challenges in maintaining profitability.
- Higher SG&A expenses, driven by asset impairment charges and acquisition integration expenses, impacted operating expenses.
- Consolidated net earnings decreased by $8 million compared to the prior-year quarter, reflecting ongoing financial pressures.
Welcome to the SpartanNash second-quarter 2024 earnings conference call. (Operator Instructions)
I would like to turn now the call over to Kayleigh Campbell, SpartanNash's Head of Investor Relations. Kayleigh?
Thank you and good morning. On the call today from the company are President and Chief Executive Officer, Tony Sarsam; and Executive Vice President and Chief Financial Officer, Jason Monaco. By now, everyone should have access to the earnings release, which was issued this morning at approximately 7:00 AM Eastern Time. For a copy of the earnings releases as well as the company's supplemental earnings presentation, please visit SpartanNash's website, spartannash.com/investors. This call is being recorded, and a replay will be available on the company's website.
Before we begin, the company would like to remind you that today's discussion will include a number of forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual
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