Wed, Jun 4, 6:48 PM (8 days ago)
**Village Super Market, Inc. (VLGEA) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 sales increased by 3.2% to $563,669,000, driven by same-store sales growth, new store openings, and digital sales growth. - **Profit Margins:** Gross profit margin improved by 0.23% to 28.77% due to higher patronage dividends and lower LIFO charges. - **Net Income:** Q1 2025 net income rose by 24.1% to $11,161,000, with adjusted net income increasing by 21% to $11,633,000. - **Cash Flow:** Operating cash flow increased by 23.2% to $71,538,000, primarily due to higher net income and changes in working capital. **Key Metrics & Trends:** - **Same-Store Sales:** Increased by 1.9% in Q1 2025, driven by digital sales growth, remodeled stores, higher pharmacy sales, and inflation in meat and dairy departments. - **Operating Expenses:** Decreased by 0.41% as a percentage of sales, with adjusted operating expenses down by 0.37%, primarily due to lower employee costs and advertising expenses. - **Capital Expenditures:** Planned capital expenditures revised downward to approximately $65,000,000 for fiscal 2025 due to a shift in the timing of store openings. **Uncertainties & Future Operations:** - **Economic Factors:** The company faces uncertainties related to economic conditions, competitive pricing, and industry consolidation. - **Dependence on Wakefern:** Village Super Market relies heavily on Wakefern for merchandise, support services, and patronage dividends. Any material change in Wakefern's operations could adversely impact Village. - **Labor and Healthcare Costs:** Approximately 91% of employees are covered by collective bargaining agreements, and increases in healthcare and pension costs could impact operating expenses. - **Cybersecurity Risks:** The company faces potential cybersecurity threats, which could lead to data breaches, reputational damage, and financial losses. **Outlook:** - **Same-Store Sales Growth:** Expected to range from 1.5% to 2.5% in fiscal 2025. - **Dividends:** The board intends to continue paying quarterly dividends at the current rate. - **Liquidity:** The company believes that cash on hand, operating cash flow, and the credit facility will be adequate to meet liquidity needs for the foreseeable future. **Ticker:** VLGEA