Ingles Market reported almost $35 million in damage related to Hurricane Helene, and sales decreased in the fourth quarter and annual results.
The company estimates it lost $14 million in sales for the last two days of the fiscal year because of Hurricane Helene, according to its quarterly financial report. Store closures and power outages will affect results for the coming fiscal year. In addition, the lack of water and affect company’s dairy operations during the first quarter this year.
Net income for the fiscal year ended September 28 was $105.5 million, compared with $210.8 million for the previous year. Fiscal year 2024 had 52 weeks and fiscal year 2023 had 53 weeks. The company said inflation in the cost of goods and higher labor costs contributed to the declining profit.
Net sales totaled $1.4 billion for the quarter ended Sept. 28, compared with $1.58 billion for the same period a year earlier. For the year, revenue declined to $5.64 billion in 2024 versus $5.89 billion a year earlier.
Rain and tropical storm winds struck western North Carolina on Sept. 27.
Impact of Hurricane Helene
Hurricane Helene caused catastrophic flooding, loss of power, communication and water, and major road closures in Buncombe County where Ingles has its headquarters. The company had an impairment loss of $30.4 million related to inventory damaged or destroyed by the hurricane, and an additional impairment loss of $4.5 million in property and equipment loss, according to the filing.
On Oct. 29, the company reported that it expected its losses related to the storm to total between $35 million and $55 million. Also, three of its stores remain closed but all are expected to re-open in 2025, the company reported on Dec. 27.
“After Hurricane Helene impacted our communities, I am proud of how not only our associates came together, but our entire region. We are truly thankful for all the volunteers and the outpouring of support for our region,” says Robert Ingle II, board chair, in a release.
Ingles’ shares opened at $66.26 on Friday, and are down 23.28% year-to-date, and 10.7% in the past month. It has a market capitalization of almost $1.26 billion.
Editor’s note: This has been corrected to reflect just three Ingles stores remain closed.