Grocery store chain Ingles Markets Inc. reported a 9 percent decline in its profit for its fiscal third quarter on slightly higher sales, according to a filing Friday with the Securities and Exchange Commission.
The Asheville, North Carolina-based company reported net income of $11.5 million, or 57 cents per share, in the third quarter ended June 24, down from $12.7 million, or 63 cents per share, in the same quarter a year ago.
Revenue rose 2.8 percent to $984.4 million in the quarter from $957.2 million in the same quarter of 2016.
“We continue to improve our store base to offer more products and a great shopping experience to our customers,” said Chairman Robert P. Ingle II in a statement. “We have a number of projects in process that will contribute to our long-term performance.”
Ingles’ shares rose 55 cents to $29.65 in Friday trading.
Excluding gasoline sales and the effect of extra Easter sales in the 2017 quarter, retail grocery comparable store sales increased 0.8 percent compared to the same quarter of 2016.
The number of customer transactions, excluding gasoline, were unchanged, and the average transaction size, excluding gasoline, increased 2.0 percent.
Operating and administrative expenses for the June 2017 quarter totaled $207.6 million, up 4.1 percent from $199.4 million for the June 2016 quarter.
Most of the increase was due to higher personnel and other costs aimed at boosting sales.
Ingles operates 199 grocery stores and also owns shopping centers, many of which include an Ingles location. It also has a dairy operation.