Roundy’s, Inc. (“Roundy’s”) (NYSE: RNDY), a leading grocer in the Midwest, today reported financial results for the second quarter ended June 30, 2012.
- Net sales increased 1.7% to $996.8 million for the second quarter
- Net income grew 6.6% to $18.9 million, or $0.42 diluted earnings per common share, for the second quarter
- Adjusted EBITDA decreased 7.6% to $60.3 million for the second quarter
“Our second quarter results reflect the ongoing effects of a challenging economic environment on our business and our consumers,” said Robert Mariano, Roundy’s chairman, president and chief executive officer. “Our top line results were constrained by an increasingly price-conscious consumer and greater than anticipated pricing and promotional activity in several of our major markets. While these headwinds were worse than we expected in the quarter, we continue to be pleased with the strength in our Chicago area stores and the growing traction of our perishable, organic and own brand product offerings. As we look ahead, we believe that the economic and competitive conditions are likely to remain difficult for the second half of the year and consequently we are reducing our expectations for the year. We will continue to defend our local market leadership and are introducing a number of pricing and promotion initiatives focused on providing customers with high quality products at compelling values.”
Financial Results for Second Quarter of 2012
Net sales for the second quarter of 2012 were $996.8 million, an increase of $16.4 million, or 1.7%, from $980.4 million for the second quarter of 2011. The increase primarily reflects the impact of new stores, partially offset by a 3.3% decrease in same-store sales. The same-store sales decrease was primarily due to a 3.2% decrease in the number of customer transactions. Average transaction size in the second quarter 2012 was unchanged from the second quarter 2011. Same-store sales comparisons were negatively impacted by increased weakness in the consumer environment as a result of the soft economy and the increased effect of competitive store openings and related pricing and promotional activity in certain markets. In addition, the timing of the 2012 July 4
holiday negatively affected same store sales by shifting more sales into the third quarter than during the comparable prior year quarter.
Gross profit for the second quarter of 2012 increased 1.1% to $267.7 million, from $264.7 million in the second quarter of 2011. Gross profit as a percentage of net sales was 26.9% for the second quarter of 2012, compared to 27.0% in the second quarter of 2011. The decrease in gross profit as a percentage of net sales primarily reflects price and promotional investments in certain markets and increased shrink, partially offset by improved efficiencies in the Company’s supply chain operations.