US: Pantry books first-quarter loss

By: just-food.com | 4 February 2010

US convenience store operator The Pantry has booked a net loss for the first quarter of its fiscal year, hurt by below-average fuel and grocery margins.

The net loss for the three months to 24 December 2009 amounted to $27.1m, which included the impact of non-cash impairment charges of $0.90 per share. This reversed last year’s $38.5m profit.

Meanwhile EBITDA amounted to $40.3m, down from $112.1m a year earlier. Total revenue was up 6%, however, to $1.74bn,

Merchandise revenues for the first quarter increased 7% overall and 5.2% on a comparable-store basis from the corresponding period last year.

President and CEO Terrance Marks said: "Our first-quarter operating results were adversely affected by below-average fuel margins and soft grocery margins. We are taking steps which we expect to improve our grocery margin in the coming quarter. Despite our loss for the first quarter, we generated positive cash flow from operations.”

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