US: Weis profits rise on cost control
- Net profit up 9.2%
- Operating income up 11.2%
- Sales down 1.9%
Weis Markets has booked an increase in net profit, as effective supply chain management allowed it to navigate the difficult economic conditions and maintain market share.
The company said today that 2012 net income increased 9.2% to US$82.5m, up from $75.6m in 2011 - when the bottom line was boosted by an extra trading week. Operating income rose 11.2% to $127m.
Higher profitability was achieved in the face of declining sales, as consumers cut spending in the face of weak economic conditions. Sales in the period were down 1.9% to $2.7bn.
"We continue to operate in an economy significantly impacted by slow economic growth, high unemployment and declining household income," David Hepfinger, president and CEO, commented. "We successfully worked through these challenges by efficiently managing and improving our stores and supply chain which helped us drive strong net income increases and maintain our market share."
The group said the result benefitted from "record" investment in its store base and indicated that this investment will continue in 2013.
Weis Markets Issues 4th Quarter Results
Reports strong net income gains
SUNBURY, Pa., March 5, 2013 /PRNewswire/ -- Weis Markets, Inc. (NYSE: WMK) today reported strong fourth quarter and year end net income increases.
The Company said these results were achieved in a 52-week fiscal year compared to a 53-week fiscal year in 2011.
For the 13-week period ending December 29, 2012, the Company's net income increased 14.5% to $22.1 million compared to $19.3 million for the 14-week period ending December 31, 2011. Fourth quarter earnings per share increased 15.3% to $.83 per share compared to the same period in 2011.
In the fourth quarter, operating income increased 23.5% to $34.8 million. For the 13-week period endingDecember 29, 2012, the Company's sales decreased 5.9% to $694.3 million compared to $737.8 millionfor the 14-week period ending December 31, 2011 while comparable store sales decreased 7.0% for the same period.
Adjusting for the 52-week to 53-week comparison, the Company's sales increased 1.1% while its net income increased 36.8%. The Company's adjusted comparable store sales were flat.
"We continue to operate in an economy significantly impacted by slow economic growth, high unemployment and declining household income. As a result of these continuing trends, our customers were cautious in their spending in 2012," said David J. Hepfinger, Weis Markets' President and CEO. "We successfully worked through these challenges by efficiently managing and improving our stores and supply chain which helped us drive strong net income increases and maintain our market share. Our results also benefited from record investments in our store base, which will continue in 2013."
Year to Date Results
For the 52-week period ending December 29, 2012, the Company's net income increased 9.2% to $82.5 million compared to $75.6 million for the 53-week period in 2011.
For the year, the Company's operating income increased 11.2% to $127.0 million. During the same period, its earnings per share increased $.26 to $3.07 per share. For the 52-week period endingDecember 29, 2012, the Company's sales decreased 1.9% to $2.7 billion compared to the 53-week period in 2011 while comparable store sales decreased 2.0%.
Adjusting for the 52-week to 53-week comparison, the Company's 2012 net income increased 13.9% while its sales and comparable store sales were flat.
Original source: Weis Markets
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