Refinancing costs have hit third-quarter earnings at US retailer Ingles Markets, the company said today (3 August).

The North Carolina-based group booked net income of US$4.7m for the three months to 27 June.

The result compared to US$16m a year earlier but included US$10.2m in pre-payment penalties and loan cost write-offs linked to Ingles’ bond issue in May.

CEO Robert Ingle said: “The credit markets have been substantially closed for the past couple of years and could continue to be difficult for the foreseeable future. A window of opportunity opened in May and we took advantage of favorable conditions to implement this refinancing.”

Net sales fell from US$826.8m compared to US$835.3m a year earlier. Excluding fuel, however, net sales were up 5.1%.

Excluding fuel sales and the effect of Easter, grocery segment comparable-store sales increased 1.9%.