Grand Rapids, Mich.-based food solutions company SpartanNash is poised to make good on its long-term plan to reposition its go-to-market functions, with heady expectations of saving approximately $20 million in savings by the end of 2023.
According to a news release, the strategy has been made possible through changes across the entire business, including supply chain, merchandising and marketing innovation initiatives.
SpartanNash reported strong financial results in the second quarter of 2023. The multichannel food company, which has complementary business segments in both food wholesale and grocery retail, reported second-quarter net sales of $2.31 billion, an increase of 1.7% compared with $2.27 billion in 2022’s second quarter, according to the release.
“Our team delivered solid results in the first half of 2023, leveraging transformational initiatives for growth and value. We are encouraged by the success to date, but also believe there is a long runway of benefits that will help us achieve our long-term strategic plan,” SpartanNash President and CEO Tony Sarsam said in the release.
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With progress underway, SpartanNash said in the release that it is repositioning its go-to-market strategy, centered on customers and implementing its refreshed go-to-market plan in the third quarter.
“We are now entering the next phase of our transformation, bolstering our go-to-market strategy and building on our ‘signature strength’ of being the most customer focused, innovative food solutions company,” Sarsam said. “All of the elements of our long-term strategic plan differentiate SpartanNash as a growth-oriented organization, which further positions us to drive profitability and increase shareholder value.”
SpartanNash Q2 earning - by the numbers
According to the release, other notable second quarter 2023 earning statistics include:
Retail comparable sales increased 3.9%, compared with the second quarter of 2022.
Net earnings totaled $19.5 million, compared with $5.1 million in the second quarter of 2022.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was reported as $66.1 million, compared with $61.8 million in the second quarter of 2022.
Cash generated from operating activities was $49.7 million during the first half of 2023, compared to $28.5 million in the first half of the prior year.
SpartanNash returned $33.6 million to shareholders during the first half of 2023 through $18.5 million in share repurchases and $15.1 million in dividends.
Wholesale and retail performance
Net sales for wholesale increased $31.9 million, or 2%, to $1.63 billion from $1.60 billion in the second quarter of 2022. The growth in net sales was due primarily to the inflationary impact on pricing in the quarter, partially offset by marketplace demand changes from a certain national account, the release said.
SpartanNash’s wholesale supply chain network includes independent and chain grocers, national retail brands, e-commerce platforms and U.S. military commissaries and exchanges. The company also distributes products throughout the grocery store, according to the release.
Additionally, second-quarter net sales for retail increased $6.6 million, or 1%, to $679 million from $672.4 million in the second quarter of 2022. Retail comparable store sales grew 3.9% for the quarter, due primarily to the inflationary impact on pricing, according to the release. Lower fuel prices in the quarter reduced reported net sales by 2%. Retail sales include the scaled regional retail segment operated by SpartanNash with 144 brick-and-mortar grocery stores, in addition to pharmacies and fuel centers, the release said.
