- **Record Q1 Performance**: $77M EBITDA (+2.6% YoY), 3.7% sales growth, 1.6% Retail comps despite weather.
- **Cost Leadership Impact**: $20M savings in 2025, $50M+ annual from 2026. Hispanic stores up 148% in key categories.
- **Guidance Reaffirmed**: 2025 targets for 7% CAGR EBITDA, 3.7% sales growth, $1.60-1.85 EPS.
- **Expansion Momentum**: 4 new Hispanic stores in 2025, 2-3 Midwest openings, Michigan expansion in pipeline.
- **Inflation Resilience**: 2% FY25 inflation, offset by category innovation and 138M margin initiatives.

**【CEO Opening Remarks】**
- Q1 2025 revenue reached $2.9 billion, up 3.7% YoY, driven by Retail segment growth (19.6%) and Wholesale segment resilience despite national account challenges.
- Adjusted EBITDA hit a record $77 million, +2.6% YoY, with Retail comps up 1.6% despite 80bp weather-related drag.
- Launched Cost Leadership Program targeting $50M annual savings ($20M in 2025), investing in procurement, automation, and labor efficiency.
- Hispanic market expansion accelerated with 4 Supermercado Nuestra Familia stores in Omaha, planning 2-3 new Midwest openings in 2025.

**【CFO Financial Breakdown】**
- Gross profit margin improved 86bps to 16.5%, driven by Retail mix shift and Wholesale margin expansion.
- Adjusted EPS of $0.35 vs. $0.53 YoY, impacted by higher interest expense ($1.7M) from acquisitions.
- FY25 guidance reaffirmed: $9.8-10B net sales (+3.7% midpoint), $263-278M EBITDA (+4.6%), $1.60-1.85 EPS.
- Food-at-home inflation now expected at 2% vs. prior 1%, benefiting short-term wholesale but requiring category planning to mitigate costs.

**【Q&A Key Takeaways】**
- Hispanic stores: 4 in Omaha, 2-3 new Midwest openings in 2025, targeting Michigan expansion. Early remodels show +148% bratwurst sales.
- Cost Leadership Program: $20M 2025 savings (back-half weighted), $50M+ annual from 2026. 2024+ initiatives already contributing $20M run rate.
- Retail profitability pressures: 3M pharmacy PBM headwinds, 1-2M weather-related spoilage, offset by 1.6% comps and 138M margin initiatives.
- M&A pipeline: Active on small tuck-ins and larger opportunities, focusing on Hispanic, convenience, and ethnic formats.
- Inflation: 2% FY25, balanced by promo activity and health-focused categories (gut health +15%, high protein +10%).

SpartanNash Company (SPTN) Q1 2025 Earnings Call Transcript

- **Record EBITDA Growth**: 3rd consecutive year of adjusted EBITDA ($258M), Q4 up 9% YoY.\n- **Acquisition-Driven Retail Success**: 7.7% retail sales growth, Michigan comps positive in Q4.\n- **2025 Outlook**: 3.7% sales growth, 4.6% EBITDA growth, targeting C-store and Hispanic market expansion.\n- **Strategic Investments**: $150M-$165M CapEx for growth initiatives, $300M liquidity for M&A flexibility.\n- **Key Risks**: Legacy retail underperformance ($45.7M impairment), industry-wide 1% inflation.

**【CEO Opening Remarks】**
- **People-First Culture**: Improved safety KPIs by 83% since 2020 and 5% increase in 90-day new hire retention rate.\n- **Industry Outlook**: Grocery industry growth of 1.1% in 2025, with SpartanNash focusing on market share capture through wholesale-retail synergy.\n- **Q4 Financials**: Record 3rd consecutive year of adjusted EBITDA ($258M), Q4 EBITDA up 9% YoY. Retail sales growth of 7.7% driven by acquisitions, with Michigan comps positive in last 2 quarters.\n- **Strategic Initiatives**: Expansion of remodel capital into upmarket stores, C-store growth, and Hispanic food market expansion (targeting double current ethnic store footprint).\n- **M&A Update**: Completed 2024 acquisitions contributing to Q4 outperformance, with balanced approach to future deals.\n
**【CFO Financial Highlights】**
- **2024 Performance**: $9.55B net sales, $258.5M adjusted EBITDA, $206M cash from operations (130% YoY increase).\n- **Margin Enhancements**: $50M+ benefits from supply chain and merchandising initiatives, 102bp gross margin improvement in Q4.\n- **2025 Guidance**:\n  - Net Sales: $9.8B-$10B (3.7% midpoint growth)\n  - Adjusted EBITDA: $263M-$278M (4.6% midpoint growth)\n  - EPS: $1.60-$1.85\n  - Food inflation: 1%\n- **Liquidity**: $300M at year-end, supporting M&A and growth.\n- **Impairment Charge**: $45.7M related to legacy retail underperformance, offset by acquisition contributions.\n
**【Q&A Key Takeaways】**
- **Customer Behavior**: Flat traffic vs. deep discounters, but sequential progress in comps and private label penetration (27%).\n- **2025 Organic Growth**: Flattish sales growth with focus on market share in low-inflation environment.\n- **C-Store Strategy**: Active in M&A pipeline, targeting 53rd-week-impacted C-store growth.\n- **Ethnic Stores**: Nebraska stores outperforming, plans to double footprint in 2025 with long-term expansion.\n- **M&A Sentiment**: Mixed seller sentiment, but strong C-store fundamentals support SpartanNash's acquisition strategy.

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