Natural Grocers by Vitamin Cottage Inc (NGVC) 2025 Q1 法說會逐字稿

Good day. Ladies and gentlemen, welcome to the Natural Grocers first-quarter, fiscal year, 2025 earnings conference call. (Operator Instructions) As a reminder, today's call is being recorded.

再會。女士們，先生們，歡迎參加 Natural Grocers 2025 財年第一季財報電話會議。（操作員指示）提醒一下，今天的通話正在被錄音。

I'd now like to turn the conference over to Ms. Jessica Thiessen, Vice President, Treasurer for Natural Grocers. Ms. Thiessen, you may begin.

現在，我想將會議交給 Natural Grocers 副總裁兼財務主管 Jessica Thiessen 女士。蒂森女士，您可以開始。

Good afternoon and thank you for joining us for the Natural Grocers by Vitamin Cottage first quarter, fiscal year 2025 earnings conference call. On the call with me today are Kemper Isely, Co-President; and Richard Halle, Chief Financial Officer.

下午好，感謝您參加 Vitamin Cottage 旗下 Natural Grocers 2025 財年第一季財報電話會議。今天與我一起通話的有聯合總裁 Kemper Isely；以及財務長理查德‧哈勒 (Richard Halle)。

As a reminder, certain information provided during this conference call contains forward-looking statements based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially from those described in the forward-looking statements due to a variety of factors including the risks and uncertainties detailed in the company's most recently filed Forms 10-Q and 10-K, the company undertakes no obligation to update forward-looking statements.

提醒一下，本次電話會議中提供的某些資訊包含基於當前預期和假設的前瞻性陳述，並受風險和不確定性的影響。由於多種因素，包括公司最近提交的 10-Q 和 10-K 表格中詳述的風險和不確定性，實際結果可能與前瞻性聲明中描述的結果有重大差異，公司不承擔更新前瞻性聲明的義務。

Our remarks today include references to adjusted EBITDA which is a non-GAAP measure. Please see our earnings release for a reconciliation of adjusted EBITDA to net income. Today's earnings release is available on the company's website and a recording of this call will be available on the website at investors.naturalgrocers.com.

我們今天的評論包括對非公認會計準則 (GAAP) 指標——調整後的 EBITDA 的提及。請參閱我們的收益報告，以了解調整後的 EBITDA 與淨收入的對帳。今天的收益報告可在公司網站上查閱，本次電話會議的錄音可在 investors.naturalgrocers.com 網站上查閱。

Now I will turn the call over to Kemper.

現在我將把電話轉給肯珀。

Thank you, Jessica and good afternoon everyone. Thank you for joining us for our first quarter call. Today, I will highlight our financial results, including key drivers of our performance, and provide an update on our initiatives. Then Rich will discuss the first quarter results in greater detail and review our updated fiscal year 2025 guidance.

謝謝你，潔西卡，大家下午好。感謝您參加我們的第一季電話會議。今天，我將重點介紹我們的財務業績，包括我們業績的關鍵驅動因素，並提供我們的最新舉措。然後，里奇將更詳細地討論第一季的業績，並回顧我們更新後的 2025 財年指引。

We are very pleased with the strong start to our fiscal year. Our first quarter results saw accelerating growth and continuation of the positive trends we experienced over the past two years, including broad based growth across product categories and geographic regions.

我們對本財年的強勁開局感到非常高興。我們第一季的業績顯示出加速成長和延續過去兩年來的正面趨勢，包括跨產品類別和地理區域的廣泛成長。

Moreover, comparable store sales growth has remained balanced between transaction counts, transaction size and item per basket. We believe that many of our performance metrics are among the highest in grocery retail.

此外，同店銷售額的成長在交易數量、交易規模和每籃商品數量之間保持了平衡。我們相信，我們的許多績效指標在雜貨零售業中名列前茅。

Our daily average comparable store sales increase accelerated to 8.9% for the first quarter, and was 15.1% on a two year basis. Additionally, we have had eight consecutive quarters of positive transaction count comps and four consecutive quarters with both an increase in items per basket and modest inflation.

第一季度，我們日均同店銷售額增幅加速至 8.9%，兩年增幅為 15.1%。此外，我們已經連續八個季度實現交易筆數正成長，並且連續四個季度實現每籃商品數量增加和通膨溫和。

Our sales growth in recent years and expectation for continued sales growth are supported by our differentiated offering. Consumers are increasingly prioritizing products that support health and sustainability, creating tailwinds for our business.

我們近年來的銷售成長以及持續銷售成長的預期得益於我們差異化的產品。消費者越來越重視支持健康和永續性的產品，這為我們的業務創造了順風。

Our offering of high quality products at always affordable prices creates a compelling value proposition that customers recognize, is distinctive within the marketplace. Robust and balanced sales growth, combined with effective expense management, drove significant operating leverage and generated a 26.5% year-over-year increase in diluted earnings per share.

我們始終以實惠的價格提供高品質的產品，創造出客戶認可的引人注目的價值主張，在市場上獨樹一幟。強勁且均衡的銷售成長，加上有效的費用管理，推動了顯著的營運槓桿，使每股稀釋收益年增 26.5%。

We believe our growth in fiscal 2025 and beyond will benefit from our close alignment with consumer trends, strong customer engagement through our {N}power rewards program. Expansion of the natural grocers brand products, new store development and driving existing store productivity

我們相信，我們在 2025 財年及以後的成長將受益於我們與消費者趨勢的緊密結合，以及透過我們的 {N}power 獎勵計劃實現的強大客戶參與度。擴大天然食品雜貨品牌產品，開發新店並提高現有商店的生產力

During the first quarter, net sales penetration of our {N}power rewards program was 81%, up from 78% a year ago, reflecting continued positive trends in customer loyalty and engagement. Natural Grocers brand products represent premium quality at compelling prices. In the first quarter, our branded products accounted for 8.9% of total sales, up from 8.5% a year ago, helped in part by new products.

第一季度，我們的 {N}power 獎勵計劃的淨銷售滲透率為 81%，高於一年前的 78%，反映出客戶忠誠度和參與度持續呈現正面趨勢。Natural Grocers 品牌產品代表著優質的品質和誘人的價格。第一季度，我們的品牌產品佔總銷售額的 8.9%，高於去年同期的 8.5%，部分原因是新產品的推動。

During the quarter. We launched 23 new Natural Grocers brand items that all meet our high standards for nutritional health and sustainability, including organic varieties of tomato sauce, pasta and soup. During the first quarter, we relocated two stores and closed two stores.

在本季度。我們推出了 23 種新的 Natural Grocers 品牌產品，兩者都符合我們對營養健康和永續性的高標準，包括有機番茄醬、義大利麵和湯。第一季度，我們搬遷了兩家商店並關閉了兩家商店。

Subsequent to the quarter, we opened a new store in Brownsville, Texas. Store unit growth and development continues to be a priority for our company. During fiscal 2025, we planned to open four to six new stores and relocate or remodel two to four stores.

本季之後，我們在德克薩斯州布朗斯維爾開設了一家新店。門市單位的成長和發展仍然是我們公司的首要任務。在2025財年，我們計劃開設四至六家新店，並搬遷或改造兩至四家店。

Earlier this week, we released our fiscal year 2024 sustainability report. Since my parents founded the company in 1955. Natural Grocers has prioritized offering quality products at affordable prices, nutrition, education, and caring for our crew and communities.

本週早些時候，我們發布了 2024 財年永續發展報告。自從我的父母在 1955 年創立這家公司。Natural Grocers 優先提供價格實惠的優質產品、營養、教育以及對我們的員工和社區的關懷。

We believe that grocery stores play a pivotal role in the food chain, a system that is essential to health and well being. We choose to positively impact the way that food in this nation is grown, raised and sold. We aim to offer nutritionally sound, environmentally responsible products, and prioritize vendors and farmers who are as passionate about human health, animal welfare and the health of our planet as we are.

我們相信，雜貨店在食物鏈中發揮關鍵作用，而食物鏈系統對於健康和福祉至關重要。我們選擇對這個國家的食品種植、飼養和銷售方式產生正面影響。我們的目標是提供營養合理、對環境負責的產品，並優先考慮那些像我們一樣熱衷於人類健康、動物福利和地球健康的供應商和農民。

Furthermore, we believe that our company's ongoing financial success demonstrates that a business model dedicated to offering affordable, high quality, natural and organic products can help deliver positive environmental and social impact, while creating value for all of our stakeholders.

此外，我們相信，我們公司持續的財務成功表明，致力於提供價格合理、高品質、天然和有機產品的商業模式可以幫助產生積極的環境和社會影響，同時為我們所有的利益相關者創造價值。

In closing, I would like to thank our good for you crew for their commitment to operational execution and exceptional customer service. They have been essential to our sustained success.

最後，我要感謝我們團隊對營運執行的奉獻以及卓越的客戶服務。它們對於我們持續的成功至關重要。

With that, I will turn our call over to Rich to discuss our financial results and guidance.

說完這些，我將把電話轉給里奇，討論我們的財務表現和指導。

Thank you, Kemper and good afternoon. For the first quarter, net sales increased 9.4% from the prior year period to $330.2 million. Daily average comparable store sales increased 8.9% and increased 15.1% on a two year basis.

謝謝你，肯珀，下午好。第一季淨銷售額較去年同期成長 9.4% 至 3.302 億美元。日均同店銷售額較去年同期成長8.9%，兩年內成長15.1%。

Our daily average comparable transaction count increased 5.3%. This marks our eighth consecutive quarter with positive customer traffic comps. Our daily average comparable transaction size increased 3.4%. The transaction size comp included an increase in items per basket of approximately 2 percentage points.

我們的每日平均可比交易筆數增加了5.3%。這是我們連續第八個季度實現客戶流量年增。我們的每日平均可比交易規模增加了3.4%。交易規模比較包括每籃商品數量的增加約 2 個百分點。

We estimate that the transaction size comp also included modest product cost inflation of approximately 1% to 2% points on an annualized basis. Importantly, this was the fourth consecutive quarter with both an increase in items per basket and modest inflation.

我們估計，交易規模的比較還包括按年率計算約 1% 至 2% 的適度產品成本通膨。重要的是，這是連續第四個季度出現每籃子商品數量增加和通膨溫和的情況。

Sales growth continues to be broad based across product categories. Our strongest performing departments were dairy meat and produce. The dietary supplement, sales comp was also positive. For the first quarter gross margin increased 50 basis points to 29.9% driven by store occupancy cost leverage and higher product margin.

各產品類別的銷售額持續普遍成長。我們表現最強大的部門是乳製品、肉類和農產品。膳食補充劑的銷售量也呈現正面態勢。第一季毛利率增加 50 個基點至 29.9%，這得益於門市入住成本槓桿和產品利潤率的提高。

Store expenses increased 8.1% in the first quarter primarily driven by higher compensation expenses. Store expenses as a percentage of net sales decrease 20 basis points reflecting expense leverage. Administrative expenses as a percentage of net sales increased 40 basis points driven by higher compensation and technology expenses.

第一季門市支出成長 8.1%，主要原因是薪資支出增加。商店費用佔淨銷售額的百分比下降了 20 個基點，反映了費用槓桿。由於薪資和技術費用增加，管理費用佔淨銷售額的百分比增加了 40 個基點。

Compensation expenses included the cost related to our Chief Financial Officer transition, operating income increased 23.6% to $13.3 million. Net income increased 28.1% to $9.9 million and diluted earnings per share increased 26.5% to $0.43 in the first quarter. Adjusted EBITDA increased 21.7% to $22.8 million.

薪酬支出包括與我們的財務長過渡相關的成本，營業收入成長 23.6% 至 1,330 萬美元。第一季淨收入成長 28.1% 至 990 萬美元，每股攤薄收益成長 26.5% 至 0.43 美元。調整後 EBITDA 成長 21.7%，達到 2,280 萬美元。

Turning to the balance sheet and cash flow. We ended the first quarter in a strong liquidity position including $6.3 million of cash and cash equivalents and $61.4 million available to borrow. On our $72.5 million revolving credit facility.

轉向資產負債表和現金流。我們在第一季結束時擁有強大的流動性狀況，包括 630 萬美元的現金和現金等價物以及 6,140 萬美元的可供借款。我們的 7,250 萬美元循環信貸額度。

We had $8.9 million in outstanding borrowings on our credit facility. During the first quarter, we invested $9.4 million in net capital expenditures primarily for new and relocated stores based on the strong start to our fiscal year coupled with confidence in our business trends and execution.

我們的信貸額度中有 890 萬美元的未償借款。在第一季度，我們投資了 940 萬美元的淨資本支出，主要用於新店和搬遷門市，這得益於我們財年開局強勁以及對業務趨勢和執行力的信心。

We are increasing our fiscal 2025 outlook for daily average comparable store sales growth and diluted earnings per share. Our revised outlook includes the following four to six new store openings, two to four store relocations or remodels daily average comparable store sales growth between 5% and 7%

我們提高了 2025 財年每日平均同店銷售額成長和每股攤薄收益的預期。我們修訂後的展望包括：開設四至六家新店，搬遷或改造兩至四家門市，每日平均可比店面銷售額成長 5% 至 7%

An increase compared to our prior outlook of between four and 6%. Diluted earnings per share between $1.57 and $1.65 an increase compared to our prior outlook of a $1.52 to $1.60, and capital expenditures of $36 million to $44 million to support our growth initiatives.

與我們先前預測的 4% 至 6% 相比，這一數字有所增加。每股攤薄收益在 1.57 美元至 1.65 美元之間，高於我們先前預測的 1.52 美元至 1.60 美元，資本支出為 3,600 萬至 4,400 萬美元，以支持我們的成長計劃。

Our outlook reflects the first quarter results and considers both the current operating momentum we are experiencing and consumer trends. Our outlook includes the benefits of our new store growth, targeted marketing focused on our value proposition, differentiation, and customer engagement and operating initiatives focused on driving higher productivity in our stores.

我們的展望反映了第一季的業績，並考慮了我們當前的營運動能和消費者趨勢。我們的展望包括新店成長帶來的好處、專注於我們的價值主張、差異化和客戶參與的目標行銷以及專注於提高我們門市生產力的營運計劃。

Our current expectation is that sales comps will be at the high end of our outlook range in the second quarter while moderating somewhat in the second half of the year, as we continue to cycle relatively strong comps in the prior year.

我們目前的預期是，第二季的銷售額年比將達到我們預期範圍的高端，而下半年的銷售額年比將有所放緩，因為我們將繼續延續上一年相對強勁的銷售額同比。

We expect modest inflation throughout the year in line with current trends, although we acknowledge the uncertainty of the impact of possible tariffs. Our outlook anticipates that year over year gross margin will be relatively flat. Lastly, we expect that year over year store expenses as a percentage of sales will be relatively flat to slightly lower.

儘管我們承認可能的關稅影響存在不確定性，但我們預計全年通膨將按照當前趨勢保持溫和。我們預計同比毛利率將相對持平。最後，我們預期門市支出佔銷售額的百分比比去年同期將相對持平或略低。

In closing. We are pleased with the strong start to the fiscal year. We attribute our strong performance to the relevance of our differentiated business model including the value proposition of high quality products at always affordable prices.

最後。我們對本財年的強勁開局感到高興。我們將強勁的業績歸功於我們差異化商業模式的相關性，包括以始終實惠的價格提供高品質產品的價值主張。

Now, we would like to open the line for questions. Thank you.

現在，我們願意開放提問專線。謝謝。

(Operator Instructions)

（操作員指示）

Scott Mushkin, R5 capital.

斯科特·穆甚金（Scott Mushkin），R5 資本。

Hey guys, sorry about that. It was muted. So my first question is how we left that you guys left off your prepared remarks. You obviously had a good amount of leverage on rent and gross margin with the costs being so strong. What are the offsets as the year goes on that? You would think gross margin would be relatively flat.

嘿夥計們，很抱歉。它被靜音了。所以我的第一個問題是，你們怎麼會忘記發表準備好的演講呢？由於成本如此之高，您顯然在租金和毛利率方面擁有相當大的槓桿作用。隨著時間的推移，抵消額是多少？您可能會認為毛利率會相對穩定。

Relatively Flat. You mean.

相對平坦。你的意思是。

They wouldn't improve. In other words, your gross margin rate wouldn't move higher as you leverage the rent, but I think runs through it.

他們不會進步。換句話說，你的毛利率不會隨著租金的提高而上升，但我認為它會貫穿其中。

Hey, Scott, this is rich. Yeah, we did see an improvement of 50 basis points in the margin. Know a significant percentage of that was related to store if it's a cost leverage.

嘿，斯科特，這太有趣了。是的，我們確實看到利潤率提高了 50 個基點。如果這是一種成本槓桿，那麼要知道其中很大一部分與商店有關。

And then some of that, for product margin improvements. Yeah, as we move forward, as we talked in our outlook, we expect that comps in the second half will start to lower as we -- lower end of our range as we start to cycle, some pretty strong comps in the prior year.

其中一些是為了提高產品利潤率。是的，隨著我們前進，正如我們在展望中談到的那樣，我們預計下半年的可比銷售額將開始下降，因為我們開始循環，處於範圍的低端，而去年的一些可比銷售額相當強勁。

So we'll see less benefit from store occupancy leverage. And I think, obviously a little bit uncertain as to the tariff environment and its potential impact on product costs. And so we're in a little bit of a wait and see situation.

因此，我們將看到商店入住率槓桿帶來的收益減少。我認為，關稅環境及其對產品成本的潛在影響顯然存在一些不確定性。因此我們處於觀望狀態。

Got it. So appropriately conservative, I guess, is how I would think of how you guys are thinking about it if that makes sense.

知道了。所以，我想，如果說得通的話，我會適當保守地考慮你們對此的看法。

Yeah, I think that's a fair statement.

是的，我認為這是一個公平的說法。

I mean, I think the next question is the -- my other questions are more longer term. Well, actually, before I get to that, I actually did have one shorter-term question on free cash flow. There were some working capital movements there between the years. And I was wondering, is there some timing things going on when we think about free cash flow for the quarter?

我的意思是，我認為下一個問題是——我的其他問題是更長期的。嗯，實際上，在談論這個之前，我確實有一個關於自由現金流的短期問題。這些年來，那裡有一些營運資金的流動。我想知道，當我們考慮本季的自由現金流時，是否存在一些時間因素？

Yes. It's all timing driven. It was predominantly accounts payable and the timing of payment for goods and services.

是的。一切都由時間驅動。主要是應付帳款以及貨物和服務的付款時間。

Okay, that's my last shorter-term one. So on a longer-term basis, if we step back and look at the business, I think you got a 4% operating margin in the quarter. Obviously, your nearest competitor, [sprouts] has a much higher margin than you guys.

好的，這是我的最後一個短期計劃。因此，從長期來看，如果我們回顧一下業務，我認為本季的營業利潤率為 4%。顯然，你們最接近的競爭對手[sprouts]的利潤率比你們高很多。

What -- why can't it continue to climb as you -- assuming, I always say I assume, it's not a good idea, but thinking is probably a better word that comps remain strong, maybe not as strong as they've been. You continue to increase the penetration of own brands or your branded product as you continue to reap the benefits of {N}power, why shouldn't that -- again, thinking comps can stay above the 3% to -- say 3% to 4% range. Should that continue to rise? And is there in your mind of a limit to where it will go?

為什麼它不能繼續攀升，因為你假設，我總是說我假設，這不是一個好主意，但思考可能是一個更好的詞，認為公司仍然保持強勁，也許不像以前那麼強勁。當您繼續獲得 {N}power 的益處時，您會繼續增加自有品牌或品牌產品的滲透率，為什麼不呢 — — 再次考慮可比品牌可以保持在 3% 到 — — 比如說 3% 到 4% 的範圍內。這個數字還會繼續上升嗎？您認為它的去向有限制嗎？

Yes. So I think that as we continue to see sales leverage, right, sales expansion as we move forward, we should continue to see some expansion in our margins. I mean, that's to be expected. Obviously, depending on unit growth of stores, that also will have some impact in damping down some of that expansion. But I think it's a reasonable assumption.

是的。因此我認為，隨著我們繼續看到銷售槓桿，對，隨著我們前進，銷售擴張，我們應該繼續看到利潤率擴大。我的意思是，這是意料之中的事。顯然，根據商店單位的成長情況，這也會對抑制部分擴張產生一定影響。但我認為這是一個合理的假設。

In terms of comparing it to comps, that's a little bit of a different story as we're very focused on product quality and affordable pricing, and affordable pricing is a competitive point for the company, a competitive strength, and we know that we are priced lower than our competition. And so that will continue to have -- as we stay true to our values, that will have some impact.

與同類產品相比，情況略有不同，因為我們非常注重產品品質和實惠的價格，實惠的價格是公司的競爭點，競爭優勢，我們知道我們的價格低於競爭對手。因此，只要我們堅持自己的價值觀，就會產生一定的影響。

Okay. I love that, by the way, such a great answer. So then the final thing, Kemper, I think we talked about this before, like the last piece is like -- is going to be repetitive, but four to six stores, could you do seven to nine? Is that possible? Are you -- think that you thought about a little bit more? Trying to get.

好的。順便說一句，我很喜歡這個很棒的答案。那麼最後一件事，坎珀，我想我們之前討論過這個問題，就像最後一部分是 - 將會重複，但是四到六家商店，你能做到七到九家嗎？這可能嗎？您是否認為您想得更多？正在嘗試去得到。

I think as we've said in our guidance, this year, we're focused on four to six. And then next year, we're hoping that we'll be able to that the pipeline will open up a little bit more, and we'll be able to do six to eight stores. And then going forward, that would be the plan, to do six to eight stores.

我認為，正如我們在指導中所說的那樣，今年我們的重點是四到六個。然後，我們希望明年能夠進一步開放管道，並能夠開設六到八家商店。接下來的計劃是開設六到八家商店。

All right. That's all. I don't know if there's anyone on the line, it's usually just me. So I really appreciate it. I'm just going to say it one more time. I know you're not interested, but we'd love to have a store in Florida.

好的。就這樣。我不知道是否有人在線，通常只有我一個人。所以我真的很感激。我只想再說一次。我知道你不感興趣，但我們很想在佛羅裡達開一家店。

Okay. Thanks, Scott. Florida is a little bit off of our path right at the moment.

好的。謝謝，斯科特。佛羅裡達州目前有點偏離我們的路線。

I just love the store so much. It has such a unique offering. I love the fact the way you price. If you were a consulting client of ours, I'd say you're doing most things right. And I think it's great. And obviously, the trend is your friend right now.

我太喜歡這家商店了。它有如此獨特的產品。我喜歡你的定價方式。如果您是我們的諮詢客戶，我會說您做的大多數事情都是正確的。我認為這很棒。顯然，現在趨勢就是你的朋友。

And hopefully -- I shouldn't say that on a conference call, so I won't say that. But -- I could say something political a little bit, but I won't do that. But it looks like there's going to be an increased focus on healthy eating. How about if I just say that.

希望——我不會在電話會議上這麼說，所以我不會這麼說。但是──我可以談一些政治話題，但我不會這麼做。但看起來人們將更加關注健康飲食。如果我直接這麼說呢？

I think there will be. I agree with you. And it will be to the benefit of this industry, for sure.

我認為會有的。我同意你的看法。這肯定會為這個行業帶來好處。

Absolutely. Absolutely.

絕對地。絕對地。

All right. Thank you. Have a nice afternoon.

好的。謝謝。祝您下午愉快。

This concludes our question and answer session. I would like to turn the conference back over to Kemper Isley for any closing remarks.

我們的問答環節到此結束。我想將會議交還給 Kemper Isley 並請他作最後發言。

Thank you for joining us.

感謝您加入我們。

We believe that natural grocers continues to be well aligned with consumer and category tailwinds helping to fuel our momentum and putting us in a strong position for the remainder of the fiscal year. Thank you and have a great day. Bye.

我們相信，天然食品雜貨商繼續與消費者和類別順風保持一致，有助於增強我們的發展勢頭，並使我們在本財年剩餘時間內處於強勢地位。謝謝您，祝您有愉快的一天。再見。

The conference is now concluded. Thank you for attending the Natural Grocers first quarter, fiscal year, 2025 earnings conference call. You may now disconnect.

會議現已結束。感謝您參加 Natural Grocers 2025 財年第一季財報電話會議。您現在可以斷開連線。