Natural Grocers by Vitamin Cottage Inc (NGVC) 2025 Q2 法說會逐字稿

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

女士們、先生們，大家好。歡迎參加 Natural Grocers 2025 財年第二季財報電話會議。（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 now 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，現在可以開始了。

Good afternoon, and thank you for joining us for the Natural Grocers by Vitamin Cottage second-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 財年第二季財報電話會議。今天與我一起通話的還有共同總裁 Kemper Isely 和財務長 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 表中詳述的風險和不確定性，實際結果可能與前瞻性陳述中描述的結果有重大差異。該公司不承擔更新前瞻性陳述的義務。

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.

我們今天的評論提到了調整後的 EBITDA，這是一項非 GAAP 指標。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. Our second-quarter results were exceptional as we delivered record sales and earnings. On today's call, I will highlight financial results, including key drivers of our performance, discuss what we are seeing in consumer trends, and provide an update on our initiatives. Then Rich will discuss our second-quarter results in greater detail and review our updated fiscal year 2025 guidance.

謝謝你，潔西卡，大家下午好。我們第二季的業績非常出色，實現了創紀錄的銷售額和收益。在今天的電話會議上，我將重點介紹財務業績，包括我們業績的關鍵驅動因素，討論我們所看到的消費者趨勢，並提供我們舉措的最新情況。然後，里奇將更詳細地討論我們的第二季業績，並回顧我們更新的 2025 財年指引。

Sales growth remained robust in the second quarter and we continue to believe that the quality, breadth, and longevity of our sales performance are extraordinary for grocery retail. Daily average comparable store sales increased 8.9% and accelerated to 16.4% on a two-year basis. The transaction count comp increase of 5.9% marked our ninth consecutive quarter with positive traffic.

第二季的銷售成長依然強勁，我們仍然相信，對於雜貨零售業來說，我們的銷售業績的品質、廣度和持久性都是非凡的。日均同店銷售額成長8.9%，兩年內成長加速至16.4%。交易筆數年增 5.9%，標誌著我們連續第九個季度實現正流量。

The transaction size comp increased 2.8% and was our fifth consecutive quarter with an increase in items per basket and modest inflation. Additionally, sales performance was strong across vintages. Remarkably, stores five years and older had an 8.5% comp for the quarter, underscoring the strong competitive position of our stores.

交易規模年增 2.8%，這是我們連續第五個季度實現每籃商品數量增加且通膨溫和。此外，各年份的銷售業績均表現強勁。值得注意的是，經營五年及五年以上的門市本季的銷售額年增了 8.5%，凸顯了我們門市強大的競爭地位。

We are also very pleased with the performance of the newer vintages. We believe the quality, breadth, and duration of our sales performance are indicators of the overall strength of our business model and productivity of our initiatives. We believe there is a continuing trend in consumer prioritization of health and wellness, including a heightened focus on food and nutrition and that we are well-positioned to capitalize on this dynamic.

我們對新年份葡萄酒的表現也非常滿意。我們相信，銷售業績的品質、廣度和持續時間是我們商業模式整體實力和計畫生產力的指標。我們相信，消費者對健康和保健的優先考慮將持續呈現趨勢，包括更加關注食品和營養，而我們已準備好利用這一動態。

New customers are increasingly drawn to our relevant value offering of high-quality natural and organic products at always affordable prices. Furthermore, we are enhancing customer engagement through our effective marketing initiatives, compelling offers and {N}power rewards program We believe that communicating and establishing our differentiated position in the marketplace has been instrumental in generating our strong sales performance over the past several years.

我們以實惠的價格提供高品質的天然和有機產品，這些產品的價值越來越受到新客戶的青睞。此外，我們還透過有效的行銷舉措、引人注目的優惠和{N}power 獎勵計劃來增強客戶參與度。我們相信，在過去幾年中，溝通和建立我們在市場上的差異化地位對於我們產生強勁的銷售業績至關重要。

For the second quarter, our focus on operational execution, including effective promotions and store productivity initiatives combined with expense leverage from higher sales, resulted in an operating margin improvement of 150 basis points and a 60% increase in diluted earnings per share. Based on the strong second-quarter results, we are increasing our fiscal 2025 outlook for daily average comparable store sales growth and diluted earnings per share. In light of the broader macro environment, we are monitoring consumer trends closely. To date, we have not observed any indicators of softer demand for our products, trade down or fewer items per basket.

第二季度，我們專注於營運執行，包括有效的促銷和商店生產力計劃，加上銷售額增加帶來的費用槓桿，導致營業利潤率提高了 150 個基點，每股攤薄收益增加了 60%。基於第二季的強勁業績，我們上調了 2025 財年日均同店銷售額成長和每股攤薄收益的預期。鑑於更廣泛的宏觀環境，我們正在密切關註消費者趨勢。到目前為止，我們還沒有觀察到任何顯示我們的產品需求減弱、消費下降或購物籃商品數量減少的跡象。

Second-quarter sales remained strong across product categories with our highest comparable store sales growth in our most differentiated offerings. These include meat in which we are committed to offering humanely raised and sustainably sourced meats; fish and seafood; produce, which is 100% organic; and our dairy category, which includes 100% pasture-raised dairy and a minimum egg standard of free range.

第二季度，各產品類別的銷售依然強勁，我們最具差異化的產品的同店銷售額增幅最高。這些包括肉類（我們致力於提供人道飼養和可持續來源的肉類）、魚類和海鮮、農產品（100％有機）以及我們的乳製品類別（其中包括100％牧場飼養的乳製品和最低散養雞蛋標準）。

Furthermore, our robust and balanced sales trends were relatively consistent throughout the second quarter and have continued into the third quarter. We have confidence in our ability to navigate the uncertain economic environment in front of us. Our customer base is diverse in terms of age and income demographics and our customers share a significant focus on health and sustainability. We believe that behaviors adopted by consumers to support their health and wellness are enduring.

此外，我們強勁且均衡的銷售趨勢在整個第二季度相對穩定，並持續到第三季。我們對自己應對眼前不確定的經濟環境的能力充滿信心。我們的客戶群在年齡和收入人口統計方面多種多樣，我們的客戶都非常關注健康和永續性。我們相信，消費者為維護自身健康和保健所採取的行為是持久的。

Additionally, our customers have historically been resilient during periods of economic uncertainty. We believe that our distinctive offering of high-quality, natural, and organic products at always affordable prices positions us to attract and retain customers across a spectrum of macro conditions.

此外，我們的客戶在經濟不確定時期歷來具有韌性。我們相信，我們以實惠的價格提供獨特的高品質、天然和有機產品，使我們能夠在各種宏觀條件下吸引和留住客戶。

As we look to the remainder of fiscal 2025 and beyond, we will continue to focus on our key priorities to drive growth. including communicating our differentiated offering, further enhancing customer engagement through our {N}power rewards program, expanding our selection of Natural Grocers brand products, and driving new store development and existing store productivity.

展望 2025 財年剩餘時間及以後，我們將繼續專注於推動成長的關鍵優先事項，包括傳達我們的差異化產品、透過我們的 {N}power 獎勵計劃進一步增強客戶參與度、擴大我們的 Natural Grocers 品牌產品選擇、推動新店開發和現有店鋪生產力。

I will now highlight the second quarter performance of key initiatives. During the second 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 are affordable offerings that meet our high standards for nutritional health and sustainability.

現在我將重點放在第二季主要措施的實施情況。在第二季度，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 品牌產品價格實惠，符合我們對營養健康和永續性的高標準。

In the second quarter, our branded products accounted for 8.6% of total sales, up from 8.5% a year ago, driven in part by new products. During the quarter, we launched 22 new Natural Grocers brand items and we're excited about the new offerings in the queue for the balance of the year.

第二季度，我們的品牌產品佔總銷售額的 8.6%，高於去年同期的 8.5%，部分原因是新產品的推動。在本季度，我們推出了 22 款新的 Natural Grocers 品牌產品，我們對今年剩餘時間內即將推出的新產品感到興奮。

During the second quarter, we opened new stores in Brownsville, Texas and Waco, Texas. Store unit growth and development continues to be a priority of our company. During fiscal 2025, we plan to open three to four new stores and relocate or remodel two to four stores. In the future, we plan to open six to eight new stores per year.

第二季度，我們在德克薩斯州布朗斯維爾和德克薩斯州韋科開設了新店。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，我們計劃開設三到四家新店，並搬遷或改造兩到四家店。未來我們計劃每年開設6至8家新店。

In closing, I would like to thank our good4u crew for their commitment to operational execution and exceptional customer service that were instrumental in driving our results. We are fortunate to have crew who share an affinity for our company's founding principles and are dedicated to ensuring that our stores, operations, and supply chain reflect these values.

最後，我要感謝我們的 good4u 團隊，感謝他們對營運執行和卓越客戶服務的承諾，這對我們取得成果起到了重要作用。我們很榮幸擁有與我們公司創始原則有著共同愛好的員工，並致力於確保我們的商店、營運和供應鏈體現這些價值。

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

說完這些，我將把電話轉給里奇，討論我們的財務表現和前景。

Thank you, Kemper, and good afternoon. For the second quarter, net sales increased 9% from the prior year period to $335.8 million. Daily average comparable store sales increased 8.9% and on a two-year basis, the increase accelerated to 16.4%. Our daily average comparable transaction count increased 5.9%. Our daily average comparable transaction size increased 2.8%, including modest product cost inflation of an estimated 2 percentage points on an annualized basis and an increase in items per basket of approximately 1 percentage point.

謝謝你，肯珀，下午好。第二季淨銷售額較去年同期成長 9%，達到 3.358 億美元。日均同店銷售額成長 8.9%，兩年內增幅加速至 16.4%。我們的每日平均可比交易筆數增加了5.9%。我們的每日平均可比交易規模增加了 2.8%，其中包括按年率計算的適度產品成本通膨（約 2 個百分點）和每籃商品數量增加約 1 個百分點。

For the second quarter, gross margin increased 100 basis points to 30.3%, driven by higher product margin primarily attributed to effective promotions. Store expenses as a percentage of net sales decreased 80 basis points, reflecting expense leverage. Administrative expenses as a percentage of net sales increased 20 basis points, driven by technology expenses and higher compensation. Operating income increased 55.9% to $17.6 million. Operating margin increased 150 basis points. Net income increased 64.6% to $13.1 million and diluted earnings per share increased 60% to $0.56 in the second quarter. Adjusted EBITDA increased 33.3% to $26.3 million.

第二季度，毛利率增加 100 個基點至 30.3%，這主要得益於有效的促銷活動帶來的產品利潤率提高。門市支出佔淨銷售額的百分比下降了 80 個基點，反映了支出槓桿。由於技術費用和薪資增加，管理費用佔淨銷售額的百分比增加了 20 個基點。營業收入成長 55.9% 至 1,760 萬美元。營業利益率增加150個基點。第二季淨收入成長 64.6% 至 1,310 萬美元，每股攤薄收益成長 60% 至 0.56 美元。調整後 EBITDA 成長 33.3% 至 2,630 萬美元。

Turning to the balance sheet and cash flow. We ended the second quarter in a strong liquidity position, including $21.2 million in cash and cash equivalents, no outstanding borrowings and $70.3 million available to borrow on our revolving credit facility. During the first six months of fiscal 2025, we generated cash from operations of $36.7 million and invested $15.9 million in net capital expenditures, primarily for new and relocated stores, resulting in free cash flow of $20.8 million.

轉向資產負債表和現金流。我們在第二季結束時擁有強大的流動性狀況，包括 2,120 萬美元的現金和現金等價物、沒有未償還借款以及 7,030 萬美元的循環信貸額度可供借入。在 2025 財年的前六個月，我們產生的經營現金為 3,670 萬美元，並投資了 1,590 萬美元的淨資本支出，主要用於新店和搬遷門市，從而產生了 2,080 萬美元的自由現金流。

We are raising our fiscal 2025 outlook for daily average comparable store sales growth and diluted earnings per share and updating our outlook for new stores. Our revised outlook includes the following: three to four new store openings compared to our prior outlook of four to six; two to four store relocations or remodels; daily average comparable store sales growth between 6.5% and 7.5%; an increase compared to our prior outlook of between 5% and 7%; diluted earnings per share between $1.78 and $1.86, an increase compared to our prior outlook of $1.57 and $1.65; and capital expenditures of $36 million to $44 million to support our growth initiatives.

我們上調了 2025 財年日均同店銷售額成長和每股攤薄收益的預期，並更新了新店的預期。我們修訂後的預期包括以下內容：新開三至四家店，而我們之前預期的是四至六家；兩至四家店將搬遷或改造；日均同店銷售額增長 6.5% 至 7.5% 之間；與我們之前預期的 5% 至 7% 相比有所增長；稀釋每股收益在 1.78 美元至 1.86 美元之間，我們與 1.86 美元的每股收益在 1.78 美元之間，我們預期 1.865 美元之前美元相比有所增長；資本支出為 3,600 萬至 4,400 萬美元，用於支持我們的成長計劃。

Our outlook reflects the strong first-half results and considers a range of scenarios for the second half. Consistent with our previous guidance, our expectation is that sales comps will moderate somewhat in the second half of the year as we continue to cycle relatively strong comps in the prior year. Additionally, our sales comp guidance considers a range of scenarios given uncertainty around tariff impacts and the broader macro environment.

我們的展望反映了上半年強勁的業績，並考慮了下半年的一系列情景。與我們先前的指導一致，我們預計下半年銷售額將年減，因為我們將繼續延續上一年相對強勁的同比增長。此外，考慮到關稅影響和更廣泛的宏觀環境的不確定性，我們的銷售補償指導考慮了一系列情境。

Our outlook for year-over-year gross margin is flat to slightly lower, primarily depending on promotional investments. Lastly, we expect that year-over-year store expenses as a percentage of sales will be relatively flat to slightly lower.

我們對同比毛利率的預期是持平或略低，這主要取決於促銷投資。最後，我們預期門市支出佔銷售額的年比百分比將相對持平或略低。

In closing, while there is some uncertainty in the market, we believe our value offering of high-quality, natural, and organic products at always affordable prices is particularly relevant to consumers. Furthermore, we will continue to focus on our key priorities to drive growth for the remainder of fiscal 2025 and beyond.

最後，儘管市場存在一些不確定性，但我們相信，我們以實惠的價格提供的高品質、天然和有機產品對消費者來說尤其重要。此外，我們將繼續專注於我們的關鍵優先事項，以推動 2025 財年剩餘時間及以後的成長。

Now we'd like to open the line for questions. Thank you.

現在我們開始回答問題。謝謝。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員指示）

Scott Mushkin, R5 Capital.

斯科特·穆甚金（R5 Capital）。

Hey, sorry, guys. This is [Ryanne] on for Scott. Congrats on the great results. So just on the loyalty program, what are you guys doing for the consumer in terms of perks, promos. What type of stuff are you offering?

嘿，抱歉，各位。我是 [Ryanne]，代表 Scott 發言。恭喜您取得如此優異的成績。那麼就忠誠度計畫而言，你們在福利和促銷方面為消費者做了什麼。您提供什麼類型的東西？

Well, we have a few things that we do. We send out individualized offers to our members. And they -- those offers are tailored towards their shopping habits. So if they're a supplement customer, they'll get an offer that offers x amount off of a certain amount of purchase and supplements or they'll get some specific deals that are only -- that they only are offered, et cetera.

嗯，我們有幾件事要做。我們向會員發送個人化優惠。這些優惠都是根據他們的購物習慣量身定制的。因此，如果他們是補充劑客戶，他們將獲得一項優惠，即在購買一定數量的補充劑時可享受 x 金額的折扣，或者他們將獲得一些僅向他們提供的特定優惠，等等。

And then on an everyday basis, you earn points in the store and it essentially works out to a 1% rebate if you click and load the offers. And so that's a big draw for our really loyal customers. And then to get our best pricing on eggs and avocados, you have to be a {N}power member and that's a really big draw for our members. And so those are some of the things -- and then also the in-store specials are all {N}power driven. So essentially, that's what we do.

然後，每天您都會在商店賺取積分，如果您點擊並加載優惠，基本上可以獲得 1% 的返利。因此，這對我們真正忠實的客戶來說具有很大的吸引力。然後，為了獲得雞蛋和酪梨的最佳價格，您必須成為{N}power 會員，這對我們的會員來說是一個很大的吸引力。這些就是其中的一些內容——而且店內特價商品都是由{N}動力驅動的。本質上，這就是我們所做的。

Okay, awesome. And then have you seen your consumer basket size going down just given the economy?

好的，太棒了。那麼，您是否發現，由於經濟狀況不佳，您的消費籃子規模正在下降？

No, our basket size has stayed very steady. It has -- it's been steady for the last several quarters.

不，我們的購物籃規模一直保持穩定。過去幾季一直保持穩定。

Awesome, and then in terms of adding six to eight new stores the next year, do you plan to expand in any other market?

太棒了，那麼關於明年增加六到八家新店，您計劃在其他市場擴張嗎？

We actually are going into another state and we'll be announcing that location here in the next couple of months.

實際上，我們正在進入另一個州，我們將在未來幾個月內宣布該地點。

Okay, awesome. How are your in-stock levels, inventory, and distribution?

好的，太棒了。您的庫存水準、庫存和分銷情況如何？

They're about back to where they were pre-pandemic. So they're running about 97% in stock on everything.

他們差不多已經回到疫情之前的狀態了。因此他們所有商品的庫存量約為 97%。

Okay, and then do you guys offer pickup and delivery?

好的，那你們有提供取貨和送貨服務嗎？

Yes, we do. It's via Instacart.

是的，我們有。是透過 Instacart 進行的。

Okay, so are people -- are your customers using that a lot and are you offering free delivery or is that just through Instacart?

好的，人們也是如此—您的客戶經常使用它嗎？您是否提供免費送貨服務，還是僅透過 Instacart 提供免費送貨服務？

It's just through free -- it's just through Instacart and it's been steady at about 2% of our sales for the last two years.

它是免費的——它只是透過 Instacart，並且在過去兩年中一直穩定在我們銷售額的 2% 左右。

Okay, and then will that at any rate be in-house? Will you change from using Instacart just to Natural Grocers?

好的，那麼這無論如何都會在內部進行嗎？您會從使用 Instacart 改用 Natural Grocers 嗎？

No, we'll be using third-party delivery programs for our delivery services. It's really not -- it wouldn't be profitable for us to take it in-house.

不，我們將使用第三方送貨程序來提供送貨服務。事實並非如此——對我們來說，將其納入內部營運不會有利可圖。

Got you. And then on the remodels, are you guys going to up your remodels next year in the back half of the year?

明白了。那麼關於改造，你們明年下半年會加強改造嗎？

We do that on an opportunistic basis and so it's hard to say how many remodels we'll have for next year. We have two in the queue right now and it definitely could go -- it'll probably go two to four more by the time the year rolls through.

我們這樣做是出於機會主義，因此很難說明年我們會進行多少次改造。目前我們有兩個在排隊，而且肯定可以——到今年年底，可能會有兩到四個。

Okay, and then last question. So demographically, there's been trends on all sorts of social media, health and wellness, everything like that. Are you seeing your age demographic kind of trend downwards, or is it stable kind of the middle age?

好的，最後一個問題。從人口統計學角度來看，各種社群媒體、健康和保健等都呈現趨勢。您是否發現您的年齡人口統計呈下降趨勢，還是中年趨勢保持穩定？

I think that we've had -- we've picked up quite a few millennials. I mean there's a lot of people that like our authentic messaging. And so that resonates really well with the younger demographic. And so that's definitely helping our traffic growth.

我認為我們已經擁有了相當多的千禧世代。我的意思是，很多人喜歡我們真實的訊息。這在年輕人群中引起了強烈共鳴。這肯定有助於我們的流量成長。

Got it. Thank you so much, guys.

知道了。非常感謝你們，夥伴們。

Thanks for the call today. Thanks for the questions. Have a nice rest of the day.

感謝您今天的來電。感謝您的提問。祝您今天剩餘時間愉快。

You as well.

你也一樣。

Thank you. We have no further questions. I would now like to hand the conference over to Kemper Isely for closing remarks.

謝謝。我們沒有其他問題了。現在，我想將會議交給 Kemper Isely 作閉幕發言。

Thank you. It's a beautiful day here in Colorado and we are proud to be a Colorado company. And we are proud of our second-quarter results, which reflect a continuation of the positive trends we have experienced for more than two years. Thank you for joining us and have a great day. Bye.

謝謝。今天是科羅拉多州美麗的一天，我們很自豪能成為一家科羅拉多州的公司。我們對第二季的業績感到自豪，這反映了我們兩年多來正面趨勢的延續。感謝您加入我們並祝您有愉快的一天。再見。

The conference has now concluded. Thank you for attending the Natural Grocers second-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 財年第二季財報電話會議。您現在可以斷開連線。