AMCON Distributing Company Reports Mixed Results Amid Rising Costs
For the fiscal year ended Sept. 30, 2024, AMCON Distributing Company (DIT) reported an earnings per share (EPS) of $7.15, a significant drop from last year’s EPS of $19.46.
Total revenues rose to $2.7 billion, increasing from $2.5 billion in fiscal 2023. This growth signals higher sales, though profitability has suffered.
The fiscal 2024 performance for AMCON shows a mixed picture. While revenue growth is commendable, it’s overshadowed by a stark reduction in net income and EPS. Increased operational expenses and rising interest costs have greatly impacted profitability.
Stock Performance Insights
AMCON Distributing Company price-consensus-eps-surprise-chart | AMCON Distributing Company Quote
Core Business Metrics
Performance of Wholesale Distribution
The wholesale distribution segment, crucial to AMCON’s operations, achieved revenues of $2.7 billion, with operating income of $31.3 million for fiscal 2024. This reflects effective expansion and improved operational efficiency.
Retail Health Food Segment Overview
In this segment, revenues totaled $42.5 million, generating a slight operating income of $0.1 million. This indicates profitability is a challenge despite its contribution to overall sales.
Gross Profit Analysis
For fiscal 2024, AMCON reported a gross profit of $182.4 million, up from $170.8 million last year, marking a 6.7% increase. This suggests the company is managing sales costs effectively amid revenue growth.
Operating Income Changes
In fiscal 2024, operating income declined to $18 million from $26 million in fiscal 2023. This 30.8% drop primarily stems from increased selling, general, and administrative (SG&A) expenses, which climbed from $137.3 million to $154.9 million. The rise in depreciation and amortization also affected operating income, impacting overall efficiency and profitability.
Interest Expense Overview
Interest expenses rose to $10.4 million, up from $8.6 million. This increase reflects higher debt levels used to fund expansions and acquisitions. The balance sheet, showing increased long-term debt and credit facilities, indicates a strategy focusing on leveraged growth.
Net Income Report
Net income allocated to common shareholders fell to $4.3 million from $11.6 million in the previous fiscal year.
Balance Sheet Overview (as of Sept. 30, 2024)
AMCON’s cash reserves decreased slightly to $0.7 million from $0.8 million at the end of the previous fiscal year.
Total assets rose to $374.1 million from $363.4 million over the same period.
Long-term debt, excluding current maturities, increased to $16.6 million in 2024, from $11.7 million the prior year. Current maturities of long-term debt also climbed from $2 million to $5.2 million.
Shareholders’ equity showed a positive trend, growing to $111.7 million from $104.2 million.
Cash Flow Insights
Net cash provided by operating activities saw a substantial improvement, reaching $67.9 million in fiscal 2024, compared to $19.7 million the previous year.
Recent Developments
Expansions and Acquisitions
AMCON continues to grow its presence through significant developments, such as the new facility in Springfield, MO, and the Colorado City distribution center. During the fiscal year, acquisitions including Burklund and Richmond Master were completed, enhancing market coverage and services in the Intermountain Region.
Strategic Focus Moving Forward
Management is emphasizing a strategic shift to boost foodservice capabilities via its subsidiary, Henry’s Foods. This initiative aims to incorporate advanced advertising and merchandising solutions to better compete with the Quick Service Restaurant sector.
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