Diluted earnings per share increase by 78.9% to $0.34 for Natural Grocers by Vitamin Cottage, Inc.

February 9, 2024 | by


Natural Grocers by Vitamin Cottage, Inc. has recently released its Q1 2024 earnings report, showcasing several positive developments for the company. With a 7.6% increase in net sales compared to the previous year, the company also saw a substantial rise in diluted earnings per share, which rose by an impressive 78.9% to $0.34. Natural Grocers’ power rewards program experienced considerable growth, with a 16% increase year-over-year. Additionally, the company’s branded products accounted for 8.5% of total sales, highlighting their success in building a strong brand identity. With new store openings, relocations, and the release of their fiscal year 2023 environmental, social, and governance report, Natural Grocers demonstrates its commitment to growth, sustainability, and transparency. The company also experienced robust sales growth in categories such as meat, body care, and dairy, further solidifying its position in the market. With a 130 basis point increase in gross margin to 29.4%, the company effectively managed store expenses and resulted in higher sales. As a result of these promising results, Natural Grocers has raised its fiscal 2024 guidance for sales and earnings, illustrating a positive outlook for the future.

Q1 2024 Earnings Report for Natural Grocers by Vitamin Cottage, Inc.

Natural Grocers by Vitamin Cottage, Inc. (NGVC) reported its Q1 2024 earnings, showcasing a positive start to the fiscal year. The company experienced notable growth across various key metrics, reflecting its commitment to providing high-quality natural and organic products to its customers while maintaining a strong financial performance.

Net Sales Increase by 7.6%

During the first quarter of 2024, Natural Grocers witnessed a significant increase in net sales. Compared to the previous year, net sales surged by 7.6%, underscoring the growing demand for the company’s offerings. This robust growth is a testament to Natural Grocers’ ability to capture market share and cater to the evolving preferences of health-conscious consumers.

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Diluted Earnings Per Share Increase by 78.9% to $0.34

Natural Grocers also recorded a remarkable increase in diluted earnings per share (EPS) during Q1 2024. With a surge of 78.9% to $0.34, the company’s earnings per share clearly exceeded expectations. This substantial growth in EPS reflects Natural Grocers’ strong financial performance and effective management strategies, positioning the company for further success in the future.

Power Rewards Program Grows by 16% Year-Over-Year

The Power rewards program, a key initiative designed to enhance customer loyalty and engagement, experienced impressive growth during the first quarter of 2024. Compared to the previous year, the Power rewards program witnessed a 16% year-over-year increase in its membership. This growth highlights the value customers place on the program’s benefits, such as exclusive discounts, personalized offers, and educational resources.

Branded Products Account for 8.5% of Total Sales

Natural Grocers’ commitment to providing high-quality branded products resonated with customers during Q1 2024. Branded products accounted for 8.5% of the company’s total sales, reaffirming the strength and appeal of Natural Grocers’ brand offerings. By offering a diverse range of branded products, Natural Grocers continues to build trust with its customers and establish itself as a preferred retailer within the natural and organic market.

Expansion of Stores

To meet the increasing demand for its products and provide wider access to its offerings, Natural Grocers expanded its store footprint during the first quarter of 2024. The company opened new stores and relocated existing ones, strategically positioning itself in areas with high potential for growth. This expansion aligns with Natural Grocers’ mission to make natural and organic products affordable and accessible to all.

Release of Fiscal Year 2023 Environmental, Social, and Governance Report

Demonstrating its commitment to sustainability and responsible business practices, Natural Grocers released its fiscal year 2023 Environmental, Social, and Governance (ESG) report. The report showcases the company’s efforts in areas such as environmental initiatives, employee well-being, community engagement, and corporate governance. By prioritizing ESG principles, Natural Grocers reinforces its dedication to making a positive impact on both the environment and society.

Strong Sales Growth in Meat, Body Care, and Dairy Categories

Natural Grocers experienced robust sales growth in several key categories during Q1 2024. The meat, body care, and dairy categories, in particular, stood out with impressive sales figures. This growth can be attributed to the company’s focus on offering high-quality products within these segments, effectively meeting the evolving needs and preferences of health-conscious consumers.

Gross Margin Increases by 130 Basis Points to 29.4%

Natural Grocers witnessed a commendable increase in gross margin during the first quarter of 2024. With a rise of 130 basis points, the company’s gross margin reached 29.4%. This improvement reflects Natural Grocers’ ability to effectively manage costs while ensuring optimal profitability. By maintaining a healthy gross margin, the company can continue investing in providing exceptional customer experiences and further expanding its operations.

Store Expenses Increase but Offset by Higher Sales

While Natural Grocers experienced an increase in store expenses during Q1 2024, these costs were effectively offset by higher sales. The company’s ability to generate significant revenue growth allowed it to manage and absorb these expenses without impacting its overall financial performance. This demonstrates Natural Grocers’ strong operational capabilities and resilience in the face of cost fluctuations.

Fiscal 2024 Sales and Earnings Guidance Raised

Based on the positive performance and strong momentum observed during Q1 2024, Natural Grocers raised its guidance for sales and earnings for the full fiscal year 2024. The company’s optimistic outlook reflects its confidence in continued growth and its ability to capitalize on market opportunities. By leveraging its strengths and adapting to changing consumer preferences, Natural Grocers aims to deliver sustainable value for its shareholders and stakeholders in the months ahead.

In conclusion, Natural Grocers by Vitamin Cottage, Inc. has achieved notable success in the first quarter of fiscal year 2024. With robust growth in net sales, a significant increase in diluted earnings per share, and a growing Power rewards program, the company has demonstrated its ability to effectively cater to the evolving needs and preferences of health-conscious consumers. Additionally, the expansion of stores, the release of the fiscal year 2023 ESG report, and strong sales growth in key categories further highlight the company’s commitment to sustainable practices and customer satisfaction. With the fiscal 2024 guidance for sales and earnings raised, Natural Grocers is poised to continue its upward trajectory, delivering value to its stakeholders and maintaining its position as a trusted retailer of natural and organic products.


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