ASHEVILLE, N.C. (828newsNOW) — Ingles Markets reported a sharp decline in annual earnings as the Western North Carolina-based grocery chain continues to recover from the severe impacts of Tropical Storm Helene.
In its annual Securities and Exchange Commission filing released Nov. 26, the Black Mountain-headquartered company reported net income of $83.6 million for the 2024-25 fiscal year — a 21 percent drop from the previous year. Net sales also fell to $5.33 billion, down from $5.64 billion.
The company said the losses were driven largely by storm damage, cleanup costs and ongoing store closures tied to Helene, which struck the region Sept. 27, 2024.
Storm losses and closures
Hurricane Helene caused catastrophic flooding, widespread outages and heavy damage across Western North Carolina, including Ingles’ headquarters area and its distribution center. Four Ingles stores sustained significant damage and were forced to close; three remain closed and are not expected to reopen until sometime in 2026 or 2027.
For the fiscal year ending Sept. 27, 2025, Ingles reported $9 million in cleanup and repair expenses, partially offset by $6.2 million in insurance proceeds. The company estimated $55 million to $65 million in lost revenue due to store closures and payment system disruptions during the weeks following the storm.
In the prior fiscal year, Ingles recorded $30.4 million in inventory losses and $4.5 million in property and equipment losses tied to Helene.
Despite the flooding, Ingles’ distribution center returned to full operations within two weeks. The company’s milk processing plant avoided physical damage but was affected by water supply disruptions for about a month.
Sales trends
Comparable grocery sales — excluding fuel — declined 1.7 percent, with transactions down 4.2 percent and average transaction value nearly flat. Fuel gallons sold dropped 5.4 percent, and fuel prices decreased nearly 10 percent.
Labor costs fell because of storm-related store closures and employee disruptions, while repairs, maintenance and professional fees increased.
Corporate overview
Ingles operates 194 supermarkets across six southeastern states, not counting the three stores still closed because of storm damage. The company owns most of its stores and maintains a large distribution footprint near Asheville.
The chain continues to invest in remodels, technology upgrades and expanded online ordering, according to its report.
Legislative impact
The company also noted recent federal tax changes under the One Big Beautiful Bill Act, signed July 4, 2025, but said it does not expect the legislation to have a material impact on its financial statements.
