Natural Grocers By Vitamin Cottage (NGVC) Reports Fiscal 2025 Fourth Quarter And Full Year Earnings Results

Natural Grocers by Vitamin Cottage, Inc. (NGVC) today announced its financial results for the recent quarter, revealing a diluted earnings per share of $0.51, which exceeded analysts’ expectations by $0.08. However, the company reported quarterly revenue of $336.1 million, falling short of the anticipated $348.1 million. Despite the revenue miss, the earnings beat highlights the company’s ability to manage costs effectively in a challenging market environment.

Key Highlights:

• Net sales for Q4 FY 2025 increased by 4.2% to $336.1 million.
• Daily average comparable store sales rose by 4.2%, with an 11.3% increase on a two-year basis.
• Net income for Q4 FY 2025 increased by 31.0% to $11.8 million, with diluted earnings per share of $0.51.
• For FY 2025, net sales increased by 7.2% to $1.33 billion, marking the 22nd consecutive year of positive comparable store sales growth.
• The company plans to open 6 to 8 new stores in FY 2026 and has increased its quarterly cash dividend by 25% to $0.15 per share.

Natural Grocers by Vitamin Cottage, Inc. reported strong financial results for the fourth quarter and fiscal year 2025, achieving record sales and earnings. Co-President Kemper Isely expressed satisfaction with the performance, noting that the company’s sales were in line with guidance and earnings per share exceeded expectations. He highlighted the appeal of their high-quality, natural, and organic products, which resonate with consumers’ health and wellness priorities, especially during economic uncertainty. The company also emphasized its commitment to maintaining affordable prices, which strengthens its competitive position.

Looking ahead, Natural Grocers is focused on accelerating store growth, with plans to open 6 to 8 new locations in fiscal 2026. Isely reiterated the importance of this growth strategy and announced a 25% increase in the quarterly cash dividend, reflecting the company’s strong operating performance and financial health. The outlook for fiscal 2026 includes expectations for continued comparable store sales growth and a commitment to enhancing shareholder value through strategic capital allocation.

Natural Grocers by Vitamin Cottage, Inc. (NGVC) has experienced a notable decline in its stock price, with a staggering 38.43% drop over the past six months. This downward trend is particularly concerning given the company’s impressive fundamentals, including a robust two-year compound annual growth rate (CAGR) of 48.27% in earnings per share and a remarkable 156.02% in free cash flow. Despite these strong metrics, the stock has struggled, reflecting a 19.30% decrease over the past month alone. The price-to-earnings ratio stands at a relatively attractive 16.34, suggesting that the stock may be undervalued compared to its earnings potential. However, the net profit margin of 3.31% indicates that the company still faces challenges in converting revenue into profit. Investors may be wary, as the return on invested capital of 9.71% suggests that while the company is generating returns, there is room for improvement. As NGVC navigates these turbulent waters, it will be crucial for the company to leverage its strong growth metrics to regain investor confidence and stabilize its stock price.

Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States. The company’s stores offer natural and organic grocery products, such as organic produce; bulk food products; private label products comprising pasta, pasta sauce, ketchup, canned beans and vegetables, frozen vegetables, frozen fruits, frozen meals, frozen pizza, bread, baking mixes, plant based butter, olive and coconut oil, coconut milk, honey, maple syrup, preserves, chocolate, coffee, bacon, beef jerky, canned seafood, popcorn, tortilla chips, taco shells, eggs, cheese, apple sauce, apple cider vinegar, spring water, paper products, cleaning products, and other products; dry, frozen, and canned groceries; meat and seafood products; dairy products, dairy substitutes, and eggs; prepared foods; bread and baked products; beverages; and beer, wine, and hard cider products. Its stores also provide private label dietary supplements; body care products consisting of cosmetics, skin care, hair care, fragrance, and personal care products containing natural and organic ingredients; pet care and food products; books and handouts; and household and general merchandise, including cleaning supplies, paper products, and dish and laundry soaps, as well as other common household products, such as diapers. The company operates its retail stores under the Natural Grocers by Vitamin Cottage trademark. As of February 1, 2022, it operated 162 stores in 20 states. The company also offers science-based nutrition education programs to help customers make informed health and nutrition choices. Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and is headquartered in Lakewood, Colorado.