LAKEWOOD, Colo. - Natural Grocers (NYSE:NGVC) by Vitamin Cottage, Inc. (NYSE: NGVC) announced today that its Chief Financial Officer, Todd Dissinger, plans to retire at the end of the year on December 31, 2024. Dissinger, who has held the position since December 2017, will continue his duties until a successor is named to ensure a seamless transition.
The company, a specialty retailer of organic groceries and dietary supplements, will engage an executive search firm to find a new CFO. During his tenure, Dissinger has been credited with contributing to Natural Grocers' record financial performance and the enhancement of shareholder value.
Chairman and Co-President Kemper (NYSE:KMPR) Isely expressed his gratitude to Dissinger for his contributions and dedication to the company's success. In turn, Dissinger thanked the Isely family, the board, and team members for their support, and stated his confidence in the company’s future as he commits to aiding in the transition.
Natural Grocers, founded in 1955, operates 168 stores across 21 states and adheres to strict quality guidelines, offering products free from artificial ingredients and exclusively selling USDA certified organic produce and ethically sourced animal products.
The company also offers free nutrition education programs to assist customers in making informed health choices. This announcement is based on a press release statement and reflects plans for leadership transition without implying any predictions for the company’s future operations or performance.
In other recent news, Natural Grocers by Vitamin Cottage reported a strong second quarter for fiscal year 2024, with record sales and significant earnings growth. The health-focused supermarket chain saw a 7.5% increase in daily average comparable store sales, driven by higher customer traffic and larger transactions. New store openings also contributed to the sales boost. The company's diluted earnings per share rose by 34.6% to $0.35, leading to an upward revision of its fiscal 2024 guidance for sales growth and earnings.
The company plans to open four to six new stores and relocate or remodel an equal number. It projects daily average comparable store sales growth between 4% and 6%, and diluted earnings per share between $1.08 and $1.18. However, Natural Grocers anticipates sales moderation in the second half of the year due to cycling stronger comps.
The success of the quarter is attributed to effective customer engagement through their loyalty program and a business model based on foundational principles. The company also mentioned the potential positive impact of Ozempic on the business, with expectations of attracting customers seeking to maintain weight loss. These recent developments indicate that Natural Grocers is well-positioned to maintain its growth trajectory in the health food retail market.
InvestingPro Insights
As Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) prepares for a leadership transition with the upcoming retirement of CFO Todd Dissinger, the company's financial health and market performance remain a key focus for investors and analysts. According to InvestingPro data, Natural Grocers currently boasts a market capitalization of approximately $491.39 million, underlining its substantial presence in the organic grocery sector.
One of the notable InvestingPro Tips highlights that Natural Grocers has been trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 16.75 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 16.43. This could signal an attractive valuation for investors considering the company's earnings potential. Additionally, the company has demonstrated strong performance with a high return over the last year, reflected in a 95.68% one-year price total return as of mid-2024.
Investors should also be aware of the company's financial stability, as another InvestingPro Tip indicates that short-term obligations exceed liquid assets. This could be an important consideration for risk assessment. For those interested in further insights, there are additional InvestingPro Tips available, providing a deeper dive into the company's financial nuances and investment potential. To explore these tips and enhance your investment strategy, visit https://www.investing.com/pro/NGVC and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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