1 August 2008 | Source: just-food.com
Same-store sales for the fiscal year increased by 0.9%, the
company said. Sales gains were driven by food inflation, which was partially
offset by competitive factors that resulted in a drop in volumes.
However, the company's fourth quarter saw a dramatic decline
in earnings, with EBITDA dropping by US$20.1m to US$9m.
Winn-Dixie said that fourth-quarter earnings and margins
were hit by the aggressive investments made on price during the period.
"As consumers modified their spending behaviour in response to higher oil and food prices, we
invested in more promotional programs in order to attract and retain
customers," CEO Peter Lynch explained.
"Although we grew sales during the fourth quarter, our
promotional activity had a negative impact on both gross margin and adjusted
EBITDA, causing us to fall below our earnings guidance range for the
year," he concluded.
For the full year, gross margins totalled
27.2%, an increase of 30 basis points compared to the prior year.
Net income for fiscal 2008 came in at $13m, or $0.25 per
share.
"Overall, Winn-Dixie had a strong year, with
year-over-year increases in sales, gross margin and adjusted EBITDA, and we
made significant progress with the company's strategic initiatives, which gives
us a stronger foundation and added confidence as we head in to fiscal
2009," Lynch added.
just-food.com