AMCON Distributing Company Reports 10.3% Revenue Increase in Q1 Fiscal 2025

AMCON Distributing Company reported its financial results for the first quarter of fiscal year 2025, ending December 31, 2024, revealing a revenue increase of 10.3% to $711.3 million, compared to $645.0 million in the same period last year. The company's gross profit also rose by 8.3% to $46.9 million, although the gross profit margin slightly decreased from 6.7% to 6.6%. Operating income fell by 4.0% to $3.7 million, while net income available to common shareholders dropped significantly by 67.5% to $348,419, resulting in basic earnings per share of $0.57, down from $1.80 in the prior year.

The financial performance reflects several operational changes, including the impact of recent acquisitions. The Wholesale Segment, which constitutes the majority of AMCON's business, saw sales increase by 10.5% to $700.7 million, driven by acquisitions of Burklund Distributors and Richmond Master, which contributed approximately $56.7 million in sales. However, the Retail Segment experienced a slight decline in sales, down 1.5% to $10.5 million, attributed to the closure of three stores, partially offset by new store openings.

In terms of operational metrics, AMCON's total assets increased to $404.7 million as of December 31, 2024, up from $374.1 million at the end of the previous fiscal year. The company reported a decrease in cash reserves, which fell to $535,862 from $672,788, while inventories rose significantly to $174.5 million, reflecting increased stock levels to meet customer demand. The company also reported a reduction in accounts payable, which decreased to $47.3 million from $54.5 million, indicating improved cash management.

Looking ahead, AMCON is focused on integrating its recent acquisitions and expanding its geographic footprint. The company is also monitoring macroeconomic factors, including inflation and supply chain challenges, which have affected consumer spending and operational costs. AMCON's management remains cautious about potential regulatory changes impacting the tobacco industry, which could further influence sales and profitability. The company has declared a special dividend of $0.28 per share, reflecting its commitment to returning value to shareholders despite the recent decline in net income.