Sprouts Farmers Market (SFM) Q3 FY2023 earnings: revenue $1.7 billion, up 7.7% on the year

Sprouts Farmers Market, Inc. (SFM) reported revenue of $1.7 billion for Q3 FY2023, the quarter ended 1 October 2023, up 7.7% on the same quarter a year earlier. Net income was $65 million, down 0.6% on the year, and diluted earnings per share $0.64. The figures are the company's own, from the 10-Q it filed with the SEC on 31 October 2023.

Revenue$1.7 billionup 7.7%

Net income$65 milliondown 0.6%

Diluted EPS$0.64

QuarterQ3 FY2023ended 1 October 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Revenue	1,713	n/a	n/a	n/a
Cost of revenue	1,088	n/a	n/a	n/a
Gross profit	625	n/a	n/a	n/a
Gross margin	36.5%	n/a	n/a
Selling, general and administrative	503	n/a	n/a	n/a
Operating income	87.7	n/a	n/a	n/a
Operating margin	5.1%	n/a	n/a
Pre-tax income	86.0	n/a	n/a	n/a
Income tax	20.6	n/a	n/a	n/a
Effective tax rate	24.0%	n/a	n/a
Net income	65.3	n/a	n/a	n/a
Net margin	3.8%	n/a	n/a
Diluted EPS	$0.64	n/a	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Operating cash flow	114	n/a	n/a	n/a
Capital expenditure	66.3	n/a	n/a	n/a
Free cash flow	47.9	n/a	n/a	n/a
Free cash flow margin	2.8%	n/a	n/a
Cash from investing	-66.3	n/a	n/a	n/a
Cash from financing	-55.7	n/a	n/a	n/a
Depreciation and amortisation	31.8	n/a	n/a	n/a
Share-based compensation	5.3	n/a	n/a	n/a
Buybacks	32.1	n/a	n/a	n/a
Diluted shares, weighted	103m	n/a	n/a	n/a
Shares outstanding at period end	102m	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Shareholders' equity	1,115	n/a	n/a	n/a
Operating lease liabilities	1,383	n/a	n/a	n/a
Finance lease liabilities	8.9	n/a	n/a	n/a
Other liabilities	784	n/a	n/a	n/a
Total liabilities and equity	3,291	n/a	n/a	n/a
Fixed assets	773	n/a	n/a	n/a
Goodwill	382	n/a	n/a	n/a
Intangible assets	208	n/a	n/a	n/a
Cash and equivalents	252	n/a	n/a	n/a
Receivables	16.2	n/a	n/a	n/a
Inventory	324	n/a	n/a	n/a
Other assets	1,336	n/a	n/a	n/a
Total assets	3,291	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,713	1,699	1,884	1,894	1,946	1,996	2,236	2,221	2,200	2,149	2,329	2,326
Cost of revenue	1,088	1,078	1,161	1,175	1,205	1,236	1,350	1,358	1,349	1,332	1,412	1,425
Gross profit	625	620	722	718	741	760	886	863	851	816	917	901
Gross margin	37%	37%	38%	38%	38%	38%	40%	39%	39%	38%	39%	39%
SG&A	503	513	540	556	580	615	623	645	653	653	659	683
Operating income	87.7	69.4	148	127	122	106	226	179	157	123	215	174
Operating margin	5%	4%	8%	7%	6%	5%	10%	8%	7%	6%	9%	7%
Pre-tax income	86.0	69.0	147	127	124	108	227	180	158	124	215	174
Tax rate	24%	27%	23%	25%	26%	26%	21%	26%	24%	27%	24%	26%
Net income	65.3	50.0	114	95.3	91.6	79.6	180	134	120	89.8	164	129
Net margin	4%	3%	6%	5%	5%	4%	8%	6%	5%	4%	7%	6%
Diluted EPS	$0.64	$0.49	$1.12	$0.94	$0.91	$0.79	$1.81	$1.35	$1.22	$0.92	$1.71	$1.37
Operating cash flow	114	56.0	220	91.6	209	125	299	111	167	139	235	134
Capital expenditure	66.3	60.3	51.2	57.7	52.8	68.7	59.5	60.8	55.8	72.2	101	88.8
Free cash flow	47.9	-4.3	168	33.9	156	56.2	240	50.4	111	66.3	134	45.0
Buybacks	32.1	23.1	60.0	44.5	25.2	98.8	219	73.5	49.7	130	140	70.0
Shares outstanding	102m	101m	101m	100m	100m	99m	98m	98m	97m	96m	95m	94m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 1 October 2023, filed 31 October 2023, accession 0000950170-23-056562: the filing on EDGAR. All of Sprouts Farmers Market, Inc.'s filings: EDGAR company page.

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