Amcon Distributing reported a 3.0% increase in revenue to $739.6 million in Q3 fiscal 2025, but saw a decline in operating and net income. Gross margin remained flat at 6.7%, while earnings per share fell 13.4% to $2.13 compared to the prior year. Operating cash flow was negative year-to-date, and the quarterly dividend held steady at $0.18 per share. The company highlighted its focus on wholesale distribution and retail health food stores, with cigarette sales driving a significant portion of revenue. Operating income decreased due to inflation, higher costs, and investments in technology platforms.

Gross profit and revenue increased in Q3 fiscal 2025, with the wholesale segment contributing over 98% of total sales. Selling, general and administrative expenses rose 6.5% compared to the prior year, while interest expenses decreased slightly. Operating income declined by 13.5%, with operating margins at approximately 0.7%. Cash flow from operations was negative year-to-date, with increased accounts receivable and inventory buildup. Shareholders’ equity increased, while debt and credit facility borrowings also rose. The quarterly dividend remained unchanged at $0.18 per share.

Amcon Distributing did not provide specific financial guidance for upcoming periods, but emphasized its focus on acquisitions, liquidity, and operational efficiency. Risks include reliance on cigarette sales and thin operating margins. The company continues to prioritize cash management and credit availability. Quarterly dividend was maintained at $0.18 per share.

Read more at Nasdaq: Amcon Distributing EPS Drops 13% in Q3