SUNBURY – More than half of Weis Markets’ 24,000 employees will receive a recognition bonus in January, the president and CEO of the Sunbury-based supermarket chain announced to shareholders.
“The past two years have been a huge challenge for our customers and our business,” said Jonathan Weis.
“Our people – store, supply chain, and support – have enabled us to be successful and achieve record results, prompting us to accelerate our growth investments.”
The recognition rewards complement the company’s long-running vacation bonus programs, he said.
The shareholders also receive a bonus because the Weis executive board agreed in October to increase the quarterly cash dividend by one cent to 32 cents per share. It’s the first dividend increase in three years.
Revenue increased, but net income and earnings were down for the quarter ended September 25 compared to the same period in 2020, according to a filing with the Securities Exchange Commission.
The impact of the coronavirus pandemic has created uncertainty about the future economic situation, the document says.
“Management remains confident of achieving long-term revenue growth in a highly competitive environment, but is also aware that some competitors have greater financial resources and could use those resources to take action that could affect the company’s competitive position.” it says in it.
The SEC’s third quarter report said net sales were $ 1.1 billion and net income was $ 28.5 million, compared with $ 1 billion and $ 31.3 million, respectively in 2020.
The most recent quarter was the company’s fourth best in total earnings and the same period in 2020 was third best, said Weis spokesman Dennis Curtin.
Year-to-date net income was $ 86.2 million compared to $ 99.5 million for the same period in 2020, a decrease of 13.3 percent. Year-to-date earnings per share were $ 3.21 compared to $ 3.70 a year earlier.
Gross profit on sales increased 3.2 percent for the quarter compared to 2020, but gross profit margin decreased from 27.4 percent to 26.6 percent. Weis attributed this primarily to increased pharmacy and fuel sales, which have lower gross profit margins than grocery sales and higher product and supply chain costs.
Inflation had an impact on the cost of sales, but Weis was reluctant to pass the increased cost of goods on to customers, Curtin said.
Third quarter revenue is the second highest in the company’s history after Q2 2020, he said.
In his report to shareholders, Weis noted that the capital budget was increased to $ 150 million, an increase of $ 15 million from what was announced in April.
So far this year, stores have opened in Martinsburg, West Virginia, in addition to two in Pennsylvania: one in Lehigh Valley and the other in Gap, Lancaster County, Curtin said. The latter was closed for 18 months due to a fire. A second store in Bucks County is under construction, he said.
Dual-use lanes have been installed in all branches, which can either be fully occupied or equipped with self-checkout, he said.
The company operates 197 stores in Pennsylvania, Delaware, Maryland, New Jersey, New York, Virginia and West Virginia.
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