THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Wednesday, July 27, 1994 TAG: 9407270434
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: STAFF REPORT
LENGTH: Short : 33 lines
Farm Fresh Inc. reported an increase in supermarket sales for the second quarter of 1994 but posted a bigger net loss than in last year's quarter.
The Norfolk-based grocery chain recorded a net loss of $4.2 million for the second quarter compared with a $2.6 million loss for the same period in 1993. Earnings before interest, taxes, depreciation and amortization - a measure of cash flow - rose 1 percent, to $10 million, over the year-ago quarter.
Total sales for the latest quarter increased 20.2 percent, to $206.1 million. Sales for stores that were open at the same time last year increased 4.8 percent.
Same-store sales for the year so far also show a smaller increase, of 3.5 percent.
Farm Fresh attributes its losses to the cost of buying new stores in Richmond from Safeway Inc. Due to its 18 new stores, Farm Fresh increased its expenses by advertising and offering grand-opening promotions. It paid more rent and higher interest on notes used to finance the acquisitions.
``Our core combination-store business and discount-store division are performing well,'' Chief Executive Officer Michael E. Julian said.
``Losses in the Richmond division attributable to the Safeway transaction were significantly lower in the second quarter than in the first,'' he said, ``and we expect continued progress in the months ahead.'' by CNB