SpartanNash named Tony Sarsam as the company’s new President and CEO as of September. Having seen steady growth since then, Sarsam took the lead on the retailer’s recent quarter three (Q3) earnings call. He detailed significant potential for growth as well as teased some investment strategies, leading us to believe that his appointment has effectively sparked new growth.
“I plan to share more specific objectives for the organization over the coming months. However, my immediate goal is to ensure that we are leveraging our existing competencies to yield improvements in our operating performance,” Sarsam said, according to a transcript released by The Motley Fool. “I will work to pair the insights I have gained with the operational strategies to unlock the true potential of our organization.”
Marking the 18th straight quarter of growth, SpartanNash’s Q3 results included a consolidated net sales increase of 3.1 percent. Sales increases were primarily attributed to higher consumer demand in retail and food distribution segments. Gross profit rose 11.8 percent year over year to $324.8 million; adjusted operating earnings came in at $35.8 million; and adjusted EBITDA jumped 37.2 percent to $57 million in the third quarter.
While some impressive numbers were reported, Sarsam went on to note that significant operational investments may be in the pipeline.
“Among other areas of focus, I believe that we need to act with a certain level of urgency to make meaningful improvements in our supply chain,” he said. “We will make investments in human capital, in our facilities, and in other resources to ensure our supply chain has the support it needs to operate with efficiency and a high level of execution.”
Congratulations to Sarsam on an already successful start to his leadership role.