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Shares of AMCON Distributing Company (DIT - Free Report) have declined 3.7% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 index’s 2% growth over the same time frame. Over the past month, the stock has declined 0.5% compared with the S&P 500’s 3.6% growth.
AMCON posted earnings per share (EPS) of 92 cents for the fiscal year ended Sept. 30, 2025, a significant drop from $7.15 in the prior year, representing a decline of nearly 87%.
Total sales increased modestly to $2.8 billion from $2.7 billion, up about 3.9%. However, this growth failed to offset higher operating costs and a reduction in operating income, which fell 30% to $12.6 million from $18 million in fiscal 2024.
Net income available to common shareholders also contracted steeply to $0.6 million from $4.3 million a year earlier.
AMCON Distributing Company Price, Consensus and EPS Surprise
AMCON’s wholesale distribution segment reported revenues of $2.8 billion and operating income of $23 million for the fiscal year. In contrast, the retail health food segment recorded revenues of $44.5 million with marginal operating income of $0.1 million. While the wholesale segment remains the dominant contributor, the health food division remains relatively stagnant in terms of profitability.
Gross profit rose slightly to $188.2 million from $182.4 million, but this gain was eclipsed by a notable increase in selling, general, and administrative expenses, which grew nearly 7% to $165.8 million. Depreciation and amortization also ticked up to $9.8 million from $9.5 million, further pressuring margins.
Management Commentary
Chairman and CEO Christopher H. Atayan emphasized AMCON’s continued investment in customer service, foodservice programs and proprietary technology to maintain its competitive edge. He reaffirmed the company’s strategic focus on identifying acquisition targets that align with AMCON’s customer-first philosophy.
President and COO Andrew C. Plummer highlighted the firm’s integrated advertising, design, print, and display solutions as a value-add for customers, while CFO Charles J. Schmaderer underlined the company's ongoing efforts to optimize liquidity and maintain balance sheet strength. Shareholders’ equity stood at $113.1 million at the end of the fiscal year, up modestly from $111.7 million a year earlier.
Factors Influencing Performance
The decline in earnings was primarily driven by elevated costs across several operational fronts. Total operating expenses rose to $175.7 million, a 6.9% increase over the previous year. Coupled with higher interest expenses ($10.4 million) and a reduced gain from other income sources, these factors contributed to the steep drop in pre-tax income to $1.6 million from $7.5 million. Tax expenses also decreased in line with earnings, down to $1 million from $3.1 million.
AMCON’s cost of sales rose to $2.6 billion from $2.5 billion, reflecting broader inflationary trends and possibly increased logistical costs. Inventory levels also increased approximately 6.3% year over year, reaching $153.3 million, which may have further impacted working capital and cash flow dynamics.
Other Developments
During the fiscal year, AMCON acquired Arrowrock Supply for $6.1 million, as part of its broader growth-through-acquisition strategy. This followed acquisitions of Burklund and Richmond Master in the prior year, underscoring the company’s intent to expand geographically and operationally. These investments are currently in the integration phase, with the objective of enhancing customer growth in the regions served.
The company also repurchased approximately 9,853 shares of its common stock for $1.1 million, a sign of confidence in its valuation despite earnings pressure. Dividend payments remained steady at $1.00 per share, consistent with the prior year, indicating a commitment to returning value to shareholders even amid a challenging earnings environment.
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AMCON's 2025 Earnings Decline 87% Y/Y Amid Cost Pressures
Shares of AMCON Distributing Company (DIT - Free Report) have declined 3.7% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 index’s 2% growth over the same time frame. Over the past month, the stock has declined 0.5% compared with the S&P 500’s 3.6% growth.
AMCON posted earnings per share (EPS) of 92 cents for the fiscal year ended Sept. 30, 2025, a significant drop from $7.15 in the prior year, representing a decline of nearly 87%.
Total sales increased modestly to $2.8 billion from $2.7 billion, up about 3.9%. However, this growth failed to offset higher operating costs and a reduction in operating income, which fell 30% to $12.6 million from $18 million in fiscal 2024.
Net income available to common shareholders also contracted steeply to $0.6 million from $4.3 million a year earlier.
AMCON Distributing Company Price, Consensus and EPS Surprise
AMCON Distributing Company price-consensus-eps-surprise-chart | AMCON Distributing Company Quote
Business Segment Performance
AMCON’s wholesale distribution segment reported revenues of $2.8 billion and operating income of $23 million for the fiscal year. In contrast, the retail health food segment recorded revenues of $44.5 million with marginal operating income of $0.1 million. While the wholesale segment remains the dominant contributor, the health food division remains relatively stagnant in terms of profitability.
Gross profit rose slightly to $188.2 million from $182.4 million, but this gain was eclipsed by a notable increase in selling, general, and administrative expenses, which grew nearly 7% to $165.8 million. Depreciation and amortization also ticked up to $9.8 million from $9.5 million, further pressuring margins.
Management Commentary
Chairman and CEO Christopher H. Atayan emphasized AMCON’s continued investment in customer service, foodservice programs and proprietary technology to maintain its competitive edge. He reaffirmed the company’s strategic focus on identifying acquisition targets that align with AMCON’s customer-first philosophy.
President and COO Andrew C. Plummer highlighted the firm’s integrated advertising, design, print, and display solutions as a value-add for customers, while CFO Charles J. Schmaderer underlined the company's ongoing efforts to optimize liquidity and maintain balance sheet strength. Shareholders’ equity stood at $113.1 million at the end of the fiscal year, up modestly from $111.7 million a year earlier.
Factors Influencing Performance
The decline in earnings was primarily driven by elevated costs across several operational fronts. Total operating expenses rose to $175.7 million, a 6.9% increase over the previous year. Coupled with higher interest expenses ($10.4 million) and a reduced gain from other income sources, these factors contributed to the steep drop in pre-tax income to $1.6 million from $7.5 million. Tax expenses also decreased in line with earnings, down to $1 million from $3.1 million.
AMCON’s cost of sales rose to $2.6 billion from $2.5 billion, reflecting broader inflationary trends and possibly increased logistical costs. Inventory levels also increased approximately 6.3% year over year, reaching $153.3 million, which may have further impacted working capital and cash flow dynamics.
Other Developments
During the fiscal year, AMCON acquired Arrowrock Supply for $6.1 million, as part of its broader growth-through-acquisition strategy. This followed acquisitions of Burklund and Richmond Master in the prior year, underscoring the company’s intent to expand geographically and operationally. These investments are currently in the integration phase, with the objective of enhancing customer growth in the regions served.
The company also repurchased approximately 9,853 shares of its common stock for $1.1 million, a sign of confidence in its valuation despite earnings pressure. Dividend payments remained steady at $1.00 per share, consistent with the prior year, indicating a commitment to returning value to shareholders even amid a challenging earnings environment.