Exhibit 99.1

Natural Grocers by Vitamin Cottage Announces Fiscal 2022 Fourth Quarter and Full Year Results

Lakewood, Colorado, November 17, 2022. Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) today announced results for its fourth quarter and fiscal year ended September 30, 2022 and provided its outlook for fiscal 2023.

Highlights for Fourth Quarter Fiscal 2022 Compared to Fourth Quarter Fiscal 2021

Highlights for Fiscal 2022 Compared to Fiscal 2021

"The fourth quarter results were in-line with our expectations given the moderation of pandemic trends, including more normalized levels of summer travel and food-away-from-home consumption,” said Kemper Isely, Co-President. “We estimate that product cost inflation was approximately 7% for the fourth quarter and 5% for the fiscal year. Historically, our inflation rate has been more stable than conventional grocers due to our specialized supply chain. In the last year our inflation rate was lower than our peers, and did not contribute to our comparable store sales to the same magnitude as our peers. We continue to pass along the impact of product cost inflation through pricing.”

Mr. Isely continued “We had record results for the full year, achieving our previously announced guidance for daily average comparable store sales growth and diluted earnings per share. Fiscal 2022 was our nineteenth consecutive year of positive daily average comparable store sales growth. As we look forward to fiscal 2023, we remain focused on enhancing shareholder value by driving profitable growth, leveraging our differentiated model, emphasizing operational excellence, and executing to our founding principles.”

In addition to presenting the financial results of Natural Grocers by Vitamin Cottage, Inc. and its subsidiaries (collectively, the Company) in conformity with U.S. generally accepted accounting principles (GAAP), the Company is also presenting EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The reconciliation from GAAP to these non-GAAP financial measures is provided at the end of this earnings release.

Operating Results — Fourth Quarter Fiscal 2022 Compared to Fourth Quarter Fiscal 2021

During the fourth quarter of fiscal 2022, net sales increased $1.6 million, or 0.6%, to $274.2 million, compared to the fourth quarter of fiscal 2021, due to a $2.9 million increase in new store sales, partially offset by a $0.8 million decrease in sales from one store that closed at the beginning of the third quarter and a $0.5 million decrease in comparable store sales. Daily average comparable store sales decreased 0.2% in the fourth quarter of fiscal 2022, comprised of a 2.6% decrease in daily average transaction count, offset by a 2.5% increase in daily average transaction size. The increase in net sales was primarily driven by new store sales and retail price inflation, partially offset by a moderation of the pandemic trends we experienced in the fourth quarter of last year.

Gross profit was $75.8 million in each of the fourth quarters of fiscal 2022 and 2021. Gross profit reflects earnings after product and store occupancy costs. Gross margin decreased 20 basis points to 27.6% during the fourth quarter of fiscal 2022, compared to the fourth quarter of fiscal 2021. The decrease in gross margin was primarily driven by lower product margin attributed to higher freight, distribution and shrink expenses.

Store expenses during the fourth quarter of fiscal 2022 increased 7.2% to $63.0 million. Store expenses as a percentage of net sales were 23.0% during the fourth quarter of fiscal 2022, up from 21.5% in the fourth quarter of fiscal 2021. The increase in store expenses as a percentage of net sales was primarily driven by higher wage rates. Store expenses included long-lived asset impairment charges of $2.8 million in the fourth quarter of fiscal 2022 and $1.1 million in the fourth quarter of fiscal 2021.

Administrative expenses during the fourth quarter of fiscal 2022 increased 16.4% to $8.6 million. Administrative expenses as a percentage of net sales were 3.2% in the fourth quarter of fiscal 2022, up from 2.7% in the fourth quarter of fiscal 2021.

Operating income for the fourth quarter of fiscal 2022 was $3.6 million, compared to $9.4 million in the fourth quarter of fiscal 2021. Operating margin during the fourth quarter of fiscal 2022 decreased to 1.3%, compared to 3.4% in the fourth quarter of fiscal 2021.

Net income for the fourth quarter of fiscal 2022 was $2.2 million, or $0.09 diluted earnings per share, compared to net income of $7.2 million, or $0.32 diluted earnings per share, for the fourth quarter of fiscal 2021.

Adjusted EBITDA for the fourth quarter of fiscal 2022 was $13.6 million, compared to $17.8 million in the fourth quarter of fiscal 2021.

Operating Results — Fiscal 2022 Compared to Fiscal 2021

During fiscal 2022, net sales increased $34.1 million, or 3.2%, to $1.1 billion, compared to fiscal 2021, due to a $27.1 million increase in comparable store sales and an $8.6 million increase in new store sales, partially offset by a $1.6 million decrease in sales from one store that closed at the beginning of the third quarter of fiscal 2022. Daily average comparable store sales increased 2.6% in fiscal 2022, comprised of a 2.1% increase in daily average transaction size and a 0.4% increase in daily average transaction count. The increase in net sales was primarily driven by retail price inflation, our customers’ response to pandemic trends, new store sales, marketing initiatives, and increased engagement in our {N}power® customer loyalty program.

Gross profit during fiscal 2022 increased 4.3% to $304.9 million, primarily driven by increased sales volumes. Gross profit reflects earnings after product and store occupancy costs. Gross margin increased 30 basis points to 28.0% during fiscal 2022, compared to fiscal 2021. The increase in gross margin was primarily driven by improved product margin and store occupancy cost leverage.

Store expenses during fiscal 2022 increased 3.2% to $242.1 million. Store expenses as a percentage of net sales were unchanged at 22.2% for fiscal year 2022, as leverage attributed to higher sales offset higher labor expense due to increased wage rates. Store expenses included long-lived asset impairment charges of $2.9 million in fiscal 2022 and long-lived asset impairment charges and store closing costs of $1.5 million in fiscal 2021.

Administrative expenses during fiscal 2022 increased 11.3% to $31.6 million. Administrative expenses as a percentage of net sales were 2.9% during fiscal 2022, up from 2.7% in fiscal 2021.

Operating income for fiscal 2022 was $30.2 million, compared to $28.3 million in fiscal 2021. Operating margin during fiscal 2022 increased to 2.8%, compared to 2.7% in fiscal 2021.

Net income for fiscal 2022 was $21.4 million, or $0.94 diluted earnings per share, compared to net income of $20.6 million, or $0.91 diluted earnings per share, for fiscal 2021.

Adjusted EBITDA for fiscal 2022 was $62.2 million, compared to $60.3 million in fiscal 2021.

Balance Sheet and Cash Flow

As of September 30, 2022, the Company had $12.0 million in cash and cash equivalents, no outstanding borrowings on its $50.0 million revolving credit facility, and $15.7 million outstanding on its term loan facility.

During fiscal 2022, the Company generated $39.7 million in cash from operations and invested $31.1 million in net capital expenditures, primarily for new and relocated stores.

Dividend Announcement

Today, the Company announced the declaration of a quarterly cash dividend of $0.10 per common share. The dividend will be paid on December 14, 2022 to stockholders of record at the close of business on November 28, 2022.

Growth and Development

During the fourth quarter of fiscal 2022, the Company opened two stores and relocated/remodeled one store, ending the quarter with a total of 164 stores in 21 states. During fiscal 2022, the Company opened three new stores and relocated two stores.

As of November 17, 2022, the Company has signed leases for an additional five new stores planned to open in fiscal years 2023 and beyond.

Fiscal 2023 Outlook

The Company is introducing its fiscal 2023 outlook reflecting current operating trends, consumer consumption trends, and the uncertainty of the economic environment, including inflationary factors. The Company expects:

Earnings Conference Call

The Company will host a conference call today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time) to discuss this earnings release. The dial-in number is 1-888-347-6606 (US) or 1-412-902-4289 (International). The conference ID is “Natural Grocers Q4 FY 2022 Earnings Call.” A simultaneous audio webcast will be available at http://Investors.NaturalGrocers.com and archived for a minimum of 20 days.

About Natural Grocers by Vitamin Cottage

Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is an expanding specialty retailer of natural and organic groceries, body care products and dietary supplements. The products sold by Natural Grocers must meet strict quality guidelines and may not contain artificial colors, flavors, preservatives or sweeteners, or partially hydrogenated or hydrogenated oils. The Company sells only USDA certified organic produce and exclusively pasture-raised, non-confinement dairy products, and free-range eggs. Natural Grocers’ flexible smaller-store format allows it to offer affordable prices in a shopper-friendly, clean and convenient retail environment. The Company also provides extensive free science-based nutrition education programs to help customers make informed health and nutrition choices. The Company, founded in 1955, has 164 stores in 21 states.

Visit www.NaturalGrocers.com for more information and store locations.

Forward-Looking Statements

The following constitutes a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Except for the historical information contained herein, statements in this release are "forward-looking statements" and are based on management’s current expectations and are subject to uncertainty and changes in circumstances. All statements that are not statements of historical fact are forward-looking statements. Actual results could differ materially from these expectations due to changes in global, national, regional or local political, economic, inflationary, deflationary, recessionary, business, interest rate, labor market, competitive, market, regulatory and other factors, and other risks detailed in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2021 (the Form 10-K) and the Company's subsequent quarterly reports on Form 10-Q. The information contained herein speaks only as of the date of this release and the Company undertakes no obligation to publicly update forward-looking statements, except as may be required by the securities laws.

For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Form 10-K and the Company's subsequent quarterly reports on Form 10-Q, copies of which may be obtained by contacting Investor Relations at 303-986-4600 or by visiting the Company's website at http://Investors.NaturalGrocers.com.

Investor Contact:

Reed Anderson, ICR, 646-277-1260, [email protected]

NATURAL GROCERS BY VITAMIN COTTAGE, INC.

Consolidated Statements of Income

(Unaudited)

(Dollars in thousands, except per share data)

NATURAL GROCERS BY VITAMIN COTTAGE, INC.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands, except per share data)

NATURAL GROCERS BY VITAMIN COTTAGE, INC.

Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in thousands)

NATURAL GROCERS BY VITAMIN COTTAGE, INC.

Non-GAAP Financial Measures

(Unaudited)

EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA are not measures of financial performance under GAAP. We define EBITDA as net income before interest expense, provision for income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA as adjusted to exclude the effects of certain income and expense items that management believes make it more difficult to assess the Company’s actual operating performance, including certain items such as impairment charges, store closing costs, share-based compensation and non-recurring items.

The following table reconciles net income to EBITDA and Adjusted EBITDA, dollars in thousands:

EBITDA decreased 36.9% to $10.4 million for the fourth quarter of fiscal 2022 compared to $16.5 million for the fourth quarter of fiscal 2021. EBITDA increased 0.2% to $58.1 million for fiscal 2022 compared to $58.0 million for fiscal 2021. EBITDA as a percentage of net sales was 3.8% and 6.1% for the fourth quarters of fiscal 2022 and 2021, respectively. EBITDA as a percentage of net sales was 5.3% and 5.5% for fiscal 2022 and 2021, respectively.

Adjusted EBITDA decreased 23.8% to $13.6 million for the fourth quarter of fiscal 2022 compared to $17.8 million for the fourth quarter of fiscal 2021. Adjusted EBITDA increased 3.1% to $62.2 million for fiscal 2022 compared to $60.3 million for fiscal 2021. Adjusted EBITDA as a percentage of net sales was 4.9% and 6.5% for the fourth quarters of fiscal 2022 and 2021, respectively. Adjusted EBITDA as a percentage of net sales was 5.7% for both fiscal 2022 and 2021.

Management believes some investors’ understanding of our performance is enhanced by including EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. We believe EBITDA and Adjusted EBITDA provide additional information about: (i) our operating performance, because they assist us in comparing the operating performance of our stores on a consistent basis, as they remove the impact of non-cash depreciation and amortization expense as well as items not directly resulting from our core operations, such as interest expense and income taxes and (ii) our performance and the effectiveness of our operational strategies. Additionally, EBITDA is a component of a measure in our financial covenants under our credit facility.

Furthermore, management believes some investors use EBITDA and Adjusted EBITDA as supplemental measures to evaluate the overall operating performance of companies in our industry. Management believes that some investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. By providing these non-GAAP financial measures, together with a reconciliation from net income, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.

Our competitors may define EBITDA and Adjusted EBITDA differently, and as a result, our measures of EBITDA and Adjusted EBITDA may not be directly comparable to EBITDA and Adjusted EBITDA of other companies. Items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance. EBITDA and Adjusted EBITDA are supplemental measures of operating performance that do not represent, and should not be considered in isolation or as an alternative to, or substitute for, net income or other financial statement data presented in the consolidated financial statements as indicators of financial performance. EBITDA and Adjusted EBITDA have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of the limitations are:

Due to these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA as supplemental information.