UNFI posts profit decline, revenue increase, in 2Q

AS EXPECTED, United Natural Foods Inc. reported a profit decline in the second quarter, to $22.7 million, or 45 cents per diluted share, compared with $27.8 million, or 55 cents per diluted share, a year ago.
AS EXPECTED, United Natural Foods Inc. reported a profit decline in the second quarter, to $22.7 million, or 45 cents per diluted share, compared with $27.8 million, or 55 cents per diluted share, a year ago.

PROVIDENCE – As expected, United Natural Foods Inc. reported a profit decline in the second quarter, to $22.7 million, or 45 cents per diluted share, an 18.5 percent decrease from the same period a year ago.
The carrier and distributor of natural, organic and specialty food products said last week that it anticipated lower earnings per share.
Sales, however, climbed 1.5 percent to $2.05 billion in the quarter that ended Jan. 30, compared with sales of $2.02 billion last year.
Steven Spinner, president and CEO, said the company remains focused on managing its business in a “rapidly changing environment.”
“We will make strategic investments to improve our sales growth rate and customer experience through the back half of this fiscal year and into fiscal 2017,” Spinner said in a statement. “We are working to build new distribution opportunities and expand our relationships with current customers. Our announcement today of the acquisition of certain assets of Global Organic further demonstrates our strategic focus on increasing UNFI’s product offering into the perishable perimeter. We believe our infrastructure, supply chain and logistics network are uniquely positioned to add meaningful value to customers in an evolving food retail environment.”
Global Organic, founded in 1999, distributes organic fruit, vegetables, juices, milk, eggs, nuts and coffee in the Southeast, and has primary operations within the same facility as UNFI in Sarasota, Fla. UNFI’s subsidiary, Albert’s Organics, acquired Global Organic. Terms were not disclosed.
Operating expenses increased $6.1 million, to $255.8 million compared with $249.7 million in the 2015 second quarter – new operating expenses included $2 million of severance and other transition costs related to a previously announced restructuring plan, and approximately $1 million of acquisition-related costs. Expenses also included $600,000 related to the startup of the company’s Hudson Valley, N.Y., and Auburn, Calif., facilities and a $200,000 restructuring charge due to the closure of the company’s Aux Mille facility in Quebec, Canada.

The company also reaffirmed the outlook for the remainder of 2016, saying it expects sales of approximately $8.31 billion to $8.43 billion, a 1.5 to 3 percent increase over fiscal 2015. Earnings per share are expected to be lower, between $2.27 and $2.37, compared with fiscal 2015 earnings per share of $2.76.

Last week, United Natural Foods said it entered into an agreement to acquire Haddon House Food Products Inc. for approximately $217.5 million.

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