UNFI reports profit, sales increase in 2Q

UNITED NATURAL Foods Inc. on Wednesday reported a 12.3 percent jump in profit in the second quarter. / COURTESY UNITED NATURAL FOODS INC.
UNITED NATURAL Foods Inc. on Wednesday reported a 12.3 percent jump in profit in the second quarter. / COURTESY UNITED NATURAL FOODS INC.

PROVIDENCE – United Natural Foods Inc. on Wednesday reported a 12.3 percent jump in profit in the second quarter, while also announcing plans to eliminate or relocate approximately 265 positions in the second half of the year as a cost-cutting measure.
Net income climbed to $25.5 million, or 50 cents per diluted share, from $22.7 million, or 45 cents per diluted share, a year ago. Sales rose 11.6 percent, to $2.3 billion, from $2 billion in the prior reporting period.
The company, which distributes more than 100,000 products to more than 43,000 customers in the United States and Canada, announced the restructuring program in conjunction with cost-saving and efficiency initiatives, such as the opening of a shared services center in the city.
In the second half of the year, UNFI said it expects to incur restructuring charges between $3.5 million and $4 million, before taxes, related to expenses for severance and other employee separation costs. The company, in its earnings release, said the restructuring is expected to result in “overall expense reductions in the coming year” that will allow the company “to operate more efficiently and effectively.”
A company spokesman said more jobs will be added in the Providence area. Just last month, the company said it was expanding its presence in Rhode Island with the opening of the shared services center, and adding 150 jobs. UNFI employs 450 in Rhode Island.
Steven L. Spinner, UNFI CEO and chairman, said he is pleased with the company’s second quarter performance.
Sales were positively impacted by acquisitions of Haddon House Food Products Inc., Global Organic/Specialty Source Inc., Nor-Cal Produce Inc. and Gourmet Guru Inc.
Spinner said UNFI has made progress with its strategic initiatives, “despite industry challenges, such as deflation and a difficult retail environment.”
Deflation affected sales by approximately 0.3 percent in the second quarter, while in the 2016 second quarter inflation was approximately 2.15 percent.
The company also revised its fiscal 2017 guidance, saying it now expects sales ranging between $9.38 billion and $9.46 billion, an increase of 10.7 percent to 11.7 percent over fiscal 2016. Earnings per share are expected to range between $2.49 and $2.54 compared with fiscal 2016 earnings per share of $2.50.

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