For the third quarter of its fiscal 2022 ended April 30, United Natural Foods Inc. reported net sales of $7.2 billion, an increase of 9.2% over the prior year period; net income of $67 million, an increase of 39.6%; earnings per diluted share (EPS) of $1.10, an increase of 37.5%; Adjusted EBITDA of $196 million, an increase of 5.9%; and Adjusted EPS of $1.10, an increase of 10.0%.
“Our performance in the third quarter once again demonstrates UNFI’s agility and focus on serving customers despite a challenging operating environment,” said Sandy Douglas, CEO of UNFI. “It is clear that our Fuel the Future strategy is working and starting to benefit our customers. As we aim for a successful year-end, we continue to make progress in simplifying our business and focusing our resources on the most important areas that create value for our customers, suppliers and shareholders.
The company attributed the increase in net sales in the third quarter primarily to inflation and new business from existing and new customers, including the cross-selling benefit, partially offset by supply chain challenges and the slight contraction of the market. Net income for the quarter included an $88 million pre-tax gain on the sale of distribution center assets, a pre-tax LIFO charge of $72 million and expenses related to the restructuring, acquisition and the inclusion of $8 million pre-tax. Net income for the third quarter of fiscal 2021 was $48 million, including $10 million of pretax restructuring, acquisition and integration charges, and a pretax LIFO charge of $5 millions of dollars.
Operating expenses for the third quarter of fiscal 2022 were $969 million, or 13.4% of net sales, compared to $868 million, or 13.1% of net sales last year. According to UNFI, this increase is due to continued investment in customer service, which led to higher labor costs for transmission and distribution centers in the third quarter of 2022, and inflation. occupancy-related, which were partially offset by leveraging the fixed costs and benefits of the company’s ValuePath initiative. .
UNFI’s total outstanding debt, net of cash,ended the quarter at $2.38 billion, reflecting a decrease of $34 million in the third quarter of fiscal 2022, compared to the end of the second quarter of fiscal 2022. After the end of the third quarter, the company entered into a new $2.6 billion secured asset – a revolving credit facility maturing in 2027, which replaced its previous $2.1 billion credit facility which was scheduled to mature in 2023. According to UNFI, the transaction enhances its “ability to invest for future growth by strengthening an already abundant liquidity position and extending the maturity of its debt profile.”
Consistent with its financial results, the company has updated its guidance to reflect increased expectations for operating performance.
Providence, based on RI UNFI offers a wide variety of products to over 30,000 customer locations across North America, including natural food supermarkets, independent retailers, conventional supermarket chains, e-commerce retailers and foodservice customers . The largest publicly traded grocery retailer in America, the company is No. 49 on the 2022 list of the PG 100, Progressive Grocer of leading food and consumables retailers in North America.