Net sales

UNFI reports another strong quarter, with net sales up 9.2%

Photo courtesy of UNFI

United Natural Foods Inc. (UNFI) reported that net sales for the company’s third fiscal quarter, which ended April 30, increased 9.2% year-over-year to 7 .2 billion. Net income rose nearly 40% from the year-ago period to $67 million, the company announced on June 7.

In a statement, the Providence, RI-based wholesaler said higher net sales in the quarter were driven not only by inflation, but also by business growth from existing and new customers. Supply chain challenges and what the company called a “modest market contraction” contributed to some downward pressure on the final numbers, UNFI said.

Earnings per diluted share increased 37.5% year over year to $1.10; Adjusted EPS also rose 10% to $1.10. Adjusted EBITDA was $196 million, an increase of 5.9%, and the company’s gross margin rate, excluding a LIFO charge of $72 million during the quarter, was 15%— compared to 14.7%, excluding LIFO charge, in the third quarter of 2021.

UNFI CEO Sandy Douglas credited the company’s optimism Fuel the Future Strategy for the strong third quarter.

“Our performance in the third quarter once again demonstrates UNFI’s agility and focus on serving customers despite a challenging operating environment,” Douglas said in a statement, adding that the Fuel the Future strategy is “working and starting.” to benefit our customers”.

As the company looks to the end of its fiscal year, she said, “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 said its third-quarter operating expenses were $969 million, compared to $868 million in the third quarter of 2021.

The organic and specialty food distributor said it expects annual earnings of between $4.65 and $4.90 per share, with revenue of between $28.8 billion and $29.1 billion.