United Natural Foods, Inc. Reports Double Digit Sales Increases in Q3 2017

After a busy year of acquisitions, United Natural Foods, Inc. (UNFI) is seeing results—with double digit sales increases, according to the company’s latest financial results. For the company’s Q3 2017, UNFI’s net sales increased 11.1% and hit $2.13 billion for the quarter.

“I am pleased with our team’s ability to execute and manage our business well through a deflationary and challenging retail environment,” said Steven L. Spinner, Chairman and Chief Executive Officer on the release of the report. “Over the past few months, we have worked diligently and made progress against our strategic initiatives, such as driving greater efficiencies across our internal operations, integrating our acquisitions, and having our united sales team sell across all of UNFI’s brands.”

As explained in a press release, the company’s net sales increases were in no small part due to several of the company’s recent acquisitions, including Nor-Cal Produce, Gourmet Guru, Haddon House Food Products, and Global Organic/Specialty Source. Net sales soared, but the company’s acquisitions were not a big enough driver to pull the company out of a deficit. Net income for the third quarter decreased 4.4% to $36.6 million, down from $38.3 million in the third quarter of fiscal 2016.

In addition to the notes above, UNFI also revealed the following highlights in its report:

• Gross margin increased 34 basis points to 15.46% compared to the same period last fiscal year
• Earnings per diluted common share was $0.72; Adjusted earnings per diluted common share was $0.77
• Cash flow from operations was $66.2 million and capital expenditures were $17.3 million, resulting in free cash flow of $48.9 million
• Completed the integration of Haddon House Food Products into UNFI’s distribution business

Deli Market News will keep you up to speed on the latest financial news from important retail and foodservice companies.