UNFI Announces Fourth Quarter and Fiscal 2018 Results, Names SuperValu CEO

Following United Natural Foods, Inc. (UNFI) acquisition of SuperValu, news that SuperValu CEO Mark Gross was stepping down from his role, as we reported on our sister publication AndNowUKnow, circulated. This week, UNFI reported its financial results for its fourth quarter and fiscal year, ended July 28, 2018, as well as announced that Sean Griffin would be succeeding Gross as the new SuperValu CEO.

"We have a robust plan and team in place, and we're delighted that Sean Griffin is energized to lead this effort as the incoming CEO of SuperValu," said UNFI's Chairman and CEO Steven Spinner in an earnings conference call. "Sean has more than 30 years of industry experience, and with him at the helm, we have a high degree of confidence that we'll be able to capitalize on the synergy opportunities and realize the full potential of this transformative combination."

Griffin had previously served as UNFI's Chief Operating Officer, and in May of this year, the company announced plans for Griffin to transition from his role into a strategic advisory position following his retirement October 1^st. 

"When I look back at my career with UNFI, I am most proud of driving the Company's mission forward and having the opportunity to work with, and learn from, so many talented people...It has been a great privilege to serve UNFI and I am now ready to retire with enthusiasm for the Company's future," Griffin said at that time.

In terms of its financial results, the company noted growth across the board and plans to continue that upward momentum through the 2018 calendar year. According to a press release, the company’s fourth quarter fiscal 2018 results included the following:

• Supermarkets net sales of the fourth quarter of fiscal 2018 were $707 million, a 1.1 percent year-over-year growth compared to fourth quarter sales of fiscal 2017 of $699 million
• Gross margin for the fourth quarter of fiscal 2018 was 14.50%, a decrease of 125 basis points from 15.75% for the same period last year
• Operating expenses increased $19.1 million, to $326.2 million in the fourth quarter of fiscal 2018 compared to $307.1 million in the fourth quarter of fiscal 2017
• Operating income decreased $11.7 million to $49.8 million for the fourth quarter of fiscal 2018 compared to $61.5 million for the fourth quarter of fiscal 2017
• Net income for the fourth quarter of fiscal 2018 decreased 15.6%, or $6.1 million, to $32.8 million from $38.9 million, for the fourth quarter of fiscal 2017

“We continued to deliver solid top-line growth across our customer channels, demonstrating sustained strong demand for UNFI’s product assortment and services. On the bottom-line, our results reflected the impact of customer mix shift and higher than anticipated freight costs, while improvement in our working capital has resulted in record free cash flow for the quarter,” Spinner said. “We are on track to close the SuperValu transaction in the fourth quarter of calendar 2018, and our teams are hard at work planning for the integration to capture the significant synergies and strategic benefits of this transformative combination, positioning our company for growth and value creation,” said Chairman and CEO Steven Spinner.

For more information regarding the pending SuperValu acquisition, set to close in the fourth quarter of the 2018 calendar year, and UNFI’s financial report, click here.

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