UNFI reports 8.3% profit drop in 3Q

UNITED NATURAL Foods saw profit decline in its third quarter earnings report released this week. / COURTESY UNITED NATURAL FOODS INC.
UNITED NATURAL Foods saw profit decline in its third quarter earnings report released this week. / COURTESY UNITED NATURAL FOODS INC.

PROVIDENCE – United Natural Foods Inc. reported an 8.3 percent drop in profit, but slightly higher revenue, in its third quarter earnings report released Monday.
The carrier and distributor of natural, organic and specialty food products reported third quarter profit of $38.3 million, or 76 cents per diluted share, compared with third quarter 2015 profit of $41.8 million, or 83 cents per share. Profit included a gain of $4.2 million due to the transfer of land at UNFI’s Prescott, Wis., facility.
Revenue totaled $2.13 billion, an increase of 0.8 percent, compared with $2.11 billion during the same period a year ago.
When adjusted, revenue climbed 6.1 percent compared with the same period last fiscal year, excluding the year-over-year impact of a customer distribution contract that ended.
Steven Spinner, president and CEO, noted that in the last several months, the company has worked to “significantly expand” UNFI’s fresh produce, specialty products and service offerings by acquiring NorCal, Global Organic and Haddon House Food Products.

“We welcome and look forward to working with the new team members joining the UNFI family. Going forward, we believe these efforts will help support our future growth as we continue to build distribution with new customers and expand relationships with existing customers,” he said.

Revenue from the acquisitions of Global Organic/Specialty Source Inc. and Nor-Cal Produce Inc. totaled approximately $18.1 million, or 0.9 percent of sales, in the third quarter.

UNFI also updated its outlook for the remainder of 2016, saying it estimates sales between $8.46 billion and $8 billion, an increase of 3.4 percent to 3.8 percent compared with 2015. Earnings per share are expected to range from $2.39 to $2.45 compared with prior year earnings per share of $2.76.

- Advertisement -

No posts to display