UNFI’s net income falls 9.3% in FY ’16 even as sales grow 3.5%

UNITED NATURAL Foods Inc. said net income for the fiscal year that ended July 30 fell 9.3 percent to $125.8 million, or $2.50 per diluted share, compared with net income of $138.7 million, or $2.76 per diluted share, during the prior fiscal year.
UNITED NATURAL Foods Inc. said net income for the fiscal year that ended July 30 fell 9.3 percent to $125.8 million, or $2.50 per diluted share, compared with net income of $138.7 million, or $2.76 per diluted share, during the prior fiscal year.

PROVIDENCE – United Natural Foods Inc. reported on Tuesday that net income for the fiscal year that ended July 30 fell 9.3 percent to $125.8 million, or $2.50 per diluted share, compared with net income of $138.7 million, or $2.76 per diluted share, during the prior fiscal year.
Revenue climbed 3.5 percent during the same time frame to $8.5 billion from $8.2 billion, UNFI said.
“We are pleased with UNFI’s accomplishments in fiscal 2016, which demonstrate our team’s focus on our strategic initiatives, particularly in light of a challenging operating environment,” Steven Spinner, president and CEO, said in a statement. “We believe our efforts to further enhance UNFI’s perishable perimeter product offerings, combined with the scale of our leading national distribution network, position us well for growth in sales and profitability over the next several years.”
Excluding the year-over-year impact of the termination of a customer distribution contract as well as the effect of the 2015 second quarter reduction in sales, adjusted net sales for fiscal 2016 improved 8 percent, the company said.
For the fourth quarter, the company reported a 3.9 percent sales decline in net income to $34.7 million, or 69 cents per diluted share, from $36.1 million, or 72 cents per diluted share, a year ago.
Fourth-quarter revenue climbed 7.4 percent to $2.2 billion from $2.1 billion in the fourth quarter of fiscal 2015.
Adjusted net sales for the fourth quarter rose 12.7 percent compared with the same period last fiscal year, excluding the year-over-year impact of the previously disclosed termination of a customer distribution contract. The net sales contribution from the acquisitions of Nor-Cal Produce Inc. and Haddon House Food Products Inc. was approximately $138.9 million for the fourth quarter.
Operating expenses for the year increased $36.7 million to $1.06 billion from $1.02 billion last year.
Looking ahead, UNFI said it expects net sales in the range of approximately $9.43 billion to $9.6 billion in fiscal 2017, an increase of 11.3 percent to 13.3 percent, and earnings per diluted share between $2.53 to $2.63 per share, an increase of approximately 1.2 percent to 5.2 percent over fiscal 2016’s earnings per diluted share of $2.50.

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