United Natural Foods Inc. Announces Restructuring Plan Amid Q2 Fiscal Results
PROVIDENCE, RI - In tandem with its Q2 2017 financial report, United Natural Foods, Inc. (UNFI) has announced a new multi-million dollar restructuring program with the aim of streamlining both cost and efficiency. UNFI says it expects the program to cost between $3.5 million and $4.0 million, before taxes.
According to a press release, the company is planning to either eliminate or relocate approximately 265 positions under the program. Expected to be largely completed in the third quarter of fiscal 2017, with some efforts extending into Q2 2018, the goal for UNFI seems to be reducing its overall expenditures. The company says the $3.5 million to $4 million price tag will primarily be related to expenses for severance and other employee separation costs.
This announcement comes at the same time the company has revealed its Q2 2017 earnings, showing double digit increases in net sales and income.
“I am proud of our second quarter performance and the progress we have made against our strategic initiatives, despite industry challenges, such as deflation and a difficult retail environment,” Steven L. Spinner, Chairman and Chief Executive Officer said in light of the report. “In light of these challenges, our team remains focused on driving greater efficiencies throughout our internal operations and enhancing the customer experience.”
Highlights from UNFI’s report include:
- Net sales increased 11.6% to $2.29 billion compared to the same period last fiscal year
- Gross margin increased 56 basis points to 15.09% compared to the same period last fiscal year
- Net income increased 12.3% to $25.5 million, or $0.50 per diluted share, compared to the same period last fiscal year
- EBITDA increased 16.7% to $67.5 million compared to the same period last fiscal year
- Cash flow from operations was $104.2 million and capital expenditures were $13.5 million, resulting in free cash flow of $90.7 million
- Deflation was approximately 0.30% compared to inflation of approximately 2.15% in the same period last fiscal year
How will the future of UNFI look under this new restructuring plan? AndNowUKnow will be following the news for you.
