UNFI Announces 2017 Q1 Results
PROVIDENCE, RI - United Natural Foods, Inc. (UNFI) reported the financial results for the first quarter of fiscal 2017. The company is kicking off the fiscal year with a positive outlook after expanding business through the acquisition of several companies.
“We are pleased with the progress we have made on our strategic initiatives, including the ongoing integration of our recent acquisitions and the sales reorganization, which was completed at the start of our first quarter,” said Steven L. Spinner, UNFI’s President and Chief Executive Officer, according to the report. “We believe these initiatives will enable us to continue to execute our strategy of building a national fresh distribution platform and capitalize on growth opportunities with new and existing customers in an operating environment that remains challenging due to deflationary pressures and competition.”
The report shows sales and gross margin being positively impacted by the acquisitions of Haddon House Food Products, Inc., Global Organic/Specialty Source, Inc., Nor-Cal Produce, Inc. and Gourmet Guru, Inc. However, despite the year-over-year improvement, first quarter fiscal 2017 gross margin continued to face headwinds from moderated supplier promotional activity, competitive pricing pressures, and reduced fuel surcharges.
Other highlights from the report include:
- Gross margin increased 20 basis points to 15.32% for the first quarter of fiscal 2017 compared to 15.12% for the same period last fiscal year.
- Net sales increased 9.7% to $2.28 billion compared to $2.08 billion for the same period last fiscal year; adjusted net sales increased 12.9%, excluding the year-over-year impact of the termination of a customer distribution contract.
- Total operating expenses increased $35.6 million to $295.7 million for the first quarter of fiscal 2017 compared to $260.0 million in the first quarter of fiscal 2016. The increase was attributable to the acquired businesses, which have higher costs to serve.
- Net income for the first quarter of fiscal 2017 decreased $0.9 million, or 3.0%.
What else is on the horizon for UNFI in its upcoming 2017 fiscal year? Check back in with AndNowUKnow to find out.