UNFI's Q1 Net Sales Up Nearly 10%

United Natural Foods Inc. (UNFI) has reported fiscal 2017 Q1 net sales of $2.28 billion, an increase of 9.7 percent from the $2.08 billion posted last year. Adjusted net sales increased 12.9 percent, excluding the year-over-year impact of the termination of a customer distribution contract. The increase is largely attributable to the acquisition of Haddon House Food Products, Global Organic/Specialty Source Inc., Nor-Cal Produce Inc. and Gourmet Guru Inc.

“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, president and CEO of Providence, R.I.-based UNFI. He also noted that the initiatives will continue the wholesaler’s plan of “building a national fresh distribution platform.”

Gross margin was 15.3 percent, up 20 points from last year. Again, the increase was due to the acquisitions of the past year, but gross margin still struggled in the face of moderated supplier promotional activity, competitive pricing pressures and reduced fuel surcharges.

Guidance for fiscal 2017 remains unchanged, with estimated net sales of $9.4 billion to $9.6 billion, an increase of 11.3 percent to 13.3 percent.