UNFI Raises Full-Year Outlook
Higher prices were a catalyst but not the sole reason for higher second quarter sales at United Natural Foods, Inc. (UNFI). In its latest financial release, UNFI reported that its second quarter sales were the highest in company history, rising 7.5% on a year-over-year basis to top $7.4 billion.
For the 13-week period ending Jan. 29, UNFI brought in a net income of $66 million, an 11.9% bump from the second quarter of 2021. While many of the gains were driven by inflation, UNFI also cited the effect of business growth from existing and new customers.
“Despite accelerating inflation and supply chain concerns, UNFI continues to remain agile to provide the best possible service to our customers,” remarked Sandy Douglas, UNFI’s CEO.
To Douglas' point, the second quarter was also marked by ongoing supply chain challenges and modest market contraction. These and other circumstances led to a decline of 2.4% in adjusted EBITDA and a 9.6% drop in adjusted EPS, the company reported.
Looking ahead to the rest of the year that’s started off bumpy from a macroeconomic and geopolitical standpoint, UNFI is staying positive and raising its outlook. For net income and EPS, the company anticipates continued growth in net sales driven by inflation and unit volume growth. UNFI also projects an $85 million pre-tax gain on the sale of assets related to the sale and subsequent leaseback of a distribution center.
“We are optimistic toward the second half of the fiscal year as our Fuel the Future strategy continues to deliver real value and best positions our customers for success in today’s unpredictable environment," noted Douglas.
Providence, R.I.-based UNFI delivers a wide variety of products to customer locations throughout North America, including natural product superstores, independent retailers, conventional supermarket chains, e-commerce retailers and foodservice customers. The largest publicly traded grocery distributor in America, the company is No. 47 on The PG 100, Progressive Grocer's 2021 list of the top food and consumables retailers in North America.
