United Natural Foods (UNFI) has booked an increase in first-half profit, boosted by a new contract and higher consumer demand for natural and organic products.
The US natural and organic distributor’s earnings totalled US$37.2m in the six months to 28 January, a 2.9% increase over the comparable period last year.
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Operating profit climbed 3.5% to reach $63.6m, the company reported today (6 March). Excluding around $6.8m of restructuring and onboarding expenses related to the new contract, operating income as a percentage of net sales was 2.8% for the first six months of fiscal 2012.
Net sales in the period totalled $2.5bn, a 15.5% increase over the prior-year period.
In the second quarter, net profits grew 17.5% to $22m, while operating profits increased 18.2% to reach $37.5m. Sales amounted to $1.29bn, a 15% improvement on the prior-year.
“Sales growth continued to accelerate in the second quarter of fiscal 2012, despite facing our toughest prior year sales comparisons,” said UNFI’s president and CEO Steven Spinner.
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By GlobalData“This acceleration reflects the onboarding of our new national customer, the growing consumer demand for natural and organic products and the continued movement by consumers towards a healthier lifestyle.”
Looking to the second half of fiscal 2012, Spinner said the company anticipates “further expansion of existing relationships” while working to add new customers across all channels and continuing to reduce operating costs.
