United Natural Foods saw its quarterly profit almost double today (25 February) as lower fuel costs and expense control offset sluggish sales.
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The Connecticut-based company reported second-quarter net income of US$13.6m compared with $9.1m, in the year-ago period.
Net sales for the period ended 31 January reached $847.6m, an increase of $16.9m, or 2% from net sales of $830.7m recorded in the second quarter of fiscal 2008.
“Lower fuel costs, expense control and continuing integration of our specialty business helped us deliver an increase of over 50% in net earnings” said Steven Spinner, president and CEO. “While our sales growth moderated in comparison to the prior quarter, our growth excluding UNFI Specialty was 4.5%, highlighting a continued demand for our products.”
Operating expenses increased by $1.1m, or 0.8% in the second quarter, compared to the quarter ended 26 January in which the company incurred operating expenses of $135.1m, or 16.3% of net sales.
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By GlobalData“We successfully completed the relocation of our distribution facility in New Oxford, Pennsylvania to a new facility in York, Pennsylvania during the second week of January 2009,” said Spinner.
“With our York facility up and running, we are now positioned to blend our specialty business in this region into the facility during our fiscal third quarter, which will result in our first fully integrated facility, serving customers throughout the mid-Atlantic region.”
The company revised its net sales guidance for fiscal year 2009 to $3.45bn – $3.50bn from a previous estimate of $3.63bn – $3.70bn.
