Natural and organic foods distributor United Natural Foods has posted a 15.9% increase in net profit for the 2007 fiscal year to US$50.2m, with revenues rising by 13.2% to $2.75bn.
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The company also posted a 3.5% increase in net profit for the fourth quarter to US$13.1m, on sales up 14% at $619.8m.
However, gross margin for fiscal 2007 declined by 64 basis points to 18.5%. Fiscal 2007 operating expenses were 15.1% of net sales, or $416.1m, an increase of 7.8% over 2006, the company said.
But the year-on-year decline was not so marked in the final quarter, with fourth-quarter gross margin standing at 18.7%, a 54 basis point decline from 2006. The company said that operating expenses in the fourth quarter were negatively impacted by labour and other start-up expenses related to its new distribution facilities in Florida and Washington, higher health insurance expenses and an increase in fuel costs.
“Our sales growth in the 2007 fourth quarter remained strong and consistent with our forecast of 13% to 15% growth.” said president and CEO Michael Funk. “We’re pleased to report that our gross margins rebounded nicely during the quarter. I’m very impressed with the company’s ability to focus on the margin enhancing initiatives during the fourth quarter.”
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By GlobalDataFor fiscal 2008, the company expects revenues to increase by approximately 11% to 14% from fiscal 2007 to between $3.05bn and $3.13bn. Fiscal 2008 GAAP earnings per diluted share are expected to be in the range of $1.40 to $1.45 per share, an increase of 19% to 24% over fiscal 2007.
