Healthy consumers drive sales at United Natural
million in the second quarter, the company reported this week,
thanks to a strong growth in both mass market and distribution
sales.
United Natural Foods gained net income of $5.5 million for the second quarter of fiscal 2003, or $5.4 million including special items.
Net sales, including acquisitions, for the quarter came to $338.4 million, an increase of 18.6 per cent from the $285.5 million recorded in same period last year. This included growth in the mass market and independent distribution channels of approximately 30 per cent and 28 per cent respectively, said the company.
Sales in the distribution channel were unchanged compared to the same period last year due primarily to the previously announced transition of the company's former second-largest customer to a new primary distributor. These results included a full quarter of net sales from the acquisition of Blooming Prairie and one month of net sales from Northeast Cooperatives acquired on December 31, 2002. Sales growth for the quarter, excluding the effect of acquisitions, was 2.3 per cent.
Net income for the second quarter of fiscal 2003, excluding the effect of special items, increased 4.1 per cent to $5.4 million compared to $5.2 million for the same period a year earlier. Special items included included restructuring, asset impairment and other costs related to the relocation of the Company's Atlanta, Georgia facility.
Net income including special items increased 5.6 per cent to $5.5 million for the second quarter of 2003 compared to $5.2 million in the same period last year.
Steven Townsend, president and chief executive officer of United Natural Foods, said that robust consumer demand for natural foods is continuing to drive the market.
"Operationally, we continue to focus on the integration of our recent acquisitions, and have made significant progress on the expansion of our Chesterfield, New Hampshire distribution center to accommodate the Northeast Cooperatives business. Additionally, we are gaining efficiencies in our purchasing practices and operating expenses as we integrate Blooming Prairie into our Western region," he said.
The company has estimated sales growth for the third quarter of fiscal 2003 to be around 20 per cent with sales growth in the mid-teens for the business excluding the impact of its recent acquisitions.
