PROVIDENCE, RI - United Natural Foods, Inc. has released the results for the second quarter of 2016, with acquisitions in tow, growth on the way, and a plan to restructure its operations.
“Today, we announced several important changes to our organizational structure,” President, Chief Executive Officer & Director, Steven L. Spinner, said in an earnings call. “It is a change that we believe brings our teams closer to the retailer/operator and will serve as the primary driver towards an exemplary customer experience across all of our companies. Beginning in August 2016, UNFI will be structured more regionally with the Pacific, Central and Atlantic regions.”
Per the new organization, Spinner stated that each region will have a President responsible for all of products and services within their respective territories, including fresh, grocery, wellness, e-commerce, food service, and gourmet ethnic offerings.
“This is very exciting news for UNFI as we structure resources across our business to fuel even stronger customer relationships,” Spinner said.
Particular highlights for the company’s second quarter of 2016 included:
- Net sales increased 1.5% to $2.05 billion compared to $2.02 billion for the same period last fiscal year.
- Adjusted net sales increased 6.5% compared to the same period last fiscal year for the same period last year, excluding year-over-year impact of the previously disclosed termination of a customer distribution contract.
- Diluted EPS was $0.45 compared to $0.55 for the same period last fiscal year.
- Adjusted diluted EPS was $0.49, which the company said excludes $2.0 million of severance and other transition costs related to a restructuring plan (previously announced) and approximately $1.0 million of acquisition related costs.
- Free cash flow generation of $106.2 million, the largest in UNFI’s history.
“We are intently focused on managing our business in a rapidly changing environment,” Spinner said in regards to the current market. “We will make strategic investments to improve our sales growth rate and customer experience through the back half of this fiscal year and into fiscal 2017.”
Looking forward, UNFI stated that it is currently working to build new distribution opportunities, as well as expand its current customer relationships with current customers.
Among its plans for growth are an emphasis in mergers and acquisitions. The company announced last week that it has entered an acquisition agreement with Haddon House Products, Inc., which UNFI added will expand its reach to new customers and areas. It also announced yesterday that it has acquired certain assets of Global Organic, which Spinner said “further demonstrates our strategic focus on increasing UNFI’s product offering into the perishable perimeter.”
“We believe our infrastructure, supply chain, and logistics network are uniquely positioned to add meaningful value to customers in an evolving food retail environment.”
AndNowUKnow will continue to track the company’s growth as it looks to expand its footprint in the fresh industry.
