US distributor United Natural Foods (UNFI) has booked an increase in earnings for fiscal 2012.
In the 12 months ended 28 July, net profit amounted to US$91.3m compared to $76.7m a year earlier, the company reported today (11 September).
Operating income climbed 19.7% to reach $25.5m, resulting in an operating margin of 3%
Net sales totalled $5.24bn, a 15.6% increase over the prior fiscal year.
"Fiscal 2012 was another record year for us as we continued to achieve substantial sales and earnings growth," said CEO Steven Spinner. "Demand for our products and services continued to accelerate as our teams executed quite well against our ongoing strategies for growth. We look forward to building on these trends in fiscal year 2013."
Separately, the company announced plans to plans to consolidate its four existing Denver-based distribution facilities into a new 535,000sq ft plant in Colorado.
The new facility, which is expected to commence operations in the summer of 2013, is being opened as part of the company's focus on enhancing efficiencies, it said.
No job cuts are expected to be made as a result of the consolidation.
United Natural Foods, Inc. Announces Fourth Quarter And Full Year Fiscal 2012 Results
Fiscal 2012 Net Sales Increased To $5.24 Billion, 15.6% Over Fiscal 2011
PROVIDENCE, R.I., Sept. 11, 2012 /PRNewswire/ --
Fiscal Year 2012 Highlights
Net sales increased 15.6% year-over-year to $5.24 billion
Operating income increased 19.7% for fiscal 2012, or 19.0% excluding restructuring and onboarding expenses
Operating margin improved 10 basis points to 3.0%, or 9 basis points to 3.1% excluding restructuring and onboarding expenses
Earnings per diluted share totaled $1.86, or $1.94 excluding restructuring and onboarding expenses
Fourth Quarter Fiscal 2012 Highlights
Fourth quarter fiscal 2012 net sales increased 16.0% over the comparable fiscal 2011 quarter to $1.34 billion
Fourth quarter earnings per diluted share totaled $0.51
United Natural Foods, Inc. (Nasdaq: UNFI) (the "Company") today reported net sales for the fourth quarter of fiscal 2012 ended July 28, 2012 of $1.34 billion, an increase of 16.0%, or $185.0 million, compared with $1.16 billion for the comparable quarter in fiscal 2011.
Net income for the fourth quarter of fiscal 2012 increased by $8.0 million, or 46.4%, to $25.1 million compared with $17.2 million for the comparable quarter in fiscal 2011. This was primarily due to improvements in our operational efficiency, as well as pre-tax expenses of $6.3 million recognized during the fourth quarter of fiscal 2011 in connection with the restructuring of the Company's UNFI Specialty Distribution Services division ("UNFI Specialty"), including the impairment of the Company's Harrison, Arkansas facility and other expenses incurred in connection with the divestiture of the Company's general merchandise and conventional non-food lines of business (collectively the "restructuring expenses"). Excluding the restructuring expenses recognized in the fourth quarter of fiscal 2011, net income for the fourth quarter of fiscal 2012 increased by $4.2 million, or 20.1%, to $25.1 million, from $20.9 million for the comparable fiscal 2011 period. Earnings per diluted share for the fourth quarter of fiscal 2012 were $0.51, compared with $0.35 in the prior fiscal year comparable period. Earnings per diluted share for the fourth quarter of fiscal 2012 rose 18.6% to $0.51, from $0.43 per diluted share for the fourth quarter of fiscal 2011 excluding the restructuring expenses recognized in that period.
Gross margin was 17.2% for the fourth quarter of fiscal 2012, representing a 41 basis point sequential decline from the gross margin of 17.6% for the third quarter of fiscal 2012. The lower gross margin was due to purchasing and logistics inefficiencies experienced in the fourth quarter of fiscal 2012, and to a lesser extent, the continued shift in the Company's customer mix to lower margin conventional supermarkets and lower fuel surcharge revenues. Gross margin for the fourth quarter of fiscal 2012 was 137 basis points lower than the prior year's comparable quarter, primarily attributable to the continued shift in UNFI's customer mix, as well as the lower fuel surcharge revenues in the fourth quarter of fiscal 2012.
Operating expenses as a percentage of net sales for the fiscal 2012 fourth quarter decreased to 14.0% from 16.0% for the prior year comparable period, in part as a result of the $6.3 million of pre-tax restructuring expenses recognized during the fiscal 2011 fourth quarter. Operating expenses as a percentage of net sales for the fourth quarter of fiscal 2012 decreased 150 basis points compared with the fiscal 2011 fourth quarter after excluding restructuring expenses recognized in that quarter. Operating income as a percentage of net sales was 3.2% for the fiscal 2012 fourth quarter, compared with 2.5% in the prior year comparable quarter. Operating income as a percentage of net sales for the fourth quarter of fiscal 2012 increased 12 basis points compared with the fiscal 2011 fourth quarter after excluding restructuring expenses recognized in that quarter.
