UNFI Broadening Customer Base

UNFI Broadening Customer Base

DAYVILLE, Conn.United NaturalFoods Inc. (NASDAQ:UNFI) reported March 2 that for its second quarter (2Q04),ended Jan. 31, sales rose but so did operating costs as UNFI prepared to takeover distribution for Wild Oats.

Sales rose to $393.2 million from $338.4 million, and grossmargin stayed at around 20 percent of sales. Operating expenses rose to $65.2million from $57.9 million, and net income crept up to $7.0 million, or $.36earned per share, from $5.5 million, or $.29 earned per share.

Higher expenses were due in part to equipment rental and laborcosts, as well as transition costs with restarting its distribution relationshipwith Wild Oats; the company was on track to acquire primary distribution for thechain on April 1.

We achieved another strong quarterly performance, driven bysuccessful implementation of strategies focused on meeting the growing consumerdemand for natural and organic, said Steven Townsend, chief executiveofficer. We remain focused on serving a broad customer base and are pleasedto achieve strong year-over-year sales growth rates to independents,conventional mass market and supernaturals of 17 percent, 17 percent and 15percent, respectively.