UNFI Sales Soar to $300 Million for 3Q02, NoLonger Distributor for Wild Oats

UNFI Sales Soar to $300 Million for 3Q02, NoLonger Distributor for Wild Oats

DAYVILLE, Conn.--United Natural Foods Inc. (UNFI)(NASDAQ:UNFI) reported June 4 that for its third quarter (3Q02), ended April 30,the company experienced growth percentages from both super natural and massmarket distribution channels, leading the company to project even better growthfor its fourth quarter.

Revenue soared 16.2 percent to $300.4 million, compared to3Q01's sales of $258.5 million. Gross margin held its ground at 19.4 percent ofsales, while operating expenses rose to $47.5 million from 3Q01's $41.2 million.Net profit for the quarter was $5.3 million, or $.28 per share earned, comparedto the same period last year's results of $3.3 million, or $.18 per shareearned.

The company attributed its sales increase to growth percentagesin the mid-20s in both its super natural and mass market distribution channels.According to Chief Executive Officer Michael Funk, this increase was a result ofUNFI's focus on customer service, customer base expansion and increasedpenetration in existing accounts. To meet the company's growing consumer demand,UNFI will continue to expand and enhance its distribution network; during 3Q02,the company completed the start-up of its new distribution center in SouthernCalifornia.

"Looking forward, we believe our sales growth for thefourth quarter of fiscal 2002 will continue in the 12 percent to 14 percentrange," Funk stated. "We expect net income, excluding special items,for the fiscal 2002 fourth quarter to be approximately $.28 to $.30 per dilutedshare."

On June 19, the company reported that its contract as primarydistributor to Wild Oats--totaling $40.6 million or 13.5 percent of totalrevenue for 3Q02--would not be renewed when it expired Aug. 31. "We aredisappointed that we were unable to agree on a new contract," Funk said."However, we believe that the terms Wild Oats sought would not have been inthe best interests of UNFI, our shareholders and our other customers." Headded that by the end of July, UNFI would provide additional informationregarding the financial impact of this decision on the company's guidance forthe next fiscal year, ending July 2003.

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