UNFI Sales Up

UNFI Sales Up

DAYVILLE, Conn.United NaturalFoods Inc. (NASDAQ:UNFI) reported Sept. 2 that for its fiscal year (FY03), endedJuly 31, sales and earnings were up despite taking goodwill impairment chargesand an inventory writedown.

Sales were at $1.4 billion from $1.2 billion in FY02, withgross margin remaining constant at around 20 percent of sales. Operatingexpenses increased, posting at $239.4 million from $201.2 million. Net income,excluding special items, was $20.2 million, or $1.05 per share earned, up fromthe previous years $17.2 million, or $.91 per share earned.

Special items included a goodwill impairment charge, inventorywritedown, and restructuring and asset impairment charges related to the companyssubsidiary, Hershey Import, and moving and other costs related to expanding thecompanys Chesterfield, N.H., distribution facility.

All divisions, except Hershey Import, contributed to ourstrong growth and record sales of $1.4 billion for FY03, said StevenTownsend, president and chief executive officer. Our successful integrationof two acquisitions and a distribution facility expansion are a tribute to thehard work of all of our associates at UNFI.

Analyst Gregory Badishkanian of Smith Barney said in astatement that UNFI is a compelling stock for investors with a six- to 12-monthtime horizon. One reason includes the fact that UNFIs main competitor, Treeof Life, is overseen by parent company Wessanen, which plans to lay off 300people.