UNFI Sees Multi-Channel Growth in 3Q

PROVIDENCE, RIIf third quarter (3Q) results from United Natural Foods Inc. (NASDAQ:UNFI) are any indication, the natural foods channel rebound is steady. The company reported 3Q net sales rose to $985.7 million, nearly 11 percent above last years 3Q figure. Specifically, sales growth in the supernatural channel was 17.7 percent in 3Q, while the supermarket channel logged growth of 12.2 percent, and the independent channel cranked out 6.9-percent growth. Based on results, UNFI changed its 2010 annual sales guidance to 6/5 to 7/5 percent, or $3.68 billion to $3.72 billion.

While gross margin dipped slightly due to inflation and continued customer mix tinkering, operating expenses (as a percentage of sales) decreased by half a percentthe company credited growth in the supernatural and supermarket channels, which tend to have lower expenses. This improvement helped net income for the quarter increase to $19.5 million, or $0.45 per diluted share, from $16.8 million, or $0.39 per diluted share earned a year ago.

"Our fiscal 2010 third quarter reflected the continuing rebound of the natural and organic industry as our growth accelerated during most of the quarter, resulting in both record revenues and net income," said Steven Spinner, president and CEO.  "In addition, now that we have entered our fourth fiscal quarter, we have begun servicing all of our previously announced new customers."