Vending

United Natural Foods improves Q2 2021 sales, earnings

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March 10, 2021

United Natural Foods Inc. Q2 net sales rose 7.1% from $6.4 billion in 2020 to $6.88 billion in 2021, according to an earnings report, as continuing operations benefited from strong customer demand from existing and new retailers.

Net income for the second quarter ending Jan. 30, 2021 rose from a $31 million loss in Q2 2020 to $59 million gain, which included $17.8 million of pre-tax restructuring, acquisition and integration related expenses and a $5.7 million pre-tax non-cash charge related to the acceleration of unamortized debt issuance costs and original issue discounts from the prepayment of the term loan.

Net income per diluted share rose from 57 cents for the second quarter 202 to $1.00 for the second quarter of fiscal 2021.

Adjusted earnings per diluted share rose from 25 cents in Q2 2020 to $1.25 for the second quarter of fiscal 2021.

The company's non-GAAP EPS of $1.25 beat analyst expectations by 4 cents while GAAP EPS of $1.00 beat expectations by 16 cents, according to Seeking Alpha. Revenue of $6.89 billion missed analyst expectations by $30 million.

Shares traded at $35.55 Wednesday against a 52-week range of $5.05 to $36.99.

Net sales from continuing operations benefited from strong customer demand from existing and new retailers, including the continued benefits of cross selling, which was partially offset by lower sales resulting from previously lost stores, including closures associated with three customer bankruptcies that occurred prior to the pandemic.

The company is reaffirming its full-year outlook and expects to finish fiscal 2021 toward the upper end of the previously provided ranges for adjusted EPS and adjusted EBITDA. This outlook assumes that food-at-home consumption remains elevated and exceeds food consumed away from home for the rest of fiscal 2021.

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