Vending

United Natural Foods lifts Q2 2022 sales, earnings

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March 10, 2022

United Natural Foods Inc. improved sales and earnings for Q2 2022 driven by new business and inflation, according to an earnings release. Highlights include:

Net sales increased 7.5% from $6.9 billion in Q2 2021 to $7.41 billion for the quarter ending Jan. 29, 2022, primarily driven by inflation and new business from both existing and new customers, including the benefit of cross selling, partially offset by supply chain challenges and modest market contraction.
Net income rose 11.9% from $59 million to $66 million, which included an $8 million pre-tax benefit related to an adjustment to a previous multi-employer pension plan withdrawal charge estimate and $5 million of pre-tax restructuring, acquisition and integration related expenses. Net income for Q2 2021 included $18 million of pre-tax restructuring, acquisition and integration related expenses.
Net income per diluted share rose 8% from $1 to $1.08 in the comparative quarters, while adjusted EPS fell 9.6% from $1.25 to $1.13.

Shares traded $34.03 today against a 52-week range of $30.61-$57.89.

The $7.41 billion in quarterly revenue beat analyst expectations by $240 million while the non-GAAP EPS of $1.13 missed expectations by once cent, according to Seeking Alpha.

"Our second quarter sales were the highest in UNFI's history as our customers provided the products consumers sought for their winter holiday occasions. Despite accelerating inflation and supply chain concerns, UNFI continues to remain agile to provide the best possible service to our customers," CEO Sandy Douglas said in the press release. "We are optimistic toward the second half of the fiscal year as our Fuel the Future strategy continues to deliver real value and best positions our customers for success in today's unpredictable environment."

The outlook for net income and EPS now includes an estimated $85 million pre-tax gain on sale of assets related to the sale and subsequent leaseback of a distribution center. The outlook for adjusted EPS and adjusted EBITDA is unchanged, reflecting potential ongoing operating environment volatility.