United Natural Foods, Inc (UNFI) has reported 3.03 percent fall in profit for the quarter ended Oct. 29, 2016. The company has earned $29.22 million, or $0.58 a share in the quarter, compared with $30.13 million, or $0.60 a share for the same period last year. Revenue during the quarter grew 9.71 percent to $2,278.36 million from $2,076.65 million in the previous year period. Gross margin for the quarter expanded 20 basis points over the previous year period to 15.32 percent. Total expenses were 97.66 percent of quarterly revenues, up from 97.40 percent for the same period last year. That has resulted in a contraction of 25 basis points in operating margin to 2.34 percent.
Operating income for the quarter was $53.34 million, compared with $53.90 million in the previous year period.
“We are pleased with the progress we have made on our strategic initiatives, including the ongoing integration of our recent acquisitions and the sales reorganization, which was completed at the start of our first quarter,” said Steven L. Spinner, UNFI’s President and Chief Executive Officer. “We believe these initiatives will enable us to continue to execute our strategy of building a national fresh distribution platform and capitalize on growth opportunities with new and existing customers in an operating environment that remains challenging due to deflationary pressures and competition.”
United Natural Foods, Inc expects revenue to be in the range of $9,430 million to $9,600 million for financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $2.53 to $2.63.
Operating cash flow turns negative
United Natural Foods, Inc has spent $7.26 million cash to meet operating activities during the quarter as against cash inflow of $5.49 million in the last year period. The company has spent $19.27 million cash to meet investing activities during the quarter as against cash outgo of $7.60 million in the last year period.
Cash flow from financing activities was $21.61 million for the quarter as against cash outgo of $2.99 million in the last year period.
Cash and cash equivalents stood at $13.56 million as on Oct. 29, 2016, up 10.27 percent or $1.26 million from $12.29 million on Oct. 31, 2015.
Working capital remains almost stable
United Natural Foods, Inc has recorded an increase in the working capital over the last year. It stood at $1,021.54 million as at Oct. 29, 2016, up 0.91 percent or $9.24 million from $1,012.30 million on Oct. 31, 2015. Current ratio was at 2.50 as on Oct. 29, 2016, down from 2.56 on Oct. 31, 2015.
Cash conversion cycle (CCC) has decreased to 24 days for the quarter from 52 days for the last year period. Days sales outstanding went down to 20 days for the quarter compared with 21 days for the same period last year.
Days inventory outstanding has decreased to 25 days for the quarter compared with 53 days for the previous year period. At the same time, days payable outstanding went down to 21 days for the quarter from 23 for the same period last year.
Debt moves up
United Natural Foods, Inc has witnessed an increase in total debt over the last one year. It stood at $594.30 million as on Oct. 29, 2016, up 18.96 percent or $94.74 million from $499.56 million on Oct. 31, 2015. Total debt was 20.19 percent of total assets as on Oct. 29, 2016, compared with 18.85 percent on Oct. 31, 2015. Debt to equity ratio was at 0.38 as on Oct. 29, 2016, up from 0.35 as on Oct. 31, 2015. Interest coverage ratio improved to 11.80 for the quarter from 14.38 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
