Revenue during the quarter grew 11.14 percent to $2,369.56 million from $2,132.10 million in the previous year period. Gross margin for the quarter expanded 34 basis points over the previous year period to 15.46 percent. Total expenses were 97.26 percent of quarterly revenues, up from 96.90 percent for the same period last year. That has resulted in a contraction of 36 basis points in operating margin to 2.74 percent.

Operating income for the quarter was $64.95 million, compared with $66.02 million in the previous year period.

However, the adjusted operating income for the quarter stood at $68.89 million compared to $66.93 million in the prior year period. At the same time, adjusted operating margin contracted 23 basis points in the quarter to 2.91 percent from 3.14 percent in the last year period.

"I am pleased with our team’s ability to execute and manage our business well through a deflationary and challenging retail environment," said Steven L. Spinner, Chairman and Chief Executive Officer. "Over the past few months, we have worked diligently and made progress against our strategic initiatives, such as driving greater efficiencies across our internal operations, integrating our acquisitions and having our united sales team sell across all of UNFI’s brands."

For fiscal year 2017, United Natural Foods forecasts revenue to be in the range of $9,290 million to $9,340 million. The company expects diluted earnings per share to be in the range of $2.49 to $2.54. It expects diluted earnings per share to be in the range of $2.53 to $2.58 on adjusted basis.

The company has spent $51.17 million cash to meet investing activities during the nine month period as against cash outgo of $118.17 million in the last year period. It has incurred net capital expenditure of $39.97 million on net basis during the nine month period, up 37.94 percent or $10.99 million from year ago period.

The company has spent $114.20 million cash to carry out financing activities during the nine month period as against cash outgo of $84.75 million in the last year period.

Cash and cash equivalents stood at $16.12 million as on Apr. 29, 2017, down 16.60 percent or $3.21 million from $19.33 million on Apr. 30, 2016.

Working capital increases marginally
United Natural Foods, Inc. has recorded an increase in the working capital over the last year. It stood at $984.13 million as at Apr. 29, 2017, up 2.47 percent or $23.74 million from $960.39 million on Apr. 30, 2016. Current ratio was at 2.38 as on Apr. 29, 2017, down from 2.59 on Apr. 30, 2016.

Cash conversion cycle (CCC) has decreased to 22 days for the quarter from 48 days for the last year period. Days sales outstanding were almost stable at 19 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 24 days for the quarter compared with 48 days for the previous year period. At the same time, days payable outstanding was almost stable at 21 days for the quarter, when compared with the previous year period.