Last updated on June 14th, 2024 at 10:40 am
United Natural Foods Inc. (UNFI) reported net sales of $6.41 billion for its fourth quarter ended Aug. 2. Net income was $18.9 billion.
“This past fiscal year has been a transformational one for us as we began realizing some of the key benefits and competitive advantages from the Supervalu acquisition that will be the foundation of our long-term success,” said Steven L. Spinner, chairman and CEO of UNFI, which is based in Providence, Rhode Island. “As we begin the new fiscal year, I see tremendous focus and enthusiasm across the organization as we execute our strategy. This passion will be a tailwind as we drive to accelerate cross-selling efforts, realize new cost efficiencies, aggressively pay down debt and deliver results in the quarters to come.”
Operating expenses in the fourth quarter of fiscal 2019 were $776.9 million, or 12.13 percent of net sales, compared to $316.6 million, or 12.21 percent of net sales in the fourth quarter of fiscal 2018. The decrease in operating expenses as a percent of net sales is driven by the addition of Supervalu at a lower operating expense rate and the benefit of cost synergies from the Supervalu acquisition, both of which were partially offset by higher depreciation and amortization expense.
Operating income was $66.3 million in the fourth quarter of fiscal 2019 and included the benefit from a goodwill and asset impairment adjustment of $39.9 million partially offset by restructuring, acquisition, and integration related expenses of $19.0 million. When excluding these items, operating income was $45.4 million, or 0.71 percent of net sales, in the fourth quarter of fiscal 2019. Operating income in the fourth quarter of fiscal 2018 was $49.8 million and included restructuring charges and acquisition costs of $9.6 million. When excluding these items, operating income for the fourth quarter of fiscal 2018 was $59.4 million, or 2.29 percent of net sales. The decrease in adjusted operating income, as a percent of net sales, was driven by lower gross margins resulting from the addition of Supervalu at a lower gross margin rate, partially offset by lower operating expenses.
Net income for the fourth quarter of fiscal 2019 was $18.9 million, including $18.0 million of net income related to discontinued operations, compared to $32.8 million for the fourth quarter of fiscal 2018. The decrease in net income was primarily the result of higher interest and tax expense, partly offset by the contribution from discontinued operations and higher operating income, including the benefit from the goodwill and asset impairment adjustment. Net loss for fiscal 2019 was $285.0 million and was primarily driven by the $292.8 million goodwill and asset impairment charge and full-year restructuring, acquisition, and integration related expenses that totaled $153.5 million.
