Providence, RI—United Natural Foods, Inc. (UNFI) reported its financial results for the first quarter of fiscal 2019, which ended October 27, 2018.
UNFI’s net sales were up 16.7% from last year, and their adjusted EBITDA was up 1.6%,but their net income faced a loss of 163.2%.
In the first quarter, UNFI completed its acquisition of SUPERVALU. Steve Spinner, chairman and CEO of UNFI, pointed out in an investor conference call that the acquisition, along with network integration and alignment projects, contributed heavily to operating expenses. However, he added, although it was only part of the company for the final week of the quarter, SUPERVALU added $224 million to the quarter.
Spinner said that the loss of income was due to a few things: first, obviously, the acquisition of SUPERVALU; higher labor costs with less productivity due to the hiring of seasonal laborers; and supplier out of stocks. Suppliers’ ability to fill UNFI’s demand, Spinner noted, was worse in the first quarter of 2019 than it was in the first quarter of 2018.
UNFI also released its 2019 fiscal guidance, inclusive of SUPERVALUE, which expects to see net sales, earnings per share, net income, and adjusted EBITDA increase across the board.