United Natural Foods Regains Form in 2001 1Q, Loses Prez

United Natural Foods Regains Form in 2001 1Q, Loses Prez

DAYVILLE, Conn.--United Natural Foods Inc. (NASDAQ:UNFI) reported much anticipated results for its fiscal 2001 first quarter ended Oct. 31, highlighting increased revenues and earnings that hit previously announced targets. Net sales reached $244.1 million, up almost 12 percent from the comparable sales in fiscal 2000, while gross margin inched up about one percent of sales. Operating expenses fell to about two percent of sales, compared to the same period last year. Net income was $3.3 million or $.18 per share, up from First Call estimate of $.17 per share and a marked improvement over a net loss of $1.0 million or $.06 per share posted in the comparable fiscal 2000 quarter.

The good quarter results were attributed to increased sales in UNFI's existing customer base, sales to new customers and increased market penetration in the company's Eastern region. The quarter gains occurred despite rising fuel costs and expenses related to a tight labor market. Looking forward, UNFI management expects 2001 second quarter earnings to rise 20 percent compared this first quarter figure, and they held firm to their previous guidance for 2001 fiscal year income, which they had said would be between $.95 and $1.00 per share.

In the midst of the reporting of good news, UNFI announced that its president Richard Youngman had decided to retire from the company effective Dec. 6, 2000. The company, which relied heavily on Youngman to help restore historical profit margins and sales growth in the Eastern region following the company's slide in June 1999, reported only that Youngman wanted to pursue other interests. Youngman co-founded Stow Mills in 1978 and served as that company's president until it merged with UNFI in 1997. At that time, he became president of UNFI and worked to upright the company's Eastern region business. Steve Townsend, currently president of the Eastern Region and formerly the chief financial officer, will succeed Youngman, who will remain active as a consultant to UNFI.

For more information, contact Thomas Simone, UNFI chairman, at 707-537-9872.

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