United Natural Foods Reports 4Q04 Results

DAYVILLE, Conn.—United Natural Foods Inc. (NASDAQ:UNFI) reported its financial results for the fourth quarter of fiscal 2004 (4Q04).

Net sales were $446.4 million, an increase of 21.7 percent from net sales of $366.8 million recorded in the fourth quarter of fiscal 2003 (4Q03). According to the company, sales in 4Q04 included a full quarter of the company’s sales as the primary distributor to Wild Oats Markets Inc., a relationship that was transitioned to the company during the third quarter of fiscal 2004.

Net income for 4Q04 increased 93.1 percent to $9.6 million ($0.23 per diluted share), compared to $5 million ($0.12 per diluted share) for the same period last year, including special items recorded in fiscal 2003.

According to the company, there were no special items for 4Q04. Special items for 4Q03 included a goodwill impairment charge, inventory write down, and restructuring and asset impairment charges at the company’s subsidiary, Hershey Import. In addition, the company recorded non-cash income related to the change in fair value of interest rate swaps and related options agreements caused by favorable changes in yield curves. The special items also included moving and other costs related to the completion of the expansion of the company’s Chesterfield, N.H. distribution facility.

“I am very pleased with our company’s performance in fiscal 2004,” said Steven Townsend, chairman and chief executive officer. “These results reflect the success of our operating and marketing strategies which enabled us to experience solid growth in our three primary distribution channels.

We were also able to strengthen our financial position and solidify our balance sheet. At the same time, we continued to strengthen our industry presence by entering new channels of business and fostering several new and renewed business relationships. As we look ahead, we are excited about our company’s prospects for fiscal 2005 and beyond. Our efforts remain focused on helping our customers be more successful in their marketplace while maintaining our position as America’s premier certified organic distributor. To ensure that United Natural Foods is well positioned to capitalize on favorable growth opportunities in the natural and organic foods industry we will continue to invest in our people, facilities, equipment and new technologies.”

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