United Natural Foods Hits 1Q Mark, Goes Solar

DAYVILLE, Conn.—United Natural Foods Inc. (NASDAQ:UNFI) posted first quarter (1Q) revenues of $736.4 million, an increase of $90.0 million, or 13.9 percent, from the $646.4 million sold in the same quarter last year. According to management, the supernatural channel of the wholesale segment contributed to the increase in net sales, showing a comparable growth rate of approximately 22 percent. On the strength of sales growth, net income increased to $13.6 million, or $0.32 per diluted share, up from $12.4 million, or $0.29 per diluted share, earned a year ago.

"We are pleased to announce that first quarter sales came in near the top end of our 11- to 14-percent growth forecast and that operating results were solid, despite $2.3 million of start-up costs related to expansion of our distribution center network," said Michael Funk, president and CEO. "With the Sarasota, Fla. facility now open and the Portland, Ore. facility expected to open in early December, we look forward to realizing the transportation savings and operational efficiencies expected to be provided by these facilities in the second half of the fiscal year."

These 1Q results do not reflect the company's recent acquisition of Millbrook Distribution Services Inc., which closed on Nov. 2, 2007. Funk noted the acquisition is consistent with UNFI’s long-term plans to expand its presence in the specialty foods segment and enhance the breadth of its products, resources and distribution network. Positive on the immediate impact of this acquisition, UNFI (UNFI.com) raised its fiscal year 2008 projections to $3.27 to $3.35 billion in revenues; the pre-Millbrook range was $3.05 to $3.13 billion.

In related news, UNFI debuted a new solar photovoltaic system at its natural foods distribution facility in Rocklin, Calif. The one-megawatt system features more than 7,000 panels that cover 175,000 square feet, or approximately four acres of rooftop. The system, developed and installed by American Capital Energy, is expected to generate 1.5 million kilowatt hours per year, enough to power more than 226 average homes. The company unveiled a similar system, this one by Solar Works Inc., in its Dayville, Conn., distribution facility. The 550-kilowatt STC solar photovoltaic system is expected to generate approximately 600,000 kilowatt hours of clean energy annually, enough to power more than 67 average New England homes for one year. The system output will avoid over 14 million pounds (over 6,350 metric tons) of carbon dioxide over the 25-year life of the system.

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