Killingly-based United Natural Foods Inc. today reported fiscal second-quarter profits rose 49 percent, despite a modest increase in sales, due to higher gross margins and a fuel surcharge imposed on customers.
UNFI, which is preparing this spring to move headquarters to Providence, R.I., said it earned $13.6 million or 32 cents a share, in the three months ended Jan. 31, up from net income of $9.1 million, or 21 cents a share, the same period a year earlier.
Sales rose 2 percent to $847.6 million in the second quarter from $830.7 million in the second quarter of fiscal 2008. The company said results include operations of the UNFI Specialty division, which were acquired in the second quarter of fiscal 2008.
“Our results in the second quarter demonstrate that UNFI is well positioned to navigate through a challenging environment,” said Steven Spinner, president and CEO.
The company lowered its guidance on earnings per share for fiscal 2009 to a range of $1.28 to $1.36 per share, down from its previous estimate of $1.30 to $1.38 per share. Lower sales growth, uncertainty surrounding the impact of the recent peanut recall on sales for the rest of the fiscal year and potential unreimbursed product losses associated with the peanut recall were cited for the reduction.
Also, UNFI cut its anticipated fiscal 2009 capital expenditures guidance to approximately $40 to $45 million, down from $57 to $62 million.
At 11 a.m., UNFI traded at $14.54, up $1.64, or 12.7 percent.
