UNFI's Net Sales, Profit Increases in Q1 2023

United Natural Foods Inc. (UNFI) has shared its first quarter results for fiscal 2023, highlighted by a 7.6% increase in net sales.

First covered by Store Brands’ sister publication Progressive Grocer, the wholesaler and private brand supplier’s gross profit increased by $54 million, or 5.2%, to nearly $1.1 billion. The company’s net income decreased 13.2% to $66 million for the period ended Oct. 29.

Also during the quarter, the grocery distributor entered into a commercial agreement to implement an industry-leading warehouse automation system and reduced its net debt by $253 million with initial proceeds from accounts receivable monetization.

“Our performance this quarter reflects continued execution of our strategy in a dynamic operating environment as we improved fill rates and operating performance and saw more customers buying more categories from us than ever before,” said UNFI CEO Sandy Douglas. “We are leveraging our scale, diversification and capabilities to enhance connectivity between customers and suppliers, finding unique ways to create more value for both. We continued to invest in people and technology as part of our commitment to becoming a more effective, more efficient and more disciplined business, well positioned to capture a growing share of our $140 billion core addressable market and create even more value for shareholders.”

UNFI’s new business during the quarter came from selling new or expanded categories to existing customers and adding new customers from its robust pipeline, partly offset by an expected decline in unit volume consistent with the overall industry.

UNFI delivers fresh, branded, and private label products to more than 30,000 banner locations across North America.