A busy second quarter turned into a strong quarter at United Natural Foods Inc. (UNFI), the retailer posted a 7.1% increase in net sales to $6.89 billion, driven in part by a 7.3% increase in private brand sales, year over year.
In October the retailer made a deal with Key Foods, serving as its primary grocery wholesaler, supplying Key Food locations with conventional, natural and organic grocery products, along with a wide variety of international items. All categories, such as protein, produce, frozen bakery, deli, and general merchandise/health and beauty, as well as Key Food’s Urban Meadow private brand and UNFI-owned brands such as Essential Everyday and Woodstock, will also be supplied.
UNFI also announced it extended its distribution partnership with Whole Foods through September 2027. In 2018, it acquired Supervalu for $2.9 billion.
Other highlights from the second quarter, 13 weeks ended Jan. 30, include an adjusted EBITDA of $206 million, a 57.3% increase, and an adjusted EPS of $1.25, a $1 per share increase, a 400% jump. Net income landed at $59 million
“Our strong second quarter results demonstrate that UNFI continues to execute at a high level as we again leveraged strong year-over-year sales increases into even stronger bottom line growth,” said Steven L. Spinner, chairman and CEO. “We anticipate the underlying momentum in our business and the increasing benefits we’re realizing from our build out the store strategy to continue for the balance of this fiscal year, and we’re also very pleased to have extended our strong partnership with Whole Foods through September 2027.”