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e-News
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Organic sales stay steady for UNFI |
09.11.2009
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By Ellen Ranta
DAYVILLE, Conn. -The demand for organic products remained strong throughout fiscal 2009 for United Natural Foods and net sales increased almost 5 percent for the company over the previous fiscal year.
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"Fiscal 2009 was a strong year for UNFI," said Steven Spinner, president and CEO of UNFI, based here, in a conference call held Sept. 9.
Spinner said at the outset of the year the company was concerned about a developing trend that the consumer was shying away from organic products, but that proved to be wrong.
It is where they are shopping that has shifted, he said. The independent store sales are "relatively flat," while natural retailers such as Whole Foods stores and supermarket channels are up the most when it comes to organics.
Spinner also noted that "specialty retail items have been negatively impacted more than organic."
When asked to provide exact numbers for the specialty side of the business, Spinner said he was unable to do so, since for the last fiscal year UNFI specialty has been completely integrated into the general business, with three out of five distribution centers fully integrated with specialty and "ready for any contract."
Net sales for fiscal 2009 increased 4.7 percent, $154.2 million, over 2008 and overall income for fiscal 2009 increased $10.7 million, 22.1 percent, to $59.2 million. The fiscal year began Aug. 2, 2008 and ended Aug. 1 of this year.
Operating expenses for the year increased 1.7 percent, but for the fourth quarter of 2009, which was also reported in the call, operating expenses decreased from 16.9 percent of net sales in the fourth quarter of 2008 to 15.6 percent of net sales in the same quarter of this year.
Operating expenses were positively impacted for the quarter by "continued expense control programs across all of the company's divisions, lower diesel fuel prices and operational improvements in the distribution centers.
"The workforce (in the distribution centers) has become more experienced, the turnover has dropped off dramatically, there is less training needed, which leads to increased productivity and effiency. We are working hard to understand it so we can continue it," said Spinner.
Looking to the future, Spinner said, "We formally launched our three-year strategy to grow our market share, expand our commitment to operational excellence, operate as one company with regional differences and continue our culture of sustainability."
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