Longtime Whole Foods distributor United Natural Foods Inc. (NASDAQ: UNFI) reported full-year earnings that exceeded expectations on the bottom line on Wednesday, just weeks after its most important customer, Whole Foods Market Inc., closed its $13.7-billion sale to Amazon.com Inc. (NASDAQ: AMZN), also a United customer.
According to UNFI CEO Steven Spinner, ““Our performance in fiscal 2017 demonstrated our steadfast focus on serving our customers and managing our business in a challenging and deflationary operating environment.
“We are optimistic about growth and the opportunities ahead of us, given the strength of our national supply chain as well as the breadth of our unique, better for you, fresh, organic and specialty product offerings.”
In its latest fiscal year-end, United net sales were $9.27 billion, up 9.5% year over year, below analysts' expected $9.3 billion.
Net income for the fourth quarter of fiscal 2017 increased 12.1%, or $4.2 million, to $38.9 million, or $0.76 per diluted share, from $34.7 million, or $0.69 per diluted share, for the fourth quarter of fiscal 2016.
In fiscal 2018, UNFI expects net sales to reach $9.63 billion to $9.81 billion, with earnings per share to hit $2.97 to $2.77.
United Natural Foods has been Whole Foods' primary distributor for 19 years, and its current contract continues into 2025. Whole Foods accounted for 35% of United Natural Foods' 2016 revenue, by far its largest customer.
UNFI stock soared by noon ET on Thursday $3.70, or 9.9%, to $40.91, in the upper regions of a 52-week trading range of $29.53 to $49.74.
