In a March 9th release, United Natural Foods Inc. (UNFI) posted financial results for the 2nd quarter of fiscal 2022. This Company can be regarded as representative of the distribution segment of the food industry although specialized in organic and high-value products and is heavily committed to Whole Foods Market. Along with competitors Sysco, US Foods and Aramark, all are subject to the risks of currency fluctuation, increased costs for products, labor and transport in a competitive environment still restrained by COVID.

For the 2nd Quarter of FY 2022 ending January 29th 2022, net income was $66 million on total revenue of $7,416 million.  Comparable figures for the 2nd quarter of Fiscal 2021 ending January 30th 2021 were net income of $59 million on total revenue of $6,900 million. Diluted EPS rose from $1.00 for the 2nd quarter of Fiscal 2021 to $1.08 for the most recent quarter. Gross margin for the quarter was 14.5 percent and operating margin 1.7 percent, fractionally higher than equivalent figures in Q2 of FY 2021.

In commenting on results Sandy Douglas, CEO stated “Our second quarter sales were the highest in UNFI’s history as our customers provided the products consumers sought for their winter holiday occasions. Despite accelerating inflation and supply chain concerns, UNFI continues to remain agile to provide the best possible service to our customers,” said. “We are optimistic toward the second half of the fiscal year as our Fuel the Future strategy continues to deliver real value and best positions our customers for success in today’s unpredictable environment.”

Guidance for FY 2022 was increased to average values for sales of $28,500 million; net income of $296 million and Diluted EPS of $4.75.

On January 29th 2022 Sysco posted assets of $7,801 (including $875 million in goodwill and intangibles) against long-term debt and lease obligations of $3,512 million. The Company had an intraday market capitalization of $2,350 million on March 10th. UNFI trades with a forward P/E of 9.8 and has ranged over a 52-week period from $30.61 to $57.89 with a 50-day moving average of $41.79.  Twelve-month trailing operating margin was 2.0 percent and profit margin 0.8 percent.  Return on assets over the past twelve months was 4.2 percent and the return on equity 16.5 percent. At 12H30 on March 10th UNFI traded at $33.07.