RICHFOOD HOLDINGS CITES ACQUISITIONS AS A BOOST

RICHMOND, Va. -- Richfood Holdings here said last week sales from two supermarket chains it acquired last spring helped boost results for the third quarter and 36 weeks ended Jan. 9.2-unit chain based in Norfolk, Va., that Richfood acquired last March, and Shoppers Food Warehouse, a 38-store chain based in Lanham, Md., which was acquired last May. Richfood also owns 18 Metro Food Markets, Baltimore,

RICHMOND, Va. -- Richfood Holdings here said last week sales from two supermarket chains it acquired last spring helped boost results for the third quarter and 36 weeks ended Jan. 9.

2-unit chain based in Norfolk, Va., that Richfood acquired last March, and Shoppers Food Warehouse, a 38-store chain based in Lanham, Md., which was acquired last May. Richfood also owns 18 Metro Food Markets, Baltimore, Md.

The company said sales for the quarter included an increase of 9.3% in wholesale grocery sales to $778.9 million, reflecting incremental wholesale volume gained from supplying the two additional retail chains, and an increase of 438.6% in retail grocery sales to $419.6 million. The company said intersegment sales (sales from the wholesale division into the retail division) totalled $251.9 million.

John E. Stokely, chairman, president and chief executive officer, said the company's wholesale division made strides in improving labor efficiency, "and [we] continue to work to maximize productivity as we handle the incremental volume associated with Shoppers and Farm Fresh."

He said the company's three retail divisions experienced a successful holiday selling season, with Metro continuing the strong momentum it established in the first half of this year. He also said the company is seeing "strong results from Shoppers Food Warehouse, a franchise we view as an excellent growth vehicle, and at Farm Fresh, [where] our new management team posted solid improvements."

3rd-QUARTER RESULTS

Qtr Ended 1/9/99 1/10/99

Sales $946.6 million $744.0 million

Change +27.2%

Net Income $19.4 million $17.6 million

Change +10.6%

Inc/share 41 cents 37 cents

36 Weeks 1999 1998

Sales $2.8 billion $2.2 billion

Change +25.2%

Net Income $47.8 million $47.1 million

Change +1.5%

Inc/Share $1 99 cents