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Acquisition, sourcing strength help UNFI overcome headwinds

Company earns 11% net sales growth

United Natural Foods Inc. (UNFI) finished its third quarter April 29 with a more than 15% rise in gross earnings and 11% net sales growth, bringing the total to $2.37 billion.

The upward trajectory was accomplished despite deflationary pressure and same-store sales struggles for “many of our retail customers,” the company said in its earnings release.

UNFI credited its sourcing capabilities and recent acquisitions as two of the main factors for positive growth. Those acquisitions were Haddon House, Nor-Cal Produce and Gourmet Guru.

UNFI also completed the integration of Haddon’s distribution center in Howell, N.J., during the third quarter. Haddon was officially acquired by United last spring.

Positive numbers aside, a Deutsche Bank Markets Research Report points out that overall sales fell short of projected targets due to “broad-based food retail softness, rationalization of the business in conjunction with margin enhancement initiatives and lack of inflation.”

UNFI is based in Providence, R.I.

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