During a recent conference call between Unified Foods Inc. and investors, the Providence, R.I.-based company unveiled that preliminary unaudited financial results for the year and the fourth quarter show a net income in the range of 72 to 73 cents per share, compared with 67 cents a year ago, with sales likely to rise between 16.7 per cent to 17 per cent to reach approximately $2.1 billion.
Spinner told investors that the earlier termination by U.S. grocery company Albertsons of its contract with UNFI is “an anomaly that has gotten blown way out of proportion, and we’re going to put it behind us.”
“This was not a UNFI-driven decision to escape the contract within 60 days [but] a situation where a customer asked us to terminate early. [It] was purely an economic decision driven by the customer — something we were not accustomed to. But we want to make sure we have customers with us who want to be with us.”
UNFI plans to announce final net income results for the quarter on September 14, after it completes its analysis of the impact of the early termination of the Albertsons agreement.
The year net income is expected to be in the range of $2.85 to $2.86 per share, compared with $2.52 for fiscal 2014. Sales are expected to rise 20.4 per cent to 20.5 per cent to total about $8.2 billion.
As a result of the termination of the Albertsons agreement, UNFI has also revised its guidance for fiscal 2016 to accommodate the planned severance and working capital costs of approximately $4 million to $5 million during the first quarter of 2016.
