UNFI Announces Fiscal Year End and Fourth Quarter Results

$0.36 DILUTED EPS FOR Q4 2009, a 20% Increase OVER DILUTED EPS fOR Q4 2008

DAYVILLE, Conn., Sept. 9 /PRNewswire-FirstCall/ -- United Natural Foods, Inc. (Nasdaq: UNFI) today reported net income for fiscal 2009 increased $10.7 million, or 22.1%, to $59.2 million, or $1.38 per diluted share, from $48.5 million, or $1.13 per diluted share, for fiscal 2008.

Net sales for fiscal 2009 were a record $3.45 billion, an increase of 4.7%, or $154.2 million, over the sales for fiscal 2008 adjusted for the $65.1 million in net sales for the extra week in the fourth quarter of fiscal 2008. Net sales increased 2.6%, or $89.0 million, over the $3.37 billion of net sales recorded in fiscal 2008. Gross profit margin was 19.1% for fiscal 2009, which represents a 29 basis point improvement from the gross profit margin of 18.8% for fiscal 2008.

"Fiscal 2009 was a strong year for UNFI. With marginal sales growth, our associates demonstrated their resolve in delivering significant increases in operating income and EPS," said Steven Spinner, President and Chief Executive Officer.

Fiscal year 2009 operating expenses were 15.9% of net sales, or $550.6 million, an increase of $9.1 million, or 1.7%, over operating expenses of $541.4 million, or 16.1% of net sales, for fiscal 2008.

"During the year, we also increased the focus on our balance sheet. We created $76.0 million in free cash flow and reduced our debt by $92.7 million. In addition, we formally launched our 3-year strategy to grow our market share, expand our commitment to operational excellence, operate as one company with regional differences and continue our culture of sustainability," added Mr. Spinner.