PROVIDENCE, R.I. (AP) — United Natural Foods said Thursday that its net income grew 28 percent in the fiscal fourth quarter to top expectations, sending shares higher in aftermarket trading.
The company, which distributes natural, organic and specialty foods and products, said profitability improved due to more efficient purchasing and logistics, which helped counter the continued shift by customers toward conventional supermarkets.
The company, based in Providence, R.I., said that its net income increased to $32.1 million, or 65 cents per share, from $25.1 million, or 51 cents per share, a year earlier. Revenue rose 22 percent to $1.64 billion from $1.34 billion.
Analysts expected United Natural Foods to report net income of 61 cents per share on $1.63 billion in revenue. The company's fiscal fourth quarter ended Aug. 3.
The company's shares jumped $3.68, or 6.1 percent, to $63.65 in aftermarket trading on the report. During the day the stock rose 2 percent to close at $59.97.
For the fiscal year, United Natural Foods Inc. said its net income rose 18 percent to $107.9 million, or $2.18 per share, from $91.3 million, or $1.86 per share. Revenue increased 16 percent to $6.06 billion from $5.24 billion.
The company is forecasting net income of $2.40 to $2.50 per share and revenue of $6.65 billion to $6.78 billion for fiscal 2014. Analysts expect $2.48 per share and $6.64 billion, on average.