United Natural (UNFI) Enters Distribution Agreement with Safeway (SWY); Sees FY12 Revs Up 4%
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Price: $46.43 -0.77%
EPS Growth %: +654.5%
Financial Fact:
Total operating expenses: 295.68M
Today's EPS Names:
EDXC, BICX, FBPI, More
EPS Growth %: +654.5%
Financial Fact:
Total operating expenses: 295.68M
Today's EPS Names:
EDXC, BICX, FBPI, More
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United Natural Foods, Inc. (Nasdaq: UNFI) reports it has signed a three-year distribution agreement with Safeway Inc. (NYSE: SWY).
A brief transition period from Safeway's current distributors is expected, which will coincide with the termination of the current distributors' distribution agreements. The Company will assume distribution to all of Safeway's banners in the United States for non-proprietary natural, organic and specialty products effective October 2011.
United Natural anticipates incremental annual volume from this contract will increase annual revenues by approximately 4 percent in FY12.
The Company will incur approximately $1.5 million – $2.5 million in total start-up expenses during the fourth quarter of fiscal 2011 and the first quarter of fiscal 2012 to transition this business. It is anticipated that approximately $0.5 million to $1.0 million in costs will occur in the fourth quarter of fiscal 2011, ended July 30, 2011, with the remaining costs being incurred in the first quarter of fiscal 2012.
A brief transition period from Safeway's current distributors is expected, which will coincide with the termination of the current distributors' distribution agreements. The Company will assume distribution to all of Safeway's banners in the United States for non-proprietary natural, organic and specialty products effective October 2011.
United Natural anticipates incremental annual volume from this contract will increase annual revenues by approximately 4 percent in FY12.
The Company will incur approximately $1.5 million – $2.5 million in total start-up expenses during the fourth quarter of fiscal 2011 and the first quarter of fiscal 2012 to transition this business. It is anticipated that approximately $0.5 million to $1.0 million in costs will occur in the fourth quarter of fiscal 2011, ended July 30, 2011, with the remaining costs being incurred in the first quarter of fiscal 2012.
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