Revenue during the quarter grew 11.61 percent to $2,285.52 million from $2,047.71 million in the previous year period. Gross margin for the quarter expanded 56 basis points over the previous year period to 15.09 percent. Total expenses were 97.98 percent of quarterly revenues, up from 97.96 percent for the same period last year. That has resulted in a contraction of 1 basis points in operating margin to 2.02 percent.

Operating income for the quarter was $46.27 million, compared with $41.70 million in the previous year period.

"I am proud of our second quarter performance and the progress we have made against our strategic initiatives, despite industry challenges, such as deflation and a difficult retail environment," said Steven L. Spinner, chairman and chief executive officer of UNFI. "In light of these challenges, our team remains focused on driving greater efficiencies throughout our internal operations and enhancing the customer experience."

For financial year 2017, United Natural Foods, Inc. expects revenue to be in the range of $9,380 million to $9,460 million. The company projects diluted earnings per share to be in the range of $2.49 to $2.54. The company projects diluted earnings per share to be in the range of $2.53 to $2.58 on adjusted basis.

The company has spent $34.64 million cash to meet investing activities during the first six months as against cash outgo of $20.45 million in the last year period. It has incurred net capital expenditure of $22.66 million on net basis during the first six months, up 10.98 percent or $2.24 million from year ago period.

The company has spent $50.18 million cash to carry out financing activities during the first six months as against cash outgo of $108.96 million in the last year period.

Cash and cash equivalents stood at $30.66 million as on Jan. 28, 2017, up 145.62 percent or $18.18 million from $12.48 million on Jan. 30, 2016.

Working capital increases marginally
United Natural Foods, Inc. has recorded an increase in the working capital over the last year. It stood at $1,032.34 million as at Jan. 28, 2017, up 3.72 percent or $36.98 million from $995.36 million on Jan. 30, 2016. Current ratio was at 2.70 as on Jan. 28, 2017, down from 2.96 on Jan. 30, 2016.

Cash conversion cycle (CCC) has decreased to 21 days for the quarter from 52 days for the last year period. Days sales outstanding went down to 20 days for the quarter compared with 21 days for the same period last year.

Days inventory outstanding has decreased to 23 days for the quarter compared with 53 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.