United Pure Meals, Inc. (NASDAQ: UNFI) – Shares of United Pure Meals Tumble on Decrease Third Quarter Income, Squeezing Margins and Full Yr Forecast

  • United Pure Meals Inc. (NYSE: UNFI) reported third quarter FY21 income of $ 6.62 billion, down 5.9% year-on-year, lacking analyst consensus of $ 6.82 billion of {dollars}.
  • Chain revenues fell 5.6% yoy to $ 2.95 billion, impartial retailers fell 11.4% to $ 1.6 billion, and retail fell 9.3 % year-on-year to $ 578 million, reflecting the affect of lockdowns.
  • The gross margin of 14.6% contracted 34 foundation factors from a yr in the past. Decrease vendor associated revenues led to decrease margins within the Wholesale section.
  • Third-quarter working bills had been $ 866.5 million, or 13.09% of web gross sales.
  • The adjusted working margin of 1.52% contracted 45 foundation factors from the prior yr quarter.
  • Adjusted EBITDA of $ 179 million fell 19.2% year-on-year.
  • Web earnings fell 44.9% yoy to $ 49 million, leading to adjusted EPS of $ 0.94 (-29.3% yoy), beating analyst consensus of $ 0.88.
  • The discount in web debt of $ 62 million introduced the overall for the yr to $ 175 million.
  • Recommendation: United Meals sees FY21 EPS adjusted between $ 3.05 and $ 3.55, beneath the analyst consensus midpoint of $ 3.42.
  • Worth motion: UNFI shares traded down 15.8% to $ 34.21 within the final test on Wednesday.
  • Picture courtesy: Wikimedia Commons

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