Tallahassee, FL 11/30/11 (StreetBeat) --Food distributor United Natural Foods Inc. (Nasdaq: UNFI) said Wednesday that its fiscal first quarter net income fell 13 percent due to costs of selling off some businesses and beginning distribution to a new customer.Net income fell to $15.2 million, or 31 cents per share, in the quarter ended Oct. 29. That compares with $17.4 million, or 39 cents per share, in the same period last year. Analysts expected earnings of 40 cents per share, according to a poll by FactSet.
But revenue rose 16 percent to $1.22 billion from $1.05 billion last year. Analysts expected $1.19 billion.
The company's gross margin — the percentage of each dollar in revenue the company keeps — declined due partly to higher freight and services costs related to distributing to a new, undisclosed, national customer.
Operating expenses rose 17 percent because of costs related to selling its non-food businesses and launching service to the new customer.
The Providence, R.I., company agreed to sell its non-food divisions, including health and beauty products businesses, to privately held L&R Distributors Inc. in June. It said then that it wanted to focus on selling natural, organic and specialty foods to supermarkets and other retailers.
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