LOS ANGELES, Dec. 17, 2009 (GLOBE NEWSWIRE) -- "Unified Grocers and our independent retail members and customers fared well in 2009, particularly in light of the myriad business challenges we faced due to a weak economy," said Al Plamann, president and chief executive officer of Unified Grocers. "Unified reduced debt by $25 million and increased the stock price of our members' shares by six percent over 2008. Our retailers kept their balance sheets strong, made sure they were offering the right mix of products to consumers and continued to invest in the growth and success of their businesses. During the past year, our retailers opened 47 new stores -- a remarkable feat, given that it may very well have been the worst economic environment since the Great Depression," Plamann said.
Unified Grocers, Inc. ("Unified" or the "Company"), the largest wholesale grocery distributor in the western United States, announced earnings of $14.8 million for the fiscal year ended October 3, 2009 ("2009 period"), as compared to earnings of $17.4 million for the fiscal year ended September 27, 2008 ("2008 period").
The Los Angeles-based cooperative reported net sales of $4.051 billion for the 2009 period, as compared to $4.105 billion for the 2008 period. The Company attributed its sales decrease primarily to the general economic conditions, including a shift in customer demand towards lower cost items. In addition, part of the 2008 period included sales of a large customer that shifted supply to another wholesaler upon emerging from bankruptcy. The decrease in sales was partially offset by additional sales of $79 million resulting from the Company's 2009 fiscal year being a 53 week year as compared to a 52 week year for fiscal 2008.
Earnings before patronage dividends and income taxes were $39.3 million for the 2009 period, compared to $48.6 million for the 2008 period. While the 2008 period was positively impacted by inventory holding gains resulting from an unusually high level of food inflation during that period, this trend reversed in the 2009 period. Additionally, at the beginning of the 2009 period, the former members of Associated Grocers of Seattle became members of Unified, qualifying them for more favorable member pricing, while reducing the Company's gross margin. The effect of these activities was partially offset by lower overall distribution, selling and administrative expenses.
"Looking ahead, we believe that the economy will only make slight improvements in 2010 and our industry will continue to be challenged to find ways to achieve extraordinary results," Plamann said. "At the same time, we believe there are a number of interesting and unique opportunities in the marketplace that hold great promise for both Unified and our independent retailers. We hope to capitalize on those opportunities in the near future."
An online version of Unified's Form 10-K, filed with the Securities and Exchange Commission, is available on Unified's website at www.unifiedgrocers.com and at www.sec.gov/edgar.shtml.
The Unified Grocers, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1214
Safe Harbor Statement
This press release contains forward-looking statements about the future performance of Unified Grocers based on Management's assumptions and beliefs in light of information currently available to it. There are a variety of factors that could cause actual and future results to differ materially from those anticipated by the statements made above. These factors are outlined in the Company's Form 10-K and other interim reports filed with the Securities and Exchange Commission. Furthermore, Unified undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.
Unified Grocers, Inc.
(dollars in thousands except For the Fiscal Year Ended
for Stock Price)
October 3, September 27,
2009 2008
(53 Weeks) (52 Weeks)
---------- ----------
Net sales $4,050,678 $4,104,775
Operating income $51,018 $64,432
Earnings before patronage
dividends and income taxes $39,335 $48,611
Patronage dividends $16,723 $22,059
Net earnings $14,755 $17,369
Stock Price (exchange value) $290.37 $273.97