United Natural Foods is Losing its Chief Executive

This week food wholesaler United Natural Foods Inc. reported fourth quater financial results and also announced that it is losing its CEO.

The company said that Chief Executive Steven L. Spinner is to retire after July 31, when his employment contract expires, or earlier if a successor is found. Spinner will continue to be on the company’s board as executive chairman after the retirement.

The company has already started a CEO search, and has hired an executive-search firm to assist. Both internal and external candidates will be considered, said the company.

“It has been my honor to lead UNFI over these past 12 years and a pleasure to have worked alongside our exceptional associates,” remarked Spinner in a statement. “We serve an important mission of delivering food to millions of people every single day. When reflecting on my tenure as CEO, I’m most proud of our people and our culture, where our shared beliefs drive everything we do.”

Spinner continued, stating that, “The future has never been stronger for UNFI as our integration work is nearing completion and we now look toward expansion of new services, technologies, brands, and our vast supply chain network. In close collaboration with the Board, I decided now is the right time for the company to transition to its next leader. As we enter the next chapter, I have great confidence in the strength of our team and the opportunities ahead and look forward to my continued service as Executive Chairman.”

“Over the last 12 years, Steve has made many valuable contributions to UNFI, including growing our customer base, adapting our business to the demands of the digital marketplace, executing on value-enhancing acquisitions, and, most recently, fulfilling UNFI’s role as a critical link in the North American food supply chain during an unprecedented global pandemic,” noted Peter Roy, Lead Independent Director.

“Throughout his tenure, Steve has methodically and consistently led UNFI to new heights, increasing annual sales from $3 billion to over $26 billion today. At the same time, Steve has fostered a strong set of core values across the company, building and inspiring a talented team around him and living UNFI’s commitment to serve our customers and the communities in which we operate. The Board is conducting a comprehensive search to identify the best candidate to serve as our next CEO, and we look forward to continuing to benefit from Steve’s strategic oversight and institutional knowledge as Executive Chairman.”

United Foods reported better-than-expected fiscal fourth-quarter results, citing “strong customer demand as well as the benefits from cross selling.” The company earned $52 million, or 89 cents a share, in the quarter, compared with 36 cents a share in the year-ago period. Adjusted for one-time items, the company earned $1.06 a share.

Sales during the quarter grew 0.4% to $6.75 billion. Analysts polled by FactSet were waiting for adjusted profit of 74 cents a share on sales of $6.6 billion for the quarter.

Looking ahead, the company forecast “continued momentum” next fiscal year, saying that “food-at-home consumption remains elevated” due to the COVID-19 pandemic. It guided for fiscal 2021 sales between $27 billion and $27.8 billion, and adjusted EPS between $3.05 and $3.55.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.