MECHANICSVILLE, Va. -- Richfood Holdings here reported double-digit gains in sales and net earnings for the second quarter and half-year ended Oct. 14.
For the 12-week quarter, net earnings reached a record $6.5 million, a 21% increase. For 24 weeks, net earnings were up 25.6% to $12.9 million.
Sales for the second quarter were $387.2 million, a 12.3% increase. First-half sales were $782.9 million, a 22.1% rise.
The company attributed the sales increase to new customers picked up through its April acquisition of the wholesale division of Camellia Food Stores, Norfolk, Va., as well as the inclusion for a full second quarter of sales results from Rotelle Inc., West Point, Pa., which Richfood acquired in August 1994.
Donald D. Bennett, chairman and chief executive officer of Richfood Holdings, said: "We have excellent momentum in sales, cost control and net earnings for fiscal 1996 as we move forward with integrating our operations with those of Super Rite Corp. [Harrisburg, Pa.], which we acquired on Oct. 15.
"Super Rite also is experiencing momentum in its operations, as reflected by the increased sales and net earnings reported for its second quarter ended Sept. 2."
Tom Thomson, an analyst with Wheat First Butcher Singer, New York, placed a "strong buy" rating on Richfood and has included the company's stock on Wheat's Analyst Action List.
Thomson said Richfood has solidified its dominant position in the Mid-Atlantic with the Super Rite acquisition and has gained "significant benefits" at a lower risk.