LOS ANGELES — Unified Grocers here said the acquisition of Associated Grocers, Seattle, resulted in a sharp increase in sales and operating income for the first quarter that ended Dec. 29.
Sales rose 34.7% to $1.05 billion, with 82% of the increase coming from the former AG business, the company said. Unified said it experienced 6.4% growth in its existing business before considering the impact of the AG transaction.
The company said sales growth and improved operating performance were the primary contributors to a 78.2% increase in net earnings to $6.2 million and a 38% increase in operating income to $22.5 million. Operating performance was also aided by favorable workers' compensation adjustments in the company's wholesale operations and a positive contribution from the Seattle operation, the company said.
“In spite of a weakening economy, sales to our existing base of customers continue to be very strong,” said Alfred A. Plamann, president and chief executive officer. “This is a good sign, because it means we are providing the right products to our retail customers at precisely the right time.
“On top of this, sales to our newest customers [at the former AG] were also very strong during the period, [which] means we have done a very good job integrating our new Seattle operations into the whole of our business in a short period of time.”