Richmond, VA - Richfood Holdings, Inc. announced second quarter net earnings of $15.1 million, or $0.32 per share, assuming dilution, for the twelve-week period ended October 17, 1998, compared to net earnings of $15.0 million, or $0.31 per share, assuming dilution, for the prior year quarter. Net earnings for the twenty-four week period ended October 17, 1998, were $28.4 million, or $0.59 per share, assuming dilution, compared to net earnings of $29.5 million, or $0.62 per share, assuming dilution, for the prior year period.
Sales for the second quarter of fiscal 1999 were $909.2 million, a 26.4% increase from sales of $719.5 million for the second quarter of fiscal 1998. The increase in sales was mainly attributable to results from the recently acquired Farm Fresh and Shoppers Food Warehouse supermarket chains. The Farm Fresh chain of grocery stores, based primarily in Tidewater, Virginia, was acquired by Richfood in March, 1998, while Shoppers Food Warehouse, located in the metropolitan Washington, D.C. area, was purchased in May, 1998. Fiscal 1999 year-to-date sales increased to $1.81 billion from sales of $1.46 billion for the prior year period, primarily as a result of the Company's recent retail acquisitions.
Sales for the second quarter of fiscal 1999 consisted of wholesale grocery sales of $743.4 million and retail grocery sales of $404.2 million, reduced by $238.4 million in intersegment sales. Wholesale grocery sales for the twelve- week period ended October 17, 1998, increased 7.8 % over the prior year period. This increase was largely a result of incremental wholesale volume gained from supplying additional product lines to Shoppers Food Warehouse and Farm Fresh stores. Retail grocery sales were $404.2 million for the second quarter of fiscal 1999, compared to $71.4 million in the prior year period.
John E. Stokely, Chairman, President and Chief Executive Officer, commented, “The solid performance demonstrated in our second quarter proves that Richfood is building on its legacy as a wholesaler and is successfully integrating the acquisitions of Farm Fresh and Shoppers Food Warehouse. The incremental wholesale volume resulting from the recent retail acquisitions is now flowing through our distribution pipeline. Although optimizing productivity in handling the new volume takes time, we will be working hard in the upcoming quarters to improve our labor efficiency and realize the full benefit of the additional throughput. The work of consolidating retail back office operations under one roof remains on schedule, with Metro's complete and Shoppers' well underway.
“Although retail competition in our Mid-Atlantic market has intensified,” Stokely added, “we are pleased with the results at our retail operations. Our associates have worked hard to integrate these acquisitions into the Richfood family, and we look forward to a busy and successful holiday season.”
Richfood Holdings, Inc., headquartered in Richmond, Virginia, is the largest wholesale food distributor and one of the largest food retailers in the Mid- Atlantic operating region. The Company's wholesale division provides a full range of grocery, dairy, frozen food, produce, meat and non-food items to chain and independent retailers throughout the region. The Company's retail division operates three retail grocery store chains: 43 Farm Fresh retail grocery stores located primarily in Virginia's Hampton Roads market; 38 Shoppers Food Warehouse supermarkets in the Washington, D.C. area; and 18 Metro retail grocery stores in the metropolitan Baltimore area.
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