United Natural Foods, Inc. (NYSE: UNFI), a leading distributor of natural, organic, and specialty food products in North America, today issued a comprehensive business update, including a revised financial outlook for its fiscal year 2025, which concludes on August 2, 2025. The company highlighted sustained momentum across its operations during the first three quarters of the year and shared details on the expected financial impacts of a previously disclosed cybersecurity incident.
UNFI’s management will host a conference call this morning at 8:30 a.m. ET to discuss the updated guidance and provide deeper insights into the company’s performance and forward-looking initiatives.
Business Performance Highlights Through Q3 FY 2025
The revised outlook reflects stronger-than-expected results in the first three quarters of the fiscal year, combined with the estimated effects of the cybersecurity incident disclosed earlier in 2025. Notable year-over-year performance improvements include:
- Net Sales Growth: Net sales increased by 5.5% compared to the same period last year, signaling steady demand across retail, independent, and wholesale channels.
- Improved Net Loss and EPS: The company reported a net loss reduction of $44 million, resulting in an earnings per share (EPS) improvement of $0.75. This marks a significant step toward restoring long-term profitability.
- Adjusted EBITDA: Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 16%, reflecting more disciplined expense management and increased operational efficiencies.
- Cash Flow Strength: Operating cash flow surged to $310 million, while free cash flow reached $153 million, providing the company with enhanced financial flexibility to support ongoing investments and debt reduction efforts.
Accelerated Path Toward Long-Term Financial Goals
UNFI reiterated its confidence in its multi-year growth strategy, originally communicated in October 2024, and indicated that it expects to achieve its long-term financial targets faster than previously projected. The company now anticipates reducing its net leverage ratio to approximately 2.5x by the end of fiscal year 2026—about one year ahead of its initial timeline.
“Our revised outlook reflects the strength of our performance through the first three quarters of the fiscal year, even as we managed through the challenges associated with a cyber incident,” said Sandy Douglas, Chief Executive Officer of United Natural Foods. “We are deeply grateful to our customers, suppliers, and team members whose resilience, trust, and partnership have been instrumental in navigating a complex environment. As our operations normalize, our focus remains squarely on delivering meaningful value to all our stakeholders.”
Douglas emphasized that the company’s consistent execution and alignment with its strategic pillars—including operational efficiency, digital innovation, and customer-focused service enhancements—have created a solid foundation for future growth.
Strategic Initiatives and Operational Recovery
UNFI has been implementing a comprehensive business transformation strategy designed to drive efficiency, optimize its distribution network, and enhance the customer experience. Key elements of this strategy include:
- Investments in Technology: The company continues to invest in digital capabilities, including AI-powered demand forecasting, inventory optimization tools, and enhanced e-commerce solutions to support customers’ evolving needs.
- Supply Chain Optimization: UNFI is refining its supply chain infrastructure, including expanding automation within distribution centers and improving transportation logistics to reduce costs and improve service reliability.
- Cybersecurity Enhancements: In light of the recent cyber incident, UNFI has reinforced its cybersecurity protocols, invested in advanced threat detection tools, and worked with external experts to implement enhanced controls across its IT environment. Despite the short-term disruption, the company reports that operations have returned to near-normal levels.
- Customer-Centric Approach: The company continues to focus on strengthening partnerships with independent grocers, national retailers, and foodservice operators. Tailored solutions, personalized support, and expanded product assortments are central to this effort.
Revised Fiscal 2025 Outlook
Although the full details of the revised financial forecast will be discussed during today’s earnings call, UNFI stated that the updated guidance incorporates:
- Positive momentum from the first three quarters of fiscal 2025.
- Conservative adjustments reflecting the estimated financial impact of the cybersecurity incident.
- Confidence in delivering long-term shareholder value through disciplined capital allocation and strategic execution.
While UNFI acknowledges that macroeconomic headwinds and industry-wide disruptions remain potential risks, it believes its current trajectory positions it well to navigate uncertainties while advancing its leadership in the natural and organic food distribution market.
