United Natural Foods, Inc. Announces Q3 Fiscal 2024 Performance Report

United Natural Foods, Inc. (NYSE: UNFI) Releases Q3 Fiscal 2024 Financial Results

United Natural Foods, Inc. (NYSE: UNFI), referred to as “the Company” or “UNFI,” has announced its financial results for the third quarter of fiscal 2024, which ended on April 27, 2024. Here’s a summary of the performance compared to the third quarter of fiscal 2023:

Third Quarter Fiscal 2024 Performance:

  • Net sales saw a slight decrease of 0.1% to $7.5 billion.
  • The company reported a net loss of $21 million, with a Loss per diluted share (EPS) of $(0.34).
  • Adjusted EBITDA decreased by 18.2% to $130 million.
  • Adjusted EPS decreased to $0.10.

Recent Financial and Operational Highlights:

  • UNFI continues to focus on resetting profitability and strengthening its foundation while working on a revamped long-term strategy.
  • Sequentially improving financial performance was observed, driven by better volumes and the third consecutive quarter of accelerating adjusted EBITDA, mainly due to disciplined expense management and supply chain efficiencies.
  • Extended the term loan maturity to May 2031.
  • Financial review is progressing, with a multi-year strategic plan set to commence in fiscal 2025, aiming for improved operational and financial performance.
  • Fiscal 2024 outlook revised:
    • Charges related to cost reduction actions affecting net income and EPS.
    • Adjusted EBITDA and adjusted EPS midpoints raised; capital and cloud implementation expenditures reduced.

Sandy Douglas, UNFI’s Chief Executive Officer, commented, “We delivered another quarter in-line with our fiscal 2024 plan and our third consecutive quarter of improving profitability driven by continued progress on near-term operational and efficiency initiatives…”

Financial Review:

  • Net sales decreased slightly by 0.1% compared to the same period last year, mainly due to a decline in unit volumes, partially offset by inflation and new business with existing customers.
  • Gross profit increased to $1.0 billion, with a gross profit rate of 13.6% of net sales (excluding a $6 million LIFO charge).
  • Operating expenses were $992 million, representing 13.2% of net sales, driven by various factors including incentive compensation and operational supply chain efficiencies.
  • Net loss for the third quarter of fiscal 2024 was $21 million, compared to net income of $7 million for the third quarter of fiscal 2023.

Capital Allocation and Financing Overview:

  • Free Cash Flow for the third quarter of fiscal 2024 was $49 million.
  • Total outstanding debt, net of cash, decreased to $2.13 billion, with a net debt to Adjusted EBITDA leverage ratio of 4.6x.
  • Total liquidity as of April 27, 2024, was approximately $1.26 billion.

UNFI remains focused on optimizing its financial performance and capital structure while preparing for future growth opportunities

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