United Natural Foods, Inc. Reports First Quarter Fiscal 2025 Results
United Natural Foods (UNFI) reported Q1 fiscal 2025 results with net sales increasing 4.2% to $7.9 billion, driven by a 2% increase in wholesale unit volumes. The company posted a net loss of $21 million, or $(0.35) per share, improving from a $39 million loss in the prior year. Adjusted EBITDA grew 14.5% to $134 million.
The company's gross profit rate decreased to 13.2% from 13.6%, while operating expenses improved to 12.9% of net sales from 13.5%. Free cash flow was $(159) million, showing a $170 million improvement from the previous year. Based on these results, UNFI raised its full-year outlook for all financial metrics except capital spending.
United Natural Foods (UNFI) ha riportato i risultati del primo trimestre fiscale 2025, con vendite nette in aumento del 4,2% a $7,9 miliardi, grazie a un incremento del 2% nei volumi delle unità all'ingrosso. L'azienda ha registrato una perdita netta di $21 milioni, ovvero $(0,35) per azione, migliorando rispetto a una perdita di $39 milioni nell'anno precedente. EBITDA rettificato è cresciuto del 14,5% a $134 milioni.
Il tasso di profitto lordo dell'azienda è diminuito al 13,2% rispetto al 13,6%, mentre le spese operative sono migliorate, posizionandosi al 12,9% delle vendite nette rispetto al 13,5%. Il flusso di cassa libero è stato di $(159) milioni, mostrando un miglioramento di $170 milioni rispetto all’anno precedente. Sulla base di questi risultati, UNFI ha alzato le previsioni annuali per tutti i parametri finanziari, ad eccezione della spesa in conto capitale.
United Natural Foods (UNFI) informó los resultados del primer trimestre fiscal 2025, con ventas netas que aumentaron un 4.2% a $7.9 mil millones, impulsadas por un incremento del 2% en los volúmenes de unidades al por mayor. La compañía registró una pérdida neta de $21 millones, o $(0.35) por acción, mejorando en comparación con una pérdida de $39 millones en el año anterior. EBITDA ajustado creció un 14.5% a $134 millones.
La tasa de beneficio bruto de la empresa disminuyó al 13.2% desde el 13.6%, mientras que los gastos operativos mejoraron al 12.9% de las ventas netas, frente al 13.5%. El flujo de caja libre fue de $(159) millones, mostrando una mejora de $170 millones respecto al año anterior. Con base en estos resultados, UNFI elevó su pronóstico anual para todos los indicadores financieros, excepto el gasto de capital.
유나이티드 내추럴 푸드(UNFI)가 2025 회계 연도 1분기 실적을 발표했습니다. 순매출은 4.2% 증가하여 79억 달러에 이르며, 도매 단위 볼륨이 2% 증가한 데 기인합니다. 회사는 2100만 달러의 순손실을 기록했으며, 이는 작년 3900만 달러의 손실에서 개선된 수치입니다. 조정 EBITDA는 14.5% 성장하여 1억 3400만 달러에 달했습니다.
회사의 총 이익률은 13.2%로 감소했으며, 이는 13.6%에서 내려간 수치입니다. 운영 비용은 순매출의 12.9%로 개선되었으며, 이전의 13.5%에서 향상되었습니다. 자유 현금 흐름은 $(1억 5900만) 달러로, 지난해 대비 1억 7000만 달러 개선되었습니다. 이러한 성과를 바탕으로 UNFI는 자본 지출을 제외한 모든 재무 지표에 대한 연간 전망을 상향 조정했습니다.
United Natural Foods (UNFI) a annoncé les résultats du premier trimestre de l'exercice fiscal 2025, avec des ventes nettes en hausse de 4,2 % à 7,9 milliards de dollars, soutenues par une augmentation de 2 % des volumes de gros. L'entreprise a enregistré une perte nette de 21 millions de dollars, soit $(0,35) par action, s'améliorant par rapport à une perte de 39 millions de dollars l'année précédente. EBITDA ajusté a augmenté de 14,5 % pour atteindre 134 millions de dollars.
Le taux de bénéfice brut de l'entreprise a diminué à 13,2 % contre 13,6 %, tandis que les frais d'exploitation ont été améliorés à 12,9 % des ventes nettes contre 13,5 %. Le flux de trésorerie libre s'élevait à $(159) millions de dollars, montrant une amélioration de 170 millions de dollars par rapport à l'année précédente. Sur la base de ces résultats, UNFI a relevé ses prévisions annuelles pour tous les indicateurs financiers, à l'exception des dépenses en capital.
United Natural Foods (UNFI) hat die Ergebnisse des ersten Quartals des Geschäftsjahres 2025 veröffentlicht. Die Nettoumsätze stiegen um 4,2% auf 7,9 Milliarden Dollar, was auf einen Anstieg der Großhandelseinheiten um 2% zurückzuführen ist. Das Unternehmen verzeichnete einen Nettverlust von 21 Millionen Dollar oder $(0,35) pro Aktie, was eine Verbesserung gegenüber einem Verlust von 39 Millionen Dollar im Vorjahr darstellt. Bereinigtes EBITDA wuchs um 14,5% auf 134 Millionen Dollar.
Die Bruttogewinnmarge des Unternehmens sank auf 13,2% von 13,6%, während die Betriebskosten auf 12,9% des Nettoumsatzes von 13,5% verbessert wurden. Der freie Cashflow betrug $(159) Millionen Dollar und zeigt eine Verbesserung von 170 Millionen Dollar im Vergleich zum Vorjahr. Basierend auf diesen Ergebnissen hat UNFI die Jahresprognose für alle finanziellen Kennzahlen, mit Ausnahme der Investitionen, angehoben.
- Net sales increased 4.2% to $7.9 billion
- Adjusted EBITDA grew 14.5% to $134 million
- Operating expenses improved to 12.9% of net sales from 13.5%
- $170 million improvement in free cash flow compared to prior year
- Supernatural segment sales grew 13.8%
- Company raised full-year financial outlook
- Net loss of $21 million in Q1
- Gross profit rate declined to 13.2% from 13.6%
- Independent retailers segment sales declined 2.4%
- Retail segment sales decreased 3.3%
- Net debt to Adjusted EBITDA leverage ratio at 4.2x
Insights
UNFI's Q1 FY2025 results show mixed performance with some encouraging signs. Net sales increased
The company's efficiency initiatives are yielding results, with Adjusted EBITDA growing
The raised full-year guidance across most metrics suggests management's confidence in their turnaround strategy. However, high leverage at 4.2x net debt/EBITDA remains a concern, requiring continued focus on cash flow generation and debt reduction.
The operational restructuring efforts are showing tangible progress. The closure of distribution centers in Bismarck and Billings, along with the pending Ft. Wayne closure, demonstrates commitment to network optimization. The strategic relocation of natural volumes from York to the Manchester DC, which will be automated, should drive further efficiencies.
The gross profit rate decline to
The
First Quarter Fiscal 2025 Performance (comparisons to first quarter fiscal 2024)
-
Net sales increased
4.2% to$7.9 billion -
Net loss of
$21 million $(0.35) -
Adjusted EBITDA(1) increased
14.5% to$134 million -
Adjusted EPS(1) increased to
$0.16
Recent Financial and Operational Summary
- Raising full-year outlook for all financial metrics other than capital spending
-
Improvement initiatives and lean management routines drove
14.5% Adjusted EBITDA growth and$170 million -
Continuing to execute upon recently announced multi-year strategy
- Value creation initiatives led to new business gains with existing customers
- Revamped commercial go-to-market strategy continuing to be rolled out
-
Significant network optimization progress across distribution network
- Announced pending closure of Ft. Wayne DC; completed Bismarck and Billings DC closures
- Moved natural volumes from York to larger, soon-to-be automated Manchester DC
- Created incremental efficiencies through further organizational streamlining
“Our performance this quarter represents a solid start to fiscal 2025 and serves as an early proof point of our recently introduced multi-year strategic plan predicated upon bringing value to our customers and suppliers while enhancing our efficiency, improving free cash flow and reducing net leverage,” said Sandy Douglas, UNFI’s CEO.
“We’re encouraged by positive volume trends attributable to new business with existing customers and new customer additions. This volume strength primarily reflects successful execution by our customer base, supported by UNFI’s value-added positioning and unique go-to-market strategy. We remain focused on operational execution, driving efficiencies and delivering strengthening service levels to customers and suppliers during the important holiday selling season.”
First Quarter Fiscal 2025 Summary |
|||||||||
|
13-Week Period Ended |
|
Percent Change |
||||||
($ in millions, except for per share data) |
November 2, 2024 |
|
October 28, 2023 |
|
|||||
Net sales |
$ |
7,871 |
|
|
$ |
7,552 |
|
|
|
Chains |
$ |
3,294 |
|
|
$ |
3,184 |
|
|
|
Independent retailers |
$ |
1,853 |
|
|
$ |
1,899 |
|
|
(2.4)% |
Supernatural |
$ |
1,835 |
|
|
$ |
1,612 |
|
|
|
Retail |
$ |
586 |
|
|
$ |
606 |
|
|
(3.3)% |
Other |
$ |
666 |
|
|
$ |
646 |
|
|
|
Eliminations |
$ |
(363 |
) |
|
$ |
(395 |
) |
|
(8.1)% |
Net loss |
$ |
(21 |
) |
|
$ |
(39 |
) |
|
N/M |
Adjusted EBITDA (1) |
$ |
134 |
|
|
$ |
117 |
|
|
|
Loss per diluted share (EPS) |
$ |
(0.35 |
) |
|
$ |
(0.67 |
) |
|
N/M |
Adjusted earnings (loss) per diluted share (Adjusted EPS) (1) |
$ |
0.16 |
|
|
$ |
(0.04 |
) |
|
N/M |
Net cash used in operating activities |
$ |
(110 |
) |
|
$ |
(254 |
) |
|
N/M |
Payments for capital expenditures |
$ |
(49 |
) |
|
$ |
(74 |
) |
|
N/M |
Free cash flow (1) |
$ |
(159 |
) |
|
$ |
(328 |
) |
|
N/M |
N/M - not meaningful |
|||||||||
| (1) | Please refer to the tables in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. |
Net sales increased
Gross profit in the first quarter of fiscal 2025 was
Operating expenses in the first quarter of fiscal 2025 were
Interest expense, net for the first quarter of fiscal 2025 was
Effective tax rate for the first quarter of fiscal 2025 was a benefit of
Net loss for the first quarter of fiscal 2025 was
Net loss per diluted share (EPS) was
Adjusted EBITDA for the first quarter of fiscal 2025 was
Capital Allocation and Financing Overview
-
Free Cash Flow – During the first quarter of fiscal 2025, free cash flow was
$(159) million $(328) million $110 million $49 million $69 million -
Leverage – Total outstanding debt, net of cash, was
$2.23 billion $164 million -
Liquidity – As of November 2, 2024, total liquidity was approximately
$1.17 billion $37 million $1.14 billion
Fiscal 2025 Outlook (1)
The Company is increasing its full-year outlook for all metrics other than Capital and Cloud implementation expenditures:
Fiscal Year Ending August 2, 2025 (52 weeks) |
|
Previous Full Year Outlook Provided October 1, 2024 |
|
Updated Full Year Outlook |
Net sales ($ in billions) |
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|
|
|
Net loss ($ in millions) |
|
|
|
|
EPS (2) |
|
|
|
|
Adjusted EPS (2)(3)(4) |
|
|
|
|
Adjusted EBITDA (4) ($ in millions) |
|
|
|
|
Capital and cloud implementation expenditures (4)(5) ($ in millions) |
|
~ |
|
~ |
Free cash flow (6) |
|
~ |
|
> |
(1) |
The outlook provided above is for fiscal 2025 only. The outlook is forward-looking, is based on management’s current estimates and expectations and is subject to a number of risks, including many that are outside of management's control. See cautionary Safe Harbor Statement below. |
(2) |
(Loss) earnings per share amounts as presented include rounding. |
(3) |
The Company uses an adjusted effective tax rate in calculating Adjusted EPS. The adjusted effective tax rate is calculated based on adjusted net (loss) income before tax. It also excludes the potential impact of changes to uncertain tax positions, valuation allowances, tax impacts related to the vesting of share-based compensation awards and discrete GAAP tax items which could impact the comparability of the operational effective tax rate. The Company believes using this adjusted effective tax rate provides better consistency across the interim reporting periods since each of these discrete items can cause volatility in the GAAP tax rate that is not indicative of the underlying ongoing operations of the Company. By providing this non-GAAP measure, management intends to provide investors with a meaningful, consistent comparison of the Company’s effective tax rate on ongoing operations. The outlook for Adjusted EPS reflects a tax rate of |
(4) |
The Company is unable to provide a full reconciliation to the most comparable GAAP measure without unreasonable effort due to the difficulty in predicting the amounts for certain adjustment items. |
(5) |
Reflects the sum of payments for capital expenditures and cloud technology implementation expenditures. The Company believes that providing this non-GAAP measure provides investors with better visibility to the Company’s total investment spend. |
(6) |
The components of capital and cloud implementation expenditures for fiscal 2025 will be primarily dependent on the nature of certain contracts to be executed. As such, the Company is unable to reconcile the outlook for free cash flow as well as capital and cloud implementation expenditures in fiscal 2025 to the most directly comparable financial measures calculated in accordance with GAAP. |
Conference Call and Webcast
The Company’s first quarter fiscal 2025 conference call and audio webcast will be held today, Tuesday, December 10, 2024 at 8:30 a.m. ET. A webcast of the conference call (and supplemental materials) will be available to the public, on a listen only basis, via the internet at the Investors section of the Company’s website www.unfi.com. The call can also be accessed at (888) 660 - 6768 (conference ID 1099581). An online archive of the webcast (and supplemental materials) will be available for 120 days.
About United Natural Foods
UNFI is North America’s premier grocery wholesaler delivering the widest variety of fresh, branded, and owned brand products to more than 30,000 locations throughout
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the Company’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements are described in the Company’s filings under the Securities Exchange Act of 1934, as amended, including its annual report on Form 10-K for the year ended August 3, 2024 filed with the Securities and Exchange Commission (the “SEC”) on October 1, 2024 and other filings the Company makes with the SEC, and include, but are not limited to, our dependence on principal customers; the relatively low margins of our business, which are sensitive to inflationary and deflationary pressures and intense competition, including as a result of the continuing consolidation of retailers and the growth of consumer choices for grocery and consumable purchases; our ability to realize the anticipated benefits of our strategic initiatives; changes in relationships with our suppliers; our ability to operate, and rely on third parties to operate, reliable and secure technology systems; labor and other workforce shortages and challenges; the addition or loss of significant customers or material changes to our relationships with these customers; our ability to realize anticipated benefits of strategic transactions; our ability to continue to grow sales, including of our higher margin natural and organic foods and non-food products; our ability to maintain sufficient volume in our wholesale distribution and services businesses to support our operating infrastructure; our ability to access additional capital; increases in healthcare, pension and other costs under our single employer benefit plan and multiemployer benefit plans; the potential for additional asset impairment charges; our sensitivity to general economic conditions including inflation, changes in disposable income levels and consumer purchasing habits; our ability to timely and successfully deploy our warehouse management system throughout our distribution centers and our transportation management system across the Company and to achieve efficiencies and cost savings from these efforts; the potential for disruptions in our supply chain or our distribution capabilities from circumstances beyond our control, including due to lack of long-term contracts, severe weather, labor shortages or work stoppages or otherwise; moderated supplier promotional activity, including decreased forward buying opportunities; union-organizing activities that could cause labor relations difficulties and increased costs; our ability to maintain food quality and safety; and volatility in fuel costs. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by applicable laws. Any estimates of future results of operations are based on a number of assumptions, many of which are outside the Company’s control and should not be construed in any manner as a guarantee that such results will in fact occur. These estimates are subject to change and could differ materially from final reported results. The Company may from time to time update these publicly announced estimates, but it is not obligated to do so.
Non-GAAP Financial Measures: To supplement the financial information presented on a
The reconciliation of these non-GAAP financial measures to their comparable GAAP financial measures and the calculation of net debt to Adjusted EBITDA leverage are presented in the tables appearing below. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. The Company believes that presenting the non-GAAP financial measures Adjusted EBITDA and Adjusted EPS aids in making period-to-period comparisons, assessing the performance of the Company’s business and understanding the underlying operating performance and core business trends by excluding certain adjustments not expected to recur in the normal course of business or that are not meaningful indicators of actual and estimated operating performance. The inclusion of free cash flow assists investors in understanding the cash generating ability of the Company separate from cash generated by the sale of assets. Net debt to Adjusted EBITDA leverage ratio is a commonly used metric that assists investors in understanding and evaluating the Company’s capital structure and changes to its capital structure over time. The Company believes that providing non-GAAP capital and cloud implementation expenditures provides investors with better visibility into the Company's total investment expenditures. The components of capital and cloud implementation expenditures for fiscal 2025 will be primarily dependent on the nature of certain contracts to be executed. The Company currently expects to continue to exclude the items listed above from non-GAAP financial measures. Management utilizes and plans to utilize these non-GAAP financial measures to compare the Company’s operating performance during the 2025 fiscal year to the comparable periods in the 2024 fiscal year and to internally prepared projections. These non-GAAP financial measures may differ from similarly titled measures of other companies.
UNITED NATURAL FOODS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions, except for per share data) |
||||||||
|
|
13-Week Period Ended |
||||||
|
|
November 2,
|
|
October 28,
|
||||
Net sales |
|
$ |
7,871 |
|
|
$ |
7,552 |
|
Cost of sales |
|
|
6,833 |
|
|
|
6,522 |
|
Gross profit |
|
|
1,038 |
|
|
|
1,030 |
|
Operating expenses |
|
|
1,015 |
|
|
|
1,023 |
|
Restructuring, acquisition and integration related expenses |
|
|
12 |
|
|
|
4 |
|
Loss on sale of assets and other asset charges |
|
|
6 |
|
|
|
19 |
|
Operating income (loss) |
|
|
5 |
|
|
|
(16 |
) |
Net periodic benefit income, excluding service cost |
|
|
(5 |
) |
|
|
(3 |
) |
Interest expense, net |
|
|
36 |
|
|
|
35 |
|
Other income, net |
|
|
(2 |
) |
|
|
— |
|
Loss before income taxes |
|
|
(24 |
) |
|
|
(48 |
) |
Benefit for income taxes |
|
|
(4 |
) |
|
|
(9 |
) |
Net loss including noncontrolling interests |
|
|
(20 |
) |
|
|
(39 |
) |
Less net income attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
— |
|
Net loss attributable to United Natural Foods, Inc. |
|
$ |
(21 |
) |
|
$ |
(39 |
) |
|
|
|
|
|
||||
Basic loss per share |
|
$ |
(0.35 |
) |
|
$ |
(0.67 |
) |
Diluted loss per share |
|
$ |
(0.35 |
) |
|
$ |
(0.67 |
) |
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
||||
Basic |
|
|
59.6 |
|
|
|
58.7 |
|
Diluted |
|
|
59.6 |
|
|
|
58.7 |
|
UNITED NATURAL FOODS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in millions, except for par values) |
||||||||
|
|
November 2,
|
|
August 3,
|
||||
ASSETS |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
37 |
|
|
$ |
40 |
|
Accounts receivable, net |
|
|
1,103 |
|
|
|
953 |
|
Inventories, net |
|
|
2,402 |
|
|
|
2,179 |
|
Prepaid expenses and other current assets |
|
|
201 |
|
|
|
230 |
|
Total current assets |
|
|
3,743 |
|
|
|
3,402 |
|
Property and equipment, net |
|
|
1,800 |
|
|
|
1,820 |
|
Operating lease assets |
|
|
1,499 |
|
|
|
1,370 |
|
Goodwill |
|
|
19 |
|
|
|
19 |
|
Intangible assets, net |
|
|
631 |
|
|
|
649 |
|
Deferred income taxes |
|
|
86 |
|
|
|
87 |
|
Other long-term assets |
|
|
188 |
|
|
|
181 |
|
Total assets |
|
$ |
7,966 |
|
|
$ |
7,528 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Accounts payable |
|
$ |
1,906 |
|
|
$ |
1,688 |
|
Accrued expenses and other current liabilities |
|
|
278 |
|
|
|
288 |
|
Accrued compensation and benefits |
|
|
156 |
|
|
|
197 |
|
Current portion of operating lease liabilities |
|
|
180 |
|
|
|
181 |
|
Current portion of long-term debt and finance lease liabilities |
|
|
10 |
|
|
|
11 |
|
Total current liabilities |
|
|
2,530 |
|
|
|
2,365 |
|
Long-term debt |
|
|
2,244 |
|
|
|
2,081 |
|
Long-term operating lease liabilities |
|
|
1,393 |
|
|
|
1,263 |
|
Long-term finance lease liabilities |
|
|
11 |
|
|
|
12 |
|
Pension and other postretirement benefit obligations |
|
|
15 |
|
|
|
15 |
|
Other long-term liabilities |
|
|
148 |
|
|
|
151 |
|
Total liabilities |
|
|
6,341 |
|
|
|
5,887 |
|
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
638 |
|
|
|
635 |
|
Treasury stock at cost |
|
|
(86 |
) |
|
|
(86 |
) |
Accumulated other comprehensive loss |
|
|
(45 |
) |
|
|
(47 |
) |
Retained earnings |
|
|
1,117 |
|
|
|
1,138 |
|
Total United Natural Foods, Inc. stockholders’ equity |
|
|
1,625 |
|
|
|
1,641 |
|
Noncontrolling interests |
|
|
— |
|
|
|
— |
|
Total stockholders’ equity |
|
|
1,625 |
|
|
|
1,641 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,966 |
|
|
$ |
7,528 |
|
UNITED NATURAL FOODS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
||||||||
|
|
13-Week Period Ended |
||||||
(in millions) |
|
November 2,
|
|
October 28,
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net loss including noncontrolling interests |
|
$ |
(20 |
) |
|
$ |
(39 |
) |
Adjustments to reconcile loss to net cash used in operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
80 |
|
|
|
78 |
|
Share-based compensation |
|
|
7 |
|
|
|
6 |
|
Gain on sale of assets |
|
|
(1 |
) |
|
|
(7 |
) |
Long-lived asset impairment charges |
|
|
— |
|
|
|
21 |
|
Net pension and other postretirement benefit income |
|
|
(5 |
) |
|
|
(3 |
) |
LIFO charge |
|
|
7 |
|
|
|
7 |
|
Provision for losses on receivables |
|
|
1 |
|
|
|
— |
|
Non-cash interest expense and other adjustments |
|
|
1 |
|
|
|
2 |
|
Changes in operating assets and liabilities |
|
|
|
|
||||
Accounts and notes receivable |
|
|
(149 |
) |
|
|
(126 |
) |
Inventories |
|
|
(230 |
) |
|
|
(364 |
) |
Prepaid expenses and other assets |
|
|
79 |
|
|
|
(8 |
) |
Accounts payable |
|
|
224 |
|
|
|
168 |
|
Accrued expenses and other liabilities |
|
|
(104 |
) |
|
|
11 |
|
Net cash used in operating activities |
|
|
(110 |
) |
|
|
(254 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Payments for capital expenditures |
|
|
(49 |
) |
|
|
(74 |
) |
Proceeds from dispositions of assets |
|
|
4 |
|
|
|
9 |
|
Payments for investments |
|
|
(2 |
) |
|
|
(7 |
) |
Net cash used in investing activities |
|
|
(47 |
) |
|
|
(72 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from borrowings under revolving credit line |
|
|
339 |
|
|
|
597 |
|
Repayments of borrowings under revolving credit line |
|
|
(176 |
) |
|
|
(257 |
) |
Repayments of long-term debt and finance leases |
|
|
(4 |
) |
|
|
(6 |
) |
Payments of employee restricted stock tax withholdings |
|
|
(4 |
) |
|
|
(6 |
) |
Distributions to noncontrolling interests |
|
|
(1 |
) |
|
|
(1 |
) |
Other |
|
|
— |
|
|
|
(1 |
) |
Net cash provided by financing activities |
|
|
154 |
|
|
|
326 |
|
EFFECT OF EXCHANGE RATE ON CASH |
|
|
— |
|
|
|
— |
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
|
(3 |
) |
|
|
— |
|
Cash and cash equivalents, at beginning of period |
|
|
40 |
|
|
|
37 |
|
Cash and cash equivalents, at end of period |
|
$ |
37 |
|
|
$ |
37 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Cash paid for interest |
|
$ |
48 |
|
|
$ |
44 |
|
Cash refunds for federal, state, and foreign income taxes, net |
|
$ |
(2 |
) |
|
$ |
(12 |
) |
Leased assets obtained in exchange for new operating lease liabilities |
|
$ |
183 |
|
|
$ |
39 |
|
Leased assets obtained in exchange for new finance lease liabilities |
|
$ |
1 |
|
|
$ |
— |
|
Additions of property and equipment included in Accounts payable |
|
$ |
14 |
|
|
$ |
18 |
|
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (unaudited) UNITED NATURAL FOODS, INC.
Reconciliation of Net loss including noncontrolling interests to Adjusted EBITDA (unaudited) |
||||||||
|
|
13-Week Period Ended |
||||||
(in millions) |
|
November 2, 2024 |
|
October 28, 2023 |
||||
Net loss including noncontrolling interests |
|
$ |
(20 |
) |
|
$ |
(39 |
) |
Adjustments to net loss including noncontrolling interests: |
|
|
|
|
||||
Less net income attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
— |
|
Net periodic benefit income, excluding service cost |
|
|
(5 |
) |
|
|
(3 |
) |
Interest expense, net |
|
|
36 |
|
|
|
35 |
|
Other income, net |
|
|
(2 |
) |
|
|
— |
|
Benefit for income taxes |
|
|
(4 |
) |
|
|
(9 |
) |
Depreciation and amortization |
|
|
80 |
|
|
|
78 |
|
Share-based compensation |
|
|
7 |
|
|
|
6 |
|
LIFO charge |
|
|
7 |
|
|
|
7 |
|
Restructuring, acquisition and integration related expenses |
|
|
12 |
|
|
|
4 |
|
Loss on sale of assets and other asset charges (1) |
|
|
6 |
|
|
|
19 |
|
Business transformation costs (2) |
|
|
18 |
|
|
|
15 |
|
Other adjustments (3) |
|
|
— |
|
|
|
4 |
|
Adjusted EBITDA |
|
$ |
134 |
|
|
$ |
117 |
|
(1) |
The first quarter of fiscal 2024 primarily includes a |
(2) |
Reflects costs associated with business transformation initiatives, primarily including third-party consulting costs and licensing costs, which are included within Operating expenses in the Condensed Consolidated Statements of Operations. |
(3) |
The first quarter of fiscal 2024 primarily reflects third-party professional service fees related to shareholder negotiations. |
Reconciliation of Net loss attributable to United Natural Foods, Inc. to Adjusted net income (loss) and Adjusted EPS (unaudited) |
||||||||
|
|
13-Week Period Ended |
||||||
(in millions, except per share amounts) |
|
November 2, 2024 |
|
October 28, 2023 |
||||
Net loss attributable to United Natural Foods, Inc. |
|
$ |
(21 |
) |
|
$ |
(39 |
) |
Restructuring, acquisition and integration related expenses |
|
|
12 |
|
|
|
4 |
|
Loss on sale of assets and other asset charges other than losses on sales of receivables (1) |
|
|
1 |
|
|
|
14 |
|
LIFO charge |
|
|
7 |
|
|
|
7 |
|
Surplus property depreciation and interest expense (2) |
|
|
— |
|
|
|
1 |
|
Business transformation costs (3) |
|
|
18 |
|
|
|
15 |
|
Other adjustments (4) |
|
|
— |
|
|
|
4 |
|
Tax impact of adjustments and adjusted effective tax rate (5) |
|
|
(7 |
) |
|
|
(8 |
) |
Adjusted net income (loss) |
|
$ |
10 |
|
|
$ |
(2 |
) |
|
|
|
|
|
||||
Diluted weighted average shares outstanding |
|
|
61.1 |
|
|
|
58.7 |
|
Adjusted EPS (6) |
|
$ |
0.16 |
|
|
$ |
(0.04 |
) |
(1) |
Loss on sale of assets and other asset charges, as reflected here, does not include losses on sales of receivables under the accounts receivable monetization program, which are included in Loss on sale of assets and other asset charges on the Condensed Consolidated Statements of Operations and are not adjusted in the calculation of Adjusted EPS. The first quarter of fiscal 2024 primarily includes a |
(2) |
Reflects surplus, non-operating property depreciation and interest expense. |
(3) |
Reflects costs associated with business transformation initiatives, primarily including third-party consulting costs and licensing costs, which are included within Operating expenses in the Condensed Consolidated Statements of Operations. |
(4) |
The first quarter of fiscal 2024 primarily reflects third-party professional service fees related to shareholder negotiations. |
(5) |
Represents the tax effect of the pre-tax adjustments using an adjusted effective tax rate. The adjusted effective tax rate is calculated based on adjusted net income before tax, and its impact reflects the exclusion of changes to uncertain tax positions, valuation allowances, tax impacts related to the vesting of share-based compensation awards and discrete GAAP tax items which could impact the comparability of the operational effective tax rate. The Company believes using this adjusted effective tax rate will provide better consistency across the interim reporting periods since each of these discrete items can cause volatility in the GAAP tax rate that is not indicative of the underlying ongoing operations of the Company. By providing this non-GAAP measure, management intends to provide investors with a meaningful, consistent comparison of the Company’s effective tax rate on ongoing operations. |
(6) |
Adjusted earnings (loss) per share amounts are calculated using actual unrounded figures. |
Calculation of net debt to Adjusted EBITDA leverage ratio (unaudited) |
|||
(in millions, except ratios) |
November 2, 2024 |
||
Current portion of long-term debt and finance lease liabilities |
$ |
10 |
|
Long-term debt |
|
2,244 |
|
Long-term finance lease liabilities |
|
11 |
|
Less: Cash and cash equivalents |
|
(37 |
) |
Net carrying value of debt and finance lease liabilities |
|
2,228 |
|
Adjusted EBITDA (1) |
$ |
535 |
|
Adjusted EBITDA leverage ratio |
4.2x |
||
| (1) | Adjusted EBITDA for purposes of this calculation reflects the summation of the trailing four quarters ended November 2, 2024. Refer to the following table for the reconciliation of Adjusted EBITDA trailing four quarters. |
Reconciliation of trailing four quarters Net loss including noncontrolling interests to Adjusted EBITDA (unaudited) |
||||
(in millions) |
|
53-Week Period Ended November 2, 2024 |
||
Net loss including noncontrolling interests |
|
$ |
(91 |
) |
Adjustments to net loss including noncontrolling interests: |
|
|
||
Less net income attributable to noncontrolling interests |
|
|
(3 |
) |
Net periodic benefit income, excluding service cost |
|
|
(17 |
) |
Interest expense, net |
|
|
163 |
|
Other income, net |
|
|
(4 |
) |
Benefit for income taxes |
|
|
(22 |
) |
Depreciation and amortization |
|
|
321 |
|
Share-based compensation |
|
|
38 |
|
LIFO charge |
|
|
7 |
|
Restructuring, acquisition and integration related expenses |
|
|
44 |
|
Loss on sale of assets and other asset charges |
|
|
44 |
|
Business transformation costs |
|
|
55 |
|
Adjusted EBITDA (1) |
|
$ |
535 |
|
| (1) | Adjusted EBITDA for purposes of this calculation reflects the summation of the trailing four quarters ended November 2, 2024. |
Reconciliation of Net cash used in operating activities to Free cash flow (unaudited) |
|||||||
|
|
|
|
||||
|
13-Week Period Ended |
||||||
(in millions) |
November 2, 2024 |
|
October 28, 2023 |
||||
Net cash used in operating activities |
$ |
(110 |
) |
|
$ |
(254 |
) |
Payments for capital expenditures |
|
(49 |
) |
|
|
(74 |
) |
Free cash flow |
$ |
(159 |
) |
|
$ |
(328 |
) |
Reconciliation of Payments for capital expenditures to Capital and cloud implementation expenditures (unaudited) |
|||||
|
13-Week Period Ended |
||||
(in millions) |
November 2, 2024 |
|
October 28, 2023 |
||
Payments for capital expenditures |
$ |
49 |
|
$ |
74 |
Cloud technology implementation expenditures (1) |
|
4 |
|
|
9 |
Capital and cloud implementation expenditures |
$ |
53 |
|
$ |
83 |
| (1) | Cloud technology implementation expenditures are included in operating activities in the Condensed Consolidated Statements of Cash Flows. |
Reconciliation of estimated 2025 and actual 2024 U.S. GAAP effective tax rate to adjusted effective tax rate (unaudited) |
||||||
|
|
Estimated Fiscal 2025 |
|
Actual Fiscal 2024 |
||
|
|
20 |
% |
|
20 |
% |
Discrete quarterly recognition of GAAP items (1) |
|
12 |
% |
|
20 |
% |
Tax impact of other charges and adjustments (2) |
|
(11 |
)% |
|
(24 |
)% |
Changes in valuation allowances (3) |
|
5 |
% |
|
5 |
% |
Other (4) |
|
— |
% |
|
— |
% |
Adjusted effective tax rate (4) |
|
26 |
% |
|
21 |
% |
Note: As part of the year-end reconciliation, we update the reconciliation of the GAAP effective tax rate for actual results. |
||||||
(1) |
Reflects changes in tax laws, uncertain tax positions, the tax impacts related to the exercise of share-based compensation awards and any prior-year deferred tax or payable adjustments. This includes prior-year Internal Revenue Service or other tax jurisdiction audit adjustments. |
(2) |
Reflects the tax impact of pre-tax adjustments that are excluded from pre-tax income when calculating Adjusted EPS. |
(3) |
Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations. |
(4) |
The Company establishes an estimated adjusted effective tax rate at the beginning of the fiscal year based on the best available information. The Company re-evaluates its estimated adjusted effective tax rate as appropriate throughout the year and adjusts for any material changes. The actual adjusted effective tax rate at the end of the fiscal year is based on actual results and accordingly may differ from the estimated adjusted effective tax rate used during the year. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241210169384/en/
INVESTOR CONTACTS:
Steve Bloomquist
Vice President, Investor Relations
952-828-4144 sbloomquist@unfi.com
Kristyn Farahmand
Senior Vice President, Investor Relations and Corporate Development
612-439-6625 kristyn.farahmand@unfi.com
Source: United Natural Foods, Inc.
FAQ
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