United Natural Foods, Inc. Reports Fourth Quarter and Full Year Fiscal 2024 Results
United Natural Foods, Inc. (UNFI) reported financial results for Q4 and fiscal year 2024. Key highlights include:
- Q4 net sales increased 10.0% to $8.2 billion; grew 2.1% on a comparable 13-week basis
- Q4 net loss of $37 million; Loss per diluted share (EPS) of $(0.63)
- Q4 Adjusted EBITDA increased 53.8% to $143 million
- Full year performance at upper end of outlook ranges for key financial metrics
- Net debt decreased to $2.06 billion and net leverage to 4.0x at year end
- Advancing network optimization by consolidating distribution centers
- Introducing three-year business plan focused on margin expansion, free cash flow generation and deleveraging
For fiscal 2025, UNFI expects net sales of $30.3-$30.8 billion, net loss of $(41)-$(3) million, Adjusted EBITDA of $520-$580 million, and free cash flow of ~$100 million.
United Natural Foods, Inc. (UNFI) ha riportato i risultati finanziari per il quarto trimestre e l'anno fiscale 2024. I punti salienti includono:
- Le vendite nette del Q4 sono aumentate del 10,0% a $8,2 miliardi; crescita del 2,1% su base comparabile di 13 settimane
- Perdita netta del Q4 di $37 milioni; perdita per azione diluita (EPS) di $(0,63)
- L'EBITDA rettificato del Q4 è aumentato del 53,8% a $143 milioni
- Le performance dell'intero anno si collocano all'estremità alta delle previsioni per i principali parametri finanziari
- Il debito netto è sceso a $2,06 miliardi e il leverage netto a 4,0x alla fine dell'anno
- Ottimizzazione della rete avanzando attraverso la consolidazione dei centri di distribuzione
- Introduzione di un piano aziendale triennale incentrato sull'espansione dei margini, sulla generazione di flusso di cassa libero e sul deleveraging
Per l'anno fiscale 2025, UNFI prevede vendite nette tra $30,3 e $30,8 miliardi, una perdita netta di $(41)-$(3) milioni, EBITDA rettificato tra $520 e $580 milioni e un flusso di cassa libero di circa $100 milioni.
United Natural Foods, Inc. (UNFI) reportó los resultados financieros para el cuarto trimestre y el año fiscal 2024. Los aspectos destacados incluyen:
- Las ventas netas del Q4 aumentaron un 10.0% a $8.2 mil millones; crecieron un 2.1% sobre una base comparable de 13 semanas
- Pérdida neta del Q4 de $37 millones; Pérdida por acción diluida (EPS) de $(0.63)
- El EBITDA ajustado del Q4 aumentó un 53.8% a $143 millones
- El rendimiento del año completo se sitúa en el extremo superior de los rangos de perspectivas para los principales indicadores financieros
- La deuda neta disminuyó a $2.06 mil millones y el apalancamiento neto a 4.0x al final del año
- Avanzando en la optimización de la red mediante la consolidación de centros de distribución
- Introducción de un plan de negocios de tres años enfocado en la expansión de márgenes, generación de flujo de caja libre y reducción de deuda
Para el año fiscal 2025, UNFI espera ventas netas de entre $30.3 y $30.8 mil millones, una pérdida neta de $(41)-$(3) millones, EBITDA ajustado de entre $520 y $580 millones, y flujo de caja libre de aproximadamente $100 millones.
United Natural Foods, Inc. (UNFI)는 2024년 4분기 및 회계 연도에 대한 재무 결과를 보고했습니다. 주요 하이라이트는:
- 4분기 순매출은 10.0% 증가하여 82억 달러에 달하며, 비교 가능한 13주 기준으로 2.1% 성장했습니다.
- 4분기 순손실은 3700만 달러였고, 희석주당손익(EPS)은 $(0.63)였습니다.
- 4분기 조정 EBITDA는 53.8% 증가하여 1억 4300만 달러에 달했습니다.
- 전체 연도 성과는 주요 재무 지표에 대한 전망 범위의 상한선에 위치합니다.
- 순부채는 20억 6000만 달러로 감소했으며, 연말 기준으로 순 레버리지는 4.0배입니다.
- 유통센터 통합을 통해 네트워크 최적화 추진.
- 마진 확대, 자유 현금 흐름 생성 및 부채 축소에 중점을 둔 3개년 사업 계획 도입.
2025 회계 연도에 대해 UNFI는 순매출을 303억~308억 달러, 순손실을 $(41)~$(3) 백만, 조정 EBITDA를 5억 2000만~5억 8000만 달러, 자유 현금 흐름을 약 1억 달러로 예상하고 있습니다.
United Natural Foods, Inc. (UNFI) a publié ses résultats financiers pour le quatrième trimestre et l'exercice fiscal 2024. Les points forts incluent :
- Les ventes nettes du Q4 ont augmenté de 10,0 % pour atteindre 8,2 milliards de dollars ; croissance de 2,1 % sur une base comparable de 13 semaines
- Perte nette du Q4 de 37 millions de dollars ; perte par action diluée (EPS) de $(0,63)
- L'EBITDA ajusté du Q4 a augmenté de 53,8 % pour atteindre 143 millions de dollars
- La performance annuelle se situe à la limite supérieure des prévisions pour les principaux indicateurs financiers
- La dette nette a diminué à 2,06 milliards de dollars et l'effet de levier net à 4,0x à la fin de l'année
- Amélioration de l'optimisation du réseau par la consolidation des centres de distribution
- Introduction d'un plan d'affaires triennal axé sur l'expansion des marges, la génération de flux de trésorerie libre et le désendettement.
Pour l'exercice 2025, UNFI prévoit des ventes nettes de 30,3 à 30,8 milliards de dollars, une perte nette de $(41)-$(3) millions, un EBITDA ajusté de 520 à 580 millions de dollars et un flux de trésorerie libre d'environ 100 millions de dollars.
United Natural Foods, Inc. (UNFI) hat die finanziellen Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024 veröffentlicht. Die wichtigsten Highlights sind:
- Die Nettoumsätze im Q4 stiegen um 10,0 % auf 8,2 Milliarden Dollar; ein Wachstum von 2,1 % auf vergleichbarer 13-Wochen-Basis
- Nettogewinn im Q4 von 37 Millionen Dollar; Verlust je verwässerter Aktie (EPS) von $(0,63)
- Das bereinigte EBITDA im Q4 stieg um 53,8 % auf 143 Millionen Dollar
- Die Gesamtjahresleistung liegt am oberen Ende der Prognosebandbreite für wichtige Finanzkennzahlen
- Der Nettoschuldenstand sank auf 2,06 Milliarden Dollar und der Netto-Leverage auf 4,0x zum Ende des Jahres
- Optimierung des Netzwerks durch Konsolidierung von Verteilungszentren
- Einführung eines dreijährigen Geschäftsplans, der sich auf Margenausweitung, freie Cashflow-Generierung und Schuldenabbau konzentriert.
Für das Geschäftsjahr 2025 erwartet UNFI Nettoumsätze zwischen 30,3 und 30,8 Milliarden Dollar, einen Nettoverlust von $(41)-$(3) Millionen, ein bereinigtes EBITDA von 520-580 Millionen Dollar sowie einen freien Cashflow von etwa 100 Millionen Dollar.
- Q4 net sales increased 10.0% to $8.2 billion
- Q4 Adjusted EBITDA increased 53.8% to $143 million
- Full year performance at upper end of outlook ranges
- Net debt and leverage decreased sequentially
- Introducing three-year business plan for margin expansion and deleveraging
- Positive free cash flow guidance of ~$100 million for fiscal 2025
- Q4 net loss of $37 million
- Full year net loss of $112 million
- Adjusted EPS decreased 93.7% for the full year
- Free cash flow declined from $301 million to $(92) million for the full year
- Projecting net loss of $(41)-$(3) million for fiscal 2025
Insights
UNFI's Q4 and full-year fiscal 2024 results show mixed performance with some positive trends emerging:
- Q4 net sales increased
10.0% to$8.2 billion , with2.1% growth on a comparable 13-week basis - Full-year performance reached upper end of guidance ranges for key metrics
- Q4 Adjusted EBITDA rose
53.8% to$143 million - Net debt decreased to
$2.06 billion with leverage ratio improving to 4.0x
However, challenges remain:
- Q4 net loss of
$37 million and full-year net loss of$112 million - Full-year Adjusted EBITDA declined
19.1% to$518 million
The company is focusing on efficiency initiatives and network optimization to drive future growth. FY2025 outlook projects modest sales growth and a return to profitability, though at lower levels than previous years. Investors should monitor progress on the three-year plan to improve margins and reduce leverage.
UNFI's strategic moves in distribution center optimization are noteworthy:
- Consolidating Billings and Bismarck centers into other facilities
- Aiming to improve customer and supplier experience through better technology, broader product assortment and more efficient service
- Part of a larger network optimization effort to enhance operational efficiency
These actions align with industry trends towards streamlined supply chains and could yield significant cost savings. However, execution risks exist, including potential service disruptions during transitions. The success of these initiatives will be important for UNFI to achieve its margin expansion and free cash flow generation goals. Investors should watch for updates on realized cost savings and any impact on customer satisfaction metrics in upcoming quarters.
UNFI's performance reflects broader trends in the grocery distribution sector:
- Improving volume trends and new business with existing customers indicate potential market share gains
- Strong
8.9% full-year growth in Supernatural segment (likely Whole Foods) outpacing other channels - Challenges in Independent retailers segment with
1.2% full-year decline
The company's focus on same-customer growth and extending agreements with key clients (like its largest customer) are positive signs for retention and organic growth. However, the varied performance across segments highlights the need for targeted strategies in different market channels. The introduction of a three-year business plan suggests UNFI recognizes the need for strategic repositioning. Investors should assess how well UNFI adapts to evolving retail landscapes, particularly in natural and organic products, where competition remains intense.
Fourth Quarter Fiscal 2024 Performance (comparisons to fourth quarter fiscal 2023)
-
Net sales increased
10.0% to$8.2 billion 2.1% on a comparable 13-week basis -
Net loss of
$37 million $(0.63) -
Adjusted EBITDA(1) increased
53.8% to$143 million $10 million -
Adjusted EPS(1) of
$0.01
Recent Financial and Operational Summary
- Improving volume trends, new business with existing customers as well as benefits from near-term efficiency initiatives led to full year performance at upper end of outlook ranges for key financial metrics
-
Net debt and net leverage(1) decreased sequentially to
$2.06 billion $2.13 billion -
Advancing network optimization by consolidating Billings and Bismarck distribution centers into other facilities
- Expected to improve customer and supplier experience in the region through better technology access, a broader product assortment and more efficient and effective service
- Introducing three-year business plan and financial objectives driving customer and supplier value, margin expansion, free cash flow generation and deleveraging
“We delivered fourth quarter results that drove fiscal 2024 performance to the upper end of our previously provided outlook. This capped a year in which we generated four consecutive quarters of sequentially increasing profitability, significantly strengthened our foundation, and built momentum as we enter fiscal 2025. During fiscal 2024, we drove strong same customer growth, extended our agreement with our largest customer, realized approximately
“We are also actioning key elements of our updated strategy that has resulted from our ongoing board- and management-led financial review, which we expect will drive accelerating performance and create sustainable value for our customers and suppliers. Simultaneously, we are working to improve free cash flow generation and to reduce net leverage by optimizing our distribution center network, reducing the capital intensity of our business, and driving efficiencies across the organization. We expect these two elements of our strategy will work together to help us generate meaningful shareholder value,” said Sandy Douglas, UNFI’s Chief Executive Officer.
Fourth Quarter Fiscal 2024 Summary(2) |
||||||||||||||||||||||
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
|||||||||||||||||||
($ in millions, except for per share data) |
August 3,
|
|
July 29,
|
|
Percent
|
|
August 3,
|
|
July 29,
|
|
Percent
|
|||||||||||
Net sales |
$ |
8,155 |
|
|
$ |
7,417 |
|
|
10.0 |
% |
|
$ |
30,980 |
|
|
$ |
30,272 |
|
|
2.3 |
% |
|
Chains |
$ |
3,425 |
|
|
$ |
3,141 |
|
|
9.0 |
% |
|
$ |
12,967 |
|
|
$ |
12,816 |
|
|
1.2 |
% |
|
Independent retailers |
$ |
1,983 |
|
|
$ |
1,897 |
|
|
4.5 |
% |
|
$ |
7,605 |
|
|
$ |
7,699 |
|
|
(1.2 |
)% |
|
Supernatural |
$ |
1,844 |
|
|
$ |
1,555 |
|
|
18.6 |
% |
|
$ |
6,941 |
|
|
$ |
6,374 |
|
|
8.9 |
% |
|
Retail |
$ |
628 |
|
|
$ |
609 |
|
|
3.1 |
% |
|
$ |
2,436 |
|
|
$ |
2,480 |
|
|
(1.8 |
)% |
|
Other |
$ |
650 |
|
|
$ |
593 |
|
|
9.6 |
% |
|
$ |
2,555 |
|
|
$ |
2,477 |
|
|
3.1 |
% |
|
Eliminations |
$ |
(375 |
) |
|
$ |
(378 |
) |
|
(0.8 |
)% |
|
$ |
(1,524 |
) |
|
$ |
(1,574 |
) |
|
(3.2 |
)% |
|
Net (loss) income |
$ |
(37 |
) |
|
$ |
(68 |
) |
|
N/M |
|
|
$ |
(112 |
) |
|
$ |
24 |
|
|
N/M |
|
|
Adjusted EBITDA(1) |
$ |
143 |
|
|
$ |
93 |
|
|
53.8 |
% |
|
$ |
518 |
|
|
$ |
640 |
|
|
(19.1 |
)% |
|
(Loss) earnings per diluted share (EPS) |
$ |
(0.63 |
) |
|
$ |
(1.15 |
) |
|
N/M |
|
|
$ |
(1.89 |
) |
|
$ |
0.40 |
|
|
N/M |
|
|
Adjusted earnings (loss) per diluted share (Adjusted EPS)(1) |
$ |
0.01 |
|
|
$ |
(0.25 |
) |
|
N/M |
|
|
$ |
0.14 |
|
|
$ |
2.23 |
|
|
(93.7 |
)% |
|
Net cash provided by operating activities |
$ |
191 |
|
|
$ |
222 |
|
|
(14.0 |
)% |
|
$ |
253 |
|
|
$ |
624 |
|
|
(59.5 |
)% |
|
Payments for capital expenditures |
$ |
(120 |
) |
|
$ |
(105 |
) |
|
14.3 |
% |
|
$ |
(345 |
) |
|
$ |
(323 |
) |
|
6.8 |
% |
|
Free cash flow(1) |
$ |
71 |
|
|
$ |
117 |
|
|
(39.3 |
)% |
|
$ |
(92 |
) |
|
$ |
301 |
|
|
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 measure calculated in accordance with GAAP. |
|
(2) |
Please refer to the table in this press release detailing comparable growth rates for relevant financial metrics adjusted for the impact of the 53rd week in fiscal 2024. |
Fourth Quarter Fiscal 2024 Summary
Net sales in the fourth quarter of fiscal 2024 were
Gross profit in the fourth quarter of fiscal 2024 was
Operating expenses in the fourth quarter of fiscal 2024 were
Interest expense, net for the fourth quarter of fiscal 2024 was
Effective tax rate for the fourth quarter of fiscal 2024 was a benefit of
Net loss for the fourth quarter of fiscal 2024 was
Net loss per diluted share (EPS) was
Adjusted EBITDA for the fourth quarter of fiscal 2024 was
Capital Allocation and Financing Overview
-
Free Cash Flow – During the fourth quarter of 2024, free cash flow was
$71 million $117 million $191 million $120 million -
Net Leverage – Total outstanding debt, net of cash, ended the quarter at
$2.06 billion $115 million -
Liquidity – As of August 3, 2024, total liquidity was approximately
$1.28 billion $40 million $1.24 billion
Fiscal 2025 Outlook (1)
The Company is providing the following outlook for fiscal 2025, a 52-week year.
Fiscal Year Ending August 2, 2025 (52 weeks) |
|
|
Net sales ($ in billions) |
|
|
Net loss ($ in millions) |
|
|
EPS (2) |
|
|
Adjusted EPS (2)(3)(4) |
|
|
Adjusted EBITDA (4) ($ in millions) |
|
|
Capital and cloud implementation expenditures (5)(6)($ in millions) |
|
~ |
Free cash flow (6) |
|
~ |
(1) |
The outlook provided above is for fiscal 2025 only. This 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 fourth quarter and full year fiscal 2024 conference call and audio webcast will be held today, Tuesday, October 1, 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 July 29, 2023 filed with the Securities and Exchange Commission (the “SEC”) on September 26, 2023 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. |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
||||||||||||||||
(in millions, except for per share data) |
||||||||||||||||
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
|||||||||||||
|
August 3, 2024
|
|
July 29, 2023
|
|
August 3, 2024
|
|
July 29, 2023
|
|||||||||
Net sales |
$ |
8,155 |
|
|
$ |
7,417 |
|
|
$ |
30,980 |
|
|
$ |
30,272 |
|
|
Cost of sales |
|
7,039 |
|
|
|
6,451 |
|
|
|
26,779 |
|
|
|
26,141 |
|
|
Gross profit |
|
1,116 |
|
|
|
966 |
|
|
|
4,201 |
|
|
|
4,131 |
|
|
Operating expenses |
|
1,075 |
|
|
|
1,004 |
|
|
|
4,100 |
|
|
|
3,973 |
|
|
Restructuring, acquisition and integration related expenses |
|
19 |
|
|
|
7 |
|
|
|
36 |
|
|
|
8 |
|
|
Loss on sale of assets and other asset charges |
|
20 |
|
|
|
30 |
|
|
|
57 |
|
|
|
30 |
|
|
Operating income (loss) |
|
2 |
|
|
|
(75 |
) |
|
|
8 |
|
|
|
120 |
|
|
Net periodic benefit income, excluding service cost |
|
(4 |
) |
|
|
(7 |
) |
|
|
(15 |
) |
|
|
(29 |
) |
|
Interest expense, net |
|
50 |
|
|
|
35 |
|
|
|
162 |
|
|
|
144 |
|
|
Other income, net |
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
(Loss) income before income taxes |
|
(44 |
) |
|
|
(103 |
) |
|
|
(137 |
) |
|
|
7 |
|
|
Benefit for income taxes |
|
(7 |
) |
|
|
(36 |
) |
|
|
(27 |
) |
|
|
(23 |
) |
|
Net (loss) income including noncontrolling interests |
|
(37 |
) |
|
|
(67 |
) |
|
|
(110 |
) |
|
|
30 |
|
|
Less net income attributable to noncontrolling interests |
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
|
Net (loss) income attributable to United Natural Foods, Inc. |
$ |
(37 |
) |
|
$ |
(68 |
) |
|
$ |
(112 |
) |
|
$ |
24 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic (loss) earnings per share |
$ |
(0.63 |
) |
|
$ |
(1.15 |
) |
|
$ |
(1.89 |
) |
|
$ |
0.41 |
|
|
Diluted (loss) earnings per share |
$ |
(0.63 |
) |
|
$ |
(1.15 |
) |
|
$ |
(1.89 |
) |
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
59.5 |
|
|
|
58.6 |
|
|
|
59.3 |
|
|
|
59.2 |
|
|
Diluted |
|
59.5 |
|
|
|
58.6 |
|
|
|
59.3 |
|
|
|
60.7 |
|
|
UNITED NATURAL FOODS, INC. |
||||||||
CONSOLIDATED BALANCE SHEETS (unaudited) |
||||||||
(in millions, except for par values) |
||||||||
|
August 3,
|
|
July 29,
|
|||||
ASSETS |
|
|
|
|||||
Cash and cash equivalents |
$ |
40 |
|
|
$ |
37 |
|
|
Accounts receivable, net |
|
953 |
|
|
|
889 |
|
|
Inventories, net |
|
2,179 |
|
|
|
2,292 |
|
|
Prepaid expenses and other current assets |
|
230 |
|
|
|
245 |
|
|
Total current assets |
|
3,402 |
|
|
|
3,463 |
|
|
Property and equipment, net |
|
1,820 |
|
|
|
1,767 |
|
|
Operating lease assets |
|
1,370 |
|
|
|
1,228 |
|
|
Goodwill |
|
19 |
|
|
|
20 |
|
|
Intangible assets, net |
|
649 |
|
|
|
722 |
|
|
Deferred income taxes |
|
87 |
|
|
|
32 |
|
|
Other long-term assets |
|
181 |
|
|
|
162 |
|
|
Total assets |
$ |
7,528 |
|
|
$ |
7,394 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|||||
Accounts payable |
$ |
1,688 |
|
|
$ |
1,781 |
|
|
Accrued expenses and other current liabilities |
|
288 |
|
|
|
283 |
|
|
Accrued compensation and benefits |
|
197 |
|
|
|
143 |
|
|
Current portion of operating lease liabilities |
|
181 |
|
|
|
180 |
|
|
Current portion of long-term debt and finance lease liabilities |
|
11 |
|
|
|
18 |
|
|
Total current liabilities |
|
2,365 |
|
|
|
2,405 |
|
|
Long-term debt |
|
2,081 |
|
|
|
1,956 |
|
|
Long-term operating lease liabilities |
|
1,263 |
|
|
|
1,099 |
|
|
Long-term finance lease liabilities |
|
12 |
|
|
|
12 |
|
|
Pension and other postretirement benefit obligations |
|
15 |
|
|
|
16 |
|
|
Other long-term liabilities |
|
151 |
|
|
|
162 |
|
|
Total liabilities |
|
5,887 |
|
|
|
5,650 |
|
|
Stockholders’ equity: |
|
|
|
|||||
Preferred stock, |
|
— |
|
|
|
— |
|
|
Common stock, |
|
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
635 |
|
|
|
606 |
|
|
Treasury stock at cost |
|
(86 |
) |
|
|
(86 |
) |
|
Accumulated other comprehensive loss |
|
(47 |
) |
|
|
(28 |
) |
|
Retained earnings |
|
1,138 |
|
|
|
1,250 |
|
|
Total United Natural Foods, Inc. stockholders’ equity |
|
1,641 |
|
|
|
1,743 |
|
|
Noncontrolling interests |
|
— |
|
|
|
1 |
|
|
Total stockholders’ equity |
|
1,641 |
|
|
|
1,744 |
|
|
Total liabilities and stockholders’ equity |
$ |
7,528 |
|
|
$ |
7,394 |
|
|
UNITED NATURAL FOODS, INC. |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
||||||||
|
Fiscal Year Ended |
|||||||
(in millions) |
August 3, 2024
|
|
July 29, 2023
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|||||
Net (loss) income including noncontrolling interests |
$ |
(110 |
) |
|
$ |
30 |
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
319 |
|
|
|
304 |
|
|
Share-based compensation |
|
39 |
|
|
|
38 |
|
|
Gain on sale of assets |
|
(7 |
) |
|
|
(9 |
) |
|
Long-lived asset impairment charges |
|
43 |
|
|
|
25 |
|
|
Net pension and other postretirement benefit income |
|
(15 |
) |
|
|
(29 |
) |
|
Deferred income tax benefit |
|
(49 |
) |
|
|
(36 |
) |
|
LIFO charge |
|
7 |
|
|
|
119 |
|
|
Provision (recoveries) for losses on receivables |
|
3 |
|
|
|
(1 |
) |
|
Non-cash interest expense and other adjustments |
|
18 |
|
|
|
13 |
|
|
Changes in operating assets and liabilities, net of acquired businesses |
|
|
|
|||||
Accounts and notes receivable |
|
(68 |
) |
|
|
327 |
|
|
Inventories |
|
104 |
|
|
|
(57 |
) |
|
Prepaid expenses and other assets |
|
(157 |
) |
|
|
(108 |
) |
|
Accounts payable |
|
(81 |
) |
|
|
53 |
|
|
Accrued expenses and other liabilities |
|
207 |
|
|
|
(45 |
) |
|
Net cash provided by operating activities |
|
253 |
|
|
|
624 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|||||
Payments for capital expenditures |
|
(345 |
) |
|
|
(323 |
) |
|
Proceeds from dispositions of assets |
|
25 |
|
|
|
16 |
|
|
Payments for investments |
|
(22 |
) |
|
|
(32 |
) |
|
Net cash used in investing activities |
|
(342 |
) |
|
|
(339 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|||||
Proceeds from borrowings under revolving credit line |
|
2,571 |
|
|
|
2,976 |
|
|
Proceeds from issuance of other loans |
|
15 |
|
|
|
— |
|
|
Repayments of borrowings under revolving credit line |
|
(2,270 |
) |
|
|
(3,004 |
) |
|
Repayments of long-term debt and finance leases |
|
(191 |
) |
|
|
(154 |
) |
|
Repurchases of common stock |
|
— |
|
|
|
(62 |
) |
|
Payments of employee restricted stock tax withholdings |
|
(7 |
) |
|
|
(40 |
) |
|
Payments for debt issuance costs |
|
(18 |
) |
|
|
— |
|
|
Distributions to noncontrolling interests |
|
(4 |
) |
|
|
(6 |
) |
|
Repayments of other loans |
|
(2 |
) |
|
|
(2 |
) |
|
Other |
|
(2 |
) |
|
|
— |
|
|
Net cash provided by (used in) financing activities |
|
92 |
|
|
|
(292 |
) |
|
EFFECT OF EXCHANGE RATE ON CASH |
|
— |
|
|
|
— |
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
3 |
|
|
|
(7 |
) |
|
Cash and cash equivalents, at beginning of period |
|
37 |
|
|
|
44 |
|
|
Cash and cash equivalents, at end of period |
$ |
40 |
|
|
$ |
37 |
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|||||
Cash paid for interest |
$ |
159 |
|
|
$ |
133 |
|
|
Cash refunds for federal, state and foreign income taxes, net |
$ |
(14 |
) |
|
$ |
(5 |
) |
|
Additions of property and equipment included in Accounts payable |
$ |
21 |
|
|
$ |
32 |
|
|
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION |
||||||||||||||||
UNITED NATURAL FOODS, INC. |
||||||||||||||||
Reconciliation of Net (loss) income including noncontrolling interests to Adjusted EBITDA (unaudited) |
||||||||||||||||
|
|
|
|
|||||||||||||
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
|||||||||||||
(in millions) |
August 3, 2024
|
|
July 29, 2023
|
|
August 3, 2024
|
|
July 29, 2023
|
|||||||||
Net (loss) income including noncontrolling interests |
$ |
(37 |
) |
|
$ |
(67 |
) |
|
$ |
(110 |
) |
|
$ |
30 |
|
|
Adjustments to net (loss) income including noncontrolling interests: |
|
|
|
|
|
|
|
|||||||||
Less net income attributable to noncontrolling interests |
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
|
Net periodic benefit income, excluding service cost |
|
(4 |
) |
|
|
(7 |
) |
|
|
(15 |
) |
|
|
(29 |
) |
|
Interest expense, net |
|
50 |
|
|
|
35 |
|
|
|
162 |
|
|
|
144 |
|
|
Other income, net |
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
Benefit for income taxes |
|
(7 |
) |
|
|
(36 |
) |
|
|
(27 |
) |
|
|
(23 |
) |
|
Depreciation and amortization |
|
91 |
|
|
|
80 |
|
|
|
319 |
|
|
|
304 |
|
|
Share-based compensation |
|
11 |
|
|
|
5 |
|
|
|
37 |
|
|
|
38 |
|
|
LIFO (benefit) charge |
|
(12 |
) |
|
|
36 |
|
|
|
7 |
|
|
|
119 |
|
|
Restructuring, acquisition and integration related expenses(1) |
|
19 |
|
|
|
7 |
|
|
|
36 |
|
|
|
8 |
|
|
Loss on sale of assets and other asset charges(2) |
|
20 |
|
|
|
30 |
|
|
|
57 |
|
|
|
30 |
|
|
Multiemployer pension plan withdrawal charges(3) |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
Other retail expense(4) |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
Business transformation costs(5) |
|
12 |
|
|
|
9 |
|
|
|
52 |
|
|
|
25 |
|
|
Other adjustments(6) |
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
143 |
|
|
$ |
93 |
|
|
$ |
518 |
|
|
$ |
640 |
|
|
(1) |
Fiscal 2024 and fiscal 2023 primarily reflects costs associated with certain employee severance. |
|
(2) |
Fiscal 2024 primarily includes a |
|
(3) |
Fiscal 2023 reflects adjustments to multiemployer pension plan withdrawal charge estimates. |
|
(4) |
Fiscal 2023 reflects store closure costs, operational wind-down and inventory charges. |
|
(5) |
Reflects costs associated with business transformation initiatives, primarily including third-party consulting costs and licensing costs, and third-party professional service fees related to the board-led financial review in fiscal 2024, all of which are included within Operating expenses in the Consolidated Statements of Operations. |
|
(6) |
Primarily reflects third-party professional service fees related to shareholder negotiations in the first quarter of fiscal 2024. |
Reconciliation of Net (loss) income attributable to United Natural Foods, Inc. to Adjusted net (loss) income and Adjusted EPS (unaudited) |
||||||||||||||||
|
||||||||||||||||
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
|||||||||||||
(in millions, except per share amounts) |
August 3, 2024
|
|
July 29, 2023
|
|
August 3, 2024
|
|
July 29, 2023
|
|||||||||
Net (loss) income attributable to United Natural Foods, Inc. |
$ |
(37 |
) |
|
$ |
(68 |
) |
|
$ |
(112 |
) |
|
$ |
24 |
|
|
Restructuring, acquisition, and integration related expenses(1) |
|
19 |
|
|
|
7 |
|
|
|
36 |
|
|
|
8 |
|
|
Loss on sale of assets and other asset charges other than losses on sales of receivables(2) |
|
15 |
|
|
|
25 |
|
|
|
36 |
|
|
|
16 |
|
|
LIFO (benefit) charge |
|
(12 |
) |
|
|
36 |
|
|
|
7 |
|
|
|
119 |
|
|
Surplus property depreciation and interest expense(3) |
|
2 |
|
|
|
1 |
|
|
|
5 |
|
|
|
2 |
|
|
Multiemployer pension plan withdrawal charges(4) |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
Loss on debt extinguishment |
|
10 |
|
|
|
— |
|
|
|
10 |
|
|
|
3 |
|
|
Other retail expense(5) |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
Business transformation costs(6) |
|
12 |
|
|
|
9 |
|
|
|
52 |
|
|
|
25 |
|
|
Other adjustments(7) |
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
Tax impact of adjustments and adjusted effective tax rate(8) |
|
(8 |
) |
|
|
(26 |
) |
|
|
(29 |
) |
|
|
(63 |
) |
|
Adjusted net income (loss) |
$ |
1 |
|
|
$ |
(14 |
) |
|
$ |
9 |
|
|
$ |
136 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted weighted average shares outstanding |
|
60.0 |
|
|
|
58.6 |
|
|
|
60.4 |
|
|
|
60.7 |
|
|
Adjusted EPS(9) |
$ |
0.01 |
|
|
$ |
(0.25 |
) |
|
$ |
0.14 |
|
|
$ |
2.23 |
|
|
(1) |
Fiscal 2024 and fiscal 2023 primarily reflects costs associated with certain employee severance. |
|
(2) |
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 Consolidated Statements of Operations and are not adjusted in the calculation of Adjusted EPS. Fiscal 2024 primarily includes a |
|
(3) |
Reflects surplus, non-operating property depreciation and interest expense. |
|
(4) |
Fiscal 2023 reflects adjustments to multiemployer pension plan withdrawal charge estimates. |
|
(5) |
Fiscal 2023 reflects store closure costs, operational wind-down and inventory charges. |
|
(6) |
Reflects costs associated with business transformation initiatives, primarily including third-party consulting costs and licensing costs, and third-party professional service fees related to the board-led financial review in fiscal 2024, all of which are included within Operating expenses in the Consolidated Statements of Operations. |
|
(7) |
Primarily reflects third-party professional service fees related to shareholder negotiations in the first quarter of fiscal 2024. |
|
(8) |
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 true 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. |
|
(9) |
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) |
Fiscal Year Ended |
|||
August 3, 2024 |
||||
Current portion of long-term debt and finance lease liabilities |
$ |
11 |
|
|
Long-term debt |
|
2,081 |
|
|
Long-term finance lease liabilities |
|
12 |
|
|
Less: Cash and cash equivalents |
|
(40 |
) |
|
Net carrying value of debt and finance lease liabilities |
|
2,064 |
|
|
Adjusted EBITDA |
$ |
518 |
|
|
Adjusted EBITDA leverage ratio |
4.0x |
|||
Reconciliation of Net cash provided by operating activities to Free cash flow (unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
|||||||||||||
(in millions) |
August 3, 2024 |
|
July 29, 2023 |
|
August 3, 2024 |
|
July 29, 2023 |
|||||||||
(14 weeks) |
(13 weeks) |
(53 weeks) |
(52 weeks) |
|||||||||||||
Net cash provided by operating activities |
$ |
191 |
|
|
$ |
222 |
|
|
$ |
253 |
|
|
$ |
624 |
|
|
Payments for capital expenditures |
|
(120 |
) |
|
|
(105 |
) |
|
|
(345 |
) |
|
|
(323 |
) |
|
Free cash flow |
$ |
71 |
|
|
$ |
117 |
|
|
$ |
(92 |
) |
|
$ |
301 |
|
|
Reconciliation of Payments for capital expenditures to Capital and cloud implementation expenditures (unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|||||
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
|||||||||
(in millions) |
August 3, 2024 |
|
July 29, 2023 |
|
August 3, 2024 |
|
July 29, 2023 |
|||||
(14 weeks) |
(13 weeks) |
(53 weeks) |
(52 weeks) |
|||||||||
Payments for capital expenditures |
$ |
120 |
|
$ |
105 |
|
$ |
345 |
|
$ |
323 |
|
Cloud technology implementation expenditures (1) |
|
5 |
|
|
12 |
|
|
25 |
|
|
21 |
|
Capital and cloud implementation expenditures (2) |
$ |
125 |
|
$ |
117 |
|
$ |
370 |
|
$ |
344 |
|
(1) |
Cloud technology implementation expenditures are included in operating activities in the Consolidated Statements of Cash Flows. |
|
(2) |
Certain amounts in fiscal 2024 have been reclassified from Cloud technology implementation expenditures to Payments for capital expenditures. These reclassifications had no impact on total Capital and cloud implementation expenditures, or on prior year reported amounts. |
Fiscal 2024 Comparable Growth Rates (unaudited) |
||||||||||||||||||||||
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
|||||||||||||||||||
($ in millions) |
August 3,
|
|
July 29,
|
|
Comparable
|
|
August 3,
|
|
July 29,
|
|
Comparable
|
|||||||||||
Net sales |
$ |
7,573 |
|
|
$ |
7,417 |
|
|
2.1 |
% |
|
$ |
30,398 |
|
|
$ |
30,272 |
|
|
0.4 |
% |
|
Chains |
$ |
3,180 |
|
|
$ |
3,141 |
|
|
1.2 |
% |
|
$ |
12,722 |
|
|
$ |
12,816 |
|
|
(0.7 |
)% |
|
Independent retailers |
$ |
1,842 |
|
|
$ |
1,897 |
|
|
(2.9 |
)% |
|
$ |
7,464 |
|
|
$ |
7,699 |
|
|
(3.1 |
)% |
|
Supernatural |
$ |
1,711 |
|
|
$ |
1,555 |
|
|
10.0 |
% |
|
$ |
6,808 |
|
|
$ |
6,374 |
|
|
6.8 |
% |
|
Retail |
$ |
583 |
|
|
$ |
609 |
|
|
(4.3 |
)% |
|
$ |
2,391 |
|
|
$ |
2,480 |
|
|
(3.6 |
)% |
|
Other |
$ |
606 |
|
|
$ |
593 |
|
|
2.2 |
% |
|
$ |
2,511 |
|
|
$ |
2,477 |
|
|
1.4 |
% |
|
Eliminations |
$ |
(349 |
) |
|
$ |
(378 |
) |
|
(7.7 |
)% |
|
$ |
(1,498 |
) |
|
$ |
(1,574 |
) |
|
(4.8 |
)% |
|
Adjusted EBITDA |
$ |
133 |
|
|
$ |
93 |
|
|
43.0 |
% |
|
$ |
508 |
|
|
$ |
640 |
|
|
(20.6 |
)% |
|
(1) |
Excludes the estimated impact of the 53rd week in fiscal 2024. |
|
(2) |
The comparable 13-week and 52-week percent changes remove the estimated contribution from the additional week in fiscal 2024 which is calculated by subtracting one-fifth of the respective metrics for the last five-week period within the 14-week fourth quarter of fiscal 2024. |
Reconciliation of actual 2024 and 2023 U.S. GAAP effective tax rate to adjusted effective tax rate (unaudited) |
||||||
|
Actual Fiscal
|
|
Actual Fiscal
|
|||
|
20 |
% |
|
(329 |
)% |
|
Discrete quarterly recognition of GAAP items(1) |
20 |
% |
|
270 |
% |
|
Tax impact of other charges and adjustments(2) |
(24 |
)% |
|
139 |
% |
|
Changes in valuation allowances(3) |
5 |
% |
|
(57 |
)% |
|
Other(4) |
— |
% |
|
— |
% |
|
Adjusted Effective Tax Rate(4) |
21 |
% |
|
23 |
% |
|
Note: As part of the year-end reconciliation, we have updated the reconciliation of the fiscal 2024 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/20241001971381/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
401-213-2160 kristyn.farahmand@unfi.com
Source: United Natural Foods, Inc.
FAQ
What were UNFI's Q4 2024 financial results?
How did UNFI's full year 2024 performance compare to guidance?
What is UNFI's net debt and leverage ratio as of Q4 2024?
What is UNFI's financial outlook for fiscal 2025?
What strategic initiatives is UNFI implementing?
