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United Natural Foods(UNFI) - 2025 Q2 - Quarterly Results
UNFIUnited Natural Foods(UNFI)2025-03-11 11:04

Financial Performance - Net sales increased by 4.9% to 8.2billioncomparedtothesecondquarteroffiscal2024[6]−AdjustedEBITDAroseby13.38.2 billion compared to the second quarter of fiscal 2024[6] - Adjusted EBITDA rose by 13.3% to 145 million, reflecting continued operational improvements[6] - Free cash flow improved by 66.4% to 193million,drivenbynetcashprovidedbyoperatingactivitiesof193 million, driven by net cash provided by operating activities of 247 million[6] - Net loss decreased to (3)million,withlossperdilutedshare(EPS)of(3) million, with loss per diluted share (EPS) of (0.05), compared to a loss of (15)millionandEPSof(15) million and EPS of (0.25) in the prior year[6][12] - The company reported a net loss attributable to United Natural Foods, Inc. of (3)millionforthe13−weekperiodendedFebruary1,2025,comparedto(3) million for the 13-week period ended February 1, 2025, compared to (15) million in the same period of 2024, reflecting a 80% improvement[31] - The net loss attributable to United Natural Foods, Inc. for the 26-week period ended February 1, 2025, was 24million,comparedtoanetlossof24 million, compared to a net loss of 54 million for the same period in 2024[22] - Adjusted EBITDA for the 13-week period ended February 1, 2025, was 145million,up13.3145 million, up 13.3% from 128 million in the same period of 2024[27] - Adjusted EBITDA for the 26-week period is expected to be used for internal projections and comparisons with fiscal 2024[20] - The adjusted net income for the 26-week period ended February 1, 2025, was 23million,comparedto23 million, compared to 2 million for the same period in 2024, indicating a significant increase of 1,050%[31] Debt and Liquidity - The net debt to Adjusted EBITDA ratio declined to 3.7x, a reduction of 0.6x over the past 12 months[6] - Total liquidity as of February 1, 2025, was approximately 1.31billion,consistingof1.31 billion, consisting of 44 million in cash and 1.27billioninunusedcapacity[13]−ThenetcarryingvalueofdebtandfinanceleaseliabilitiesasofFebruary1,2025,was1.27 billion in unused capacity[13] - The net carrying value of debt and finance lease liabilities as of February 1, 2025, was 2,046 million, down from 2,161millionasofJanuary27,2024,indicatingareductionof5.32,161 million as of January 27, 2024, indicating a reduction of 5.3%[33] - Interest expense for the 13-week period ended February 1, 2025, was 38 million, a decrease of 5% from 40millioninthesameperiodof2024[27]OperationalEfficiency−Operatingexpensesasapercentageofnetsalesdecreasedto12.640 million in the same period of 2024[27] Operational Efficiency - Operating expenses as a percentage of net sales decreased to 12.6%, down from 13.0% in the prior year[9] - Capital expenditures for the 26-week period were 103 million, down from 141millionintheprioryear,indicatingafocusoncostmanagement[25]−Paymentsforcapitalexpendituresforthe13−weekperiodendedFebruary1,2025,were141 million in the prior year, indicating a focus on cost management[25] - Payments for capital expenditures for the 13-week period ended February 1, 2025, were 54 million, down from 67millioninthesameperiodof2024,reflectingadecreaseof19.467 million in the same period of 2024, reflecting a decrease of 19.4%[37] - The company is focusing on a product-centered realignment to enhance customer service and streamline operations[3] Future Outlook - The company is raising its full-year outlook for net sales to between 31.3 billion and 31.7billion[14]−AdjustedEPSisexpectedtobebetween31.7 billion[14] - Adjusted EPS is expected to be between 0.70 and 0.90,upfromthepreviousoutlookof0.90, up from the previous outlook of 0.40 to 0.80[14]−Theadjustedeffectivetaxrateforfiscal2025isestimatedat260.80[14] - The adjusted effective tax rate for fiscal 2025 is estimated at 26%, compared to the actual rate of 21% for fiscal 2024[38] - The company plans to continue utilizing non-GAAP financial measures to provide better visibility into its operating performance and investment expenditures[20] Restructuring and Expenses - The company incurred restructuring, acquisition, and integration-related expenses of 9 million for the 13-week period ended February 1, 2025, compared to $4 million in the same period of 2024, marking a 125% increase[31]