United Natural Foods(UNFI) - 2025 Q2 - Quarterly Results

Financial Performance - Net sales increased by 4.9% to $8.2 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 $193 million, driven by net cash provided by operating activities of $247 million[6] - Net loss decreased to $(3) million, with loss per diluted share (EPS) of $(0.05), compared to a loss of $(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) 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 $24 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 $145 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 $23 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 $1.31 billion, consisting of $44 million in cash and $1.27 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 $2,161 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 $40 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 $141 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 $67 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 $31.7 billion[14] - Adjusted EPS is expected to be between $0.70 and $0.90, up from the previous outlook of $0.40 to $0.80[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]