United Natural Foods(UNFI) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales increased by 7.5% to $8.1 billion compared to the same period last year, driven by a 4% increase in wholesale unit volumes [5]. - Adjusted EBITDA rose by 20.8% to $157 million, reflecting a steady margin improvement and increased free cash flow [8]. - Free cash flow improved significantly to $119 million, up 142.9% from $49 million in the prior year quarter [16]. - The net loss for the quarter was $(7) million, a significant improvement from a net loss of $(21) million in the same quarter last year [14]. - Adjusted earnings per diluted share (Adjusted EPS) increased to $0.44, compared to $0.10 in the prior year quarter, marking a 340% increase [8]. - Gross profit for the quarter was $1.1 billion, an increase of $62 million or 6.1% compared to the same quarter last year [10]. - The net loss attributable to United Natural Foods, Inc. for the 39-week period ended May 3, 2025, was $31 million, compared to a net loss of $75 million for the same period in 2024 [28]. - Adjusted EBITDA for the 39-week period ended May 3, 2025, increased to $436 million, up from $375 million in the prior year, reflecting a growth of 16.3% [33]. - Adjusted net income for the 39-week period ended May 3, 2025, was $50 million, compared to $8 million in the same period of 2024, representing a substantial increase [38]. Cash Flow and Liquidity - Free cash flow for the 39-week period ended May 3, 2025, was $310 million, significantly higher than $54 million for the same period in 2024 [31]. - The company maintained total liquidity of approximately $1.49 billion, consisting of $52 million in cash and $1.44 billion in unused capacity under its asset-based lending facility [16]. - Free cash flow for the 13-week period ended May 3, 2025, was $119 million, significantly higher than $49 million for the same period in 2024 [42]. Debt and Capital Structure - The net debt to Adjusted EBITDA ratio declined to 3.3x, the lowest in the past two fiscal years [8]. - The company reported a net carrying value of debt and finance lease liabilities of $1,928 million, with an adjusted EBITDA leverage ratio of 3.3x [40]. - The net debt to Adjusted EBITDA leverage ratio will be calculated based on the trailing four quarters Adjusted EBITDA, providing insights into the company's capital structure [26]. Expenses and Capital Expenditures - Operating expenses decreased as a percentage of net sales to 12.7%, down from 13.2% in the prior year quarter, due to higher sales and cost-saving initiatives [11]. - Capital expenditures for the 39-week period ended May 3, 2025, were $157 million, a decrease from $217 million in the same period last year [31]. - Payments for capital expenditures for the 39-week period ended May 3, 2025, totaled $157 million, down from $217 million in the prior year [43]. - The company incurred $54 million in restructuring, acquisition, and integration-related expenses over the trailing four quarters [41]. Tax and Impairment - The U.S. GAAP effective tax rate for fiscal 2025 is estimated at 32%, while the adjusted effective tax rate is projected to be 20% [44]. - The company recognized a $24 million non-cash asset impairment charge related to a distribution center in fiscal 2025 [35]. Outlook - The full-year outlook for net sales remains unchanged at $31.3 - $31.7 billion, while the net loss and EPS outlook has been updated to reflect costs associated with exiting a customer contract [17].