United Natural Foods(UNFI) - 2025 Q4 - Annual Results

Executive Summary & Highlights Fourth Quarter and Full Fiscal Year 2025 Performance Overview UNFI demonstrated solid performance in the fourth quarter of fiscal year 2025, successfully navigating a cybersecurity incident, achieving above-industry-average sales growth for the full fiscal year, while improving free cash flow and strengthening its financial position Key Financial Data for Fourth Quarter and Full Fiscal Year 2025 | Metric | FY2025 Q4 (13 Weeks) | FY2024 Q4 (14 Weeks) | Percentage Change | FY2025 Full Year (52 Weeks) | FY2024 Full Year (53 Weeks) | Percentage Change | | :------------------------------------- | :----------------------- | :----------------------- | :----------- | :-------------------- | :-------------------- | :----------- | | Net Sales (million USD) | $7,696 | $8,155 | (5.6)% | $31,784 | $30,980 | 2.6 % | | Natural Product Sales (million USD) | $3,998 | $3,943 | 1.4 % | $16,017 | $14,948 | 7.2 % | | Conventional Product Sales (million USD) | $3,414 | $3,917 | (12.8)% | $14,667 | $14,946 | (1.9)% | | Retail Sales (million USD) | $573 | $628 | (8.8)% | $2,342 | $2,436 | (3.9)% | | Net Loss (million USD) | $(87) | $(37) | N/M | $(118) | $(112) | N/M | | Adjusted EBITDA (million USD) | $116 | $143 | (18.9)% | $552 | $518 | 6.6 % | | Diluted Loss Per Share (EPS) | $(1.43) | $(0.63) | N/M | $(1.95) | $(1.89) | N/M | | Adjusted Loss Per Share (Adjusted EPS) | $(0.11) | $0.01 | N/M | $0.71 | $0.14 | 407.1 % | | Net Cash Provided by Operating Activities (million USD) | $160 | $191 | (16.2)% | $470 | $253 | 85.8 % | | Capital Expenditures (million USD) | $(74) | $(120) | (38.3)% | $(231) | $(345) | (33.0)% | | Free Cash Flow (million USD) | $86 | $71 | 21.1 % | $239 | $(92) | N/M | CEO Commentary CEO Sandy Douglas noted the company's solid performance in the fourth quarter of fiscal year 2025, successfully managing a cybersecurity incident and achieving above-industry-average sales growth, with a focus on accelerating momentum in fiscal year 2026 by delivering innovative products, services, and supply chain solutions to drive profitable growth and shareholder value for customers and suppliers - UNFI demonstrated solid performance in the fourth quarter of fiscal year 2025, effectively managing a cybersecurity incident and collaborating with customers and suppliers[3] - For fiscal year 2025, the company continuously enhanced its value proposition, achieved above-industry-average sales growth, improved efficiency, drove increased free cash flow, and strengthened its financial position[3] - In fiscal year 2026, the company will focus on accelerating momentum by providing innovative products, programs, services, and comprehensive supply chain solutions to help customers and suppliers achieve profitable growth and shareholder value[4] Recent Financial and Operational Summary The company achieved $7.7 billion in net sales for the fourth quarter of fiscal year 2025, with comparable 13-week growth of 1.6%, significantly improved full-year free cash flow, reduced net debt to its lowest level since 2018, and lowered net leverage to 3.3x, while deploying lean daily management in 28 distribution centers and projecting approximately 20% growth in median Adjusted EBITDA for fiscal year 2026 - Net sales reached $7.7 billion, with comparable 13-week growth of 1.6%[7] - Free cash flow for fiscal year 2025 significantly improved, increasing by $331 million year-over-year[7] - Net debt decreased to $1.83 billion, the lowest level since 2018, with the net leverage ratio falling 0.7x from 4.0x at the end of the prior fiscal year to 3.3x[7] - Lean daily management was deployed in 28 distribution centers in fiscal year 2025, enhancing customer and supplier experience, and improving safety, quality, delivery, and cost efficiency[7] - The fiscal year 2026 outlook reflects potential business momentum and continued strategic execution, with median Adjusted EBITDA projected to grow approximately 20% over fiscal year 2025, and nearly 15% average annual growth over fiscal year 2024 (comparable 52 weeks)[7] Fourth Quarter Fiscal Year 2025 Detailed Financial Summary Net Sales Net sales for the fourth quarter of fiscal year 2025 were $7.7 billion, down from $8.2 billion in the fourth quarter of fiscal year 2024, primarily due to an extra week in the prior year, with comparable sales increasing 1.6% excluding the impact of the additional week - Net sales for the fourth quarter of fiscal year 2025 were $7.7 billion, compared to $8.2 billion in the fourth quarter of fiscal year 2024[8] - The fourth quarter of fiscal year 2024 included approximately $582 million in sales from an extra week[8] - Excluding the extra week, sales increased by 1.6% (comparable 13-week basis)[8] Gross Profit Gross profit for the fourth quarter of fiscal year 2025 was $1.03 billion, down from $1.116 billion in the fourth quarter of fiscal year 2024, including $15 million in cybersecurity incident-related costs and $7 million in LIFO income, with gross margin remaining 13.5% in both quarters after adjusting for these items and the extra week in fiscal year 2024 - Gross profit for the fourth quarter of fiscal year 2025 was $1.03 billion, compared to $1.116 billion in the fourth quarter of fiscal year 2024[9] - Gross profit in the fourth quarter of fiscal year 2025 included $15 million in cybersecurity incident-related costs and $7 million in LIFO income[9] - Excluding cybersecurity incident costs and LIFO income, gross profit for the fourth quarter of fiscal year 2025 was $1.038 billion, representing 13.5% of net sales, consistent with $1.022 billion (representing 13.5% of net sales) in the fourth quarter of fiscal year 2024 (excluding LIFO income and the extra week)[9] Operating Expenses Operating expenses for the fourth quarter of fiscal year 2025 were $1.046 billion, or 13.6% of net sales, higher than $1.075 billion (or 13.2% of net sales) in the fourth quarter of fiscal year 2024, primarily due to the deleveraging impact of lost sales from the cybersecurity incident on fixed costs and investments in customer service - Operating expenses for the fourth quarter of fiscal year 2025 were $1.046 billion, or 13.6% of net sales[10] - Operating expenses for the fourth quarter of fiscal year 2024 were $1.075 billion, or 13.2% of net sales[10] - The increase in operating expenses as a percentage of net sales was due to the deleveraging impact of lost sales from the cybersecurity incident on fixed costs and investments made in customer service during the period[10] Interest Expense, Net Net interest expense for the fourth quarter of fiscal year 2025 was $36 million, down from $50 million in the fourth quarter of fiscal year 2024, primarily due to a reduction in the average outstanding debt balance and the extra week in the prior year, excluding prepayment and refinancing costs - Net interest expense for the fourth quarter of fiscal year 2025 was $36 million, including $4 million in costs and fees related to the prepayment of secured term loans[11] - Net interest expense for the fourth quarter of fiscal year 2024 was $50 million, including $10 million in costs and fees related to the refinancing of secured term loans[11] - Excluding prepayment and refinancing costs, the decrease in interest expense was primarily due to a reduction in the average outstanding debt balance and the extra week in the prior year period[11] Effective Tax Rate The effective tax rate for the fourth quarter of fiscal year 2025 was a 21.1% benefit on pre-tax loss, compared to a 15.9% benefit on pre-tax loss in the fourth quarter of fiscal year 2024, with both periods including expenses related to the deductibility of charitable contributions due to tax law changes, and the prior year also including equity compensation - The effective tax rate for the fourth quarter of fiscal year 2025 was a 21.1% benefit on pre-tax loss[12] - The effective tax rate for the fourth quarter of fiscal year 2024 was a 15.9% benefit on pre-tax loss[12] - The effective tax rate for the fourth quarter of fiscal year 2025 included expenses related to the deductibility of charitable contributions due to tax law changes, while the fourth quarter of fiscal year 2024 included expenses related to equity compensation and charitable contribution deductibility[12] Net Loss and EPS Net loss for the fourth quarter of fiscal year 2025 worsened to $87 million, with diluted loss per share of $1.43, compared to a net loss of $37 million and diluted loss per share of $0.63 in the fourth quarter of fiscal year 2024, and adjusted loss per share also declined from $0.01 to $0.11 - Net loss for the fourth quarter of fiscal year 2025 was $87 million, compared to $37 million in the fourth quarter of fiscal year 2024[13] - Diluted loss per share for the fourth quarter of fiscal year 2025 was $1.43, compared to $0.63 in the fourth quarter of fiscal year 2024[13] - Adjusted loss per share for the fourth quarter of fiscal year 2025 was $0.11, compared to $0.01 in the fourth quarter of fiscal year 2024[13] Adjusted EBITDA Adjusted EBITDA for the fourth quarter of fiscal year 2025 was $116 million, a decrease from $143 million in the fourth quarter of fiscal year 2024 - Adjusted EBITDA for the fourth quarter of fiscal year 2025 was $116 million, compared to $143 million in the fourth quarter of fiscal year 2024[14] Capital Structure and Financing Overview Free Cash Flow Free cash flow for the fourth quarter of fiscal year 2025 was $86 million, an increase from $71 million in the fourth quarter of fiscal year 2024, driven by $160 million in cash flow from operating activities less $74 million in capital expenditures - Free cash flow for the fourth quarter of fiscal year 2025 was $86 million, compared to $71 million in the fourth quarter of fiscal year 2024[17] - Free cash flow for the fourth quarter of fiscal year 2025 reflected $160 million in cash provided by operating activities less $74 million in capital expenditures[17] Net Leverage As of August 2, 2025, the company's total outstanding debt (net of cash) was $1.83 billion, reduced by $230 million in fiscal year 2025, with the net debt to Adjusted EBITDA leverage ratio decreasing to 3.3x from 4.0x at the end of the prior fiscal year - As of August 2, 2025, total outstanding debt (net of cash) was $1.83 billion, reduced by $230 million during fiscal year 2025[17] - As of August 2, 2025, the net debt to Adjusted EBITDA leverage ratio was 3.3x[17][39] Liquidity As of August 2, 2025, the company's total liquidity was approximately $1.5 billion, comprising $44 million in cash and approximately $1.45 billion in unused availability under its asset-backed lending facility - As of August 2, 2025, total liquidity was approximately $1.5 billion[17] - Liquidity consisted of $44 million in cash and approximately $1.45 billion in unused availability under the company's asset-backed lending facility[17] Fiscal Year 2026 Outlook UNFI provided its fiscal year 2026 (52-week) outlook, projecting net sales between $31.6 billion and $32.0 billion, net income between $0 and $50 million, Adjusted EBITDA between $630 million and $700 million, adjusted EPS between $1.50 and $2.30, and free cash flow of approximately $300 million Fiscal Year 2026 Outlook (as of August 1, 2026, 52 Weeks) | Metric | Range | | :------------------------------------- | :---------------- | | Net Sales (billion USD) | $31.6 - $32.0 | | Net Income (million USD) | $0 - $50 | | EPS | $0.00 - $0.80 | | Adjusted EPS | $1.50 - $2.30 | | Adjusted EBITDA (million USD) | $630 - $700 | | Capital and Cloud Implementation Expenditures (million USD) | ~ $250 | | Free Cash Flow (million USD) | ~ $300 | - The midpoint of the fiscal year 2026 Adjusted EBITDA range reflects approximately 20% growth over fiscal year 2025 and nearly 15% average annual growth over fiscal year 2024 (comparable 52 weeks)[7] Company Information & Contacts Conference Call and Webcast The company held its fiscal year 2025 fourth quarter and full-year earnings conference call and audio webcast on Tuesday, September 30, 2025, at 8:30 AM ET, accessible to the public via the company's investor relations website or by phone - The company's fiscal year 2025 fourth quarter and full-year earnings conference call and audio webcast was held on Tuesday, September 30, 2025, at 8:30 AM ET[21] - The webcast (and supplemental materials) is available to the public on a listen-only basis via the investor relations section of the company's website at www.unfi.com, and the conference call can also be accessed by dialing (800) 715-9871 (conference ID 5462932)[21] About United Natural Foods UNFI is North America's leading food wholesaler, supplying a wide range of fresh, branded, and private label products to over 30,000 locations, including natural product supermarkets, independent retailers, conventional supermarket chains, e-commerce platforms, and foodservice customers, while also offering extensive value-added services and specialized marketing to build a better food system for all - UNFI is North America's leading food wholesaler, providing the widest variety of fresh, branded, and private label products to over 30,000 locations across North America[22] - Customers served include natural product supermarkets, independent retailers, conventional supermarket chains, e-commerce platforms, and foodservice customers[22] - The company offers value-added services and specialized marketing, including proprietary technology, data, market insights, and shelf management, to help customers and suppliers grow their businesses and brands[22] Investor Contacts Contact information for Steve Bloomquist, Vice President of Investor Relations, and Kristyn Farahmand, Chief Strategy Officer, is provided - Vice President, Investor Relations: Steve Bloomquist, Phone: 952-828-4144, Email: sbloomquist@unfi.com[23] - Chief Strategy Officer: Kristyn Farahmand, Phone: 612-439-6625, Email: kristyn.farahmand@unfi.com[23] Legal Disclosures Safe Harbor Statement Non-historical statements in this press release are 'forward-looking statements' involving risks and uncertainties, where actual results may differ materially, with detailed risks described in the company's SEC filings, including the 'Risk Factors' section of its fiscal year 2024 Form 10-K, and the company undertakes no obligation to update any information - Non-historical statements in this press release regarding the company's business are 'forward-looking statements' involving risks and uncertainties, based on current expectations and management estimates; actual results may differ materially[24] - Risks and uncertainties that could affect these statements are described in the company's filings with the U.S. Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934, including the 'Risk Factors' section of the company's Annual Report on Form 10-K for the fiscal year ended August 3, 2024[24] - The company undertakes no obligation to update any information in the foregoing reports until the effective date of its future reports as required by applicable law[24] Explanation of Non-GAAP Financial Measures This section defines and explains the non-GAAP financial measures used by the company, including Adjusted EBITDA, Adjusted EPS, Adjusted Effective Tax Rate, Free Cash Flow, Net Debt to Adjusted EBITDA Leverage Ratio, and Capital and Cloud Implementation Expenditures, which are intended to supplement GAAP financial information for better period-over-period comparisons and understanding of core business trends, though a full reconciliation for outlook cannot be provided without unreasonable effort - The company included non-GAAP financial measures such as Adjusted EBITDA, Adjusted EPS, Adjusted Effective Tax Rate, Free Cash Flow, Net Debt to Adjusted EBITDA Leverage Ratio, and Capital and Cloud Implementation Expenditures in the press release[25] - Non-GAAP financial measures are provided to aid in period-over-period comparisons, evaluate the company's business performance, and understand underlying operating performance and core business trends by excluding certain adjustments not expected to recur in the normal course of business or not indicative of actual and estimated operating performance[26] - The company is unable to provide a full reconciliation of the non-GAAP outlook to the most comparable GAAP measures without unreasonable effort, as the amount of certain adjusting items is difficult to predict[23] Consolidated Financial Statements (Unaudited) Consolidated Statements of Operations This section presents the unaudited consolidated statements of operations for the fourth quarter and full fiscal years ended August 2, 2025, and August 3, 2024, detailing key financial data such as net sales, cost of sales, gross profit, operating expenses, and net loss Consolidated Statements of Operations (million USD, except per share data) | Metric | FY2025 Q4 (13 Weeks) | FY2024 Q4 (14 Weeks) | FY2025 Full Year (52 Weeks) | FY2024 Full Year (53 Weeks) | | :------------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | Net Sales | $7,696 | $8,155 | $31,784 | $30,980 | | Cost of Sales | $6,666 | $7,039 | $27,562 | $26,779 | | Gross Profit | $1,030 | $1,116 | $4,222 | $4,201 | | Operating Expenses | $1,046 | $1,075 | $4,117 | $4,100 | | Operating (Loss) Income | $(78) | $2 | $(31) | $8 | | Loss Before Income Taxes | $(109) | $(44) | $(154) | $(137) | | Net Loss Attributable to United Natural Foods, Inc. | $(87) | $(37) | $(118) | $(112) | | Diluted Loss Per Share | $(1.43) | $(0.63) | $(1.95) | $(1.89) | Consolidated Balance Sheets This section provides the unaudited consolidated balance sheets as of August 2, 2025, and August 3, 2024, detailing the composition of assets, liabilities, and stockholders' equity Consolidated Balance Sheets (million USD, except par value) | Metric | August 2, 2025 | August 3, 2024 | | :------------------------------------- | :------------- | :------------- | | Assets | | | | Cash and Cash Equivalents | $44 | $40 | | Accounts Receivable, Net | $1,093 | $953 | | Inventories, Net | $2,095 | $2,179 | | Prepaid Expenses and Other Current Assets | $191 | $230 | | Total Current Assets | $3,423 | $3,402 | | Property and Equipment, Net | $1,749 | $1,820 | | Operating Lease Assets | $1,474 | $1,370 | | Goodwill | $19 | $19 | | Intangible Assets, Net | $576 | $649 | | Deferred Income Taxes | $162 | $87 | | Other Long-Term Assets | $192 | $181 | | Total Assets | $7,595 | $7,528 | | Liabilities and Stockholders' Equity | | | | Accounts Payable | $1,875 | $1,688 | | Accrued Expenses and Other Current Liabilities | $319 | $288 | | Accrued Compensation and Benefits | $227 | $197 | | Current Portion of Operating Lease Liabilities | $173 | $181 | | Current Portion of Long-Term Debt and Finance Lease Liabilities | $8 | $11 | | Total Current Liabilities | $2,602 | $2,365 | | Long-Term Debt | $1,859 | $2,081 | | Long-Term Operating Lease Liabilities | $1,400 | $1,263 | | Long-Term Finance Lease Liabilities | $11 | $12 | | Pension and Other Postretirement Benefit Obligations | $14 | $15 | | Other Long-Term Liabilities | $155 | $151 | | Total Liabilities | $6,041 | $5,887 | | Total Stockholders' Equity Attributable to United Natural Foods, Inc. | $1,551 | $1,641 | | Noncontrolling Interests | $3 | $0 | | Total Stockholders' Equity | $1,554 | $1,641 | | Total Liabilities and Stockholders' Equity | $7,595 | $7,528 | Consolidated Statements of Cash Flows This section provides the unaudited consolidated statements of cash flows for the full fiscal years ended August 2, 2025, and August 3, 2024, detailing cash flows from operating, investing, and financing activities Consolidated Statements of Cash Flows (million USD) | Metric | FY2025 Full Year (52 Weeks) | FY2024 Full Year (53 Weeks) | | :------------------------------------- | :-------------------- | :-------------------- | | Net Cash Provided by Operating Activities | $470 | $253 | | Net Cash Used in Investing Activities | $(218) | $(342) | | Net Cash (Used in) Provided by Financing Activities | $(248) | $92 | | Net Increase in Cash and Cash Equivalents | $4 | $3 | | Cash and Cash Equivalents at End of Period | $44 | $40 | Supplemental Non-GAAP Financial Information Reconciliation of Net Loss (including noncontrolling interests) to Adjusted EBITDA This section details the reconciliation from GAAP net loss (including noncontrolling interests) to Adjusted EBITDA for the fourth quarter and full fiscal years 2025 and 2024, covering adjustments such as interest expense, taxes, depreciation, amortization, equity compensation, LIFO adjustments, restructuring charges, asset disposal losses, business transformation costs, and cybersecurity incident-related expenses Reconciliation of Net Loss (including noncontrolling interests) to Adjusted EBITDA (million USD) | Metric | FY2025 Q4 (13 Weeks) | FY2024 Q4 (14 Weeks) | FY2025 Full Year (52 Weeks) | FY2024 Full Year (53 Weeks) | | :------------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | Net Loss (including noncontrolling interests) | $(86) | $(37) | $(115) | $(110) | | Less: Net income attributable to noncontrolling interests | $(1) | $0 | $(3) | $(2) | | Interest expense, net | $36 | $50 | $146 | $162 | | Income tax benefit | $(23) | $(7) | $(39) | $(27) | | Depreciation and amortization | $79 | $91 | $321 | $319 | | Share-based compensation | $15 | $11 | $43 | $37 | | LIFO (income) expense | $(7) | $(12) | $(2) | $7 | | Restructuring, acquisition, and integration related expenses | $59 | $19 | $94 | $36 | | Loss on asset disposals and other asset charges | $3 | $20 | $42 | $57 | | Business transformation costs | $7 | $12 | $47 | $52 | | Cybersecurity incident | $26 | $0 | $26 | $0 | | Other adjustments | $13 | $0 | $15 | $4 | | Adjusted EBITDA | $116 | $143 | $552 | $518 | - Fiscal year 2025 restructuring expenses primarily included $53 million related to the termination of a supply agreement with an eastern region customer, and costs associated with certain employee severance and outsourcing of certain corporate functions[36] - Cybersecurity incident-related costs and expenses primarily included mitigation and remediation costs associated with third-party cybersecurity, legal, and governance experts, with $15 million recorded in gross profit and $11 million in operating expenses[36] Reconciliation of Net Loss Attributable to United Natural Foods, Inc. to Adjusted Net (Loss) Income and Adjusted EPS This section provides a reconciliation from GAAP net loss attributable to United Natural Foods, Inc. to adjusted net (loss) income and adjusted EPS for the fourth quarter and full fiscal years 2025 and 2024, calculated by adding specific non-GAAP adjustments and applying the adjusted effective tax rate Reconciliation of Net Loss Attributable to United Natural Foods, Inc. to Adjusted Net (Loss) Income and Adjusted EPS (million USD, except per share amounts) | Metric | FY2025 Q4 (13 Weeks) | FY2024 Q4 (14 Weeks) | FY2025 Full Year (52 Weeks) | FY2024 Full Year (53 Weeks) | | :------------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | Net Loss Attributable to United Natural Foods, Inc. | $(87) | $(37) | $(118) | $(112) | | Restructuring, acquisition, and integration related expenses | $59 | $19 | $94 | $36 | | Loss (gain) on asset disposals and other asset charges (excluding loss on sale of accounts receivable) | $(2) | $15 | $23 | $36 | | LIFO (income) expense | $(7) | $(12) | $(2) | $7 | | Depreciation and interest expense on residual properties | $1 | $2 | $2 | $5 | | Loss on extinguishment of debt | $4 | $10 | $4 | $10 | | Business transformation costs | $7 | $12 | $47 | $52 | | Cybersecurity incident | $26 | $0 | $26 | $0 | | Other adjustments | $13 | $0 | $15 | $4 | | Tax impact of adjustments and adjusted effective tax rate | $(20) | $(8) | $(47) | $(29) | | Adjusted Net (Loss) Income | $(6) | $1 | $44 | $9 | | Diluted weighted-average shares outstanding | 60.6 | 60.0 | 61.8 | 60.4 | | Adjusted EPS | $(0.11) | $0.01 | $0.71 | $0.14 | Calculation of Net Debt to Adjusted EBITDA Leverage Ratio This section details the calculation of the net debt to Adjusted EBITDA leverage ratio for fiscal years 2025 and 2024, demonstrating a significant improvement in the leverage ratio Calculation of Net Debt to Adjusted EBITDA Leverage Ratio (million USD, except ratio) | Metric | FY2025 (August 2, 2025) | FY2024 (August 3, 2024) | | :------------------------------------- | :----------------------- | :----------------------- | | Current portion of long-term debt and finance lease liabilities | $8 | $11 | | Long-term debt | $1,859 | $2,081 | | Long-term finance lease liabilities | $11 | $12 | | Less: Cash and cash equivalents | $(44) | $(40) | | Net carrying value of debt and finance lease liabilities | $1,834 | $2,064 | | Adjusted EBITDA | $552 | $518 | | Adjusted EBITDA Leverage Ratio | 3.3x | 4.0x | Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow This section reconciles net cash provided by operating activities to free cash flow for the fourth quarter and full fiscal years 2025 and 2024, by subtracting capital expenditures from net cash provided by operating activities Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (million USD) | Metric | FY2025 Q4 (13 Weeks) | FY2024 Q4 (14 Weeks) | FY2025 Full Year (52 Weeks) | FY2024 Full Year (53 Weeks) | | :------------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | Net cash provided by operating activities | $160 | $191 | $470 | $253 | | Capital expenditures | $(74) | $(120) | $(231) | $(345) | | Free Cash Flow | $86 | $71 | $239 | $(92) | Reconciliation of Capital Expenditures to Capital and Cloud Implementation Expenditures This section reconciles capital expenditures to total capital and cloud implementation expenditures for the fourth quarter and full fiscal years 2025 and 2024, by adding cloud technology implementation expenditures to capital expenditures Reconciliation of Capital Expenditures to Capital and Cloud Implementation Expenditures (million USD) | Metric | FY2025 Q4 (13 Weeks) | FY2024 Q4 (14 Weeks) | FY2025 Full Year (52 Weeks) | FY2024 Full Year (53 Weeks) | | :------------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | Capital expenditures | $74 | $120 | $231 | $345 | | Cloud technology implementation expenditures | $1 | $5 | $7 | $25 | | Capital and Cloud Implementation Expenditures | $75 | $125 | $238 | $370 | Fiscal Year 2025 Comparable Growth Rates This section provides comparable growth rates for the fourth quarter and full fiscal year 2025, adjusted to exclude the impact of the 53rd week in fiscal year 2024, covering metrics such as net sales and Adjusted EBITDA Fiscal Year 2025 Comparable Growth Rates (million USD) | Metric | FY2025 Q4 (13 Weeks) | FY2024 Q4 (13 Weeks, Comparable) | Comparable 13-Week Percentage Change | FY2025 Full Year (52 Weeks) | FY2024 Full Year (52 Weeks, Comparable) | Comparable 52-Week Percentage Change | | :------------------------------------- | :----------------------- | :----------------------------- | :------------------- | :-------------------- | :----------------------------- | :------------------- | | Net Sales | $7,696 | $7,573 | 1.6 % | $31,784 | $30,398 | 4.6 % | | Natural Products | $3,998 | $3,663 | 9.1 % | $16,017 | $14,668 | 9.2 % | | Conventional Products | $3,414 | $3,637 | (6.1)% | $14,667 | $14,666 | — % | | Retail | $573 | $583 | (1.7)% | $2,342 | $2,391 | (2.0)% | | Eliminations | $(289) | $(310) | (6.8)% | $(1,242) | $(1,327) | (6.4)% | | Adjusted EBITDA | $116 | $133 | (12.8)% | $552 | $508 | 8.7 % | - Comparable 13-week and 52-week percentage changes exclude the estimated contribution from the extra week in fiscal year 2024[45] Reconciliation of Actual Fiscal Year 2025 and 2024 U.S. GAAP Effective Tax Rate to Adjusted Effective Tax Rate This section reconciles the actual U.S. GAAP effective tax rate to the adjusted effective tax rate for fiscal years 2025 and 2024, calculated by adjusting for discrete GAAP items, tax impact of other expenses and adjustments, and changes in valuation allowance Reconciliation of Actual Fiscal Year 2025 and 2024 U.S. GAAP Effective Tax Rate to Adjusted Effective Tax Rate | Metric | FY2025 Actual | FY2024 Actual | | :------------------------------------- | :------------- | :------------- | | U.S. GAAP Effective Tax Rate | 25 % | 20 % | | Quarterly discrete recognition of GAAP items | (1)% | 20 % | | Tax impact of other expenses and adjustments | (13)% | (24)% | | Change in valuation allowance | 5 % | 5 % | | Adjusted Effective Tax Rate | 16 % | 21 % |