United Natural Foods(UNFI) - 2026 Q1 - Quarterly Results

Financial Performance - Net sales for the first quarter of fiscal 2026 decreased by 0.4% to $7.84 billion compared to the same period in fiscal 2025[9] - Adjusted EBITDA increased by 24.6% to $167 million, driven by effectiveness and efficiency initiatives[9] - Net loss for the first quarter of fiscal 2026 was $4 million, with a loss per diluted share of $0.06, compared to a loss of $21 million and $0.35 per share in the prior year[15] - Gross profit increased by $13 million to $1.1 billion, with a gross profit rate of 13.4% of net sales[11] - Operating income for the period was $19 million, compared to $5 million in the same period last year, showing significant operational improvement[26] - Adjusted EPS for the first quarter of fiscal 2026 was $0.56, a significant increase from $0.16 in the same quarter of fiscal 2025[15] - Adjusted net income for the same period was $35 million, compared to $10 million in the prior year, resulting in an adjusted EPS of $0.56 versus $0.16[32] Cash Flow and Liquidity - Free cash flow used was $54 million, significantly improved from $159 million in the first quarter of fiscal 2025[17] - Total liquidity as of November 1, 2025, was approximately $1.33 billion, consisting of $38 million in cash and $1.29 billion in unused capacity under the asset-based lending facility[17] - Free cash flow for the 13-week period ended November 1, 2025, was $(54) million, an improvement from $(159) million in the same period last year[36] - Payments for capital expenditures were $16 million for the 13-week period ended November 1, 2025, down from $49 million in the prior year[37] Expenses and Restructuring - Operating expenses decreased to $996 million, or 12.7% of net sales, down from 12.9% in the prior year[12] - The company incurred $22 million in restructuring, acquisition, and integration-related expenses during the period, up from $12 million in the prior year[26] - The company incurred $104 million in restructuring, acquisition, and integration-related expenses over the trailing four quarters[35] - The cybersecurity incident resulted in costs of $30 million, with $13 million included in gross profit and $1 million in operating expenses[35] - The company reported a loss on the sale of assets and other asset charges totaling $50 million for the trailing four quarters[35] Debt and Leverage - The net leverage ratio declined sequentially to 3.2x, the lowest since fiscal 2023, with a target of 2.5x or less by the end of the fiscal year[9] - The net leverage ratio as of November 1, 2025, was 3.2x, with a net carrying value of debt and finance lease liabilities totaling $1.897 billion[34] - The net leverage ratio was not explicitly stated but is calculated based on total debt and trailing four quarters Adjusted EBITDA, indicating the company's capital structure[24] Outlook - The company affirmed its full-year fiscal 2026 outlook, projecting net sales between $31.6 billion and $32.0 billion[18] - The estimated adjusted effective tax rate for fiscal 2026 is projected to be 25%, compared to an actual rate of 16% for fiscal 2025[38] Asset Management - Total assets decreased to $7,561 million from $7,595 million, reflecting a decline of 0.4%[28] - Cash and cash equivalents at the end of the period were $38 million, down from $44 million at the beginning of the period[29] Year-over-Year Comparisons - Net sales for the 13-week period ended November 1, 2025, were $7,840 million, a slight decrease of 0.4% compared to $7,871 million for the same period in 2024[26] - Gross profit increased to $1,051 million, up 1.3% from $1,038 million year-over-year[26] - Adjusted EBITDA for the period was $167 million, compared to $134 million in the prior year, reflecting a year-over-year increase of 24.8%[30] - The net loss attributable to United Natural Foods, Inc. was $4 million, an improvement from a net loss of $21 million in the same period last year[26]