UNFI reports 5% hit on Q4 sales from June cyberattack

Core Insights - The cyberattack in June significantly impacted United Natural Foods Inc. (UNFI), costing approximately 5% of sales in the fiscal fourth quarter and reducing adjusted EBITDA by about $50 million [1][2]. Financial Performance - UNFI reported fourth-quarter sales of approximately $7.7 billion, reflecting a 1.6% increase year-over-year on a comparable basis [5]. - For the full fiscal year, sales rose by 2.6% to about $31.8 billion, driven by a 7.2% increase in the natural channel [6]. - The company experienced a loss of $87 million in the fourth quarter and a loss of $118 million for the full fiscal year, compared to losses of $37 million and $112 million in the previous year [4]. Growth Projections - UNFI has raised its three-year financial goals, now targeting low single-digit annual sales growth from fiscal 2024 through fiscal 2027, up from a previous target of flat sales growth [3]. - The company aims for adjusted annual EBITDA growth in the low double digits during the same period, an increase from previous high single-digit targets [4]. Operational Strategies - UNFI is implementing "lean" operating strategies across 28 facilities to enhance supply chain efficiency, which is expected to drive profitability in fiscal 2026 [10]. - The company anticipates net income between $0 and $50 million in fiscal 2026, with sales projected between $31.6 billion and $32 billion [10]. Market Position - UNFI's market position has been challenged as C&S Wholesale Grocers has overtaken it as the top U.S. grocery wholesaler in market share due to its acquisition of SpartanNash [11].