Summary of UNFI Conference Call Company Overview - **Company**: United Natural Foods, Inc. (UNFI) - **Industry**: Grocery Distribution - **Revenue**: Over $31 billion projected for 2025 [1] Key Financial Highlights - **EBITDA Growth**: Grew by 23% in Q2 [2] - **Free Cash Flow**: Generated over $240 million [3] - **Leverage Ratio**: Reduced to 2.7 turns [3] - **Sales Performance**: Reported sales declined by 2.6%, but normalized growth was approximately 2.5% after accounting for a 500 basis points network optimization headwind [4] Strategic Focus - **Value Creation**: Strategy centered on creating value for customers and suppliers, enhancing procurement and delivery efficiency [3] - **Sales Pipeline**: Strong pipeline with new categories and customers [3] - **Financial Algorithm**: Low single-digit sales growth expected, with EBITDA growth projected to reach $800 million by 2028 [8][9] Market Dynamics - **Consumer Behavior**: Noted softening in consumer volumes during November to January, with a widening gap between food away from home inflation and food at home inflation [5][6] - **Addressable Market**: Focused on a $90 billion market, with $60 billion in natural and organic products and $30 billion in conventional products [15][19] Operational Efficiency - **Lean Management**: Lean Daily Management deployed across 36 distribution centers, showing early productivity improvements of 6%-7% [33][35] - **Supply Chain Modernization**: Implementation of RELEX for inventory management, expected to be completed by the end of fiscal 2026 [38][39] Competitive Landscape - **Industry Competition**: The grocery distribution market remains competitive, with recent consolidations among competitors [30][31] - **Differentiation Strategy**: UNFI aims to differentiate through value creation and effective customer support [31] Private Label Strategy - **Private Labels**: Significant opportunity in private label products, especially in the natural organic segment, with recent additions to the portfolio [45][47] Retail Operations - **Cub Retail**: Market leader in Minneapolis, undergoing a turnaround with a new CEO focused on revitalizing the brand and differentiating the customer experience [50][53] Network Optimization - **Distribution Centers**: Completed network optimization, including opening new automated centers and closing underperforming ones, with a focus on win-win solutions with customers [55][56] Value-Added Services - **Customer Engagement**: High frequency of dialogues with customers to enhance service offerings, with many customers utilizing multiple services [59][61] Future Outlook - **Inflation Management**: Projecting low single-digit inflation for the fiscal year, with strategies in place to manage costs and maintain competitiveness [29] - **Capital Allocation**: Focus on deleveraging and maintaining flexibility for future investments and potential share buybacks [68] Conclusion - **Strategic Consistency**: UNFI emphasizes a consistent strategy focused on value creation and operational efficiency, with strong financial performance supporting future growth [67]

Financial Data and Key Metrics Changes - In Q2 fiscal 2026, the company's sales were nearly $8 billion, reflecting a decline of 2.6% year-over-year, impacted by nearly 500 basis points from optimization actions [14][15] - Adjusted EBITDA grew by 23% to $179 million, with an Adjusted EPS of $0.62, significantly up from $0.22 in the previous year [18][24] - Free cash flow increased by $50 million to $243 million, contributing to a reduction in net debt to its lowest level since fiscal 2018, with a net leverage ratio of 2.7 times [20][21] Business Line Data and Key Metrics Changes - Natural product sales grew by 7%, outperforming the market, while conventional product sales declined by 12%, primarily due to network optimization efforts [15][16] - Retail sales fell by 8%, attributed to strategic store closures, although same-store sales improved sequentially by 100 basis points [16] Market Data and Key Metrics Changes - The company targets a $90 billion addressable market, with expectations for low single-digit average sales growth from fiscal 2026 through fiscal 2028 [11][24] - The overall business outperformed the market, with sales growth in line with the target addressable market's estimated low double- to single-digit growth rate [10][15] Company Strategy and Development Direction - The company is focused on a value creation strategy aimed at achieving profitable growth with customers and suppliers, enhancing capabilities in areas such as supply chain, technology, and private brands [5][12] - The implementation of an AI-powered supply chain planning platform, Relex, is expected to improve customer service and inventory management [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in fiscal 2027, driven by a strong new business pipeline and the cycling of larger optimization actions [10][24] - The company remains focused on helping retailers differentiate themselves in a dynamic market, emphasizing the importance of natural and organic products [11][62] Other Important Information - The company repurchased nearly 750,000 shares for approximately $25 million, reflecting confidence in long-term value creation [22] - An updated outlook for full-year sales is now projected at $31 billion to $31.4 billion, a reduction of 1.9% at the midpoint [23] Q&A Session Summary Question: Impact of network optimization on conventional sales - The company noted a 500 basis point headwind from network optimization, primarily due to the exit from the Allentown facility, which was executed faster than anticipated [30] Question: Underlying business trends in conventional sales - Excluding network optimization impacts, the underlying business showed low single-digit growth, driven by inflation and volume trends [33] Question: Composition of the new business pipeline - The majority of the pipeline consists of incremental categories with existing customers, reflecting healthy relationships and growth opportunities [38] Question: Future of productivity gains - Productivity increased by 6%, driven by automation and lean practices, with expectations for continued improvements [41] Question: Impact of SNAP changes on guidance - The company believes the impact of SNAP changes is manageable and has been factored into the guidance for the remainder of the year [51] Question: Vendor-funded promotions and inflation outlook - Vendor promotions have become more selective, with a focus on peak holiday moments, while inflation is modeled at low single digits for the remainder of the year [67]

Financial Data and Key Metrics Changes - In Q2 fiscal 2026, total sales were nearly $8 billion, a decline of 2.6% year-over-year, impacted by nearly 500 basis points from optimization actions [12][20] - Adjusted EBITDA grew by 23% to $179 million, with an adjusted EPS of $0.62, significantly up from $0.22 in the previous year [16][20] - Free cash flow increased by $50 million to $243 million, contributing to a reduction in net debt to its lowest level since fiscal 2018, with a net leverage ratio of 2.7 times [18][19] Business Line Data and Key Metrics Changes - Natural product sales grew by 7%, outperforming the market, while conventional product sales declined by 12%, primarily due to network optimization [13][14] - Retail sales fell by 8%, largely due to strategic store closures, although same-store sales improved sequentially by 100 basis points [14] Market Data and Key Metrics Changes - The overall business outperformed the market, aligning with the target addressable market's estimated low double- to single-digit growth rate [9][13] - The company is targeting a $90 billion addressable market, focusing on grocers that emphasize differentiation for sustained long-term growth [10] Company Strategy and Development Direction - The company is advancing a value creation strategy aimed at achieving profitable growth with customers and suppliers, focusing on supply chain enhancements, private brands, and technology [4][10] - The implementation of an AI-powered supply chain planning platform, Relex, is expected to improve customer service and inventory management [5][6] Management's Comments on Operating Environment and Future Outlook - Management remains confident in delivering low single-digit average sales growth for fiscal 2026 through fiscal 2028, with expectations for growth returning in fiscal 2027 [10][22] - The company is monitoring the impact of SNAP changes on consumer behavior but believes the effects are manageable and embedded in their outlook [50] Other Important Information - The company repurchased nearly 750,000 shares for approximately $25 million, reflecting confidence in long-term value creation [19] - The updated full-year outlook includes a sales range of $31 billion to $31.4 billion, a reduction from previous expectations, while Adjusted EBITDA and Adjusted EPS expectations have been increased [20][22] Q&A Session Summary Question: Impact of network optimization on conventional sales - The 500 basis points headwind from optimization was more significant than anticipated, primarily due to the exit from the Allentown facility [26][27] Question: Underlying business trends in conventional sales - Excluding optimization impacts, the underlying business showed low single-digit growth, driven by inflation and volume trends [30][31] Question: Pipeline composition for growth - The majority of the pipeline consists of incremental categories with existing customers, reflecting healthy relationships and growth opportunities [35][36] Question: Future of private brand execution - The private brands portfolio is expected to grow faster than the total business, with a focus on innovation and differentiation [94][96] Question: Management of rising diesel costs - The company has tools to manage fuel costs, including hedges and contractual protections, making the situation manageable [92][93]

Summary of GE HealthCare Technologies FY Conference Call Company Overview - **Company**: GE HealthCare Technologies (NasdaqGS:GEHC) - **Focus**: Transitioning from a world-class imaging company to a comprehensive healthcare solutions provider, emphasizing precision care, growth acceleration, and business optimization [2][3] Core Strategies - **Precision Care**: Enhancing individual care through advanced imaging, diagnostics, and therapeutics [3] - **Growth Acceleration**: Focused on product innovation and market selection to drive faster growth [3] - **Business Optimization**: Aiming for agility and flexibility in operations, including margin expansion and inorganic integration [3][4] Financial Performance and Projections - **2025 Expectations**: Anticipated mid-single-digit revenue growth, with a strong backlog and order growth supporting acceleration into 2026 [40] - **Long-term Goals**: Projecting high-teens to 20%+ adjusted EBIT and 90%+ free cash flow from 2026 to 2028 [26][27] Product Innovations - **New Product Launches**: Significant introductions at the Radiological Society of North America (RSNA) trade show, including: - Total body PET system (Omni) pending FDA approval [13] - Photon counting system (Photonova Spectra) utilizing Deep Silicon technology [14] - StarGuide GX for imaging radiopharmaceuticals [15] - Vivid Pioneer in cardiovascular ultrasound with heavy AI integration [16] - **AI Integration**: Leading the MedTech industry with 115 FDA authorizations for AI applications, enhancing product value and patient outcomes [6] Market Dynamics - **Nuclear Medicine Growth**: Strong potential in therapeutic and diagnostic applications, particularly with new products like Flyrcado for myocardial perfusion imaging, projected to exceed $500 million in sales by 2028 [18][49] - **China Market Outlook**: Anticipated mid-single-digit growth in China, with a pragmatic approach to recovery timelines [43][44] Inorganic Growth Strategy - **Acquisition of Intelerad**: A strategic tuck-in acquisition aimed at enhancing cloud-first AI capabilities in imaging, expected to close in the first half of 2026 [19][20] Operational Efficiency - **Lean Management System**: Implementation of the Heartbeat management system to drive continuous improvement and operational efficiency [11][24] - **Cost Management**: Focus on reducing variable costs and optimizing organizational structure to enhance agility and profitability [23][24] Capital Allocation - **Investment Focus**: Prioritizing organic investments in R&D and strategic M&A to fill portfolio gaps, with a disciplined approach to capital allocation [25][30] Conclusion - **Shareholder Value Creation**: Commitment to optimizing customer and patient value while delivering high returns to shareholders through a differentiated portfolio and disciplined execution [29][30]

Summary of United Natural Foods (UNFI) 2025 Investor Day Company Overview - **Company**: United Natural Foods, Inc. (NYSE: UNFI) - **Industry**: Food Distribution - **Revenue**: Generated just under $32 billion in fiscal 2025 with over $550 million of adjusted EBITDA at a 1.7% margin [14][10][25] - **Distribution Network**: Operates 49 distribution centers with 28 million sq ft of warehouse space, delivering approximately 230,000 unique products to over 30,000 retail locations across the U.S. and Canada [14][10] Core Points and Arguments - **Long-term Strategy**: UNFI aims to become the most valued partner to grocery retailers and suppliers, focusing on adding value through unique products, competitive pricing, and enhanced services [9][10][18] - **Market Focus**: Targeting a $90 billion market, with a significant portion driven by natural, organic, and specialty products, which account for nearly half of sales and over 70% of EBITDA [15][13] - **Financial Commitments**: Projecting low single-digit top-line growth and low double-digit Adjusted EBITDA growth on average annually through fiscal 2028, with an aim to deliver $300 million in annual Free Cash Flow [10][25] Key Segments 1. **Natural Products Segment**: Accounts for nearly half of sales and over 70% of EBITDA, driven by consumer demand for health and wellness products [13] 2. **Conventional Products Segment**: Represents 44% of sales and nearly 30% of profitability, distributing well-known brands [13] 3. **Retail Segment**: Includes two retail banners, Cub and Shoppers, with opportunities for improvement and innovation [13] Strategic Initiatives - **Value Creation Strategy**: Focused on two components: adding value for customers and suppliers, and improving operational effectiveness and efficiency [18][28] - **Customer Stewardship**: Revamping commercial organization to better understand customer strategies and enhance tailored execution [19][29] - **Merchandising and Supplier Support**: Building a broad assortment and data-driven merchandising capabilities to help retailers compete effectively [20][32] - **Professional and Digital Services**: Offering scalable services to help customers save money and drive profitable growth [20][36] - **Private Brands**: Aiming to grow private brands in the mid-single-digit range, enhancing differentiation for retailers [38][39] Operational Improvements - **Technology and Innovation**: Investing in AI-powered solutions and a new ERP system to enhance operational efficiency and decision-making [40][47] - **Supply Chain Enhancements**: Implementing RELEX software for better demand planning and inventory management, leading to improved fill rates and customer service [41][42] - **Lean Management**: Adopting Lean Daily Management practices to drive continuous improvement in safety, quality, delivery, and cost [49][52] Leadership and Talent Development - **Leadership Team**: Composed of experienced industry veterans focused on transformation and growth [55][56] - **Talent Development**: Emphasizing continuous learning and leadership programs to cultivate the next generation of leaders [63][64] Financial Outlook - **Adjusted EBITDA Growth**: Expected to reach around $800 million by fiscal 2028, with an approximate margin of 2.4% [25] - **Net Leverage Reduction**: Aiming to reduce net leverage to less than 2.5 times by the end of fiscal 2026 and under 2 times by the end of fiscal 2027 [25][26] Conclusion - UNFI is positioned for sustained growth through strategic initiatives focused on customer value, operational efficiency, and a strong leadership team, with a clear path to enhancing shareholder value and market position [26][27]

Financial Performance & Targets - FY25 Net Sales were approximately $32 billion[21], with Natural, Conventional, and Retail segments contributing 49%, 44%, and 7% respectively[21] - FY25 Adjusted EBITDA was approximately $552 million[21], resulting in a 1.7% Adjusted EBITDA Margin Rate[21] - The company aims for Low-Single Digit (LSD) Average Annual Net Sales Growth and Low-Double Digit (LDD) Average Annual Adjusted EBITDA Growth through FY28[13] - The company targets approximately $33 billion in Net Sales and approximately $800 million in Adjusted EBITDA by FY28[34] - The company projects approximately $300 million in annual Free Cash Flow through FY28[13] - The company aims to increase the Adjusted EBITDA Margin Rate to approximately 2.4% by FY28, a +65 bps increase[34] Operational Improvements & Strategy - The company reduced its net leverage ratio from 4x to 3.3x in FY25[31] - The company is implementing Lean practices across the business to improve effectiveness and efficiency[31] - The company is focused on adding value for customers and suppliers while improving effectiveness and efficiency[25] - The company is working to improve throughput in distribution centers, projecting a >13% increase from FY24 to FY26E[223]

Financial Data and Key Metrics Changes - In Q1 fiscal 2026, the company reported net sales of $7.8 billion, roughly flat compared to the previous year, with adjusted EBITDA of $167 million, up nearly 25% year-over-year [14][16][20] - The adjusted EBITDA margin was 2.1% of net sales, an increase of 40 basis points year-over-year, while adjusted EPS rose to $0.56 from $0.16 last year [17][20] - Free cash flow was a use of $54 million, an improvement of about $105 million compared to the previous year, with net leverage ratio decreasing to 3.2 times, down one full turn from the prior year [18][20] Business Line Data and Key Metrics Changes - The natural product segment grew by 11%, driven by strong unit growth and new business projects, while the conventional product segment saw a decline of about 12% due to the transition out of the Allentown distribution center [14][15] - Retail sales fell by 5%, with same-store sales declining by 3%, attributed to store closures and strategic decisions to strengthen the store network [15][20] Market Data and Key Metrics Changes - Wholesale inflation was approximately 3%, with unit volumes declining about 5%, primarily due to network optimization efforts [15] - The company operates in a $90 billion target market, focusing on improving service levels and long-term profitability [4][6] Company Strategy and Development Direction - The company aims to enhance its merchandising capabilities as a competitive advantage, focusing on tailored merchandising and competitive pricing [8] - A new leader for the private brands portfolio has been appointed to drive differentiation and value for consumers [8][72] - The company is implementing advanced supply chain technologies and Lean Daily Management to improve operational effectiveness and efficiency [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year outlooks, emphasizing the importance of customer service and operational excellence [7][21] - The competitive environment remains challenging, particularly for traditional grocers, but there are opportunities for innovation and differentiation [8][36] - The company anticipates continued growth in the natural segment, projecting it as a mid-single digit grower in the long term [40][54] Other Important Information - The company is focused on reducing net debt and improving its net leverage ratio to below 2.5 times by the end of the fiscal year [20][21] - The upcoming Investor Day will provide further insights into the company's capabilities and strategies [13][69] Q&A Session Summary Question: Can you talk about drop size or new account distribution versus existing growth in the natural segment? - Management noted that growth has been strong, particularly with larger customers, leading to increased efficiency and positive trends in drop sizes [24][25] Question: How sustainable is the gross margin strength observed in Q1? - Management indicated that gross margin improvements were driven by strong natural growth and supplier programs, with expectations for continued sustainability [33][34] Question: What is the competitive environment like for both conventional and natural segments? - Management highlighted that the competitive landscape is very dynamic, with innovative retailers outperforming, and emphasized the need for strategic partnerships to help customers succeed [35][36] Question: How does the company view the health of the consumer in both segments? - Management acknowledged challenges in the conventional segment due to consumer sentiment but noted strong growth in the natural segment [39][40] Question: What is the capital allocation strategy moving forward? - Management confirmed that the focus remains on deleveraging and reducing debt, with plans to reach a net leverage ratio of 2.5 times or lower [89]

Financial Data and Key Metrics Changes - In Q1 2026, the company reported net sales of $7.8 billion, roughly flat compared to the previous year, with adjusted EBITDA of $167 million, up nearly 25% year over year [14][16][20] - The adjusted EPS for Q1 was $0.56, compared to $0.16 in the prior year, driven by higher profitability and lower net interest and depreciation expenses [17][20] - Free cash flow improved by over $100 million compared to last year's first quarter, resulting in a use of $54 million [17][18] Business Line Data and Key Metrics Changes - The natural product segment grew by 11%, driven by strong unit growth and new business projects, while the conventional product segment saw a decline of about 12% due to the transition out of the Allentown distribution center [14][15] - Gross margin rate increased to 13.4%, up 20 basis points year over year, reflecting improved execution and supplier programs [16][20] - Operating expense rate improved to 12.7% of net sales from 12.9% last year, benefiting from efficiency initiatives [16] Market Data and Key Metrics Changes - The company operates in a $90 billion target market, focusing on improving service levels and long-term profitability [5][12] - Retail sales in the conventional segment fell by 5%, partly due to store closures, while same-store sales declined by 3% [15][20] Company Strategy and Development Direction - The company is focused on enhancing its merchandising capabilities and private brands portfolio to help retailers differentiate themselves in a competitive environment [8][12] - Continued investment in supply chain technologies and lean management practices is aimed at improving operational efficiency and customer service [10][19] - The company aims to reduce net leverage to below 2.5 times by the end of the fiscal year, with a long-term goal of achieving sustainable value creation [22][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year outlook, emphasizing the importance of customer service and operational excellence [6][22] - The competitive environment remains challenging, particularly for traditional grocers, but there are opportunities for innovation and differentiation [36][41] - The company anticipates continued growth in the natural segment, projecting it to be a mid-single digit grower in the long term [41][55] Other Important Information - The company has ramped operations at a new automated natural product distribution center in Sarasota, Florida, to address strong demand [12] - The management team is preparing to share more insights on capabilities and strategies at the upcoming Investor Day [12][68] Q&A Session Summary Question: Can you talk about drop size or new account distribution versus existing growth? - Management noted that growth has been positive, largely driven by larger customers giving more business, which enhances efficiency [25] Question: How sustainable is the gross margin strength in the quarter? - Management indicated that gross margin improvements were driven by strong natural growth and supplier programs, but some procurement gains are viewed as temporary [33] Question: What is the competitive environment at retail for both conventional and natural? - Management highlighted that the retail environment is very competitive, with many retailers innovating to differentiate themselves [36] Question: How has the Allentown transition impacted conventional sales? - The transition was a significant factor in the decline of conventional sales, but management remains optimistic about future performance [40] Question: What is the company's capital allocation strategy going forward? - The focus remains on deleveraging and reducing debt, with plans to reach a net leverage ratio of 2.5 times or lower [90]

Financial Performance - Q1 FY26 - Net sales decreased slightly by 0.4% to $7,840 million compared to $7,871 million in Q1 FY25 [14] - Adjusted EBITDA increased significantly by 24.6% to $167 million from $134 million in Q1 FY25 [14] - Adjusted EPS grew substantially by 250% to $0.56 from $0.16 in Q1 FY25 [14] - Free cash flow improved from $(159) million to $(54) million [14] Strategic Initiatives and Operational Efficiency - Network optimization actions reduced total net sales growth by approximately 3% [15, 24] - Net leverage ratio decreased to 3.2x, down 1.0x year-over-year [30] - Net debt decreased by $331 million year-over-year to $1,897 million [30] - Lean daily management was deployed at 34 out of 49 distribution centers by the end of the quarter [19] - New item setup time was reduced by 50% at the Chesterfield, NH Distribution Center [44] Fiscal Year 2026 Outlook - The company affirmed its fiscal 2026 outlook, including net sales of $31.6 - $32.0 billion and adjusted EBITDA of $630 - $700 million [36]

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $7.7 billion, down from $8.2 billion in the previous year, reflecting a 1.6% growth when excluding the $582 million benefit from an extra week in last year's quarter [37][38] - Full-year net sales rose 4.6% on a comparable 52-week basis, with volumes growing 1.4% and inflation at about 1.8% [39] - Adjusted EBITDA for Q4 was $116 million, compared to $133 million in the prior year, with full-year adjusted EBITDA at $552 million, slightly above the midpoint of the outlook [42][43] - Free cash flow in Q4 was $86 million, bringing the full-year total to around $240 million, a significant improvement from a cash use of approximately $90 million in fiscal 2024 [43][44] - Net debt was reduced to approximately $1.8 billion, the lowest level since 2018, with net leverage decreasing by around 0.7 turns from the end of the last fiscal year [23][44] Business Line Data and Key Metrics Changes - The natural segment experienced a growth of 9% on a comparable 13-week basis, outperforming the market, while conventional segment sales declined by 6% [38] - The company is focusing on improving category merchandising and account management capabilities, which includes realigning sales and merchandising teams [26][28] Market Data and Key Metrics Changes - The company is targeting a $90 billion addressable market that includes natural, organic, specialty, multicultural, and conventional grocery retailers [25] - The growth in the natural segment is supported by enduring consumer trends towards health and wellness [33][120] Company Strategy and Development Direction - The company aims to become the food industry's most valued partner by providing innovative products and services to help retailers and suppliers grow profitably [24] - The refresh strategy focuses on creating more value for customers and suppliers while becoming a more effective and efficient business [25][31] - The company expects to achieve net sales growth in the low single digits on average from fiscal 2024 to 2027, reflecting better-than-projected organic growth [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and ability to create sustainable long-term value despite challenges faced during the cyber incident [35] - The company anticipates continued execution of its strategy and another year of profitable growth while further strengthening its balance sheet [31][49] Other Important Information - The company has implemented lean daily management in 28 of its 52 distribution centers, which is expected to enhance operational efficiency [45] - The fiscal 2026 outlook includes expected net sales in the range of $31.6 billion to $32 billion, with adjusted EBITDA projected between $630 million and $700 million [47][48] Q&A Session Summary Question: Opportunities in natural merchandising initiatives - Management highlighted three key areas for growth in natural merchandising, focusing on innovation, simplifying the experience for emerging suppliers, and deepening involvement in categories for conventional retailers [52][56] Question: Improving conventional profitability - Management acknowledged that conventional products have lower margins and emphasized the need for thoughtful business shrinkage while focusing on improving product mix and operational efficiency [58][62] Question: Updated three-year guidance and customer attrition - Management noted solid growth in the customer file and emphasized that the strategy remains unchanged, with better-than-expected organic growth in natural and organic segments [67][68] Question: Industry promotional backdrop - Management observed a disciplined increase in promotional activities but noted that the share of volume sold on deal remains below 2019 levels [69] Question: Volume metrics and cyber incident impact - Management clarified that volume growth for the full year was about 1.5%, with a more significant impact from the cyber incident on conventional sales [70][71] Question: Adjusted EBITDA algorithm changes - Management attributed the improved adjusted EBITDA outlook to better-than-expected organic growth, continuous shrink reduction, and productivity efforts [72][73] Question: Relationship with Amazon - Management refrained from commenting on specific customers but emphasized a tailored strategy for enterprise accounts and a segmented approach to support customers of all sizes [78][79] Question: Capital investment and facility expansion - Management indicated that ongoing rationalization and expansion of distribution centers are part of their strategy, with a focus on automation and modernization [80][84] Question: Margin gain distribution in 2026 - Management outlined several factors contributing to EBITDA growth, including the exit of unprofitable contracts and continuous productivity improvements [90][93] Question: Tariff impact - Management is closely monitoring tariff developments and working with suppliers and customers to navigate challenges while keeping prices competitive [96] Question: Sales outlook for 2026 - Management expects organic sales growth led by the natural business, offset by the impact of distribution center optimization [110][111]