United Natural Foods Inc. (UNFI) surged over 15% after posting Q4 results which beat Wall Street's expectations. The grocery wholesaler reported a quarterly adjusted loss of 11 cents per share for the... ...

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].

While reporting financial results for the fourth quarter on Tuesday, grocery wholesaler United Natural Foods, Inc. (UNFI) initiated its adjusted earnings and net sales guidance for the full-year 2026, reflecting underlying momentum and continued strategy execution.For the year, the company now projects a loss in a range of $0.00 to $0.80 per share and adjusted earnings in a range of $1.50 to $2.30 per share on net sales between $31.6 billion and $32.0 billion.On average, ten analysts polled expect the comp ...

Core Insights - United Natural Foods, Inc. (UNFI) has updated its fiscal 2025 financial outlook while maintaining confidence in its long-term strategic goals, reflecting strong performance in the first three quarters and the impact of a cyber incident in the fourth quarter [1][3][11] Financial Outlook - For fiscal 2025, UNFI anticipates net sales of $31.6-$31.8 billion, an increase of 2.3% over fiscal 2024, compared to the previous forecast of $31.3-$31.7 billion [3][10] - Adjusted EBITDA is now expected to be between $535 million and $565 million, slightly below the previous estimate of $550-$580 million, indicating a 6.2% growth over the prior year [3][10] - Adjusted EPS has been revised to 40-80 cents from the prior range of 70-90 cents, reflecting the temporary impact of the cyber incident [4] - Free cash flow is projected at approximately $200 million, up from the prior forecast of $150 million, showing a significant improvement from negative $92 million in fiscal 2024 [4][10] Cybersecurity Incident - UNFI faced a cybersecurity incident in the fourth quarter of fiscal 2025, which is expected to reduce net sales by about $350-$400 million and lower adjusted EBITDA by $40-$50 million [5] - The incident is anticipated to incur $20 million in incremental costs and about $5 million in remediation expenses, leading to a total estimated net loss of $50 million to $60 million, including tax impact [5] - Despite the disruption, primary ordering systems were restored within 10 days, and operations are now at normalized levels, with no material impact expected beyond fiscal 2025 [6] Strategic Initiatives - UNFI continues to focus on a partner-first strategy, improving efficiency, and accelerating multi-year growth plans despite recent challenges [2][11] - The company benefits from lean management practices, wholesale business realignment, and optimization of unprofitable operations, indicating a commitment to long-term value creation [7][11] - The natural and organic business segment is experiencing impressive growth due to increased consumer demand for healthier products, aligning with broader consumer trends [8]