United Natural Foods Inc Announces First Quarter Fiscal 2025 Financial Results
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United Natural Foods, Inc. Announces First Quarter Fiscal 2025 Financial Results
United Natural Foods, Inc. (NYSE: UNFI) reported its financial results for the first quarter of fiscal 2025, ending on November 2, 2024.
Key Financial Metrics (in U.S. dollars)
| Metric | Q1 Fiscal 2025 | Q1 Fiscal 2024 | YoY Change |
|---|---|---|---|
| Net Sales | $7.9 billion | $7.58 billion | +4.2% |
| Net Loss | $21 million | $39 million | Improved |
| EPS (Diluted) | $(0.35) | $(0.67) | Improved |
| Adjusted EPS | $0.16 | $(0.04) | Improved |
| Adjusted EBITDA | $134 million | $117 million | +14.5% |
The company showed a strong financial performance with net sales experiencing a 4.2% increase year-over-year. Adjusted EBITDA saw a significant improvement of 14.5%, indicating effective cost management and operational efficiencies.
Key Developments and Operational Highlights
- Improved free cash flow by $170 million compared to the previous year.
- Executed multi-year strategy with a focus on value creation and business optimization.
- New business gains with existing customers and a revamped commercial strategy.
- Progress in distribution network optimization with strategic closures and streamlining.
Management Commentary
Sandy Douglas, UNFI’s CEO, highlighted, “Our performance this quarter represents a solid start to fiscal 2025 and serves as an early proof point of our strategic plan, focusing on bringing value and enhancing efficiency.” He emphasized the positive volume trends driven by new business and existing customer growth. Douglas also reiterated the company’s commitment to operational execution and driving efficiencies.
Capital Allocation and Financing
- Announced total outstanding debt at $2.23 billion and a net debt to Adjusted EBITDA leverage ratio of 4.2x.
- Liquidity stood at approximately $1.17 billion, inclusive of cash and asset-based lending capacity.
Fiscal 2025 Outlook
UNFI raised its full-year outlook for all financial metrics, excluding capital spending and cloud implementation expenditures, reflecting confidence in its strategic initiatives.
Overall, UNFI started fiscal 2025 on a strong note, with robust sales growth and strengthened financial metrics depicting successful strategic implementations. Management's optimistic outlook further underlines their confidence in sustaining this momentum going forward.
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