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Nov 02, 2024
UNFI Q1 2025 Earnings Report
Reported solid financial results with increased net sales and adjusted EBITDA.
Key Takeaways
UNFI reported a 4.2% increase in net sales to $7.9 billion and a 14.5% increase in adjusted EBITDA to $134 million in the first quarter of fiscal 2025. The company's performance reflects the early success of its multi-year strategic plan, with positive volume trends from new and existing customers. UNFI is also raising its full-year outlook for all financial metrics other than capital spending.
Net sales increased by 4.2% to $7.9 billion.
Net loss was $21 million, with a loss per diluted share of $(0.35).
Adjusted EBITDA increased by 14.5% to $134 million.
Adjusted EPS increased to $0.16.
UNFI
UNFI
Forward Guidance
The Company is increasing its full-year outlook for all metrics other than Capital and Cloud implementation expenditures. Net sales are projected to be between $30.6 and $31.0 billion, net loss between $(31) and $(3) million, EPS between $(0.45) and $(0.05), adjusted EPS between $0.40 and $0.80, and adjusted EBITDA between $530 and $580 million. Capital and cloud implementation expenditures are expected to be around $300 million, and free cash flow is expected to be greater than $100 million.
Positive Outlook
- Net sales are projected to be between $30.6 and $31.0 billion.
- Net loss is projected to be between $(31) and $(3) million.
- EPS is projected to be between $(0.45) and $(0.05).
- Adjusted EPS is projected to be between $0.40 and $0.80.
- Adjusted EBITDA is projected to be between $530 and $580 million.
Challenges Ahead
- Capital and cloud implementation expenditures are expected to be around $300 million.
- The outlook is forward-looking and subject to risks outside of management's control.
- Estimates are based on a number of assumptions and are subject to change.
- The company is unable to provide a full reconciliation to the most comparable GAAP measure without unreasonable effort due to the difficulty in predicting the amounts for certain adjustment items.
- The components of capital and cloud implementation expenditures for fiscal 2025 will be primarily dependent on the nature of certain contracts to be executed.