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Feb 01, 2020

UNFI Q2 2020 Earnings Report

UNFI's financial performance remained relatively stable with slight decrease in net sales, but was impacted by customer bankruptcies.

Key Takeaways

UNFI reported a slight decrease in net sales but faced challenges due to customer bankruptcies, which impacted GAAP and adjusted results. Despite these headwinds, the company saw growth in its Supernatural channel and reduced its total outstanding net debt.

Net sales were $6.14 billion, slightly down from $6.15 billion in the previous year.

Total outstanding net debt decreased by $149 million compared to the first quarter of fiscal 2020.

Second quarter results included charges of $0.44 per diluted share related to customer bankruptcies.

Adjusted EBITDA grew by low double digits prior to charges associated with customer bankruptcies.

Total Revenue
$6.14B
Previous year: $6.15B
-0.2%
EPS
$0.32
Previous year: $0.44
-27.3%
Gross Margin
12.63%
Gross Profit
$775M
Previous year: $762M
+1.8%
Cash and Equivalents
$40.1M
Previous year: $49.5M
-19.1%
Free Cash Flow
$128M
Previous year: $69.1M
+85.0%
Total Assets
$7.68B
Previous year: $7.4B
+3.8%

UNFI

UNFI

UNFI Revenue by Segment

Forward Guidance

UNFI updated its fiscal 2020 guidance to reflect customer bankruptcy charges, while net sales guidance remains unchanged.

Revenue & Expenses

Visualization of income flow from segment revenue to net income