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Apr 29, 2023

UNFI Q3 2023 Earnings Report

Reported third quarter fiscal 2023 results, demonstrating sales and product penetration increases amidst industry headwinds, but profitability was impacted by gross margin decline.

Key Takeaways

UNFI reported a 3.7% increase in net sales to $7.5 billion for the third quarter of fiscal 2023. However, net income decreased by 89.6% to $7 million, and adjusted EPS decreased by 50.9% to $0.54. The company is lowering its full-year profitability outlook while maintaining its sales and capital expenditure outlook.

Net sales increased by 3.7% to $7.5 billion.

Net income decreased by 89.6% to $7 million; EPS decreased by 89.1% to $0.12.

Adjusted EBITDA decreased by 18.9% to $159 million.

Adjusted EPS decreased by 50.9% to $0.54.

Total Revenue
$7.51B
Previous year: $7.24B
+3.7%
EPS
$0.54
Previous year: $1.1
-50.9%
Gross Profit
$1B
Previous year: $1.01B
-1.2%
Cash and Equivalents
$38M
Previous year: $48M
-20.8%
Free Cash Flow
$65M
Previous year: -$126M
-151.6%
Total Assets
$7.64B
Previous year: $7.88B
-3.0%

UNFI

UNFI

Forward Guidance

The Company has updated its full year outlook. Net sales are expected to be between $30.1 - $30.5 billion. Net income is expected to be between $11 - $41 million. EPS is expected to be between $0.20 - $0.70. Adjusted EPS is expected to be between $1.80 - $2.30. Adjusted EBITDA is expected to be between $610 - $650 million. Capital expenditures are expected to be approximately $350 million.