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Apr 27, 2024
UNFI Q3 2024 Earnings Report
Reported third quarter fiscal 2024 results, showing a slight decrease in net sales but improved profitability through cost management.
Key Takeaways
UNFI reported a slight decrease in net sales but improved profitability driven by cost reduction actions and supply chain efficiencies. The company is finalizing a multi-year strategic plan expected to generate free cash flow approaching $100 million in fiscal 2025.
Net sales decreased slightly by 0.1% to $7.5 billion.
Net loss was $21 million, with a loss per diluted share of $(0.34).
Adjusted EBITDA decreased by 18.2% to $130 million.
Adjusted EPS decreased to $0.10.
UNFI
UNFI
UNFI Revenue by Segment
Revenue by Segment
Natural Revenue
CapyFin.comConventional Revenue
CapyFin.comRetail Revenue
CapyFin.com Forward Guidance
The company is updating its full-year outlook which lowers its expectations for net income and EPS primarily due to charges related to cost reduction actions. Adjusted EBITDA and Adjusted EPS, which exclude these amounts, are expected to be higher than the previously provided outlook.
Positive Outlook
- Net sales are expected to be between $30.5 billion and $31.0 billion.
- Adjusted EBITDA is expected to be between $490 million and $520 million.
- Adjusted EPS is expected to be between $(0.20) and $0.20.
- Capital and cloud implementation expenditures are expected to be approximately $370 million.
- The 53rd week is expected to add approximately $600 million to Net sales and $9 million to Adjusted EBITDA in the ranges provided.
Challenges Ahead
- Net loss is expected to be between $(109) million and $(85) million.
- EPS is expected to be between $(1.85) and $(1.45).
- Lowered expectations for net income and EPS primarily due to charges related to cost reduction actions.
- Figures presented include the impact of the term loan amendment and extension and ABL loan amendment.
- The outlook is forward-looking and subject to a number of risks outside of management's control.
Revenue & Expenses
Visualization of income flow from segment revenue to net income