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Jul 30, 2022

UNFI Q4 2022 Earnings Report

Reported fourth quarter and full year fiscal 2022 results and announced new $200 million share repurchase authorization.

Key Takeaways

UNFI's fourth quarter net sales increased by 8.0% to $7.3 billion, while net income decreased by 9.3% to $39 million. Adjusted EPS increased 1.6% to $1.27. The company reduced net leverage to under 2.6x and increased liquidity to approximately $1.7 billion.

Net sales increased 8.0% to $7.3 billion.

Net income decreased 9.3% to $39 million; EPS decreased 8.7% to $0.63.

Adjusted EBITDA increased 3.4% to $213 million.

Adjusted EPS increased 1.6% to $1.27.

Total Revenue
$7.27B
Previous year: $6.74B
+8.0%
EPS
$1.27
Previous year: $1.18
+7.6%
Gross Profit
$1.05B
Previous year: $1B
+4.9%
Cash and Equivalents
$44M
Previous year: $41M
+7.3%
Free Cash Flow
$269M
Previous year: $133M
+102.2%
Total Assets
$7.63B
Previous year: $7.53B
+1.4%

UNFI

UNFI

Forward Guidance

The Company is providing the following outlook for fiscal 2023. Net sales are expected to be between $29.8 billion and $30.4 billion. Net income is expected to be between $247 million and $266 million. Adjusted EBITDA is expected to be between $850 million and $880 million.

Positive Outlook

  • Net sales ($ in billions) $29.8 - $30.4
  • Net income ($ in millions) $247 - $266
  • EPS $3.95 - $4.25
  • Adjusted EPS $4.85 - $5.15
  • Adjusted EBITDA ($ in millions) $850 - $880

Challenges Ahead

  • The outlook provided is for fiscal 2023 only.
  • This outlook is forward-looking and is based on management's current estimates and expectations
  • The outlook is subject to a number of risks, including many that are outside of management's control.
  • Lower non-cash pension income and higher depreciation and amortization expense from elevated investments are expected to reduce adjusted EPS growth by approximately 4% on a combined basis.
  • Capital Expenditures ($ in millions) ~ $350