United Natural Foods, Inc. (NYSE: UNFI) Q3 2025 Earnings Call | 06/10/2025

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Here's a summary of UNFI's third quarter fiscal 2025 earnings conference call:

Financial Performance: UNFI reported a 7.5% increase in net sales, reaching $8.1 billion. Adjusted EBITDA increased by 20.8% to $157 million, and adjusted EPS rose to $0.44. However, they also reported a net loss of $7 million.
Key Drivers: The growth was primarily driven by a 4% increase in wholesale unit volumes, particularly in natural products, which saw a 12% increase. New business wins and strong performance from existing customers also contributed.
Strategic Initiatives: UNFI is focused on becoming a more efficient and effective partner for customers and suppliers. Lean daily management is being implemented in more distribution centers, leading to improvements in safety, quality, delivery, and cost. They are also working on optimizing their distribution network and reducing debt.
Cybersecurity Incident: The company experienced an unauthorized activity on their IT systems, which impacted operations. They are working to restore systems and support customers.
Future Outlook: UNFI is maintaining its full-year outlook for net sales ($31.3 - $31.7 billion) and adjusted EPS ($0.70 - $0.90). They expect to reduce net leverage to around 2.5x by the end of fiscal year 2026.

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United Natural Foods, Inc. (NYSE: UNFI) reported Q3 2025 results on June 10, 2025, surpassing analyst expectations with net sales of $8.06 billion—up 7.5% year-over-year and above the $7.78 billion consensus. This growth was fueled by a 12% surge in the natural products segment and a 4% increase in wholesale unit volumes, reflecting ongoing shifts toward healthier and organic food options. Adjusted earnings per share quadrupled to $0.44, beating forecasts of $0.21 and rising from $0.10 last year, while adjusted EBITDA jumped 20.8% to $157 million, the highest in two years. Free cash flow improved significantly to $119 million, up $70 million year-over-year, driven by better working capital management. Net loss narrowed to $7 million (–$0.12 per share) from $21 million (–$0.34) in Q3 2024, despite a slight decline in gross profit margin to 13.4% due to business mix and product margin rates. UNFI continues to strengthen its balance sheet, reducing net debt to under $1.93 billion and lowering its net leverage ratio to 3.3x, with a target of 2.5x by the end of fiscal 2026—one year ahead of schedule. Operating expenses as a percentage of sales improved to 12.7%, reflecting cost-saving initiatives and higher sales leverage. The company reaffirmed its fiscal 2025 outlook, projecting net sales of $31.3–$31.7 billion and adjusted EPS of $0.70–$0.90. Management noted ongoing efforts to manage a cyber incident discovered on June 5, with a focus on restoring IT capabilities and supporting customers in the short term. Outlook: FY2025: Net sales guidance of $31.3–$31.7 billion; adjusted EPS guidance of $0.70–$0.90 Net leverage ratio target of 2.5x by end of FY2026 Continued focus on margin improvement, operational discipline, and customer value About Inside Ticker: For more expert analysis and real-time updates on United Natural Foods, Inc. (NYSE: UNFI) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #UnitedNaturalFoods #UNFI #EarningsCall #Q32025 #NaturalProducts #RevenueBeat #EPSBeat #Organic #Wholesale #Guidance #Investing #InsideTicker

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