UNFI Q3 Sales Flat, Net Income Dips
Fiscal year third quarter net sales at United Natural Foods, Inc., (UNFI) were flat year-over-year as the company reported a net loss in the 13 weeks ended April 27.
Quarterly net sales were $7.5 billion, a decrease of 0.1%, driven by a decline in unit volumes that was largely offset by inflation and new business with existing customers. Net loss for the quarter was $21 million, compared with net income of $7 million in the comparable quarter the previous year. Net loss per diluted share (EPS) was $(0.34) for the third quarter of fiscal 2024 compared to net income per diluted share of $0.12 for the third quarter of fiscal 2023.
“We delivered another quarter in line with our fiscal 2024 plan and our third consecutive quarter of improving profitability driven by continued progress on near-term operational and efficiency initiatives,” said Sandy Douglas, UNFI’s chief financial officer. “This progress includes significant cost reduction actions and supply chain efficiencies, and we see opportunity to drive further improvement across these areas.”
He noted the company’s ongoing board- and management-led financial review is also nearing an important milestone, which is UNFI’s new multi-year strategic plan that will begin in fiscal 2025.
“We are beginning to see tangible benefits to our financial performance stemming from this process and are focused on driving short- and long-term improvement by optimizing controllable variables in our new plan,” he said.
Douglas said the company expects its updated strategy to generate free cash flow approaching $100 million in fiscal 2025 and stable and dependable profit and cash flow growth, with improving returns on capital and declining net leverage on a multi-year basis.
