UNFI Sees Sales Gains In Q2
Second quarter net sales at United Natural Foods, Inc., (UNFI) were up year-over-year as the company also reported a smaller net loss than the comparable quarter the previous year.
Net sales for the 13 weeks ended February 1 were $8.2 billion, an increase of 4.9% from the comparable quarter the previous year. Net loss in the quarter was $3 million, an improvement over the company’s net loss of $15 million in the second quarter of the previous year. Adjusted EBITDA was $145 million, up 13.3% from the previous year’s second quarter.
“During the second quarter, we delivered solid sales growth and our sixth consecutive quarter of sequentially improving Adjusted EBITDA,” said Sandy Douglas, CEO of UNFI. “We also continued to execute against our multi-year strategic plan focused on creating sustainable value for our customers and suppliers, while enhancing our profitability and free cash flow generation and reducing net leverage. Our continued positive volume trends serve as an indicator of the strength of our customer base and the unique role UNFI plays in the food distribution supply chain.”
Through the second quarter, UNFI continued the execution of its multi-year strategy that included expanding work to strengthen partnerships and value creation for its customers and suppliers. The company also completed the closure of its Fort Wayne distribution center and previously announced its product-centered realignment to drive further specialization and streamlining.
“We are currently working to complete the previously announced product-focused realignment of our wholesale business designed to create more customized service for our customers and suppliers,” said Douglas. “As we look to the second half of the fiscal year, we remain focused on further execution of our plan and identifying new opportunities to bring increasing value, while delivering our updated outlook and continuing to deleverage our balance sheet.”
The company also updated its outlook and is now forecasting full-year net sales of $31.3 billion to $31.7 billion, up from previous guidance of net sales of $30.6 billion to $$31 billion. UNFI is also forecasting net (loss) income of between ($13 million) to $3 million, up from previous guidance of a net (loss) of between ($31 million) to ($3 million).
