United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q2 2023 Earnings Presentation
22 slides from United Natural Foods's earnings presentation, Mar 8, 2023
Slide 1: Second Quarter Fiscal 2023 Earnings Conference Call
Second Quarter Fiscal 2023 Earnings Conference Call March 8, 2023
Slide 2: Disclaimer
Disclaimer Certain information in this presentation and discussed on the conference call which this presentation accompanies constitutes forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this presentation regarding the Company’s bus
Slide 3: Agenda
Agenda Introduction Steve Bloomquist Vice President, Investor Relations Opening Remarks Sandy Douglas Chief Executive Officer Financial Results John Howard Chief Financial Officer Q&A 3 Better Food. Better Future.
Slide 4: Results Summary
Results Summary $ Millions, except for per share data. Q2 FY23 Q2 FY22 % Change Net Sales $7,816 $7,416 5.4% Gross Profit $1,069 $1,075 (0.6)% 1 Adjusted EBITDA $181 $220 (17.7)% 1 Adjusted EPS $0.78 $1.36 (42.6)% • Net sales growth primarily driven by inflation, new customers wins, and deeper sales
Slide 5: Opening Remarks
Opening Remarks Sandy Douglas Chief Executive Officer Better Food. Better Future.
Slide 6: Combining Growth with Commitment to Operational Excellence
Combining Growth with Commitment to Operational Excellence Solid Financial Performance from Pre-Pandemic Committed to Growth & Shareholder Value Transformation for Operational Excellence Net Revenue Growth >$1B Annually Flywheel Effect Driving Growth… Multifaceted Plan Underway… Seeking to combine p
Slide 7: Financial Results
Financial Results John Howard Chief Financial Officer Better Food. Better Future.
Slide 8: Q2 FY23 Revenue Performance
Q2 FY23 Revenue Performance $ in Millions. 17 23 $ 7,816 206 +2.6% vs. PY +13.5% vs. PY +14.2% vs. PY 75 79 +3.9% vs. PY +12.4% vs. PY $ 7,416 +2.4% vs. PY +3.7% vs. PY +5.4% Growth Q2 FY22 Chains Independent Supernatural Retail Eliminations & Other Q2 FY23 Retailers • Wholesale growth includes net
Slide 9: Q2 FY23 Adjusted EBITDA and Adjusted EPS Performance
Q2 FY23 Adjusted EBITDA and Adjusted EPS Performance $ in Millions, except per share data. Adjusted EBITDA Adjusted EPS $1.36 $(0.47) $220 +8.8% +8.8% $0.03 $(0.06) $181 $(0.03) $0.01 $(0.06) $0.78 +8.8% 3.0% Margin 2.3% Margin Q2 FY22 Adj EBITDA Net D&A Non-Cash Stock Acct. Rec. Q2 FY23 Interest Pe
Slide 10: Free Cash Flow and Comparative Leverage
Free Cash Flow and Comparative Leverage Retain significant capacity to help fund transformation initiatives and strengthen balance sheet Free Cash Flow Net Debt/Adj. EBITDA Leverage Ratio $ Millions $448 3.1x 3.0x 2.6x $282 Reduced 0.5x $214 $166 $74 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY21 Q2 FY22 Q2 FY23 A
Slide 11: Revising Fiscal 2023 Outlook
Revising Fiscal 2023 Outlook (1) Raising revenue growth, reducing profitability and maintaining projected capital expenditures vs prior outlook Net Sales Adjusted EBITDA Adjusted EPS Capex $30.1-$30.5B $715-$785M $30.1-$30.5B $3.05-$3.90 ~$350M ~$350M (+1% vs. previous midpoint) (-13%(+0.7% vs. prev
Slide 12: In Summary
In Summary • Seeking to combine proven topline growth strategy with transformational improvement program to enhance long-term profitability and shareholder returns. • Strong customer pipeline expected to drive sales strength for second half of fiscal 2023. • Expect continued profitability volatility
Slide 13: Appendix
UNFI Appendix
Slide 14: Capital structure
Capital structure Q2 decrease in net debt includes benefit of accounts receivable monetization ($'s in Millions) Maturity Rate (2) Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 (1) Secured term loan B-1 October 2025 S + 3.25% $ 844 $ 800 $ 800 $ 800 $ 670 $2.6B ABL revolver (1)(3) June 2027 S + 1.0% / Pri
Slide 15: Non-GAAP Metric Definitions
Non-GAAP Metric Definitions Adjusted earnings per share: The non-GAAP adjusted earnings per diluted common share measure is a consolidated measure, which the Company reconciles by adding Net income attributable to UNFI plus goodwill impairment benefits and charges, restructuring, acquisition, and in
Slide 16: Reconciliation – Adjusted EBITDA
Reconciliation – Adjusted EBITDA 16 Better Food. Better Future.
Slide 17: Reconciliation – Adjusted EPS
Reconciliation – Adjusted EPS 17 Better Food. Better Future.
Slide 18: Reconciliation – Last Four Quarters Adjusted EBITDA
Reconciliation – Last Four Quarters Adjusted EBITDA 18 Better Food. Better Future.
Slide 19: Calculation – Net Debt to Adjusted EBITDA Leverage Ratio
Calculation – Net Debt to Adjusted EBITDA Leverage Ratio 19 Better Food. Better Future.
Slide 20: Reconciliation – Free Cash Flow
Reconciliation – Free Cash Flow 20 Better Food. Better Future.
Slide 21: Adjusted EBITDA By Segment
(1) Adjusted EBITDA By Segment 21 Better Food. Better Future.
Slide 22: Reconciliation – FY23 Outlook
Reconciliation – FY23 Outlook 22 Better Food. Better Future.