United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q2 2021 Earnings Presentation
19 slides from United Natural Foods's earnings presentation, Mar 10, 2021
Slide 1: Q2 Fiscal 2021 Supplemental Slides
Q2 Fiscal 2021 Supplemental Slides March 10, 2021
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 regarding the Company’s business that are not hi
Slide 3: Key Accomplishments
Key Accomplishments • Generated second quarter adjusted EBITDA of $206 million – second highest in company history and fourth straight quarter of adjusted EBITDA margin expansion vs prior year • Reduced outstanding net debt by $242 million • Extended supply agreement with Whole Foods through Septemb
Slide 4: Strong Momentum Continues: Second Quarter Fiscal 2021 Results
Strong Momentum Continues Second Quarter Fiscal 2021 Results (1) Net Sales +7.1% $6.9 billion Adjusted EBITDA (1) +57% $206 million Second highest adjusted EBITDA quarter in UNFI’s history Adjusted Adjusted EPS (1) +400% $1.25 EBITDA leverage ratio improved to approximately 3.2x (1) (1) See appendix
Slide 5: Q2 Consolidated Sales +7.1%
Q2 Consolidated Sales +7.1% Strong demand continues across our sales channels 82 2 (42) $ 6,888 87 +15.2% ($s in Millions) 140 +7.2% +8.5% +6.0% +9.0% 188 +6.5% $ 6,431 Q2 FY20 Net Sales Chains Independent Supernatural Retail Other Eliminations (1) Q2 FY21 Net Sales Retailers (1) Intercompany sales
Slide 6: Q2 Adjusted EBITDA +57%
Q2 Adjusted EBITDA +57%(1) Sales leverage and operating efficiencies drive YOY growth 14 0 $ 206 +122% 61 ($s in Millions) +52% $ 131 Q2 FY20 Wholesale / Retail Disc Ops Q2 FY21 (1) (1) Adjusted EBITDA Other / Elims Adjusted EBITDA (1) See appendix for the Company’s definition of Adjusted EBITDA and
Slide 7: Multiple Drivers of Long-Term, Sustainable Growth
Multiple Drivers of Long-Term, Sustainable Growth Building on success in Fiscal 2020 for 2021 and beyond New Customers Fresh Private Brands Cross Selling Aggressively pursuing Key store level Industry leading Natural & with unmatched differentiator for portfolio of products conventional products off
Slide 8: Q2 Capital Structure Reflects Continued De-Leveraging
Q2 Capital Structure Reflects Continued De-Leveraging Adjusted EBITDA leverage has improved by two turns since Q2 Fiscal 2020 ($'s in Millions) Maturity Rate Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 (1) (2) Secured term loan B-1 October 2025 L + 3.50% $ 1,782 $ 1,778 $ 1,773 $ 1,165 $ 1,015 $2.1B ABL
Slide 9: We're On A Mission to Make The World A Better Place
We’re On A Mission to Make The World A Better Place www.BetterForAll.UNFI.com Better for Our World Better for Our Communities Better for Our People Climate Action Food Access Safety & Wellbeing A healthy planet for future Food security and improved Good health and security for our generations nutrit
Slide 10: Fiscal 2021 Full-Year Outlook
Fiscal 2021 Full-Year Outlook Better Food. Better Future. 10
Slide 11: Fiscal 2021 Outlook
Fiscal 2021 Outlook (1) Assumes food at home consumption remains strong and greater than food away from home Net Sales Adjusted EBITDA (2) Adjusted EPS (2) Net Debt Reduction $27.0 - $27.8 B $690 - $730 M $3.05 - $3.55 ~ $250 M (3.3% growth at midpoint) (5.5% growth at midpoint) (21.3% growth at mid
Slide 12: Appendix
Appendix 12 Better Food. Better Future.
Slide 13: Reconciliation – Adjusted EBITDA
Reconciliation – Adjusted EBITDA ($’s in Thousands) The non-GAAP adjusted EBITDA measure is defined as a consolidated measure inclusive of continuing and discontinued operations results, which we reconcile by adding Net (loss) income from continuing operations, plus Total other expense, net and (Ben
Slide 14: Reconciliation – Adjusted EPS
Reconciliation – Adjusted EPS (1) See slide 15 for definition of adjusted EPS 14 Better Food. Better Future.
Slide 15: Reconciliation – FY21 Outlook Adjusted EPS & Adjusted EBITDA
Reconciliation – FY21 Outlook Adjusted EPS & Adjusted EBITDA 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 and asset impairment benefits and charges, restructuring, acqui
Slide 16: Reconciliation – Adjusted Effective Tax Rate
Reconciliation – Adjusted Effective Tax Rate The non-GAAP adjusted effective tax rate excludes the potential impact of changes to various uncertain tax positions and valuation allowances, as well as stock compensation accounting (ASU 2016-09). 16 Better Food. Better Future.
Slide 17: Reconciliation – Last Four Quarters Adjusted EBITDA
Reconciliation – Last Four Quarters Adjusted EBITDA 17 Better Food. Better Future.
Slide 18: Adjusted EBITDA By Quarter – Fiscal 2021 and Fiscal 2020
Adjusted EBITDA By Quarter – Fiscal 2021 and Fiscal 2020 (1) (1) See slide 13 for the definition of adjusted EBITDA. 18 Better Food. Better Future.
Slide 19: Adjusted EBITDA By Segment
Adjusted EBITDA By Segment 19 Better Food. Better Future.