United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q4 2023 Earnings Presentation
23 slides from United Natural Foods's earnings presentation, Sep 26, 2023
Slide 1: Fourth Quarter Fiscal 2023 Earnings Conference Call
Fourth Quarter Fiscal 2023 Earnings Conference Call September 26, 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 $ in Millions, except for per share data. Q4’23 Q4’22 % Change FY23 FY22 % Change Net Sales $7,417 $7,273 2% $30,272 $28,928 5% Gross Profit $966 $1,053 8% $4,131 $4,182 1% 1 Adjusted EBITDA $93 $213 56% $640 $829 23% 1 Adjusted EPS $(0.25) $1.27 120% $2.23 $4.83 54% • Net sales grow
Slide 5: Opening Remarks
Opening Remarks Sandy Douglas Chief Executive Officer Better Food. Better Future.
Slide 6: One Truck, One System, One Experience, One Team
ONE TRUCK Network Automation & Optimization • Broad Product Assortment • Improved Order Fulfillment Accuracy • Increased Reliability ONE SYSTEM Infrastructure Modernization & Unification • Integrated, Modern Systems • Single Source of Truth • More Granular Data ONE EXPERIENCE Digital Offering Enhanc
Slide 7: Transformation Agenda Roadmap
Transformation Agenda Roadmap Structurally improving efficiency and profitability while driving new sources of revenue growth Network Automation & Technology Infrastructure Commercial Value Creation Digital Offering Optimization Unification and Modernization • Next generation full case • Standardize
Slide 8: Financial Results
Financial Results John Howard Chief Financial Officer Better Food. Better Future.
Slide 9: Q4 FY23 Revenue Performance
Q4 FY23 Revenue Performance $ in Millions. 135 (12) (1.9)% vs. PY (19) $ 7,417 +2.7% Wholesale Growth +13.5% vs. PY +9.5% vs. PY 25 +12.4% vs. PY 15 +1.3% vs. PY $ 7,273 +3.7% vs. PY +0.5% vs. PY +2.0% Growth Q4 FY22 Chains Independent Retailers Supernatural Retail Eliminations & Other Q4 FY23 • Who
Slide 10: Q4 FY23 Adjusted EBITDA
Q4 FY23 Adjusted EBITDA (1) $ in Millions. $ 213 +8.8% +8.8% 9 (94) $ 93 +8.8% (26) (9) 2.7% Margin 2.1% Margin Q4 FY22 Wholesale Gross Wholesale Retail Other / Eliminations Q4 FY23 Profit exc LIFO Operating Expense Improvement The decline in Adjusted EPS from $1.27 in Q4 FY22 to $(0.25) in Q4 FY23
Slide 11: Continuing to Prioritize Debt Reduction
Continuing to Prioritize Debt Reduction First quarter with net debt below $2 billion since Supervalu Acquisition in Q1 2019 Net Debt Outstanding(1) $ in Billions $3.35 Record low since Supervalu acquisition $1.95 Reduced $1.4B SV Acqusition Q4 FY23 • Continue to prioritize debt repayment reducing ne
Slide 12: Fiscal 2024 Outlook
Fiscal 2024 Outlook (1) Net Sales Adjusted EBITDA (2) Adjusted EPS (2) Capex $30.1-$30.5B ~$350M $30.9 - $31.5B $450 - $550M (+0.7% vs. previous midpoint) $(0.88) - $0.38 ~$400M (1) The outlook provided above is for fiscal 2024 which is a 53 week fiscal year. This outlook is forward-looking, is base
Slide 13: In Summary
In Summary • Captured nearly $100 million of annualized near-term value creation opportunities to help address profitability expeditiously; increasing expectation to nearly $150 million. • Longer-term transformation agenda continues to progress as expected. • Optimizing and automating supply chain w
Slide 14: Appendix
UNFI Appendix
Slide 15: Capital structure
Capital structure Modest sequential decrease in net debt ($'s in Millions) Maturity Rate (2) Q4 FY20 Q4 FY21 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 (1) Secured term loan B-1 October 2025 S + 3.25% $ 1,773 $ 1,002 $ 800 $ 800 $ 670 $ 670 $ 670 $2.6B ABL revolver (1)(3) June 2027 S + 1.0% / Prime + 0
Slide 16: Non-GAAP Metric Definitions
Non-GAAP Metric Definitions Adjusted EPS: 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 the LIFO charge or benefit, goodwill impairment benefits and charges, restructuring, acquis
Slide 17: Reconciliation – Adjusted EBITDA
Reconciliation – Adjusted EBITDA 17 Better Food. Better Future.
Slide 18: Reconciliation – Adjusted EPS
Reconciliation – Adjusted EPS 18 Better Food. Better Future.
Slide 19: Reconciliation – Last Four Quarters Adjusted EBITDA
Reconciliation – Last Four Quarters Adjusted EBITDA 19 Better Food. Better Future.
Slide 20: Calculation – Net Debt to Adjusted EBITDA Leverage Ratio
Calculation – Net Debt to Adjusted EBITDA Leverage Ratio 20 Better Food. Better Future.
Slide 21: Adjusted EBITDA By Segment
(1) Adjusted EBITDA By Segment 21 Better Food. Better Future.
Slide 22: Free Cash Flow
Free Cash Flow 22 Better Food. Better Future.
Slide 23: Reconciliation – FY24 Outlook
Reconciliation – FY24 Outlook 23 Better Food. Better Future.