United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q3 2024 Earnings Presentation
21 slides from United Natural Foods's earnings presentation, Jun 5, 2024
Slide 1: Third Quarter Fiscal 2024 Earnings Conference Call
Third Quarter Fiscal 2024 Earnings Conference Call June 5, 2024
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 Matteo Tarditi President and Chief Financial Officer Q&A 3 Better Food. Better Future.
Slide 4: Results Summary
Results Summary $ in Millions, except for per share data. Q3 FY24 Q3 FY23 % Change Net Sales $7,498 $7,507 (0.1)% Gross Profit $1,020 $1,000 2.0% Adjusted EBITDA $130 $159 (18.2)% Adjusted EPS $0.10 $0.54 (81.5)% • Net sales decline driven by a decrease in units sold largely offset by inflation and
Slide 5: Opening Remarks
Opening Remarks Sandy Douglas Chief Executive Officer Better Food. Better Future.
Slide 6: Refined Industry Focus Driving Strategy
Refined Industry Focus Driving Strategy Sizeable opportunity to offer products and services to drive mutual value • Scaled and diversified product and service offering provides a unique perspective to evaluate the evolving dynamics impacting food retailers, suppliers and consumers Unique • 30,000 cu
Slide 7: New Multi-Year Strategic Plan Driven Actions
New Multi-Year Strategic Plan Driven Actions Focused on optimizing financial performance through managing controllable variables Intensified Network Reduced Capital Intensity Cost Optimization Increased Working Capital Optimization Efficiency • Meaningful opportunity to • Opportunity to substantiall
Slide 8: Financial Results
Financial Results Matteo Tarditi President and Chief Financial Officer Better Food. Better Future.
Slide 9: Q3 FY24 Revenue Performance
Q3 FY24 Revenue Performance $ in Millions. $ 7,507 (37) 87 (27) 27 $ 7,498 (1.2)% vs. PY +13.5% vs. PY (4.5)% vs. PY (59) +5.3% vs. PY +12.4% vs. PY (3.1)% vs. PY +3.7% vs. PY Q3 FY23 Chains Independent Retailers Supernatural Retail Segment Eliminations & Other Q3 FY24 • Wholesale sales change refle
Slide 10: Q3 FY24 Adjusted EBITDA
Q3 FY24 Adjusted EBITDA $ in Millions. $159 +8.8% 4 9 +8.8% $ 130 5 (33) (14) +8.8% 2.7% Margin 2.1% Margin (1) Q3 FY23 Incentive Wholesale Gross Wholesale Retail Other / Eliminations (1) Q3 FY24 (1) Compensation Profit exc LIFO Operating Expense Reinstatement The decline in Adjusted EPS from $0.54
Slide 11: Focused on Optimizing Long-Term Credit Profile
Focused on Optimizing Long-Term Credit Profile Highly focused on maintaining balance sheet flexibility and reducing net debt Debt Maturities By Calendar Year(1) Pre-Payable Debt As % of (1) (2) Outstanding Debt $1.2B Pre-payable With Pre-payable $0.5B $0.5B Declining Penalty Without Penalty 46% 54%
Slide 12: Updated Fiscal 2024 Outlook
Updated Fiscal 2024 Outlook (1) Increased Outlook for Adjusted EBITDA and Adjusted EPS Net Sales Adjusted EBITDA Adjusted EPS Capital and Cloud Implementation Expenditures $30.1-$30.5B ~$350M $30.5 - $31.0B $490 - $520M (+0.7% vs. previous midpoint) $(0.20) - $0.20 ~$370M (Unchanged) (Midpoint incre
Slide 13: In Summary
In Summary • Refined industry focus leading to important strategic actions to help sustainably improve operational and financial performance. • Expect strong improvement in free cash flow generation starting in Fiscal 2025. • Near-term efficiency and operational improvements driving Fiscal 2024 prof
Slide 14: Appendix
UNFI Appendix
Slide 15: Capital Structure
Capital Structure ($'s in Millions) Maturity Rate (2) Q4 FY20 Q4 FY21 Q4 FY22 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 (1)(4) Secured term loan B October 2025 S + 3.25% $ 1,773 $ 1,002 $ 800 $ 670 $ 670 $ 670 $ 645 $ 645 $2.6B ABL revolver (1)(3)(4) June 2027 S + 1.0% / Prime + 0.0% 757 701 840 879 8
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: Reconciliation – Adjusted EBITDA by Segment
Reconciliation – Adjusted EBITDA by Segment 20 Better Food. Better Future.
Slide 21: Reconciliation – FY24 Outlook
Reconciliation – FY24 Outlook 21 Better Food. Better Future.