United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q1 2024 Earnings Presentation
20 slides from United Natural Foods's earnings presentation, Dec 6, 2023
Slide 1: First Quarter Fiscal 2024 Earnings Conference Call
First Quarter Fiscal 2024 Earnings Conference Call December 6, 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. Q1 FY24 Q1 FY23 % Change Net Sales $7,552 $7,532 0.3% Gross Profit $1,030 $1,096 (6.0)% Adjusted EBITDA $117 $207 (43.5)% Adjusted EPS $(0.04) $1.13 (103.5)% • Net sales growth primarily driven by inflation and new business, primarily from gr
Slide 5: Opening Remarks
Opening Remarks Sandy Douglas Chief Executive Officer Better Food. Better Future.
Slide 6: Driving Progress on Near and Longer-term Initiatives
Driving Progress on Near and Longer-term Initiatives Making early progress resetting and restoring profitability Near-term Initiatives Longer-term Initiatives • Value creation initiatives being achieved ahead of • Significant progress on network automation and schedule: Rapid progress on near-term v
Slide 7: Financial Results
Financial Results John Howard Chief Financial Officer Better Food. Better Future.
Slide 8: Q1 FY24 Revenue Performance
Q1 FY24 Revenue Performance $ in Millions. 16 $ 7,552 99 (7) $ 7,532 (40) +13.5% vs. PY (1.1)% vs. PY (1.2)% vs. PY (48) +6.5% vs. PY +12.4% vs. PY (2.5)% vs. PY +3.7% vs. PY +0.3% Growth Q1 FY23 Chains Independent Retailers Supernatural Retail Eliminations & Other Q1 FY24 • Wholesale growth include
Slide 9: Q1 FY24 Adjusted EBITDA
Q1 FY24 Adjusted EBITDA $ in Millions. $ 207 +8.8% 8 (62) +8.8% (21) $ 117 (15) +8.8% 2.7% Margin 2.1% Margin Q1 FY23 Wholesale Gross Wholesale Retail Other / Eliminations Q1 FY24 Profit exc LIFO Operating Expense Improvement The decline in Adjusted EPS from $1.13 in Q1 FY23 to $(0.04) in Q1 FY24 wa
Slide 10: Significant Financial Flexibility to Help Drive Transformation
Significant Financial Flexibility to Help Drive Transformation Financial positioning to help drive Transformation momentum (1) Liquidity Maturity Schedule Capital and Cloud $M $M Implementation Expenditures(2) Term Loan $M $1,517 ABL $1,289 $1,285 Senior Notes $1,152 $670 $500 $344 ~$400 $312 $255 1
Slide 11: Reaffirming Fiscal 2024 Outlook
Reaffirming Fiscal 2024 Outlook (1) Net Sales Adjusted EBITDA Adjusted EPS Capital and Cloud Implementation Expenditures $30.1-$30.5B ~$350M $30.9 - $31.5B $450 - $550M (+0.7% vs. previous midpoint) $(0.88) - $0.38 ~$400M Outlook balances first quarter progress with challenging macro and industry ba
Slide 12: In Summary
In Summary • Driving near-term and long-term operational improvement. • Longer-term transformation agenda continues to progress as expected. • Balance sheet flexibility creates solid base to drive Transformation program. • Focused on sustaining operational and transformation momentum. Driving early
Slide 13: Appendix
UNFI Appendix
Slide 14: Capital Structure
Capital Structure Q1 net debt increase driven by typical working capital build in advance of holiday selling season ($'s in Millions) Maturity Rate (2) Q4 FY20 Q4 FY21 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 (1) Secured term loan B-1 October 2025 S + 3.25% $ 1,773 $ 1,002 $ 800 $ 800 $ 670 $
Slide 15: 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 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: Free Cash Flow
Free Cash Flow 19 Better Food. Better Future.
Slide 20: Reconciliation – FY24 Outlook
Reconciliation – FY24 Outlook 20 Better Food. Better Future.