United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q1 2025 Earnings Presentation
25 slides from United Natural Foods's earnings presentation, Dec 10, 2024
Slide 1: 1st Quarter Fiscal 2025
1st Quarter Fiscal 2025 December 10, 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
Slide 4: Results Summary
$ in Millions, except for per share data. Results Summary Q1 FY25 Q1 FY24 % Change Net Sales $7,871 $7,552 4.2% Adjusted EBITDA $134 $117 14.5% Adjusted EPS $0.16 $(0.04) Key Notes: • Net sales increase for the first quarter includes volume increase of close to 2% and inflation. • Adjusted EBITDA in
Slide 5: Opening Remarks
Opening Remarks Sandy Douglas Chief Executive Officer
Slide 6: Solid Start to Fiscal 2025
Solid Start to Fiscal 2025 Topline performance strong, initial operational execution of multi-year strategy progressing well Wholesale Volume & Inflation % Change TTM Net Sales Per Employee Adjusted EBITDA Q4 FY24 Adjusted for Extra Week Q4 FY24 Adjusted for Extra Week Q4 FY24 Adjusted For Extra Wee
Slide 7: Financial Results
Financial Results Matteo Tarditi President and Chief Financial Officer
Slide 8: Q1 FY25 Net Sales
$ in Millions Q1 FY25 Net Sales Net sales increased 4.2% including wholesale volume growth of nearly 2% $7,871 (3.3)% +13.8% (2.4)% +3.5% $7,552 + 4.2% Growth • Wholesale sales change reflects positive unit volumes, including new business with existing customers, and inflation. • We saw improving vo
Slide 9: Q1 FY25 Adjusted EBITDA
$ in Millions Q1 FY25 Adjusted EBITDA $134 $117 + 14.5% Growth • Increasing adjusted EBITDA primarily reflects higher wholesale gross profit dollars driven by higher volumes, increased supplier programs and reduced shrink. • Complemented by solid execution and management of operating expenses, which
Slide 10: Employing Lean to Optimize Financial and Operational Performance
Employing Lean to Optimize Financial and Operational Performance Driving enhanced profitability and strengthening service levels • Change to how and where inventory is managed Decentralized • Transitioned centralized procurement team to DC-based organization Procurement • Moves accountability closer
Slide 11: Committed to Improving Free Cash Flow Generation and Balance Sheet
Committed to Improving Free Cash Flow Generation and Balance Sheet Q1 FY25 FCF meaningfully higher than two previous fiscal years; balance sheet trends improving Free Cash Flow Sequential Change in Net Leverage $M 4.2x 4.2x 4.0x 3.0x 3.0x ($159) 2.6x Approximately $170 million of improvement compare
Slide 12: Raising Fiscal 2025 Outlook
Raising Fiscal 2025 Outlook (1) Capital and Cloud (2)(3) Implementation Net Sales Adjusted EBITDA(2) Adjusted EPS Expenditures (4) Free Cash Flow(4) $30.6 - $31.0B $530 - $580M $0.40 - $0.80 ~ $300M > $100M (Increase of 1.3% on 52-week basis) (Increase of 9% on 52-week basis) (Increase of over 4-tim
Slide 13: In Summary
In Summary • FY25 Q1 represented the fifth consecutive quarter of sequentially improving adjusted EBITDA, a further proof point of operating momentum. • Continuing to implement our new strategy built upon delivering value for our customers and suppliers, while improving free cash flow generation and
Slide 14: Appendix
Appendix
Slide 15: Free Cash Flow Performance
Free Cash Flow Performance Q1 FY25 Dynamics $ in millions Q1 FY25 Q1 FY24 Y/Y Change • Improving net loss primarily reflects benefit of cost Net loss including non-controlling interests (20) (39) 19 control and efficiency initiatives as well as lower asset Depreciation and amortization 80 78 2 charg
Slide 16: Capital Structure
Capital Structure ($ in Millions) Maturity Rate (1) Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 (2) Secured term loan B May 2031 S + 4.75% $ 1,773 $ 1,002 $ 800 $ 670 $ 670 $ 645 $ 645 $ 499 $ 498 $2.6B ABL revolver (2) June 2027 S + 1.0% / Prime + 0.0% 757 701 840 812 1,
Slide 17: 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 18: Reconciliation – Adjusted EBITDA
Reconciliation – Adjusted EBITDA 18
Slide 19: Reconciliation – Adjusted EPS
Reconciliation – Adjusted EPS 19
Slide 20: Reconciliation – Adjusted EBITDA By Quarter
Reconciliation – Adjusted EBITDA By Quarter 20
Slide 21: Reconciliation – Last Four Quarters Adjusted EBITDA
Reconciliation – Last Four Quarters Adjusted EBITDA 21
Slide 22: Reconciliation – Adjusted EBITDA by Segment
Reconciliation – Adjusted EBITDA by Segment 22
Slide 23: Reconciliation – Free Cash Flow
Reconciliation – Free Cash Flow 23
Slide 24: Reconciliation – Net Leverage
Reconciliation – Net Leverage 24
Slide 25: Thank you
Thank you Corporate Headquarters: 313 Iron Horse Way, Providence, RI 02908