United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q2 2024 Earnings Presentation
20 slides from United Natural Foods's earnings presentation, Mar 6, 2024
Slide 1: Second Quarter Fiscal 2024 Earnings Conference Call
Second Quarter Fiscal 2024 Earnings Conference Call March 6, 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 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. Q2 FY24 Q2 FY23 % Change Net Sales $7,775 $7,816 (0.5)% Gross Profit $1,035 $1,069 (3.2)% Adjusted EBITDA $128 $181 (29.3)% Adjusted EPS $0.07 $0.78 (91.0)% • Net sales decline driven by a decrease in units sold partially offset by inflation
Slide 5: Opening Remarks
Opening Remarks Sandy Douglas Chief Executive Officer Better Food. Better Future.
Slide 6: Progressing on Near and Longer-term Initiatives
Progressing on Near and Longer-term Initiatives Sustaining progress resetting and restoring profitability Near-term Initiatives Longer-term Initiatives • Continuing to pursue incremental efficiency initiatives: • Significant progress on network automation and Building on $150 million of annualized o
Slide 7: Financial Results
Financial Results John Howard Chief Financial Officer Better Food. Better Future.
Slide 8: Q2 FY24 Revenue Performance
Q2 FY24 Revenue Performance $ in Millions. $ 7,816 (56) (1.7)% vs. PY 92 +13.5% vs. PY (29) 25 $ 7,775 (73) (4.4)% vs. PY +12.4% vs. PY (3.7)% vs. PY +5.5% vs. PY +3.7% vs. PY (0.5)% vs Prior Year Q2 FY23 Chains Independent Retailers Supernatural Retail Segment Eliminations & Other Q2 FY24 • Wholesa
Slide 9: Q2 FY24 Adjusted EBITDA
Q2 FY24 Adjusted EBITDA $ in Millions. $ 181 11 +8.8% (30) +8.8% (20) $128 +8.8% (14) 2.7% Margin 2.1% Margin Q2 FY23 Wholesale Gross Wholesale Retail Other / Eliminations Q2 FY24 Profit exc LIFO Operating Expense The decline in Adjusted EPS from $0.78 in Q2 FY23 to $0.07 in Q2 FY24 was primarily dr
Slide 10: Continuing to Focus on Optimizing Long-Term Credit Profile
Continuing to Focus on Optimizing Long-Term Credit Profile Pursuing highly disciplined capital allocation strategy $ in Billions. Liquidity Net Debt $1.6 $2.5 $2.4 $1.4 $2.1 $2.2 $1.2 $1.0 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 • Disciplined investment allocation approach wi
Slide 11: Updated Fiscal 2024 Outlook
Updated Fiscal 2024 Outlook (1) Outlook for net sales reduced; Adjusted EBITDA and Adjusted EPS ranges narrowed with midpoints unchanged Net Sales Adjusted EBITDA Adjusted EPS Capital and Cloud Implementation Expenditures $30.1-$30.5B ~$350M $30.5 - $31.0B $475 - $525M (+0.7% vs. previous midpoint)
Slide 12: In Summary
In Summary • Producing near-term and long-term operational improvement with an intense focus on efficiency and profitability. • Longer-term transformation plan continues to progress as expected. • Focused on creating strong long-term credit profile with disciplined capital allocation policies. • Wor
Slide 13: Appendix
UNFI Appendix
Slide 14: Capital Structure
Capital Structure Q2 net debt decrease driven by typical working capital decline following holiday selling season ($'s in Millions) Maturity Rate (2) Q4 FY20 Q4 FY21 Q4 FY22 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 (1) Secured term loan B October 2025 S + 3.25% $ 1,773 $ 1,002 $ 800 $ 670 $ 670 $ 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: Reconciliation – Adjusted EBITDA by Segment
Reconciliation – Adjusted EBITDA by Segment 19 Better Food. Better Future.
Slide 20: Reconciliation – FY24 Outlook
Reconciliation – FY24 Outlook 20 Better Food. Better Future.