United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q1 2023 Earnings Presentation
21 slides from United Natural Foods's earnings presentation, Dec 7, 2022
Slide 1: First Quarter Fiscal 2023 Earnings Conference Call
First Quarter Fiscal 2023 Earnings Conference Call December 7, 2022
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 Sandy Douglas Remarks Chief Executive Officer Financial Results John Howard Chief Financial Officer Q&A 3 Better Food. Better Future.
Slide 4: Results Summary
Results Summary $ Millions, except for per share data Q1’23 Q1’22 % Change Net Sales $7,532 $6,997 7.6% Gross Profit $1,096 $1,042 5.2% 1 Adj. EBITDA $207 $200 3.5% 1 Adj. EPS $1.13 $1.10 2.7% • Net sales growth primarily driven by elevated inflation, net new customers wins, and deeper sales penetra
Slide 5: Opening Remarks
Opening Remarks Sandy Douglas Chief Executive Officer Better Food. Better Future.
Slide 6: UNFI's Path to Significant Shareholder Value Creation
UNFI’s Path to Significant Shareholder Value Creation Driving the Flywheel Effect • More categories purchased by more customers in Q1 • Customer pipeline expected to benefit Q3/Q4 sales • Entered into commercial agreement to implement an industry-leading warehouse automation system • Technology and
Slide 7: Financial Results
Financial Results John Howard Chief Financial Officer Better Food. Better Future.
Slide 8: Q1 2023 Revenue Performance
Q1 2023 Revenue Performance $ in Millions 50 $ 7,532 135 11 197 +13.5% vs. PY vs. PY +9.8% 142 +11.3% vs. PY +12.4% vs. PY $ 6,997 +4.6% vs. PY +3.7% vs. PY +7.6% Growth Q1 FY22 Chains Independent Supernatural Retail Elims & Other Q1 FY23 Retailers • Wholesale growth includes inflation, net of elast
Slide 9: Q1 2023 Adjusted EBITDA and Adjusted EPS
Q1 2023 Adjusted EBITDA and Adjusted EPS $ in Millions, except per share data. Adjusted EBITDA Adjusted EPS $0.06 $(0.06) $207 +8.8% $200 $0.08 $(0.04) +8.8% $(0.01) $1.13 $1.10 +3.5%+8.8% Increase +2.7% Q1 FY22 Adj EBITDA Net Depreciation Pension Stock Q1 FY23 Q1 FY22 Q1 FY23 Interest Income Comp 2
Slide 10: Q1 Uses of Cash and Comparative Leverage
Q1 Uses of Cash and Comparative Leverage Net debt increased by $378 million driven by expected seasonal working capital build and inflation Deployment of cash Adjusted EBITDA Leverage Ratio $12 3.8x $67 3.1x 3.0x Reduced 0.8x $415 Working Capital Capex Share Repurchases Q1 FY21 Q1 FY22 Q1 FY23 Q1 wo
Slide 11: Affirming Fiscal 2023 Outlook
Affirming Fiscal 2023 Outlook (1) Q1 results keep us on track to deliver full year outlook Net Sales Adjusted EBITDA (2) Adjusted EPS (2) $29.8 - $30.4 B $850 - $880 M $4.85 - $5.15 4% growth for each metric at the midpoint of each range (1) The outlook provided above is for fiscal 2023. This outloo
Slide 12: In Summary
In Summary • Reaffirming full-year outlook • Strengthening customer pipeline expected to drive sales benefits for the remainder of fiscal 2023 • Operational execution and efficiency improving as evidenced by best staffing levels since beginning of fiscal 2022 and increasing fill rates • Disciplined
Slide 13: Appendix
UNFI Appendix
Slide 14: Capital structure
Capital structure Q1 increase in net debt driven by seasonal working capital build prior to the holidays ($'s in Millions) Maturity Rate (2) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 (1) Secured term loan B-1 October 2025 S + 3.25% $ 994 $ 844 $ 800 $ 800 $ 800 $2.6B ABL revolver (1)(3) June 2027 S +
Slide 15: Non-GAAP Metric Definitions
Non-GAAP Metric Definitions Adjusted earnings per share: 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 goodwill impairment benefits and charges, restructuring, acquisition, and in
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 – FY23 Outlook
Reconciliation – FY23 Outlook 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.