United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q4 2024 Earnings Presentation
24 slides from United Natural Foods's earnings presentation, Oct 1, 2024
Slide 1: 4th Quarter Fiscal 2024
4th Quarter Fiscal 2024 October 1, 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 % Change % Change Q4 FY24 Q4 FY23 % Change Exc. 14th FY24 FY23 % Change Exc. 53rd Week Week Net Sales $8,155 $7,417 10.0% 2.1% $30,980 $30,272 2.3% 0.4% Gross Profit $1,116 $966 15.5% 7.0% $4,201 $4,131 1.7% 0.3% Adjusted EBITDA $143 $93 53.8
Slide 5: Opening Remarks
Opening Remarks Sandy Douglas Chief Executive Officer
Slide 6: Strategy: Adding Value + Improving Cash Flow
Strategy: Adding Value + Improving Cash Flow Our Be the food industry’s most valued partner, bringing retailers and suppliers Destination innovative products, programs and services to profitably grow their businesses and ours. Customers Suppliers Associates Communities Shareholders Provide a superio
Slide 7: Introducing 3-Year Financial Objectives
Introducing 3-Year Financial Objectives Providing FY25-FY27 financial roadmap reflecting revised strategy, lean daily management and stable backdrop • Expect natural distribution growth to outpace conventional distribution driven by prioritization and secular trends. Organic Growth • Project $90 bil
Slide 8: Financial Results
Financial Results Matteo Tarditi President and Chief Financial Officer
Slide 9: Q4 FY24 Revenue Performance
$ in Millions Q4 FY24 Revenue Performance Sales increased 2.1% excluding 53rd week impact 582 $ 8,155 156 42 39 (26) $7,417 (4.3)% vs. PY +1.2% vs. PY (55) +10.0% vs. PY (2.9)% vs. PY Q4 FY23 Chains Independent Retailers Supernatural Retail Eliminations/Other Additional Week Q4 FY24 • Wholesale sale
Slide 10: Adjusted EBITDA Performance
$ in Millions Adjusted EBITDA Performance Adjusted EBITDA Walk Adjusted EBITDA By Quarter 10 $ 143 $ 143 Extra 16 5 Week 26 $130 $133 $128 $117 (7) 0 $ 93 $93 Wholesale Wholesale (1) Eliminations Additional Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q4 FY23 Retail Other Q4 FY24 Gross Profit Operating We
Slide 11: Committed to Delivering and Deleveraging
Committed to Delivering and Deleveraging Highly focused on generating FCF and reducing net debt and leverage Net Leverage 4.6x 4.2x 4.3x 4.0x Pre-payable with Pre-payable Declining Penalty without Penalty <2.5x Expect to reduce net leverage by at least 1.5x Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY25 Q4
Slide 12: Employing Lean to Optimize Free Cash Flow
Employing Lean to Optimize Free Cash Flow FY25 goals based on short- and long-term benchmarks that advance long-term vision Focused on instilling: - Continuous improvement through rigorous application of Lean disciplines. DAILY ACTION MANAGEMENT PLAN - Monthly operating review, focus on critical few
Slide 13: Fiscal 2025 Outlook
Fiscal 2025 Outlook (1) Capital and Cloud (2)(3) Implementation Net Sales Adjusted EBITDA(2) Adjusted EPS Expenditures (4) Free Cash Flow(4) $30.3 - $30.8B $520 - $580M $0.20 - $0.80 $300M ~ $100M (Increase of 0.5% on 52-week basis) (Increase of 8% on 52-week basis) (Increase of over 3-times) (Decre
Slide 14: In Summary
In Summary • Fiscal 2024 results finished at the upper end of the ranges for net sales, adjusted EBITDA, and adjusted EPS with quarterly adjusted EBITDA increasing sequentially all four quarters. • Expect strong improvement in free cash flow generation starting in Fiscal 2025. • New strategy focuses
Slide 15: Appendix
Appendix
Slide 16: Capital Structure
Capital Structure ($'s in Millions) Maturity Rate (2) Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 (1)(4) Secured term loan B May 2031 S + 4.75% $ 1,773 $ 1,002 $ 800 $ 670 $ 670 $ 645 $ 645 $ 499 $2.6B ABL revolver (1)(3)(4) June 2027 S + 1.0% / Prime + 0.0% 757 701 840 812 1,152
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: Thank you
Thank you Corporate Headquarters: 313 Iron Horse Way, Providence, RI 02908