United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q3 2023 Earnings Presentation
22 slides from United Natural Foods's earnings presentation, Jun 7, 2023
Slide 1: Third Quarter Fiscal 2023 Earnings Conference Call
Third Quarter Fiscal 2023 Earnings Conference Call June 7, 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. Q3 FY23 Q3 FY22 % Change Net Sales $7,507 $7,242 4% Gross Profit $1,000 $1,012 1% 1 Adjusted EBITDA $159 $196 19% 1 Adjusted EPS $0.54 $1.10 51% • Net sales growth primarily driven by inflation, new customer wins, and deeper sales penetration
Slide 5: Opening Remarks
Opening Remarks Sandy Douglas Chief Executive Officer Better Food. Better Future.
Slide 6: Near-Term Actions Being Taken
Near-Term Actions Being Taken Pursuing near-term profitability improvement measures while longer-term progress is made to structurally enhance efficiency and growth trajectory Action Benefits SG&A Savings Lower SG&A spending, enhanced operational knowledge Administrative Structure Reduced organizati
Slide 7: Financial Results
Financial Results John Howard Chief Financial Officer Better Food. Better Future.
Slide 8: Q3 FY23 Revenue Performance
Q3 FY23 Revenue Performance $ in Millions. 30 $ 7,507 179 (4) (0.7)% vs. PY +4.0% Wholesale Growth +13.5% vs. PY +12.2% vs. PY 42 +12.4% vs. PY 18 +2.3% vs. PY $ 7,242 +3.7% vs. PY +0.6% vs. PY +3.7% Growth Q3 FY22 Chains Independent Retailers Supernatural Retail Eliminations & Other Q3 FY23 • Whole
Slide 9: Q3 FY23 Adjusted EBITDA and Adjusted EPS Performance
Q3 FY23 Adjusted EBITDA and Adjusted EPS Performance $ in Millions, except per share data. Adjusted EBITDA Adjusted EPS $196 ($50) +8.8% $ 35 ($3) $1.10 $(0.45) $159 +8.8% ($19) +8.8% $(0.06) $(0.05) $(0.03) $0.03 $0.54 2.7% Margin 2.1% Margin Q3 FY22 Wholesale Opex Incentive Retail Q3 FY23 Q3 FY22
Slide 10: Continuing to Prioritize Debt Reduction
Continuing to Prioritize Debt Reduction Lowest debt level since Supervalu Acquisition in 2018 (1) (2) Net Debt Outstanding ($ in Billions) Net Debt/Adj. EBITDA Leverage Ratio $3.35 4.9x $2.02 2.7x Reduced 2.2x SV Acqusition Q3 FY23 SV Acquisition Q3 FY23 • Continue to prioritize debt repayment reduc
Slide 11: Revising Fiscal 2023 Outlook
Revising Fiscal 2023 Outlook (1) Maintaining revenue and capital expenditures outlook, reducing profitability outlook Net Sales Adjusted EBITDA (2) Adjusted EPS (2) Capex $30.1-$30.5B ~$350M $30.1 - $30.5B $610 - $650M (+0.7% vs. previous midpoint) $1.80 - $2.30 ~$350M (unchanged) (unchanged) (1) Th
Slide 12: In Summary
In Summary • Actioning over $100 million of annualized near-term profitability enhancements to help offset profitability pressures. • Longer-term improvement agenda continues to progress as expected. • Coupling topline strategy with improved operating leverage to help drive meaningful acceleration i
Slide 13: Appendix
UNFI Appendix
Slide 14: Capital structure
Capital structure Modest sequential decrease in net debt $ in Millions Maturity Rate (2) Q4 FY20 Q4 FY21 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 (1) Secured term loan B-1 October 2025 S + 3.25% $ 1,773 $ 1,002 $ 800 $ 800 $ 800 $ 670 $ 670 $2.6B ABL revolver (1)(3) June 2027 S + 1.0% / Prime + 0.0%
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: Calculation – Net Debt to Adjusted EBITDA Leverage Ratio
Calculation – Net Debt to Adjusted EBITDA Leverage Ratio 19 Better Food. Better Future.
Slide 20: Adjusted EBITDA By Segment
(1) Adjusted EBITDA By Segment 20 Better Food. Better Future.
Slide 21: Free Cash Flow
Free Cash Flow 21 Better Food. Better Future.
Slide 22: Reconciliation – FY23 Outlook
Reconciliation – FY23 Outlook 22 Better Food. Better Future.