United Natural Foods (UNFI) Investor Day 2025 summary

Strategic direction and business transformation

• Focused on becoming the most valued partner to grocery retailers and suppliers, targeting a $90 billion market and emphasizing differentiated products, services, and technology.

• Accelerating capabilities in customer stewardship, merchandising, digital services, private brands, and next-generation supply chain.

• Lean management, process redesign, and automation are being scaled to drive continuous improvement and embed a high-performance culture.

• Leadership team blends industry veterans and new talent, with a strong focus on culture, talent development, and operational excellence.

• Streamlining SG&A and eliminating operational waste through strategic transformation initiatives.

Financial guidance and performance outlook

• Fiscal 2025 revenue was just under $32 billion, with over $550 million in Adjusted EBITDA at a 1.7% margin.

• New FY25–FY28 targets: low single-digit annual net sales growth to ~$33 billion, low double-digit Adjusted EBITDA growth to ~$800 million, margin expansion to 2.4%, and ~$300 million annual free cash flow.

• Cumulative free cash flow for FY26–FY28 expected to reach ~$900 million.

• Net leverage projected to fall below 2x by fiscal 2027, a year ahead of prior expectations.

• Value-added services and private brands are expected to grow faster than the core business, contributing a rising share of EBITDA.

Operational and technological advancements

• Lean Daily Management and automation are being rolled out across distribution centers, driving improvements in throughput, fill rates, and shrink.

• Technology upgrades include AI-enabled supply chain tools (RELEX), new ERP (SAP S/4 HANA), and digital platforms to enhance efficiency and customer experience.

• Distribution center productivity up over 13% from FY24, with Lean and automation being scaled across the network.

• Organizational efficiency initiatives and Value Delivery Office projects are expected to drive over $100 million of Adjusted EBITDA improvement in FY25 and FY26.

• Supply chain optimization, network consolidation, and disciplined capital allocation are improving service, reducing costs, and boosting return on invested capital.