United Natural Foods (UNFI) Oppenheimer 26th Annual Consumer Growth and E-Commerce Conference summary

Strategic and financial performance

• Achieved nearly 17% adjusted EBITDA growth and $240 million in free cash flow year to date, strengthening financial position.

• Generated over $550 million in free cash flow since launching the refresh strategy, reducing net leverage by 2.1 turns and repurchasing nearly a million shares.

• Targeting a $90 billion addressable market, focusing on differentiated regional, independent, and multicultural grocers.

• Expecting a return to reported top-line growth in fiscal 2027, with a focus on finishing fiscal 2026 strong.

• Three-year plan projects low single-digit sales growth, high single-digit EBITDA growth, and consistent free cash flow.

Industry trends and consumer behavior

• Differentiated and natural/organic retailers are gaining share, while non-differentiated retailers are losing ground.

• Consumers are increasingly focused on health, wellness, ingredient transparency, and value, driving demand for innovative and better-for-you products.

• GLP-1 adoption and reduced SNAP investments are headwinds, but health and wellness trends remain strong.

• Restaurant pricing has outpaced grocery since early 2023, supporting at-home food consumption.

• Volume growth is challenged by macro headwinds, but natural and differentiated players continue to outperform.

Operational initiatives and productivity

• Expanded use of AI-powered fleet management, reducing average miles per delivery by 5% year to date.

• Lean Daily Management and indirect cost initiatives are in early stages, with significant runway for productivity gains.

• Indirect spending represents half of $4 billion annual OPEX, with ongoing efforts to optimize and mature processes.

• Network optimization is a continuous process, with disciplined underwriting and regular review of distribution centers.

• Technology and process improvements are expected to unlock further efficiency and value.