United Natural Foods (UNFI) Oppenheimer's 24th Annual Virtual Consumer Growth and E-Commerce Conference summary

Recent performance and financial outlook

• Achieved $150 million in cost savings for fiscal 2024 and reduced shrink, leading to financial improvements and likely slight outperformance of 2024 guidance.

• Multi-year plan to be implemented in August, targeting a $90 billion addressable market and focusing on free cash flow, capital spending optimization, and cost structure improvements.

• Free cash flow expected to approach $100 million in fiscal 2025, to be used for debt repayment; net leverage targeted to decline to 2.5x or below by fiscal 2027.

• Board remains highly engaged in ongoing financial review and strategic planning.

Strategic priorities and operational focus

• Strategy centers on serving natural, organic, specialty, and ethnic retailers aiming to differentiate their customer experience.

• Value-added services, including the new UNFI Retail Media Network, are a growing and increasingly significant profit driver.

• Intensified network optimization and capital allocation, with capital spending reduced from $400M to $370M in 2024 and to $300M in 2025.

• Lean Six Sigma principles and decentralization are being embedded to drive accountability and operational efficiency.

Customer and supplier relationships

• Focused on mutually profitable, win-win relationships, especially within the $90 billion core segment, but open to working with all customers.

• Supplier services modernized with data-driven tools like UNFI Insights and the Media Network to enhance supplier and retailer success.

• Emphasis on supporting innovation and growth for small suppliers through programs like UpNext and events such as Pitch Slam.