United Natural Foods (UNFI) Q1 2025 earnings summary

Executive summary

• Net sales rose 4.2% year-over-year to $7.87–$7.9 billion in Q1 FY2025, driven by higher wholesale volumes, new business, and inflation.

• Adjusted EBITDA increased 14.5% to $134 million, reflecting improved operating performance and cost-saving initiatives.

• Net loss narrowed to $21 million ($0.35 per share) from $39 million ($0.67 per share) in the prior year quarter; Adjusted EPS improved to $0.16 from $(0.04).

• Operational improvements, Lean management, and network optimization supported margin and cash flow gains.

• Strategic plan execution included new customer additions and distribution center closures.

Financial highlights

• Q1 net sales reached $7.87–$7.9 billion, up 4.2% year-over-year; wholesale volumes rose nearly 2%.

• Adjusted EBITDA grew to $134 million (up 14.5%); Adjusted EPS was $0.16 versus a net loss of $0.04 last year.

• Gross margin declined to 13.2%–13.3% from 13.6%, mainly due to mix and commercial investments.

• Operating expenses fell to 12.9% of sales, reflecting cost savings and sales leverage.

• Free cash flow was $(159) million, a $170 million improvement over the past two years.

Outlook and guidance

• Full-year net sales guidance raised to $30.6–$31.0 billion, a 1.3% increase at midpoint (adjusted for 53rd week).

• Adjusted EBITDA guidance increased to $530–$580 million, up 9% at midpoint.

• Adjusted EPS now expected at $0.40–$0.80, up from $0.14 last year.

• Free cash flow expected to exceed $100 million for the year.

• Capital and cloud implementation expenditures outlook unchanged at ~$300 million.