United Natural Foods, Inc. Reports Fourth Quarter and Full Year Fiscal 2026 Results
UNFI delivered higher earnings, stronger cash flow and lower leverage in 2026 despite modest sales declines, and issued higher 2027 profit guidance.
Fourth Quarter Fiscal 2026 |
|
Full Year Fiscal 2026 |
|
|
|
Recent Financial and Operational Summary
|
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“UNFI delivered a strong fiscal year through disciplined execution of our strategy to add value for customers and suppliers while becoming a more effective and efficient company. We continued strengthening commercial and supply chain capabilities to better serve our partners, while generating solid growth in Adjusted EBITDA and Free cash flow, enabling us to further reduce net debt,” said Sandy Douglas, UNFI’s Chief Executive Officer.
“Our progress demonstrates the strength of our customer base and our commitment to creating long-term, shared value for all stakeholders. In fiscal 2027, we remain focused on helping our partners execute their growth strategies, accelerating our operating momentum, and returning to revenue growth.”
Fourth Quarter Fiscal 2026 Summary
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
||||||||||||||||||
($ in millions, except for per share data) |
August 1,
(13 weeks) |
|
August 2,
(13 weeks) |
|
Percent Change |
|
August 1,
(52 weeks) |
|
August 2,
(52 weeks) |
|
Percent Change |
||||||||||
Net sales |
$ |
7,642 |
|
|
$ |
7,696 |
|
|
(0.7 |
)% |
|
$ |
31,152 |
|
|
$ |
31,784 |
|
|
(2.0 |
)% |
Natural |
$ |
4,260 |
|
|
$ |
3,998 |
|
|
6.6 |
% |
|
$ |
17,132 |
|
|
$ |
16,017 |
|
|
7.0 |
% |
Conventional |
$ |
3,121 |
|
|
$ |
3,414 |
|
|
(8.6 |
)% |
|
$ |
12,974 |
|
|
$ |
14,667 |
|
|
(11.5 |
)% |
Retail |
$ |
528 |
|
|
$ |
573 |
|
|
(7.9 |
)% |
|
$ |
2,157 |
|
|
$ |
2,342 |
|
|
(7.9 |
)% |
Eliminations |
$ |
(267 |
) |
|
$ |
(289 |
) |
|
7.6 |
% |
|
$ |
(1,111 |
) |
|
$ |
(1,242 |
) |
|
10.5 |
% |
Net income (loss) |
$ |
35 |
|
|
$ |
(87 |
) |
|
N/M |
|
|
$ |
84 |
|
|
$ |
(118 |
) |
|
N/M |
|
Adjusted EBITDA(1) |
$ |
172 |
|
|
$ |
116 |
|
|
48.3 |
% |
|
$ |
701 |
|
|
$ |
552 |
|
|
27.0 |
% |
Earnings (loss) per diluted share (EPS) |
$ |
0.57 |
|
|
$ |
(1.43 |
) |
|
N/M |
|
|
$ |
1.34 |
|
|
$ |
(1.95 |
) |
|
N/M |
|
Adjusted earnings (loss) per diluted share (Adjusted EPS)(1) |
$ |
0.69 |
|
|
$ |
(0.11 |
) |
|
N/M |
|
|
$ |
2.65 |
|
|
$ |
0.71 |
|
|
273.2 |
% |
Net cash provided by operating activities |
$ |
197 |
|
|
$ |
160 |
|
|
23.1 |
% |
|
$ |
540 |
|
|
$ |
470 |
|
|
14.9 |
% |
Payments for capital expenditures |
$ |
(117 |
) |
|
$ |
(74 |
) |
|
58.1 |
% |
|
$ |
(217 |
) |
|
$ |
(231 |
) |
|
(6.1 |
)% |
Free cash flow(1) |
$ |
80 |
|
|
$ |
86 |
|
|
(7.0 |
)% |
|
$ |
323 |
|
|
$ |
239 |
|
|
35.1 |
% |
N/M - not meaningful |
||
| (1) | Please refer to the tables in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP. |
|
Net sales decreased
Gross profit in the fourth quarter of fiscal 2026 was
Operating expenses in the fourth quarter of fiscal 2026 were
Interest expense, net for the fourth quarter of fiscal 2026 was
Effective tax rate for the fourth quarter of fiscal 2026 was an expense rate of
Net income for the fourth quarter of fiscal 2026 was
Adjusted EBITDA for the fourth quarter of fiscal 2026 increased
Net income per diluted share was
Adjusted earnings per share were
Capital Structure and Financing Overview
-
Free Cash Flow – Net cash provided by operating activities was
$197 million $160 million $117 million $74 million $80 million $86 million -
Net Leverage – Total outstanding debt, net of cash, was
$1.54 billion $93 million $295 million -
Liquidity – As of August 1, 2026, total liquidity was approximately
$1.27 billion $37 million $1.23 billion -
Repurchase Program – During the fourth quarter of 2026, the Company repurchased 420,502 shares at an average price of
$49.94 $21 million $200 million
Fiscal 2027 Outlook (1)
The Company is providing the following outlook for fiscal 2027, a 52-week year.
Fiscal Year Ending July 31, 2027 (52 weeks) |
|
|
|
Net sales ($ in billions) |
|
|
|
Net income ($ in millions) |
|
|
|
EPS (2) |
|
|
|
Adjusted EPS (2)(3)(4) |
|
|
|
Adjusted EBITDA (4) ($ in millions) |
|
|
|
Capital and cloud implementation expenditures (4)(5)($ in millions) |
|
~ |
|
Free cash flow (4)(5) ($ in millions) |
|
|
|
| (1) | The outlook provided above is for fiscal 2027 only. This outlook is forward-looking, is based on management’s current estimates and expectations and is subject to a number of risks, including many that are outside of management’s control. See cautionary Safe Harbor Statement below. |
|
| (2) | Earnings per share amounts as presented include rounding. |
|
| (3) |
The Company uses an adjusted effective tax rate in calculating Adjusted EPS. The outlook for Adjusted EPS reflects a tax rate of |
|
| (4) | See additional information at the end of this release regarding non-GAAP financial measures. The Company is unable to provide a full reconciliation for outlook to the most comparable GAAP measure without unreasonable effort due to the difficulty in predicting the amounts for certain adjustment items. |
|
| (5) | The components of capital and cloud implementation expenditures for fiscal 2027 will be primarily dependent on the nature of certain contracts to be executed. As such, the Company is unable to reconcile the outlook for free cash flow as well as Capital and cloud implementation expenditures in fiscal 2027 to the most directly comparable financial measures calculated in accordance with GAAP. |
Conference Call and Webcast
The Company’s fourth quarter and full year fiscal 2026 conference call and audio webcast will be held today, Tuesday, September 8, 2026 at 8:30 a.m. ET. A webcast of the conference call (and supplemental materials) will be available to the public, on a listen only basis, via the internet at the Investors section of the Company’s website www.unfi.com. The call can also be accessed at (800) 715 - 9871 (conference ID 5462932). An online archive of the webcast (and supplemental materials) will be available for 120 days.
About United Natural Foods
United Natural Foods, Inc. (UNFI) is a leading North American grocery wholesaler, providing a broad assortment of natural, organic, specialty, fresh, conventional, and private label products to over 30,000 retail locations. The Company supports independent, regional, and national grocers with access to a wide assortment of products from thousands of established and emerging suppliers, delivered through a scaled, technology-enabled distribution network. UNFI provides a broad range of value-added data, insights, programs, and services to help retailers differentiate their stores and grow profitably, while connecting suppliers to a diverse and dynamic retail ecosystem. With a strategic focus on adding value and improving effectiveness and efficiency, UNFI is committed to creating long-term, shared value for all its stakeholders. To learn more, visit www.unfi.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the Company’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements are described in the Company’s filings under the Securities Exchange Act of 1934, as amended, including under the section entitled “Risk Factors” in the Company’s annual report on Form 10-K for the year ended August 2, 2025 filed with the Securities and Exchange Commission (the “SEC”) on October 1, 2025 and other filings the Company makes with the SEC, and include, but are not limited to, our dependence on principal customers; our relatively low margins, which are sensitive to inflationary and deflationary pressures and intense competition, including as a result of the continuing retailer consolidation and the growth of consumer choices for grocery and consumable purchases; our ability to realize the anticipated benefits of our strategic initiatives; changes in relationships with our suppliers; our ability to develop, implement, operate and maintain, and rely on third parties to operate and maintain, reliable and secure technology systems; the effectiveness of our business continuity plans in response to incidents impacting our operating network or technology systems; our sensitivity to general economic conditions including inflation, tariff policy and changes in disposable income levels and consumer purchasing habits; labor and other workforce shortages and challenges; the addition or loss of significant customers or material changes to our relationships with these customers; our ability to continue to grow sales, including of our higher margin natural and organic foods and non-food products; our ability to maintain sufficient volume in our Natural and Conventional businesses to support our operating infrastructure; increases in healthcare, pension and other costs under our single employer benefit plan and multiemployer benefit plans; the potential for our insurance and self-insurance programs not to be adequate to cover our claims; the potential for disruptions in our supply chain or our distribution capabilities from circumstances beyond our control, including due to lack of long-term contracts, severe weather, labor shortages or work stoppages or otherwise; the effect of adverse decisions in, or settlement of, litigation or other proceedings to which we are subject; volatility in fuel costs; our ability to access additional capital; our ability to realize anticipated benefits of strategic transactions; the potential for additional asset impairment charges; our ability to maintain food quality and safety; moderated supplier promotional activity, including decreased forward buying opportunities; union-organizing activities that could cause labor relations difficulties and increased costs; and changes in tax laws and regulations, and actions by federal, state and local taxing authorities related to the interpretation and application of such tax laws and regulations. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by applicable laws. Any estimates of future results of operations are based on a number of assumptions, many of which are outside the Company’s control and should not be construed in any manner as a guarantee that such results will in fact occur. These estimates are subject to change and could differ materially from final reported results. The Company may from time to time update these publicly announced estimates, but it is not obligated to do so.
Non-GAAP Financial Measures: To supplement the financial information presented on a
The reconciliation of these non-GAAP financial measures to their comparable GAAP financial measures and the calculation of Net leverage ratio are presented in the tables appearing below, where practicable. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. The Company believes that presenting Adjusted EBITDA and Adjusted EPS aids in making period-to-period comparisons, assessing the performance of the Company’s business and understanding the underlying operating performance and core business trends by excluding certain adjustments not expected to recur in the normal course of business or that are not meaningful indicators of actual and estimated operating performance. The Company believes that providing the adjusted effective tax rate gives investors a meaningful, consistent comparison of the Company’s effective tax rate on ongoing operations. The inclusion of Free cash flow assists investors in understanding the cash generating ability of the Company separate from cash generated by the sale of assets. Net leverage ratio is a commonly used metric that assists investors in understanding and evaluating the Company’s capital structure and changes to its capital structure over time. The Company believes that providing Capital and cloud implementation expenditures provides investors with better visibility into the Company's total investment expenditures. The components of Capital and cloud implementation expenditures for fiscal 2027 will be primarily dependent on the nature of certain contracts to be executed. Management utilizes and plans to utilize these non-GAAP financial measures to compare the Company’s operating performance during fiscal 2027 to the comparable periods in fiscal 2026 and to internally prepared projections. These non-GAAP financial measures may differ from similarly titled measures of other companies.
UNITED NATURAL FOODS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions, except for per share data) |
|||||||||||||||
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
|
August 1, 2026 (13 weeks) |
|
August 2, 2025 (13 weeks) |
|
August 1, 2026 (52 weeks) |
|
August 2, 2025 (52 weeks) |
||||||||
Net sales |
$ |
7,642 |
|
|
$ |
7,696 |
|
|
$ |
31,152 |
|
|
$ |
31,784 |
|
Cost of sales |
|
6,592 |
|
|
|
6,666 |
|
|
|
26,956 |
|
|
|
27,562 |
|
Gross profit |
|
1,050 |
|
|
|
1,030 |
|
|
|
4,196 |
|
|
|
4,222 |
|
Operating expenses |
|
984 |
|
|
|
1,046 |
|
|
|
3,906 |
|
|
|
4,117 |
|
Restructuring, acquisition and integration related expenses |
|
12 |
|
|
|
59 |
|
|
|
52 |
|
|
|
94 |
|
(Gain) loss on sale of assets and other asset charges |
|
(15 |
) |
|
|
3 |
|
|
|
27 |
|
|
|
42 |
|
Operating income (loss) |
|
69 |
|
|
|
(78 |
) |
|
|
211 |
|
|
|
(31 |
) |
Net periodic benefit income, excluding service cost |
|
(5 |
) |
|
|
(5 |
) |
|
|
(23 |
) |
|
|
(20 |
) |
Interest expense, net |
|
29 |
|
|
|
36 |
|
|
|
126 |
|
|
|
146 |
|
Other (income) expense, net |
|
(1 |
) |
|
|
— |
|
|
|
6 |
|
|
|
(3 |
) |
Income (loss) before income taxes |
|
46 |
|
|
|
(109 |
) |
|
|
102 |
|
|
|
(154 |
) |
Provision (benefit) for income taxes |
|
11 |
|
|
|
(23 |
) |
|
|
18 |
|
|
|
(39 |
) |
Net income (loss) including noncontrolling interests |
|
35 |
|
|
|
(86 |
) |
|
|
84 |
|
|
|
(115 |
) |
Less net income attributable to noncontrolling interests |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(3 |
) |
Net income (loss) attributable to United Natural Foods, Inc. |
$ |
35 |
|
|
$ |
(87 |
) |
|
$ |
84 |
|
|
$ |
(118 |
) |
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per share |
$ |
0.59 |
|
|
$ |
(1.43 |
) |
|
$ |
1.39 |
|
|
$ |
(1.95 |
) |
Diluted income (loss) per share |
$ |
0.57 |
|
|
$ |
(1.43 |
) |
|
$ |
1.34 |
|
|
$ |
(1.95 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
60.5 |
|
|
|
60.6 |
|
|
|
60.7 |
|
|
|
60.2 |
|
Diluted |
|
62.9 |
|
|
|
60.6 |
|
|
|
62.8 |
|
|
|
60.2 |
|
UNITED NATURAL FOODS, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (in millions, except for par values) |
|||||||
|
August 1,
|
|
August 2,
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
37 |
|
|
$ |
44 |
|
Accounts receivable, net |
|
921 |
|
|
|
1,093 |
|
Inventories, net |
|
1,946 |
|
|
|
2,095 |
|
Prepaid expenses and other current assets |
|
234 |
|
|
|
191 |
|
Total current assets |
|
3,138 |
|
|
|
3,423 |
|
Property and equipment, net |
|
1,716 |
|
|
|
1,749 |
|
Operating lease assets |
|
1,334 |
|
|
|
1,474 |
|
Goodwill |
|
19 |
|
|
|
19 |
|
Intangible assets, net |
|
509 |
|
|
|
576 |
|
Deferred income taxes |
|
158 |
|
|
|
162 |
|
Other long-term assets |
|
235 |
|
|
|
192 |
|
Total assets |
$ |
7,109 |
|
|
$ |
7,595 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Accounts payable |
$ |
1,771 |
|
|
$ |
1,875 |
|
Accrued expenses and other current liabilities |
|
305 |
|
|
|
319 |
|
Accrued compensation and benefits |
|
214 |
|
|
|
227 |
|
Current portion of operating lease liabilities |
|
143 |
|
|
|
173 |
|
Current portion of long-term debt and finance lease liabilities |
|
5 |
|
|
|
8 |
|
Total current liabilities |
|
2,438 |
|
|
|
2,602 |
|
Long-term debt |
|
1,561 |
|
|
|
1,859 |
|
Long-term operating lease liabilities |
|
1,316 |
|
|
|
1,400 |
|
Long-term finance lease liabilities |
|
10 |
|
|
|
11 |
|
Pension and other postretirement benefit obligations |
|
13 |
|
|
|
14 |
|
Other long-term liabilities |
|
149 |
|
|
|
155 |
|
Total liabilities |
|
5,487 |
|
|
|
6,041 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
690 |
|
|
|
658 |
|
Treasury stock at cost |
|
(136 |
) |
|
|
(86 |
) |
Accumulated other comprehensive loss |
|
(38 |
) |
|
|
(42 |
) |
Retained earnings |
|
1,104 |
|
|
|
1,020 |
|
Total United Natural Foods, Inc. stockholders’ equity |
|
1,621 |
|
|
|
1,551 |
|
Noncontrolling interests |
|
1 |
|
|
|
3 |
|
Total stockholders’ equity |
|
1,622 |
|
|
|
1,554 |
|
Total liabilities and stockholders’ equity |
$ |
7,109 |
|
|
$ |
7,595 |
|
UNITED NATURAL FOODS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
|||||||
|
Fiscal Year Ended |
||||||
(in millions) |
August 1, 2026 (52 weeks) |
|
August 2, 2025 (52 weeks) |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net income (loss) including noncontrolling interests |
$ |
84 |
|
|
$ |
(115 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
303 |
|
|
|
321 |
|
Share-based compensation |
|
61 |
|
|
|
43 |
|
Loss (gain) on sale of assets |
|
(12 |
) |
|
|
(4 |
) |
Long-lived asset impairment charges |
|
30 |
|
|
|
25 |
|
Net pension and other postretirement benefit income |
|
(23 |
) |
|
|
(20 |
) |
Deferred income tax expense (benefit) |
|
27 |
|
|
|
(56 |
) |
LIFO charge (benefit) |
|
19 |
|
|
|
(2 |
) |
Provision for losses on receivables |
|
34 |
|
|
|
3 |
|
Loss on debt extinguishment |
|
2 |
|
|
|
4 |
|
Non-cash interest expense and other adjustments |
|
5 |
|
|
|
5 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts and notes receivable |
|
131 |
|
|
|
(142 |
) |
Inventories |
|
130 |
|
|
|
87 |
|
Prepaid expenses and other assets |
|
115 |
|
|
|
276 |
|
Accounts payable |
|
(119 |
) |
|
|
200 |
|
Accrued expenses and other liabilities |
|
(247 |
) |
|
|
(155 |
) |
Net cash provided by operating activities |
|
540 |
|
|
|
470 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Payments for capital expenditures |
|
(217 |
) |
|
|
(231 |
) |
Proceeds from dispositions of assets |
|
56 |
|
|
|
30 |
|
Payments for investments |
|
(14 |
) |
|
|
(18 |
) |
Other investing |
|
6 |
|
|
|
1 |
|
Net cash used in investing activities |
|
(169 |
) |
|
|
(218 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from borrowings under revolving credit line |
|
3,524 |
|
|
|
3,528 |
|
Proceeds from issuance of other loans |
|
3 |
|
|
|
13 |
|
Repayments of borrowings under revolving credit line |
|
(3,660 |
) |
|
|
(3,642 |
) |
Repayments of long-term debt and finance leases |
|
(167 |
) |
|
|
(124 |
) |
Repurchases of common stock |
|
(50 |
) |
|
|
— |
|
Payments of employee restricted stock tax withholdings |
|
(15 |
) |
|
|
(10 |
) |
Payments for debt issuance costs |
|
(8 |
) |
|
|
(1 |
) |
Distributions to noncontrolling interests |
|
(2 |
) |
|
|
(4 |
) |
Repayments of other loans |
|
(2 |
) |
|
|
(8 |
) |
Other financing |
|
— |
|
|
|
— |
|
Net cash used in financing activities |
|
(377 |
) |
|
|
(248 |
) |
EFFECT OF EXCHANGE RATE ON CASH |
|
(1 |
) |
|
|
— |
|
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
|
(7 |
) |
|
|
4 |
|
Cash and cash equivalents, at beginning of period |
|
44 |
|
|
|
40 |
|
Cash and cash equivalents, at end of period |
$ |
37 |
|
|
$ |
44 |
|
Supplemental disclosures of cash flow information: |
|
|
|
||||
Cash paid for interest |
$ |
127 |
|
|
$ |
147 |
|
Cash payments for federal, state and foreign income taxes, net |
$ |
7 |
|
|
$ |
4 |
|
Leased assets obtained in exchange for new operating lease liabilities |
$ |
60 |
|
|
$ |
321 |
|
Leased assets obtained in exchange for new finance lease liabilities |
$ |
2 |
|
|
$ |
5 |
|
Additions of property and equipment included in Accounts payable |
$ |
24 |
|
|
$ |
7 |
|
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION UNITED NATURAL FOODS, INC. |
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Reconciliation of Net income (loss) including noncontrolling interests to Adjusted EBITDA (unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
(in millions) |
August 1, 2026 (13 weeks) |
|
August 2, 2025 (13 weeks) |
|
August 1, 2026 (52 weeks) |
|
August 2, 2025 (52 weeks) |
||||||||
Net income (loss) including noncontrolling interests |
$ |
35 |
|
|
$ |
(86 |
) |
|
$ |
84 |
|
|
$ |
(115 |
) |
Adjustments to net income (loss) including noncontrolling interests: |
|
|
|
|
|
|
|
||||||||
Less net income attributable to noncontrolling interests |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(3 |
) |
Net periodic benefit income, excluding service cost |
|
(5 |
) |
|
|
(5 |
) |
|
|
(23 |
) |
|
|
(20 |
) |
Interest expense, net |
|
29 |
|
|
|
36 |
|
|
|
126 |
|
|
|
146 |
|
Other (income) expense, net |
|
(1 |
) |
|
|
— |
|
|
|
6 |
|
|
|
(3 |
) |
Provision (benefit) for income taxes |
|
11 |
|
|
|
(23 |
) |
|
|
18 |
|
|
|
(39 |
) |
Depreciation and amortization |
|
78 |
|
|
|
79 |
|
|
|
303 |
|
|
|
321 |
|
Share-based compensation |
|
16 |
|
|
|
15 |
|
|
|
61 |
|
|
|
43 |
|
LIFO charge (benefit) |
|
1 |
|
|
|
(7 |
) |
|
|
19 |
|
|
|
(2 |
) |
Restructuring, acquisition and integration related expenses(1) |
|
12 |
|
|
|
59 |
|
|
|
52 |
|
|
|
94 |
|
(Gain) loss on sale of assets and other asset charges(2) |
|
(15 |
) |
|
|
3 |
|
|
|
27 |
|
|
|
42 |
|
Multiemployer pension plan withdrawal charges |
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Other retail expense(3) |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Business transformation costs(4) |
|
10 |
|
|
|
7 |
|
|
|
34 |
|
|
|
47 |
|
Cybersecurity incident(5) |
|
(3 |
) |
|
|
26 |
|
|
|
(21 |
) |
|
|
26 |
|
Other adjustments(6) |
|
— |
|
|
|
13 |
|
|
|
11 |
|
|
|
15 |
|
Adjusted EBITDA |
$ |
172 |
|
|
$ |
116 |
|
|
$ |
701 |
|
|
$ |
552 |
|
| (1) |
Fiscal 2026 primarily reflects distribution center and store closure charges, costs associated with certain employee severance and other employee separation costs and adjustments to previously recorded multiemployer pension plan withdrawal liabilities. Fiscal 2025 primarily reflects the |
|
| (2) |
Fiscal 2026 primarily includes |
|
| (3) | Fiscal 2026 reflects store closure inventory charges, which are included within Cost of sales in the Consolidated Statements of Operations. |
|
| (4) | Reflects costs associated with business transformation initiatives, primarily including third-party consulting costs and licensing costs, which are included within Operating expenses in the Consolidated Statements of Operations. |
|
| (5) |
Fiscal 2026 includes |
|
| (6) | Primarily reflects accrued costs related to an agreement to settle certain legal proceedings, which are included within Operating expenses in the Consolidated Statements of Operations. |
Reconciliation of Net income (loss) attributable to United Natural Foods, Inc. to Adjusted net income (loss) and Adjusted EPS (unaudited) |
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|
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|
Fourth Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
(in millions, except per share amounts) |
August 1, 2026 (13 weeks) |
|
August 2, 2025 (13 weeks) |
|
August 1, 2026 (52 weeks) |
|
August 2, 2025 (52 weeks) |
||||||||
Net income (loss) attributable to United Natural Foods, Inc. |
$ |
35 |
|
|
$ |
(87 |
) |
|
$ |
84 |
|
|
$ |
(118 |
) |
Restructuring, acquisition, and integration related expenses(1) |
|
12 |
|
|
|
59 |
|
|
|
52 |
|
|
|
94 |
|
(Gain) loss on sale of assets and other asset charges other than losses on sales of receivables(2) |
|
(19 |
) |
|
|
(2 |
) |
|
|
10 |
|
|
|
23 |
|
LIFO charge (benefit) |
|
1 |
|
|
|
(7 |
) |
|
|
19 |
|
|
|
(2 |
) |
Surplus property depreciation and interest expense(3) |
|
3 |
|
|
|
1 |
|
|
|
5 |
|
|
|
2 |
|
Multiemployer pension plan withdrawal charges |
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Loss on debt extinguishment |
|
1 |
|
|
|
4 |
|
|
|
2 |
|
|
|
4 |
|
Other retail expense(4) |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Business transformation costs(5) |
|
10 |
|
|
|
7 |
|
|
|
34 |
|
|
|
47 |
|
Cybersecurity incident(6) |
|
(3 |
) |
|
|
26 |
|
|
|
(21 |
) |
|
|
26 |
|
Other adjustments(7) |
|
— |
|
|
|
13 |
|
|
|
11 |
|
|
|
15 |
|
Tax impact of adjustments and adjusted effective tax rate(8) |
|
— |
|
|
|
(20 |
) |
|
|
(34 |
) |
|
|
(47 |
) |
Adjusted net income (loss) |
$ |
44 |
|
|
$ |
(6 |
) |
|
$ |
166 |
|
|
$ |
44 |
|
|
|
|
|
|
|
|
|
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Diluted weighted average shares outstanding |
|
62.9 |
|
|
|
60.6 |
|
|
|
62.8 |
|
|
|
61.8 |
|
Adjusted EPS(9) |
$ |
0.69 |
|
|
$ |
(0.11 |
) |
|
$ |
2.65 |
|
|
$ |
0.71 |
|
| (1) |
Fiscal 2026 primarily reflects distribution center and store closure charges, costs associated with certain employee severance and other employee separation costs and adjustments to previously recorded multiemployer pension plan withdrawal liabilities. Fiscal 2025 primarily reflects the |
|
| (2) |
(Gain) loss on sale of assets and other asset charges, as reflected here, does not include losses on sales of receivables under the accounts receivable monetization program, which are included in Loss (gain) on sale of assets and other asset charges on the Consolidated Statements of Operations and are not adjusted in the calculation of Adjusted EPS. Fiscal 2026 primarily includes |
|
| (3) | Reflects surplus, non-operating property depreciation and interest expense. |
|
| (4) | Fiscal 2026 reflects store closure inventory charges, which are included within Cost of sales in the Consolidated Statements of Operations. |
|
| (5) | Reflects costs associated with business transformation initiatives, primarily including third-party consulting costs and licensing costs, which are included within Operating expenses in the Consolidated Statements of Operations. |
|
| (6) |
Fiscal 2026 includes |
|
| (7) | Primarily reflects accrued costs related to an agreement to settle certain legal proceedings, which are included within Operating expenses in the Consolidated Statements of Operations. |
|
| (8) | Represents the tax effect of the pre-tax adjustments using an adjusted effective tax rate. The adjusted effective tax rate is calculated based on adjusted net income before tax, and its impact reflects the exclusion of changes to uncertain tax positions, valuation allowances, tax impacts related to the vesting of share-based compensation awards and discrete GAAP tax items which could impact the comparability of the operational effective tax rate. The Company believes using this adjusted effective tax rate will provide better consistency across the interim reporting periods since each of these discrete items can cause volatility in the GAAP tax rate that is not indicative of the underlying ongoing operations of the Company. By providing this non-GAAP measure, management intends to provide investors with a meaningful, consistent comparison of the Company’s effective tax rate on ongoing operations. |
|
| (9) | Adjusted earnings (loss) per share amounts are calculated using actual unrounded figures. |
Calculation of Net leverage ratio (unaudited) |
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|
|
||
(in millions, except ratios) |
Fiscal Year
August 1, 2026 |
||
Current portion of long-term debt and finance lease liabilities |
$ |
5 |
|
Long-term debt |
|
1,561 |
|
Long-term finance lease liabilities |
|
10 |
|
Less: Cash and cash equivalents |
|
(37 |
) |
Net carrying value of debt and finance lease liabilities |
|
1,539 |
|
Adjusted EBITDA |
$ |
701 |
|
Net leverage ratio |
2.2x |
||
Reconciliation of Net cash provided by operating activities to Free cash flow (unaudited) |
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|
|
|
|
|
|
|
|
||||||||
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
(in millions) |
August 1, 2026 (13 weeks) |
|
August 2, 2025 (13 weeks) |
|
August 1, 2026 (52 weeks) |
|
August 2, 2025 (52 weeks) |
||||||||
Net cash provided by operating activities |
$ |
197 |
|
|
$ |
160 |
|
|
$ |
540 |
|
|
$ |
470 |
|
Payments for capital expenditures |
|
(117 |
) |
|
|
(74 |
) |
|
|
(217 |
) |
|
|
(231 |
) |
Free cash flow |
$ |
80 |
|
|
$ |
86 |
|
|
$ |
323 |
|
|
$ |
239 |
|
Reconciliation of Payments for capital expenditures to Capital and cloud implementation expenditures (unaudited) |
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|
|
|
|
|
|
|
|
||||
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
||||||||
(in millions) |
August 1, 2026 (13 weeks) |
|
August 2, 2025 (13 weeks) |
|
August 1, 2026 (52 weeks) |
|
August 2, 2025 (52 weeks) |
||||
Payments for capital expenditures |
$ |
117 |
|
$ |
74 |
|
$ |
217 |
|
$ |
231 |
Cloud technology implementation expenditures (1) |
|
17 |
|
|
1 |
|
|
35 |
|
|
7 |
Capital and cloud implementation expenditures |
$ |
134 |
|
$ |
75 |
|
$ |
252 |
|
$ |
238 |
| (1) | Cloud technology implementation expenditures are included in operating activities in the Consolidated Statements of Cash Flows. |
Reconciliation of actual 2026 and 2025 U.S. GAAP effective tax rate to adjusted effective tax rate (unaudited) |
|||
|
Actual Fiscal 2026 |
|
Actual Fiscal 2025 |
|
18 % |
|
25 % |
Discrete quarterly recognition of GAAP items(1) |
4 % |
|
(1)% |
Tax impact of other charges and adjustments(2) |
5 % |
|
(13)% |
Changes in valuation allowances(3) |
(3)% |
|
5 % |
Other(4) |
— % |
|
— % |
Adjusted Effective Tax Rate(4) |
24 % |
|
16 % |
Note: As part of the year-end reconciliation, we have updated the reconciliation of the fiscal 2026 GAAP effective tax rate for actual results. |
||
| (1) | Reflects changes in tax laws, uncertain tax positions, the tax impacts related to the exercise of share-based compensation awards and any prior-year deferred tax or payable adjustments. This includes prior-year Internal Revenue Service or other tax jurisdiction audit adjustments. |
|
| (2) | Reflects the tax impact of pre-tax adjustments that are excluded from pre-tax income when calculating Adjusted EPS. |
|
| (3) | Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations. |
|
| (4) | The Company establishes an estimated adjusted effective tax rate at the beginning of the fiscal year based on the best available information. The Company re-evaluates its estimated adjusted effective tax rate as appropriate throughout the year and adjusts for any material changes. The actual adjusted effective tax rate at the end of the fiscal year is based on actual results and accordingly may differ from the estimated adjusted effective tax rate used during the year. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260908000561/en/
INVESTOR CONTACTS:
Steve Bloomquist
Vice President, Investor Relations
952-828-4144 sbloomquist@unfi.com
Jeremy Perron
SVP, Investor Relations and Corporate Development
781-733-6890 jeremy.perron@unfi.com
Source: United Natural Foods, Inc.