UNFI Announces Third Quarter Results

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Providence, RI—United Natural Foods, Inc. (UNFI) has reported financial results for the third quarter of fiscal 2020 ended May 2, 2020, in a press release.

Highlights:

  • Net Sales increased 12% to $6.67 billion compared to $5.96 billion in last year’s fiscal third quarter
  • Net income increased 54% to $88 million; Adjusted EBITDA increased 32% to $222 million
  • Earnings per diluted share (EPS) of $1.60; Adjusted EPS increased 130% to $1.40
  • Net debt reduced by $302 million compared to the second quarter of fiscal 2020
  • Updates fiscal 2020 guidance, which includes the impact of Retail included in Continuing Operations
Related: UNFI Announces COVID-19 Business Update
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Net sales, the press release notes, benefited from strong customer demand driven by responses to COVID-19, partially offset by the impact from customer bankruptcies that occurred in the second quarter. Operating expenses were $774.4 million, or 11.61% of net sales, compared to $737.7 million, or 12.37% of net sales, for third quarter fiscal 2019. The decrease as a percent of net sales was due to fixed operating and administrative expenses and the benefit of integration efforts, partially offset by costs related to COVID-19, including the impact of pandemic-related incentives, additional labor support, and additional costs for safety protocols and procedures.

Other changes: Rather than monetizing owned real estate under the Cub banner, UNFI plans to maintain the 52 wholly or majority owned stores for up to another 24 months. UNFI also intends to hang onto a limited number of the 24 remaining Shoppers stores, for the same time period. These stores will be reported in Continuing Operations beginning in Q4.

Steven L. Spinner, Chairman and CEO of UNFI, said in the release: “UNFI’s ability to successfully manage the strong increase in customer demand driven by the COVID-19 pandemic is a testament to the dedication of our associates, our strong industry position, and the critical role we play in the North American food supply chain. We expect elevated consumer demand for our wide variety of natural, conventional, and fresh perimeter products, along with our ongoing synergy and integration initiatives, to result in a strong finish to the fiscal year. I am so proud of our team of frontline associates who continue to amaze us with their commitment to excellence. Our first priority will continue to be their safety.”

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