United Natural Foods Reports 2.6% Net Sales Increase to $31.8 Billion Amid Cybersecurity Challenges

United Natural Foods, Inc. (UNFI) reported a net sales increase of $804 million, or 2.6%, for the fiscal year ending August 2, 2025, reaching $31.8 billion compared to $30.0 billion in the previous year. The growth was primarily driven by a 7.2% increase in the Natural segment, which generated $16.0 billion in sales, while the Conventional segment saw a slight decline of 1.9% to $14.7 billion. The Retail segment also experienced a decrease, with sales falling 3.9% to $2.3 billion. The company noted that approximately $400 million in sales were lost due to a cybersecurity incident that impacted operations during the fiscal year.

In terms of profitability, UNFI reported a gross profit of $4.2 billion, a marginal increase from $4.2 billion in the prior year, but the gross profit margin decreased to 13.3% from 13.6%. Operating expenses rose to $4.1 billion, leading to an operating loss of $31 million, a significant decline from an operating income of $8 million in the previous fiscal year. The net loss attributable to UNFI was $118 million, or $1.95 per diluted share, compared to a net loss of $112 million, or $1.89 per diluted share, in fiscal 2024.

Strategically, UNFI has been realigning its commercial wholesale organization into two product-centered divisions: Conventional Grocery Products and Natural, Organic, Specialty & Fresh Products. This restructuring aims to enhance customer service and operational efficiency. The company also closed a distribution center in Allentown, Pennsylvania, and consolidated operations to optimize its distribution network. Additionally, UNFI is investing in technology and automation to improve supply chain efficiency and customer service.

Operationally, UNFI maintained a workforce of approximately 25,600 employees, with 42% covered by collective bargaining agreements. The company continues to focus on improving its working capital management and reducing net leverage. As of August 2, 2025, total debt decreased to $1.9 billion from $2.1 billion the previous year, and total liquidity was reported at $1.5 billion. Looking ahead, UNFI plans to reinvest available capital into the business while aiming to improve free cash flow and financial leverage, despite the challenges posed by market conditions and the recent cybersecurity incident.