United Natural Foods Reports Q1 Fiscal 2025 Results with $21 Million Net Loss

United Natural Foods, Inc. (UNFI) reported its financial results for the first quarter of fiscal 2025, ending November 2, 2024, revealing a net loss of $21 million, or $0.35 per diluted share, compared to a net loss of $39 million, or $0.67 per diluted share, in the same period last year. The company's net sales increased by 4.2% to $7.871 billion, up from $7.552 billion in the prior year, driven primarily by higher unit volumes and inflationary pressures. Gross profit rose slightly to $1.038 billion, reflecting a gross profit margin of 13.2%, down from 13.6% in the previous year.

The company experienced notable changes in its operational metrics, with total assets increasing to $7.966 billion from $7.528 billion as of August 3, 2024. Accounts receivable rose to $1.103 billion, while inventories increased to $2.402 billion, indicating a strategic focus on maintaining stock levels amid rising demand. Operating expenses decreased to $1.015 billion from $1.023 billion, attributed to cost-saving initiatives and improved operational efficiencies. However, restructuring, acquisition, and integration-related expenses rose to $12 million from $4 million, primarily due to severance costs.

UNFI's wholesale segment saw net sales increase to $7.590 billion, up from $7.281 billion, while retail sales decreased to $586 million from $606 million, largely due to a decline in identical store sales and store closures. The company continues to optimize its distribution network, having consolidated two distribution centers and opened a new facility in Manchester, Pennsylvania, which is expected to enhance operational efficiency. The company also plans to invest in its retail operations, focusing on customer experience improvements.

The filing indicates that UNFI's total debt increased to $2.247 billion, up from $2.085 billion, primarily due to additional borrowings under its asset-based revolving credit facility to support seasonal working capital needs. The company reported total liquidity of $1.174 billion, consisting of $1.137 billion in unused credit and $37 million in cash. Looking ahead, UNFI aims to improve its free cash flow and financial leverage while continuing to invest in its business to drive growth and efficiency.

In summary, UNFI's first-quarter results reflect a strategic focus on enhancing operational efficiency and managing costs amid a challenging market environment. The company remains committed to optimizing its distribution network and investing in its retail segment to better serve its diverse customer base across North America.