Q3 2024 United Natural Foods Inc Earnings Call Transcript
Key Points
- United Natural Foods Inc (UNFI) extended its relationship with Whole Foods through 2032, providing long-term stability.
- The company is launching a new multiyear strategic plan starting in fiscal 2025, aimed at enhancing profitability and cash flow.
- UNFI has identified a resilient segment of the industry worth over $90 billion in sales, which includes many of its existing customers.
- The company is focusing on expanding its high-margin services portfolio, which is expected to drive significant increases in free cash flow.
- UNFI has taken steps to optimize its network and reduce capital expenditure, aiming to spend approximately $300 million in fiscal 2025, down from $370 million in the current fiscal year.
- Sales for the third quarter were flat at $7.5 billion, indicating muted volume performance.
- The retail business continues to face top-line pressure due to price-sensitive consumers.
- Adjusted EBITDA declined by $29 million compared to the previous year, reflecting ongoing financial challenges.
- The company is still working on structural fixes to improve inventory management, which may take time to implement fully.
- Promotional activity is gradually increasing but remains below pre-pandemic levels, potentially impacting margins.
Hello. My name is Ellie, and I will be your operator for today. I would like to welcome everyone to UNFI fiscal 2024 third-quarter earnings call. (Operator instructions)
It is now my pleasure to turn today's meeting over to Steve Bloomquist, Vice President, Investor Relations. Steve, please go ahead.
Good morning, everyone, and thank you for joining us on UNFI's third-quarter fiscal 2024 earnings conference call. By now, you should have received a copy of the earnings release issued this morning. The press release and earnings presentation, which management will speak to, are available under the Investors section of the company's website at unfi.com on the Events tab. We've also included a supplemental disclosure file in Microsoft Excel with key financial information.
Joining me for today's call are Sandy Douglas, our Chief Executive Officer; and Matteo Tarditi, our President and Chief Financial Officer. Sandy and Matteo will provide a business update, after
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