Benzinga - by Lekha Gupta, Benzinga Editor.
United Natural Foods Inc (NYSE: UNFI) reported first-quarter FY24 sales growth of 0.3% Y/Y to $7.552 billion, missing the analyst consensus of $7.615 billion.
Revenue benefitted from inflation and new business with existing customers, primarily in its Supernatural channel, partly offset by decreased units sold.
Gross profit declined 6.0% Y/Y to $1.0 billion, with a margin of 13.6% vs. 14.6% a year ago.
Adjusted EBITDA declined 43.5% Y/Y to $117 million. Adjusted EPS of $(0.04) beat the analyst consensus estimate of $(0.31).
The company held $37 million in cash and equivalents as of Oct. 28, 2023. Free cash flow for the quarter totaled $(328) million, and the operating cash flow was $(254) million.
"Our performance this quarter exceeded our expectations as we drove improved operational execution, which helped deliver savings from our near-term value creation initiatives earlier in the year than previously expected. These savings partially offset the anticipated decline in procurement gains resulting from lower levels of inflation," said CEO Sandy Douglas.
Outlook: United Natural Foods reaffirms FY24 sales of $30.9 billion-$31.5 billion, against the consensus of $31.21 billion and adjusted EPS of $(0.88)-$0.38 versus the consensus of $(0.2).
The company reiterated guidance for FY24 adjusted EBITDA of $450 million-$550 million and capital expenditure of about $400 million.
UNFI Price Action: United Natural Foods shares are trading lower by 2.21% at $15.96 on the last check Wednesday.
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