Lending reports

United Natural Foods Inc. Reports Third Quarter Fiscal 2022 Results, Raises Full-Year Outlook

Highlights of the third quarter of fiscal 2022 (comparisons with the third quarter of fiscal 2021):

  • Net sales of $7.2 billion, an increase of 9.2%.
  • Net income of $67 million, an increase of 39.6%.
  • Diluted earnings per share (EPS) of $1.10, an increase of 37.5%.
  • Revises the definitions of Adjusted EBITDA and Adjusted EPS to exclude non-cash LIFO charge or benefit.
  • Adjusted EBITDA of $196 million, an increase of 5.9%.
  • Adjusted EPS of $1.10, an increase of 10.0%.
  • Updates the full year outlook for Net Sales, Net Income, EPS, Adjusted EBITDA and Adjusted EPS.
  • Refinances and increases the $500 million revolving credit facility with a June 2027 maturity date.

“Our performance in the third quarter once again demonstrates UNFI’s agility and focus on customer service despite a challenging operating environment. It is evident that our Fuel the Future strategy is working and starting to benefit our customers,” UNFI CEO Sandy Douglas said in the announcement. “As we aim for a successful year-end, we continue to make progress in simplifying our business and focusing our resources on the most important areas that create value for our customers, suppliers and shareholders.”

Summary of the third quarter of fiscal 2022

Net sales increased 9.2% in the third quarter of fiscal 2022 compared to the same period last year, mainly due to inflation and new business from existing and new customers, including the cross-selling advantage, partially offset by supply chain challenges and a modest shrinking market.

Gross margin rate in the third quarter of fiscal 2022 was 14.0% of net sales and included a LIFO charge of $72 million, or 1.0% of net sales. Excluding this non-cash charge, the gross margin rate was 15.0% of net sales. Gross margin rate in the third quarter of fiscal 2021 was 14.6% of net sales and included a LIFO charge of $5 million, or 0.1% of net sales. Excluding this non-cash charge, the gross margin rate in the third quarter of fiscal 2021 was 14.7% of net sales. The increase in gross margin rate, excluding the LIFO charge, was driven by improvements in the wholesale segment margin rate, including the impact of inflation and the ValuePath initiative of the company, partially offset by changes in customer mix.

Net income for the third quarter of fiscal 2022 was $67 million, which included a pretax gain of $88 million on the sale of assets related to a distribution center, a pretax LIFO charge of $72 million and an $8 million pre-tax restructuring. , acquisition and integration expenses. Net income for the third quarter of Fiscal 2021 was $48 million, including $10 million of pretax expenses related to restructuring, acquisition and integration and a LIFO charge before taxes of $5 million.

Net earnings per diluted share (EPS) was $1.10 for the third quarter of fiscal 2022, compared to net earnings per diluted share of $0.80 for the third quarter of fiscal 2021. EPS adjusted was $1.10 for the third quarter of Fiscal 2022, compared to $1.00 in the third quarter of Fiscal 2021.

Adjusted EBITDA for the third quarter of Fiscal 2022 was $196 million, compared to $185 million for the third quarter of Fiscal 2021.

Find the full report here.