UNFI Q3 Loss Narrows, Adj. EPS& Top Line Beat Street; Backs FY25 Adj. Earnings, Sales View; Stock Up

(RTTNews) - Grocery wholesaler United Natural Foods, Inc. (UNFI) reported Tuesday narrower net loss in its third quarter with growth in net sales. Further, the firm trimmed its fiscal 2025 earnings view on a reported basis, while it maintained adjusted earnings and net sales forecast.

In pre-market activity on the NYSE, the shares were gaining around 4.8 percent to trade at $27.20, after losing around 7 percent on Monday's regular trading.

The company said its fiscal 2025 outlook now reflects costs and charges associated with exiting a customer contract and optimizing the company's distribution network in the Northeast.

For the year, the company now projects net loss between $80 million and $55 million or net loss per share between $1.30 and $0.90. The company previously expected between net loss of $13 million and net income of $3 million or net loss per share of $0.15 and net income of $0.05 per share.

Further, the company continues to expect adjusted earnings per share in a range of $0.70 to $0.90, adjusted EBITDA of $550 million to $580 million, and net sales in a range of $31.3 billion to $31.7 billion.

The Wall Street analysts on average expect the company to report earnings of $0.82 per share on sales of $31.57 billion. Analysts' estimates typically exclude special items.

In its third quarter, the company's net loss was $7 million, narrower than net loss of $21 million a year ago. Net loss per share was $0.12, compared to net loss of $0.34 per share a year ago.

Adjusted earnings per share was $0.44 for the third quarter, compared to $0.10 in 2024.

Adjusted EBITDA climbed to $157 million from prior year's $130 million.

Net sales increased 7.5 percent in the third quarter to $8.06 billion from $7.50 billion last year.

The Street was looking for earnings of 0.22 per share on sales of $7.79 billion for the quarter.

Net sales were primarily driven by a 4 percent increase in wholesale unit volumes, including the benefit of new business with existing and new customers, as well as inflation. This performance was led by natural product growth.

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