United Natural Foods, Inc. (NYSE: UNFI) reported financial results for the first quarter of fiscal 2026, with net sales decreasing slightly to $7.8 billion and an adjusted EBITDA increase of 24.6% to $167 million.
The company saw a net loss of $4 million with a loss per diluted share of $0.06, but adjusted EPS increased to $0.56.
Key highlights include continued focus on effectiveness and efficiency initiatives, net leverage ratio decline to 3.2x, and an affirmed fiscal 2026 outlook.
Net Sales Decrease
Net sales decreased 0.4% to $7.8 billion compared to the same period in the prior year.
Adjusted EBITDA Growth
Adjusted EBITDA increased by 24.6% to $167 million, showing significant improvement in operational performance.
Lean Operational Improvements
The company implemented lean daily management in 34 distribution centers, driving service level enhancements and increased throughput.
Net Leverage Ratio Decline
The net leverage ratio decreased sequentially to 3.2x, aiming to achieve a target of 2.5x or less by the end of fiscal year.
Fiscal 2026 Outlook Affirmed
The company affirms its outlook for fiscal 2026, focusing on improving service levels and enhancing capabilities for customer and supplier growth strategies.
- United Natural Foods, Inc. started fiscal 2026 with solid execution and progress in delivering value to stakeholders.
- Efforts in network optimization, supply chain investments, and process improvements led to improved Adjusted EBITDA and free cash flow, surpassing last year's performance.
- Operational efficiency initiatives and the decline in net leverage ratio signal positive trends in the company's financial health.
United Natural Foods, Inc. has demonstrated resilience and growth in the face of market challenges, showing promising results in the first quarter of fiscal 2026. The company's strategic focus on efficiency and effectiveness positions it well for continued success throughout the year.