United Natural Foods Posts Loss In Q4; Announces Board-led Financial Review, Shares Plummet

(RTTNews) - United Natural Foods, Inc. (UNFI) posted a fourth-quarter net loss of $68 million compared to net income of $39 million, prior year. Net loss per share was $1.15 compared to net income per share of $0.63. Adjusted loss per share was $0.25, compared to adjusted profit of $1.27. On average, 11 analysts polled by Thomson Reuters expected the company to report a loss per share of $0.28, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBITDA decreased 56.3% to $93 million.

Fourth quarter net sales were $7.42 billion compared to $7.27 billion, a year ago. Net sales increased 2.0%, primarily driven by inflation and new business. Analysts on average had estimated $7.47 billion in revenue. For 53-week fiscal 2024, the company expects: adjusted per share results between a loss of $0.88 and profit of $0.38. Net sales are anticipated in a range of $30.9 billion to $31.5 billion.

"As we look to the new fiscal year, we're focused on addressing near-term profitability while creating a structurally more efficient technology-enabled food retail services company. We've already captured nearly $100 million of near-term value creation initiatives, and we now expect to drive full year operating margin benefits in fiscal 2024 of nearly $150 million from these actions," said Sandy Douglas, CEO.

Separately, United Natural Foods announced the addition of three new members to its Board as part of the ongoing customer and supplier focused transformation plan. Effective September 28, 2023, Lynn Blake, James Loree and James Pappas will join Board as new independent directors. Pappas founded JCP Investment Management and is the Managing Member and owner of the firm.

The company said, in connection with a Cooperation Agreement UNFI entered with JCP Investment Management, the Board will oversee a financial review designed to enhance the company's performance and drive shareholder value creation. The review will include an evaluation of approaches to unlock and best prioritize financial resources to support the company's strategy, continue to strengthen the balance sheet, and create long-term value for shareholders.

Pappas, the founder and Managing Member of JCP, said: "As a director, I look forward to being a part of the Board-led review and assisting with the company's transformation efforts as the refreshed Board helps set UNFI on the path to meaningful shareholder value creation."

Shares of United Natural Foods are down 17% in pre-market trade on Tuesday.

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