Q2 2026 United Natural Foods Inc Earnings Call Transcript
Key Points
- United Natural Foods Inc (UNFI) reported a 23% increase in adjusted EBITDA and a 26% rise in free cash flow, exceeding expectations.
- The company successfully implemented an AI-powered supply chain planning platform, Relax, across its network, improving customer service, fill rates, and inventory management.
- UNFI launched nearly 50 new private label SKUs, aligning with emerging shopper trends such as health and wellness, value, and convenience.
- The company reduced net leverage to 2.7 turns, a full turn improvement over the past 12 months, reflecting strong financial management.
- UNFI's natural product sales grew by 7%, outperforming the market due to continued shopper demand for natural, organic, and specialty products.
- Overall sales declined by 2.6% compared to the previous year, impacted by network optimization actions.
- Conventional product sales fell by 12%, primarily due to strategic network optimization and the exit from the Allentown distribution center.
- Retail sales decreased by 8% due to strategic store closures aimed at optimizing the business footprint.
- The company lowered its full-year sales expectations to a range of $31 billion to $31.4 billion, reflecting a 1.9% reduction at the midpoint.
- UNFI faced challenges from a dynamic operating environment, including snap uncertainty and weather-related volatility, affecting food retail trends.
Thank you for standing by. At this time, I would like to welcome everyone to the UNFI second quarter fiscal 2026 earnings call. (Operator Instructions) I would now like to turn the call over to Steve Bloomquist, Vice President of Investor Relations. You may begin.
Good morning, everyone, and thank you for joining us on UNFI's second quarter fiscal 2026 earnings conference call. By now, you should have received a copy of the earnings release from this morning. The press release and earnings presentation, which management will speak to are available under the Investors section of the company's website at www.unfi.com. We've also included a supplemental disclosure file in Microsoft Excel with key financial information.
Joining me for today's call are Sandy Douglas, our Chief Executive Officer; and Matteo Tarditi, our President and Chief Financial Officer. Sandy and Matteo will provide a business update, after which
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