Foodservice
UNFI lifts Q3 2023 sales on inflation, suffers earnings decline
June 7, 2023
United Natural Foods Inc. lifted its Q3 2023 sales on inflation and new business while earnings declined due to lower margins and a challenging macroeconomic environment, according to an earnings report.
Highlights include:
- Net sales increased 3.7% from $7.24 billion in Q3 2022 to $7.51 billion in the quarter ending April 29, 2023, primarily driven by inflation and new business. These increases were partially offset by a decrease in units sold.
- Net income fell from $67 million to $7 million in the comparative quarters.
- Basic earnings per share fell from $1.15 to 12 cents and diluted EPS fell from $1.10 to 12 cents.
- Adjusted EPS decreased 50.9% from $1.10 to 54 cents.
Shares traded today at $22.26 against a 52-week range of $19.62-$48.26.
The $7.51 billion in revenue was in line with analyst expectations, while the non-GAAP EPS missed expectations by 11 cents, according to Seeking Alpha.
"Our third quarter results continue to demonstrate the strength of our customer value proposition as sales and product penetration increased despite significant industry headwinds," Sandy Douglas, CEO, said in a press release. "However, our profitability was impacted by a greater than expected decline in gross margins reflecting a challenging operating and macroeconomic backdrop, which contributed to lower inflationary benefits primarily related to reduced procurement gains, as well as higher shrink."
The full year sales outlook remains at $3.1 million to $30.5 million, while the outlook for net income has changed from a $90 million - $142 million range to a $11 million - $41 million range and the adjusted EPS outlook has been lowered from a $3.05 - $3.90 range to a $1.80 - $2.30 range.
