United Natural Foods (UNFI) Tops Q3 EPS by 6c, Revenues Miss; Offers FY21 EPS/Revenues Outlook

United Natural Foods (NASDAQ: UNFI) reported Q3 EPS of $0.94, $0.06 better than the analyst estimate of $0.88. Revenue for the quarter came in at $6.62 billion versus the consensus estimate of $6.82 billion.

Third Quarter Fiscal 2021 Highlights (comparisons to third quarter fiscal 2020)

• Net sales of $6.62 billion, a decrease of 5.9% (+6.7% on a two-year stack basis)
• Net income of $49 million, a decrease of approximately $40 million
• Adjusted EBITDA of $179 million, a decrease of 19.2%
• Earnings per diluted share (EPS) of $0.80, a decrease of 50.0%
• Adjusted EPS of $0.94, a decrease of 29.3%
• Net debt reduction of $62 million bringing fiscal year-to-date total to $175 million
• Full-year outlook for fiscal 2021 reflects record year for net sales and adjusted EBITDA

“Our results reflect our unrelenting focus on efficiency and the profitability of our business, as we cycled the highest spikes of sales revenue from pantry loading in the prior-year quarter,” said Steven L. Spinner, Chairman and Chief Executive Officer. “We continue to focus on helping our customers operate their businesses and meet the needs of their shoppers through our differentiated business model. As the industry and economic backdrop continue to evolve, UNFI remains well positioned for future growth.” Spinner concluded by saying, “Fiscal 2020 was a record year for UNFI and fiscal 2021 is on-track to set another record. Looking ahead, we fully expect fiscal 2022 to be even better than this year.”

GUIDANCE:

United Natural Foods sees FY2021 EPS of $3.05-$3.55, versus the consensus of $3.42. United Natural Foods sees FY2021 revenue of $27-27.8 billion, versus the consensus of $27.21 billion.

“Although our sales have moderated, as expected, from the unprecedented levels experienced during last year’s third quarter, our focus on operational efficiencies and our ValuePath productivity initiative keep us on track to deliver full-year results at the upper end of the range for adjusted EBITDA and adjusted EPS,” said John Howard, Chief Financial Officer. “Due to the extended timing of onboarding new business wins, we now expect to finish at the low end of the current range for net sales, which we expect will result in a second consecutive record sales year for UNFI.”

For earnings history and earnings-related data on United Natural Foods (UNFI) click here.

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