United Natural Foods Reports Strong Q3 Sales Growth

United Natural Foods ( (UNFI) ) has released its Q3 earnings. Here is a breakdown of the information United Natural Foods presented to its investors.

United Natural Foods, Inc. (UNFI) is a leading grocery wholesaler in North America, providing a wide range of fresh, branded, and owned brand products to over 30,000 locations, including natural product superstores, independent retailers, and conventional supermarket chains. The company also offers value-added services such as proprietary technology and market insights.

In its third quarter of fiscal 2025, United Natural Foods reported a 7.5% increase in net sales, reaching $8.1 billion, compared to the same period last year. Despite a net loss of $7 million, the company achieved a significant 20.8% growth in adjusted EBITDA to $157 million and an increase in adjusted EPS to $0.44.

Key highlights from the report include a substantial improvement in free cash flow by approximately $70 million and a reduction in the net debt to adjusted EBITDA ratio to 3.3x, marking the lowest level in the past two fiscal years. The company continues to focus on stakeholder value creation, lean management, and operational execution, which have resulted in profitable new business additions and the rationalization of unprofitable segments.

Operating expenses decreased as a percentage of net sales due to higher sales leverage and cost-saving initiatives, while interest expenses slightly declined. The effective tax rate saw a significant benefit due to a partnership investment and prior year adjustments.

Looking ahead, United Natural Foods remains confident in its multi-year strategy despite a recent cyber incident. The company is committed to optimizing its distribution network and managing through current challenges, with a full-year outlook for adjusted EBITDA and free cash flow remaining strong.