United Natural Foods Q2 Earnings Call Highlights

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MarketBeat

Tue, March 10, 2026 astatine 11:48 AM CDT 6 min read

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US Foods is Managing Inflation Deceleration the Right Way

United Natural Foods (NYSE:UNFI) reported fiscal second-quarter 2024 results that absorption said reflected disciplined execution of its worth instauration strategy, with gains successful profitability and escaped currency travel much than offsetting near-term income unit tied to web optimization initiatives.

On the call, CEO Sandy Douglas said the institution is focused connected achieving “shared, profitable growth” with customers and suppliers portion gathering capabilities crossed areas specified arsenic lawsuit stewardship, merchandising, nonrecreational and integer services, backstage brands, technology, proviso chain, and productivity. CFO Matteo Tarditi added that UNFI is updating its full-year outlook based connected year-to-date show and its existent presumption of the operating environment.

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The Turnaround successful United Natural Foods is Ripening

For the 2nd quarter, UNFI reported income of astir $8 billion, down 2.6% from the anterior year. Management attributed the diminution mostly to “accretive optimization actions,” which they said created a headwind of astir 500 ground points to income growth. Tarditi besides cited ostentation and favorable mix, on with “sequentially weaker underlying nutrient retail trends,” partially driven by SNAP uncertainty, weather-related volatility, and what helium called a dynamic operating backdrop.

Despite the income decline, profitability improved. Adjusted EBITDA accrued much than 23% to $179 million, and adjusted EBITDA borderline roseate to 2.3% of nett sales, up astir 50 ground points year-over-year. Adjusted EPS was $0.62, up from $0.22 a twelvemonth earlier, which absorption attributed to higher adjusted EBITDA, little nett involvement disbursal from reduced indebtedness levels, and little depreciation expense.

Gross margin: 13.2%, up 10 ground points year-over-year, driven by optimization benefits and modestly higher procurement gains, partially offset by a little retail borderline complaint tied successful portion to pharmacy merchandise premix shifts.
Operating expenses: down astir 6% year-over-year, with operating disbursal complaint improving 40 ground points to 12.2% of nett sales.
Distribution halfway productivity: up much than 6%, supported by web optimization, automation, Value Delivery Office projects, and expanded thin regular absorption practices.

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