United Natural Foods (UNFI) investor relations material

Strategic achievements and operational improvements

• Achieved 26% EBITDA growth in fiscal 2026, with significant deleveraging from 4x to 2x over two years.

• Leadership team strengthened with talent from major companies and internal development, recasting strategy to focus on a $90 billion wholesale market.

• Operational initiatives targeted $4 billion in supply chain costs, resulting in a 40% EBITDA improvement and strong free cash flow.

• Lean 2.0 and technology upgrades, including AI-driven inventory and safety systems, are driving ongoing efficiency and effectiveness.

• Integration of acquisitions and a renewed focus on process and system improvements position the business for future growth.

Market trends and consumer insights

• Retailers pursuing differentiation strategies, such as natural, ethnic, and innovative formats, are gaining share.

• Consumer strain is evident due to fuel costs and reduced SNAP benefits, but health and wellness trends support growth in natural and organic products.

• Food inflation has moderated to 2%-3%, with agile cost management and procurement strategies in place.

• Both traditional and natural retailers are increasing their focus on natural and organic SKUs, with enduring demand for health-oriented products.

Growth outlook and business pipeline

• Confident in returning to top-line growth in the second half of fiscal 2027, supported by a refined customer base and a robust business pipeline.

• Sales organization has been upgraded to better manage customer relationships and identify new opportunities.

• Value-added services, such as digital and professional offerings, are tailored to customer needs and contribute to margin expansion.