United Natural Foods Inc.

Overview Key strengths Key risks One of the largest wholesale grocery distributors in the U.S. with $29.0 billion in sales and 57 distribution centers. UNFI?s business operates in the low-margin U.S. grocery industry. Expanding presence in the on-trend and growing specialty, natural and organic (N&O), and fresh foods grocery channels. High customer concentration, with Whole Foods accounting for approximately 20% of sales. Positive annual free operating cash flow (FOCF) generation. The company continued to post strong results in fiscal 2022 (ended July 30, 2022) as its revenues improved by 7.3% on volume increases due to cross-selling between its product categories and higher selling prices due to inflationary pressures. Wholesale sales benefited from a growth in sales to existing customers in

...UNFI reduced its leverage by one turn between fiscal year 2020 and fiscal year 2022. The company continued to post strong results in fiscal 2022 (ended July 30, 2022) as its revenues improved by 7.3% on volume increases due to cross-selling between its product categories and higher selling prices due to inflationary pressures. Wholesale sales benefited from a growth in sales to existing customers in independent retailers, supernatural, and chains as well as new customers wins. The company's retail operations, which profit from its 2018 Supervalu acquisition also benefitted from a supportive grocery environment with retail sales growing about 1% year over year in fiscal 2022. While free cash flow was impeded by elevated working capital investments including for forward buying,...

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