United Subsides on Results Beat

United Natural Foods Inc (NYSE:UNFI) reported better-than-expected results for its fiscal fourth quarter and announced the retirement of its CEO. The company said it expects FY 2021 net sales of $27 billion to $27.8 billion and earnings of $3.05 to $3.55 per share.

For the final quarter of the fiscal year, net sales increased 0.4% to $6.75 billion, an 8.0% increase on a comparable basis

Net income increased 173.7% to $52 million, a 207.1% increase on a comparable basis. Adjusted EBITDA increased 19.3% to $198 million, a 27.9% increase on a comparable basis.

Earnings per diluted share (EPS) increased 147.2% to $0.89, a 177.9% increase on a comparable basis. Adjusted EPS increased 202.9% to $1.06, a 205.2% increase on a comparable basis

For the full year, net sales increased to $26.5 billion. Net loss was $274 million, including $425 million pre-tax goodwill and asset impairment charges recorded in the first quarter of fiscal 2020.

The company’s Adjusted EBITDA increased to $673 million. Its loss per diluted share (EPS) improved to $5.10. Its adjusted EPS increased to $2.72

UNFI also reduced its outstanding debt, net of cash, by $388 million; year-end adjusted EBITDA leverage ratio of 4.0x.

Said CEO Steven Spinner, "Fiscal 2020 was a monumental year for UNFI as the demonstrated flexibility and strength of our supply chain network led to full year results that exceeded our expectations.

"At the same time, we’re focused on keeping our associates safe and maintaining the food supply chain for communities across North America through the unprecedented events of 2020, including the pandemic, civil unrest, and natural disasters. We’re continuing to execute with passion and purpose on our strategy and expect further growth in fiscal 2021."

UNFI shares moved lower $2.03, or 10.6%, to $17.15.