United Natural Foods, Inc. UNFI, North America’s premier grocery wholesaler, has updated the fiscal 2025 financial outlook while reaffirming confidence in the long-term strategic goals. The company’s latest update reflects both strong performance through the first three quarters of fiscal 2025 and the financial impact of a cyber incident in the fourth quarter.
Despite the challenges, UNFI remains committed to advancing the partner-first strategy, improving efficiency and accelerating its multi-year growth plans.
For fiscal 2025, UNFI now anticipates net sales of $31.6-$31.8 billion, compared with the prior forecast of $31.3-$31.7 billion. The updated outlook represents a 2.3% increase over fiscal 2024.
Adjusted EBITDA is now expected to be between $535 million and $565 million, slightly below the previous estimate of $550-$580 million, still indicating 6.2% growth over the prior year.
Adjusted EPS has been revised to 40-80 cents compared with the prior range of 70-90 cents, implying the temporary impact of the cyber incident.
Free cash flow is projected at approximately $200 million compared with the prior forecast of $150 million. The metric is expected to witness a substantial improvement from negative $92 million in fiscal 2024.
In the fourth quarter of fiscal 2025, United Natural Foods faced a cybersecurity incident that temporarily disrupted its operations. The company expects the cyber incident to reduce fiscal 2025 net sales by about $350-$400 million and lower adjusted EBITDA by $40-$50 million. It also expects $20 million in incremental incident-driven costs and about $5 million in remediation expenses, leading to a total estimated net loss of $50 million to $60 million, which includes the estimated tax impact.
Despite the disruption, UNFI’s primary ordering systems were restored within 10 days, and it is now operating at more normalized levels. UNFI expects no material operational or financial impact beyond fiscal 2025, aside from anticipated insurance reimbursements, which are expected to cover recovery and remediation costs.
The company continues to benefit from lean management practices, wholesale business realignment and the optimization of unprofitable operations. With lean daily management expanding across its network and ongoing customer support efforts, United Natural Foods remains committed to long-term value creation, despite recent cybersecurity challenges.
United Natural Foods’ natural and organic business continues to exhibit impressive growth, driven by heightened consumer demand for healthier and more sustainable products. This aligns with broader consumer trends favoring “better-for-you” products, which have proven resilient and increasingly popular. Furthermore, the company’s ability to deliver value-added services and insights to retailers has solidified its position as a trusted partner in this high-growth market.
