United Natural Foods, Inc. UNFI delivered an impressive third-quarter fiscal 2025 performance, with revenues and earnings beating the Zacks Consensus Estimate and increasing year over year.

The third-quarter results underscore UNFI’s continued execution of its multi-year strategy, highlighted by seven straight quarters of sequential adjusted EBITDA growth. Strong operational discipline and a focus on efficiency are driving sustained momentum across the business.

UNFI 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, the company remains committed to long-term value creation, despite recent cybersecurity challenges.

United Natural reported adjusted earnings of 44 cents per share, beating the Zacks Consensus Estimate of 24 cents. Also, the bottom line increased from 10 cents reported in the year-earlier quarter. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

United Natural Foods, Inc. Price, Consensus and EPS Surprise

United Natural Foods, Inc. price-consensus-eps-surprise-chart | United Natural Foods, Inc. Quote

Net sales rose 7.5% year over year to $8,059 million, surpassing the Zacks Consensus Estimate of $7,846 million. The increase was driven by a 4% rise in wholesale unit volumes, reflecting new business with existing and new customers, along with the effects of inflation. The increase was led by natural product growth.

The company disaggregates revenues into the following three categories based on product and service offerings: Natural, Conventional and Retail. Natural sales grew 12% to $4,160 million, Conventional sales increased 2.7% to $3,628 million and the Retail segment saw a 0.4% rise in sales to $573 million.

UNFI’s gross profit rose 6.1% year over year to $1,082 million. The gross margin of 13.4% contracted 20 basis points from 13.6% reported in the year-ago quarter. The factors attributable to the decline of gross margin were lower product margin rates and changes in the business mix, partially offset by supplier programs and reduced shrinkage.

Operating expenses were $1,025 million compared with $992 million in the year-ago quarter. As a percentage of sales, operating expenses were 12.7% compared with 13.2% in the year-ago period. The decrease was led by the leveraging impact of increased sales and the benefits of cost-saving initiatives.

Adjusted EBITDA was $157 million, up 20.8% from $130 million in the year-ago quarter. This marks the seventh consecutive quarter of sequential growth in adjusted EBITDA.

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