United Natural Foods' fiscal second-quarter results have exceeded expectations, driven by significant volume gains. As a result, the grocery wholesaler announced an increase in its full-year projections. Adjusted earnings for the quarter ended February 1 rose to $0.22 per share from $0.07 a year earlier, surpassing the consensus estimate of $0.18 per share according to a FactSet poll.
Additionally, net sales showed a 4.9% increase, reaching $8.16 billion, outperforming analyst predictions of $7.96 billion. The surge in sales can largely be attributed to a 3% rise in wholesale unit volumes and ongoing inflationary trends, as reported by the company. Sandy Douglas, the Chief Executive, highlighted the company's performance, stating, "During the second quarter, we delivered solid sales growth and our sixth consecutive quarter of sequentially improving adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA)." Notably, adjusted EBITDA saw robust year-on-year growth of 13.3%. Looking ahead, the company’s revised forecast sees full-year adjusted earnings per share in the range of $0.70 to $0.90, a notable ascent from the previous expectations of $0.40 to $0.80.
Analysts are currently predicting an adjusted EPS of $0.74. Moreover, net sales are expected to range between $31.30 billion and $31.70 billion, which is an increase from the prior estimates of $30.60 billion to $31 billion. The overall consensus points towards an expected total of $31.10 billion. Sandy Douglas emphasized the continual focus on executing their strategy and uncovering new opportunities to bolster value while adhering to their updated financial outlook and working towards reducing their debt levels.
He stated, "As we look to the second half of the fiscal year, we remain focused on further execution of our plan and identifying new opportunities to bring increasing value, while delivering our updated outlook and continuing to deleverage our balance sheet." With these optimistic earnings revisions and the strategic outlook, United Natural Foods positions itself well for the remainder of the fiscal year..