United Natural Foods is heavily committed to Whole Foods Market, a major customer. In April, Moody’s ratings downgraded UNFI to B3 from B2 based on “weak credit metrics and negative free cash flow”. Moody’s also noted the reliance on Whole Foods Market as a major customer with reference to the relationship between Amazon and competitor SpartanNash. Subsequent to the downgrade in March, UNFI refinanced senior secured loans. Problems faced by UNFI appear to have been partly resolved by extension of the supply agreement until May 2032. David Garraway, Vice-president of Supply Chain for Whole Foods Market, noted, “UNFI plays an important role in our supply chain as we continue to grow and serve more customers.”
For the 2nd Quarter of FY 2024 ending January 27th the Company posted a loss of $15 million on revenue of $7,775 million with an EPS of $(0.25). For the past 52 weeks UNFI has traded over a range of $8.58 to $27.76 with a 50-day moving average of $10.40. Institutional investors hold 90 percent of equity with 9 percent of the shares short
On a trailing 12-month basis, operating margin was 0.5 percent and profit margin -0.4 percent. The Company generated returns on assets and equity of 0.6 and -6.3 percent respectively.