As United Natural Foods, Inc. strives to return to sales growth after posting multiple quarters of declines, the company has already made substantial progress toward another goal: demonstrating that it can consistently turn a profit.
The grocery distributor and retailer reported Tuesday that it had net income of $35 million during the fourth quarter of fiscal 2026, reversing a loss of $87 million during the same period in fiscal 2025.
UNFI brought in net income of $33 million during the third quarter and $20 million during the second quarter. That ended a string of net losses that began in mid-2023, after the company shocked investors with the news that technology problems had hobbled its ability to forecast profitability drivers.
UNFI has improved its financial performance in part because its investments in supply chain, technology and productivity initiatives are paying off, CEO Sandy Douglas said during an earnings call on Tuesday.
Douglas said these strategic priorities “represent our road map to building a company that can best serve the most growth-oriented parts of our industry while supporting shared profitable growth for our customers, our suppliers and for UNFI.”
UNFI also said Tuesday that its adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, rose at an annual rate of almost 50% during the quarter, to $172 million.
That performance continues a nearly unbroken string of improvements in profitability by UNFI by that measure that stretches back to the final quarter of fiscal 2024. UNFI’s adjusted EBITDA during its most recent quarter was also up at the highest rate the company has seen since Q4 of fiscal 2024.
Douglas noted during the Tuesday call that UNFI’s performance during the fourth quarter was above targets it set in 2025, which he said signals clear progress in its turnaround efforts. The company expects its adjusted EBITDA to rise in the high single digits during fiscal 2027, when it also expects to return to sales growth.
“Although it’s early, we would expect this favorability to flow through to fiscal 2028,” Douglas said. “Importantly, we’re confident in our ability to deliver long-term profitable growth within the most resilient segments of the grocery retail industry.”
