UNFI sees increase in Q3 sales despite cyberattack disclosure

UNFI has reported an increase in third-quarter net sales, despite facing a cyberattack on key operational systems. The company’s net sales for the quarter ended May 3 stood at $8.1 billion, marking a 7.5% increase from the same period the previous year. Despite a net loss of $7 million, or $(0.12) per diluted share, there was an improvement from the net loss of $21 million, or $(0.34) per diluted share, in the previous fiscal year’s third quarter.

CEO Sandy Douglas expressed satisfaction with the sales growth in the third quarter, attributing it to the company’s focus on enhancing efficiency and efficacy as a value-adding partner for both customers and suppliers. This strategy has led to a steady margin improvement, including an increase in the year-over-year adjusted EBITDA margin rate and an uptick in free cash flow. Douglas emphasized the company’s commitment to supporting its customers through the cyber incident by swiftly restoring capabilities and offering temporary solutions where possible.

The quarterly results came shortly after UNFI disclosed unauthorized activity within its IT systems. Despite this setback, the company remains focused on addressing the issue and continuing to serve its customers to the best of its abilities.

As UNFI navigates the aftermath of the cyberattack, the company’s dedication to overcoming challenges and providing uninterrupted service to customers is evident. The emphasis on maintaining operations and prioritizing customer needs showcases UNFI’s commitment to resilience and customer satisfaction during times of adversity.

Overall, UNFI’s third-quarter results reflect a resilient performance in the face of challenges, highlighting the company’s determination to adapt and thrive in the midst of obstacles. Despite the cyberattack, UNFI remains steadfast in its mission to deliver value to customers and partners, showcasing a strong foundation for future growth and success.