United Natural Foods Inc. $(UNFI)$ reported its financial results for the third quarter of fiscal 2025, ending on May 3, 2025. The company recorded a net sales increase of 7.5%, reaching $8.1 billion, compared to the same period the previous year. This growth was largely driven by a 4% rise in wholesale unit volumes and the addition of new business from both existing and new customers. The company reported a net loss of $7 million for the quarter. However, adjusted EBITDA saw a significant increase of 20.8%, reaching $157 million. In terms of guidance, the company maintained its outlook for fiscal 2025, expecting net sales between $31.3 billion and $31.7 billion. The updated outlook for net loss is projected between $55 million and $80 million. This reflects costs associated with exiting a customer contract and optimizing the distribution network in the Northeast. The company also highlighted a focus on stakeholder value creation and lean management, which contributed to the improved free cash flow of approximately $70 million compared to the prior year quarter. Additionally, the net debt to adjusted EBITDA ratio declined to 3.3x, marking the lowest level in the past two fiscal years. This report follows the discovery of unauthorized activity on certain of the company's information technology systems in early June 2025, which has led the company to refrain from updating its outlook for all other metrics.
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