Marzetti Shares Fall After UNFI Reports 2.6% Sales Drop, 23.4% EBITDA Jump
United Natural Foods’ Q2 net sales fell 2.6% to $7.9 billion while adjusted EBITDA surged 23.4% to $179 million as it cut net sales guidance and raised profit forecasts. Marzetti Company shares slid in the afternoon session on concerns this strategic shift toward margin growth may pressure top-line growth across food distributors.
1. UNFI Reports Q2 Sales Decline
United Natural Foods recorded $7.9 billion in net sales for fiscal Q2, down 2.6% year-over-year, while adjusted EBITDA rose 23.4% to $179 million based on margin improvements.
2. Marzetti Company Shares Dip
Shares of Marzetti Company fell in afternoon trading as investors reacted to UNFI’s reduced net sales guidance, highlighting concerns that distributors may sacrifice revenue growth to boost profitability.
3. Shifting Industry Priorities
The updated guidance, with lower sales forecasts but higher profit and free cash flow targets, underscores a broader trend among food distributors prioritizing operational efficiency and margin expansion over top-line gains.