UNFI warns of Q4 FY2025 earnings hit due to recent cyber attack

United Natural Foods said a data security incident earlier this month is expected to impact its quarterly profit, likely affecting Q4 FY2025 net income and adjusted EBITDA compared to prior projections.

 

On June 5, UNFI discovered a data security incident that forced the company to take parts of its critical system offline, resulting in disruptions to its supply chain operations.

 

“The incident has caused, and is expected to continue to cause, temporary disruptions to the Company’s business operations. 

 

“Pursuant to its business continuity plans, the Company has implemented workarounds for certain operations in order to continue servicing its customers where possible. The Company is continuing to work to restore its systems to safely bring them back online,” UNFI said in its SEC filing.

 

In a separate update on June 15, UNFI said it has made remarkable progress in restoring its affected systems.

 

“UNFI is receiving orders and delivering products to our grocery store customers across North America. Over the past few days, we’ve made significant progress toward safely restoring our electronic ordering systems, which will allow us to serve the customers that order through these systems in a more automated way and continue to increase our operational capacity. 

 

“We are also using alternative processes to ensure our customers receive the products they need while we continue making progress to restore our technology capabilities,” the company added.

 

In a recent filing with the SEC, UNFI said it has restored its core system that its customers and suppliers use for electronic ordering and invoicing, which has enabled business operations to normalise.

 

UNFI stated that, based on currently available information, management believes the incident is reasonably likely to have a material impact on the Company’s net income or loss and adjusted EBITDA for the fourth quarter of fiscal 2025 compared to its internal projections prior to the incident.

 

“In the weeks following the incident, the Company experienced reduced sales volume and increased operational costs as the Company worked to drive solutions-oriented results for its customers. The Company has also incurred, and expects to continue to incur, direct expenses related to the investigation and remediation of the incident,” UNFI added.