2025 is shaping up to be a promising year for United Natural Foods Inc. (UNFI), a wholesale distributor of natural foods and groceries. In its financial results for the first quarter of 2025, the company announced it would raise its full-year outlook, leading to an increase in the company’s stock price.

Both the company’s net sales and adjusted EBITDA rose, and compared to the prior year, this quarter saw a $170 million improvement in cash flow. Net sales grew by 4.2% to $7.9 billion, and adjusted EBITDA increased by 14.5% to $134 million.

UNFI raised its full-year projections, with net sales now expected to range between $30.6 billion and $31 billion. Adjusted EBITDA is projected to be between $530 million and $580 million, up from the prior range of $520 million to $580 million.

The company attributed its improved financial results to its improvement initiatives and lean management practices.

The increase in net sales was primarily driven by a nearly 2% rise in wholesale unit volumes, new business from existing and new customers, and inflation.