Cyberattack disrupted UNFI’s operations in June; company estimates $50–$60 million net income hit but anticipates insurance will cover most losses.
United Natural Foods, Inc. (NYSE: UNFI), the main distributor for Amazon’s Whole Foods, said the June 2025 cyberattack that caused disruptions to business operations will impact fiscal 2025 net sales by an estimated $350 to $400 million.
In an update on Wednesday, the Rhode Island-based natural food products giant said “anticipated insurance” proceeds would significantly offset those loses.
“The Company estimates that the cyber incident will impact fiscal 2025 net sales by approximately $350 to $400 million, net (loss) income by $50 to $60 million, which includes the estimated tax impact, and adjusted EBITDA by approximately $40 to $50 million,” the company said in a business update on July 16th. “These estimates do not reflect the benefit of anticipated insurance proceeds, which the Company expects will be adequate for the incident. The Company does not currently expect a meaningful operational or financial impact beyond the fourth quarter of fiscal 2025 aside from insurance reimbursement.”
The company revealed in a filing with the SEC on June 9 that it had detected unauthorized activity on some IT systems on June 5. In response to the intrusion, certain systems were taken offline, which impacted its ability to fulfill and distribute customer orders.
UNFI advertises itself as the largest full-service grocery partner in North America, delivering products to over 30,000 locations, including natural product superstores, conventional supermarket chains, e-commerce providers, and independent retailers. With more than $30 billion in annual revenue, the company offers more than 250,000 natural, organic and conventional SKUs through its more than 50 distribution centers.
“We are grateful to our customers, suppliers, and associates for their resilience and collaboration as we worked through a challenging period for all of us. With our operations returning to more normalized levels, we remain focused on adding value for our customers and suppliers while becoming a more efficient and effective partner,” said Sandy Douglas, UNFI’s CEO.
The Company updated its full-year outlook to reflect its strong performance for the first three fiscal quarters of 2025 and the estimated costs and charges associated with the June cyber incident.
One of the largest food distributors in the U.S. reported a cyberattack to regulators on Monday, explaining that the incident has disrupted its operations and ability to fulfil customer orders.
United Natural Foods released a public statement and filed documents with the U.S. Securities and Exchange Commission (SEC) saying the cyberattack began on June 5.
The statement said the Rhode Island-based company identified unauthorized activity on its systems on Thursday, prompting officials to take systems offline. The action “has temporarily impacted the Company’s ability to fulfill and distribute customer orders.”
“The incident has caused, and is expected to continue to cause, temporary disruptions to the Company’s business operations,” United Natural Foods said. “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.”
Law enforcement has been notified and the company said it has hired a cybersecurity firm to remediate the incident. The investigation into the attack “remains ongoing and is in its early stages.”
The press statement published on Monday said the company is working closely with “customers, suppliers, and associates” to minimize the disruption. The company did not respond to requests for comment.
United Natural Foods is the main supplier for Whole Foods and is considered the largest health and specialty food distributor in the United States and Canada. The company reported $8.2 billion in net sales last quarter.
