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.