UNFI Faces $350M Revenue Loss After Cyberattack

Operational Recovery Underway After Major IT Disruption

The UNFI cyberattack impact highlights how vulnerable supply chains remain in today’s digital world. After a serious cyber incident in June, United Natural Foods, Inc. (UNFI) has resumed normal operations. Yet, the financial toll from this event continues to ripple through the business.

The distributor, a major grocery supplier in North America, has returned to full capacity. Still, executives confirmed a projected sales loss of $350 million to $400 million in this quarter alone.

Key Metrics Near Pre-Attack Levels

Despite the disruption, UNFI’s CEO Sandy Douglas assured investors that recovery has progressed quickly. During a recent analyst call, he said, “Our fill rates and delivery times are almost back to pre-incident levels.”

The company continues to support certain distribution centers that need additional help. UNFI has surged resources to these locations to ensure complete recovery.

Douglas emphasized that the core business momentum remains strong. He expects this to carry into the new fiscal year starting in August. Their resilience has surprised some analysts, especially given the scale of the breach.

Direct Financial Costs of the Incident

President and CFO Matteo Tarditi provided detailed figures on the losses. UNFI incurred $20 million in immediate operational expenses. These included manual workarounds and spoilage prevention during the crisis.

Another $5 million went toward cybersecurity experts, legal services, and related costs. These additional expenses pushed UNFI’s projected annual sales to between $31.6 billion and $31.8 billion.

They also anticipate a pre-tax and free cash flow loss ranging from $65 million to $75 million. These numbers clearly show how significant the UNFI cyberattack impact has been across financial and operational fronts.

Insurance and Future Preparedness

UNFI expects to recover the bulk of these costs through its cyber insurance policy. Most reimbursements will arrive during fiscal 2026. Even so, leadership believes they remain on track to meet long-term financial targets.

Tarditi said, “Our momentum and improvement opportunities remain significant.” He added that the company believes it will continue creating long-term shareholder value.

Retailer Trust and Business Continuity

The attack caused a brief delay in onboarding one new retailer. However, Douglas confirmed the onboarding process is now moving forward as planned. Business development remains strong, he emphasized.

Douglas also committed to increasing cybersecurity transparency with retail partners. “We’ve learned some valuable lessons,” he said. “We plan to share our improvements so everyone benefits from better protection.”

He noted that many retailers now consider themselves part of the cybersecurity ecosystem. As such, UNFI’s experience and upgrades may actually strengthen future partnerships.

Cybersecurity Lessons Learned

One major takeaway from this event is the importance of readiness. Supply chains must now treat cybersecurity as a core part of their operational planning. The UNFI cyberattack impact shows that even brief disruptions can cause significant losses.

UNFI’s experience offers insight for other food and retail distributors. Fast recovery, clear communication, and financial planning are all essential for managing cyber risks.

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