What caused UNFI's earnings surprise in Q4 2024?

United Natural Foods (UNFI) experienced a significant earnings surprise in Q4 2024, with an EPS of $0.16, surpassing analysts' expectations of -$0.03. This positive surprise can be attributed to several key factors:

1. **Revenue Growth**: The company's revenue increased by 10.0% year-over-year to $8.16 billion, surpassing the analyst consensus estimate of $7.94 billion. This growth was driven by improving unit volumes and the impact of inflation, which positively influenced the company's financial performance.
2. **Cost Management**: United Natural Foods implemented effective cost-saving initiatives, which resulted in a decline in operating expenses to 13.2% of sales from 13.5% in the previous year. This improved gross margin and contributed to the overall profitability of the company.
3. **Operational Efficiency**: The company's focus on operational efficiency and strategic initiatives led to a significant increase in adjusted EBITDA, which grew by 53.8% to $143 million. This reflected successful cost management and higher sales leverage.
4. **New Business and Existing Customer Growth**: The company reported strong same customer growth and extended its agreement with its largest customer. This consistent customer base and new business opportunities contributed to the revenue growth and stability of the company's earnings.

In summary, UNFI's earnings surprise in Q4 2024 can be attributed to a combination of revenue growth, effective cost management, operational efficiency, and strategic initiatives. These factors collectively contributed to the company's improved financial performance and profitability.