December 2, 2023

Bobbys Brane

Bobbys Brane – Business & Tech Blog

US Foods Holding Corp reports Q3 growth, acquires Saladino’s Foodservice By

2 min read

© Reuters.

US Foods Holding Corp (NYSE:) announced strong Q3 2023 results today, with a net sales increase of 2.1% to $9.1 billion and a gross profit rise of 6% to $1.5 billion. The company also reported a net income of $95 million, while adjusted EBITDA grew by 15% to $402 million, marking a margin expansion of about 50 basis points. However, diluted EPS decreased by 11.6% to $0.38, but adjusted diluted EPS increased by 16.7% to $0.70.

The company also unveiled its plan to acquire Saladino’s Foodservice, marking its second tuck-in acquisition this year aimed at enhancing its position in central California and driving continued growth and market share expansion. The net sales surge was driven by case volume growth amidst food cost deflation, while the gross profit increase can be attributed to volume increases and cost of goods sold optimization.

For the nine-month period, USFD’s net sales rose by 4.4% to $26.7 billion, with a gross profit increase of 12.9% to $4.6 billion. Net income available to common shareholders for the nine months was $352 million, with adjusted EBITDA increasing by 22.0% to $1.2 billion.

CEO Dave Flitman attributed the impressive results to growth and market share gains in target customer types such as independent restaurants, healthcare, and hospitality sectors, operational efficiencies, and the dedication of their associates.

CFO Dirk Locascio highlighted the sustainable operating leverage gains and disciplined capital deployment, which included significant voluntary prepayments on debt, executing a share repurchase program, and generating a cash flow from operating activities of $935 million.

USFD updated its fiscal year 2023 guidance, now expecting an adjusted EBITDA of $1.54-$1.56 billion and an adjusted diluted EPS of $2.60-$2.70. The company aims to maintain a net debt to adjusted EBITDA leverage below 3.0x by the end of fiscal year 2023, having already reduced its net leverage to 2.9x.

In other news, YETI Holdings’ (NYSE:YETI) shares are gaining following strong Q3 results with flat revenue of $433.6 million surpassing expectations and an EPS of $0.60. Amidst robust demand, YETI expanded its Hopper M Series soft coolers and debuted eCommerce customization options outside the U.S.

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