US Foods Shows Strong Results for Q3 2017
ROSEMONT, IL - Foodservice distributor US Foods Holding Corp. announced its third quarter and first nine months’ earnings for 2017, and the findings are cause for celebration.
“Strong volume growth with our targeted customers and adjusted EBITDA growth of over nine percent underscored our third quarter performance,” said President and CEO Pietro Satriano in a recent press release. “Our Great Food. Made Easy. strategy continues to resonate with customers as demonstrated by the increased demand for our portfolio of value added services. Customer response to our most recent Scoop™ offering has been the strongest to date and highlights the continued momentum in our business.”
The company’s third quarter saw case volume increased by 2 percent, and 1 percent of that was organic growth. Independent restaurant case volume grew 6 percent, and 4.1 percent of that was organic. With so much growth in these sectors of its business, the company’s loss of national chain customers was offset.
Third quarter highlights included the following:
- Total case volume increased 2.0%; independent restaurant case volume increased 6.0%
- Net sales increased 6.2% to $6.2 billion
- Gross profit of $1.1 billion increased 6.4%
- Operating income of $190 million increased $75 million
- Net income of $96 million decreased $37 million
- Adjusted EBITDA increased 9.4% to $267 million
- Diluted EPS of $0.42; Adjusted Diluted EPS of $0.39
Among establishing factors enabling net sales to increase so steadily, the company named the drive from total case volume growth; product mix changes; and year-over-year inflation in center-of-the-plate, produce, and grocery categories. Sales from acquisitions in the last 12 months have also helped the net sales jump up 1.9 percent.
For 2017, US Foods said it is updating its fiscal 2017 guidance. It expects unit growth of 2.5 to 3 percent and net sales growth of 4.5 to 5 percent, as well as an adjusted EBITDA growth of 8 to 9 percent, and net income growth of 20 to 25 percent.
Congratulations to US Foods on the success of the moves made thus far. AndNowUKnow will continue to report on this and other key produce-centered strategies.