US Foods Chases Growth in Third Quarter Financial Results
ROSEMONT, IL - The foodservice sector is enjoying a bountiful quarter, and US Foods is one distributor reaping the rewards. This week, the company announced the financial results of its third quarter of fiscal year 2019, which ended well thanks to US Foods' acquisition of SGA’s Food Group of Companies in September and its omni-channel selling approach.
“The integration of the Food Group is off to a good start, and we are excited to welcome our colleagues from the Food Group into US Foods,” said Chairman and CEO Pietro Satriano. “As a result of our year-to-date business performance, we are raising our fiscal 2019 organic Adjusted EBITDA growth guidance to 6.0 percent.”
In an earnings call presentation, US Foods went into detail about more of this quarter’s successes, including highlighting its omni-channel selling approach that the company is expecting to culminate in expanding its Pronto program to 15 markets, doubling its SKU count for its Direct program, and continuing the success of its Scoop offerings, which introduced a few new products this fall, as we reported on our sister site Deli Market News.
The presentation also noted that as part of the Food Group acquisition, three distribution centers were divested to three buyers. The closure of the acquisition also means products and customers are officially in US Foods’ system, with the foodservice provider already planning how to leverage its bolstered operation.
“Our focus on profitable growth enabled us to deliver strong organic Adjusted EBITDA growth of 6.7 percent for the quarter,” continued Satriano. “We also delivered organic independent restaurant case growth of 4.2 percent as we continue to gain share with this target customer group.
According to a press release, US Foods’ third quarter fiscal 2019 highlights include the following:
- Total case volume increased 3.0 percent; independent restaurant case volume increased 6.3 percent
- Total organic case volume increased 0.9 percent; independent restaurant organic case volume increased 4.2 percent
- Net sales increased 6.1 percent to $6.5 billion; organic Net sales increased 4.0 percent to $6.4 billion
- Gross profit increased 4.3 percent to $1.2 billion
- Income from continuing operations before income taxes increased $4 million to $144 million
- Net income decreased $8 million to $106 million
- Adjusted EBITDA increased 8.5 percent to $307 million; organic Adjusted EBITDA increased 6.7 percent to $302 million
- Diluted EPS decreased 7.7 percent to $0.48; Adjusted Diluted EPS increased 12.1 percent to $0.65
To read the financial report in its entirety, click here. AndNowUKnow will continue to keep you ahead of the latest in foodservice and grocery retail.