ROSEMONT, IL - A financial report from US Foods was released, and the company noted it increased gross profit by 15 percent to $1.6 billion, up $200 million from $1.4 billion from the previous year. This came from a $9 billion gain for its net sales in its Q2 fiscal year 2023 earnings.
“I am proud that our team continued to build on our momentum by delivering another very strong quarter. The resiliency of our business model and laser focus on execution is driving sustained improvement and creating shareholder value,” said Dave Flitman, Chief Executive Officer. “We continue to drive healthy case volume growth overall and especially in our target customer types, with broadline independent restaurant customer case volume increasing 5.5 percent. This represents the ninth consecutive quarter we have taken share with independents. We also grew case volume [by] 7 percent in both healthcare and hospitality. Adjusted EBITDA increased 17 percent versus [the] prior year to $432 million, a record quarterly Adjusted EBITDA for US Foods. I am very pleased with our progress to date, and I am even more excited about the significant opportunity ahead as we continue to execute our strategy.”
Key Q2 highlights from the report include:
- Net income available to common shareholders improved to $182 million
- Net sales increased 2.1 percent to $9 billion
- Total case volume increased 2.7 percent; independent restaurant case volume increased 4.8 percent
As noted in the release, US Foods reported $17.6 billion in net sales for the first six months of 2023, an increase of 5.6 percent or $16.6 billion from the prior year. The distributor also highlighted its acquisition of Renzi Foodservice as part of its growth.
“Our financial performance for the second quarter builds on our momentum,” added Dirk Locascio, Chief Financial Officer. “We drove meaningful improvement in operating leverage again this quarter, resulting in 60 basis points of Adjusted EBITDA margin expansion. Additionally, we remain steadfast with our stated priorities for capital. We deployed our strong free cash flow through a balanced approach of reinvesting in the business, executing $166 million of opportunistic share repurchases, prepaying $60 million of debt, and acquiring Renzi Foodservice, which closed in the third quarter. Due to our strong financial results and continued effective execution of our strategy, we are raising our Adjusted EBITDA guidance for fiscal 2023 to a range of $1.51 billion to $1.54 billion.”
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