ROSEMONT, IL - US Foods has successfully implemented its latest growth strategies as part of its long-range plan, made evident by significant gains in its results for the fourth quarter and full fiscal year 2023.
“2023 was an exciting year at US Foods and marked my first full year with this strong company. Through execution of our strategy and long-range plan, we captured profitable market share and enhanced margins,” commented Dave Flitman, Chief Executive Officer. “This resulted in record full-year 2023 Adjusted EBITDA of $1.56 billion, driven by strong case growth with our independent restaurant, healthcare, and hospitality customers and the implementation of key operational initiatives. I believe our differentiated model and our sustainable competitive advantages will drive continued market outperformance, and we are well-positioned to win in any macro environment. As we move into 2024, we will continue to execute our strategy and maintain our disciplined approach to capital deployment to drive long-term value creation for our shareholders. We have strong momentum entering this year, which is a reflection of the hard work and tireless commitment of our 30,000 dedicated associates.”
Sharing its update for the full year of fiscal 2023, US Foods reported that its sales increased 4.5 percent to $35.6 billion, driven by case volume growth. According to a press release, total case volume increased 4.4 percent from the prior year on a 6.9 percent increase in independent restaurant case volume, a 7.2 percent increase in healthcare volume, and an 8.9 percent increase in hospitality volume, offset by a 2.1 percent decrease in chain volume.
For the full year, the distributor’s gross profit increased 11.9 percent to $6.1 billion, and adjusted EBITDA increased 19 percent to $1.56 billion.
Highlights for the fourth quarter specifically include:
- Net sales increased 4.9 percent to $8.9 billion
- Total case volume increased 5.6 percent; independent restaurant case volume increased 7.3 percent
- Gross profit increased 9.4 percent to $1.6 billion
- Adjusted EBITDA increased 10.9 percent to $388 million
“I am proud of our associates’ ability to deliver solid financial results in the fourth quarter and record Adjusted EBITDA for 2023,” added Dirk Locascio, Chief Financial Officer. “We generated strong free cash flow, reduced our debt, invested organically and inorganically via two tuck-in acquisitions that expand our position in underserved markets and repurchased shares. Our debt reduction and Adjusted EBITDA growth resulted in net leverage reduction from 3.5x at the end of 2022 to 2.8x at the end of 2023, within our targeted range. I am confident that our 2023 financial performance and our healthy balance sheet will enable us to execute our capital allocation priorities in 2024.”
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