ORLANDO, FL - US Foods has announced its Q3 2015 financial results, noting that the company is finally getting back on track after its failed merger attempt with rival Sysco.
As we’ve previously reported, this past June, Sysco pulled out of its nearly two-year long negations for the proposed $8 billion merger, citing the Federal Trade Commission’s antitrust concerns as the main concern.
After a few months of restrategizing, it seems that the company’s declining sales following the failed merger are finally beginning to level out. While US Foods reported a 1.9 percent decrease in net sales to $5.79 billion, the company also reported net income of $36 million for the third quarter, an increase of $73 million from the same period a year ago.
According to the Chicago Tribune, US Foods CEO Pietro Satriano said in a conference call with investors that under the company's new three-year plan, it will be focused on reducing costs and differentiating food, particularly within the independent restaurant segment.
Both Satriano and Khan interpreted the company’s Q3 results as a step in the right direction for US Foods following the failed merger. "With the merger uncertainty lifted, customers are coming back into the fold, and we are building momentum," CFO Fareed Khan added during the investor call.
Other highlights from US Foods’ Q3 2015 financial report include:
- Adjusted EBITDA, as a percentage of Net sales, was 3.6% in 2015 and 2014.
- Operating income, as a percentage of Net sales, was 0.7% in 2015 compared to 0.8% in 2014.
- Fiscal 2015 Operating income included $91 million of acquisition-related costs, $82 million of employee separation costs for facility closures and implementation of the new field organizational model, $16 million in legal settlement costs and $9 million of brand re-launch and marketing costs.
Just last month, we reported on US Foods’ announcement that its parent company, USF Holding, would file for an initial public offering within the next 12 to 18 months. Stay tuned to AndNowUKnow as we continue to follow this story and more industry financial news.
