ROSEMONT, IL - With the release of its second quarter fiscal 2024 report, US Foods is letting us in on the company strategies leading to another strong period of growth. Within the second quarter report, the distributor noted a 7.7 percent net sales increase, rising to $9.7 billion for the quarter.
“During the second quarter, we delivered record Adjusted EBITDA and EBITDA margin in a softer macro environment. Our team’s success further emphasizes the strength of our operating model and ability to control the controllables,” said Dave Flitman, Chief Executive Officer. “Our balanced approach to drive improved profitability through the execution of our strategic initiatives was evident again this quarter and we captured market share with independent restaurants for the 13th consecutive quarter.”
US Foods’ net sales of $9.7 billion was driven by total case volume growth and food cost inflation of 2.9 percent, a press release noted. In addition, total case volume increased 5.2 percent from the prior year driven by a 5.7 percent increase in independent restaurant case volume, a 6 percent increase in healthcare volume, a 2.1 percent increase in hospitality volume, and a 4.2 percent increase in chain volume.
With this success fueling its growth, the company has several strategies in play to continue securing profit and market share gains.
“We also held an exciting investor day on June 5, where we outlined our new long-range plan to accelerate growth, profitability, and returns,” Flitman stated. “We laid out our financial algorithm from 2025 through 2027 of growing sales at a 5 percent CAGR, increasing Adjusted EBITDA at a 10 percent CAGR, expanding EBITDA margin by at least 20 basis points per year and growing Adjusted Diluted EPS at a 20 percent CAGR. We are confident that we have the right strategy and the operational rigor in place to deliver on our 2027 financial targets, all underpinned by our 30,000 hardworking and dedicated associates.”
In addition, US Foods also reported:
- Gross profit increased 7.2 percent to $1.7 billion
- Net income was $198 million
- Adjusted EBITDA increased 13.2 percent to $489 million
- Diluted EPS increased 9.6 percent to $0.80; Adjusted Diluted EPS increased 17.7 percent to $0.93
“We delivered record profitability in the second quarter through our balanced approach to drive top- and bottom-line gains despite the operating environment,” added Dirk Locascio, Chief Financial Officer. “Maintaining our disciplined approach to capital deployment and intense focus on driving long-term shareholder value creation, we closed on the IWC acquisition, repurchased $41 million of shares, and further reduced our net leverage while continuing to invest in the business. Given our strong first half of the year and outlook for the remainder of 2024, we are reiterating our net sales, Adjusted EBITDA, and Adjusted Diluted EPS guidance.”
Click here to view the full results of US Foods’ second quarter of fiscal year 2024, and stick with ANUK as we bring you more industry news.
