ROSEMONT, IL - The third quarter fiscal year has wrapped and US Foods has announced strong results, including net sales and gross profit increase.
“We delivered strong results in the third quarter despite the softer macro environment and weather-related challenges which pressured industry case volumes,” said Dave Flitman, Chief Executive Officer. “We executed our strategy-driven operating model to deliver top line growth, a double-digit Adjusted EBITDA increase, and margin expansion. Our team-based go-to-market approach, proven operational playbook, and leading digital solutions enabled our 14th consecutive quarter of market share gains with independent restaurants.”
Cash flow provided by operating activities for the first nine months of fiscal year 2024 was $891 million, a decrease of $44 million from the prior year due to less working capital benefit than prior year, the report explained. Cash capital expenditures for the first nine months of fiscal year 2024 totaled $236 million, an increase of $69 million from the prior year period, related to investments in information technology, property, and equipment and maintenance of distribution facilities.
“We delivered another strong quarter of Adjusted EBITDA and grew Adjusted Gross Profit faster than Adjusted Operating Expense,” added Dirk Locascio, Chief Financial Officer. “In the face of the softer macro backdrop, we continue to grow sales, expand margins, and deploy our strong free cash flow. Additionally, we allocated $580 million of capital during the quarter toward share repurchases while maintaining a strong balance sheet. We will continue to take a disciplined approach to executing our share repurchase program.”
During the third quarter of fiscal year 2024, the company repurchased 10.4 million shares of common stock at an aggregate purchase price of $580 million. At the end of the third quarter, the company had approximately $398 million in remaining funds authorized under its $1 billion share repurchase program.
Here are the third quarter 2024 highlights:
- Net sales increased 6.8 percent to $9.7 billion
- Total case volume increased 3.8 percent, while independent restaurant case volume increased 4.1 percent
- Gross profit increased 8.1 percent to $1.7 billion
- Net income was $148 million
- Adjusted EBITDA increased 13.2 percent to $455 million
- Diluted EPS increased 60.5 percent to $0.61
- Adjusted Diluted EPS increased 21.4 percent to $0.85
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