US Foods Closes Q2 2017 Strong: Eyes More Mergers & Acquisitions
- by Melissa De Leon
ROSEMONT, IL - US Foods looks to have ended its second quarter for fiscal 2017 on a strong note, showing a net sales increase of 6.1% to $6.2 billion, as well as a 1.9% boost to gross profit, coming out to $1.1 billion.
President and CEO Pietro Satriano said in the report that strong Adjusted EBITDA growth of 10% and above-market independent restaurant case growth of 4.7% highlight “another successful quarter” for US Foods, with what seems to be more on the way.
“We have successfully closed five acquisitions this year as we continue to focus on accretive M&A opportunities,” Satriano commented. “Continued growth with targeted customers, in combination with our portfolio of value-added services, innovative products, and enhanced digital platform, position us for success in the second half of the year.”
Additional highlights for the foodservice distributor’s second quarter included:
- Total case volume increased 3.6%; independent restaurant case volume increased 4.7%
- Operating income of $126 million increased $28 million
- Net income of $65 million improved $78 million from a 2016 net loss of $13 million
- Adjusted EBITDA increased 10.0% to $286 million
- Diluted EPS of $0.29; Adjusted Diluted EPS of $0.37
US Foods attributed much of the $20 million increase in gross profit to a combination of higher volume and margin expansion initiatives, while its net sales increase of 6.1% compared to this time last year were driven by total case volume growth, product mix changes, and year-over-year inflation in grocery, produce, poultry, and seafood. The company also noted that about 1.8% of its net sales were increased by sales from acquisitions completed in the last 12 months.
With an adjusted expectation for net sales growth of of 3-5%, with an interest expense of $175-$180 million, AndNowUKnow will keep you up to date on this and other key growing companies in the industry.