ROSEMONT, IL - Foodservice giant US Foods announced the results of its third quarter fiscal 2018—reporting solid growth in profits and EBITDA despite decreases in net sales and total case volume.
"Adjusted EBITDA growth was solid at 6.0% for the third quarter, and we continued to expand gross profit dollars per case," said Chairman and CEO Pietro Satriano, in a press release. "We also delivered organic independent restaurant case volume growth of 3.1% for the quarter, an improvement over the first half of the year. Our initiatives to improve customer service levels are showing early positive results, and we expect this momentum to continue to accelerate total case growth as we finish the year."
Highlights from the company’s Q3 included:
- Total case volume decreased 0.8%; independent restaurant case volume increased 3.3%
- Net sales decreased 0.8% to $6.2 billion
- Gross profit of $1.1 billion increased 0.9%
- Income before income taxes decreased $6 million to $141 million
- Net income increased $18 million to $114 million
- Adjusted EBITDA increased 6.0% to $283 million
- Diluted EPS of $0.52; Adjusted Diluted EPS of $0.55
Financial news sources noted that the company’s earnings beat analysts’ estimates, and shares of the company’s stock had rallied more than 12% by 11:00 am EST, November 6, 2018.
The company adjusted portions of its fiscal outlook for the 2018 year, as well. US Foods expects total case volume to be down roughly 1% and net sales to decrease 0% to 1%. The company expects Adjusted EBITDA growth of approximately 5% and Adjusted Diluted EPS of approximately $2.03-$2.08.
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