US Foods Announces Robust Growth, Pietro Satriano Comments
ROSEMONT, IL - US Foods has reported solid growth despite challenging transportation conditions during the company’s first quarter fiscal 2018.
“During the first quarter we saw solid growth with independent restaurants and expanded gross profit per case by $0.19, our highest quarterly per case growth rate in recent history. Execution on our gross profit and operating expense initiatives drove 4.2 percent Adjusted EBITDA growth despite headwinds from weather and inbound freight costs,” said Chairman and CEO Pietro Satriano. “Our outlook for independent restaurants and the overall industry remains strong and we are well positioned to deliver on another successful year.”
Though the company’s total case volume decreased during the first part of the year, independent restaurant volume increased, and the foodservice provider reported nearly unprecedented gross profit per case alongside solid growth in net income, sales, and profits.
Highlights from the company’s first quarter include:
- Total case volume decreased 2.3%; independent restaurant case volume increased 4.3%
- Net sales increased 0.6% to $5.8 billion
- Gross profit of $992 million increased 0.1%
- Income before income taxes increased $28 million to $63 million
- Net income of $67 million increased $40 million
- Adjusted EBITDA increased 4.2% to $224 million
- Diluted EPS of $0.31; Adjusted Diluted EPS of $0.35
US Foods’ results reportedly beat independent estimates on profits, but sales fell just short of expectations. The company adjusted its guidance for total case volume growth—now approximately 1 percent—and net sales—approximately 3 percent—from a more optimistic 1-2 percent and 3-4 percent, respectively. All other guidances remaining as outlined in the company’s last quarterly report in February.
For more details, read US Foods' report in its entirety here.
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