US Foods Exceeds Expectation for Q4 2017, Grows Revenue, Case Volume, and Gross Profit
ROSEMONT, IL – One of the largest foodservice companies in the United States—US Foods Holding Company—announced robust growth across the board this quarter—beating expectations and growing both its business and its profits.
“We had a strong year and delivered on our commitments to expand gross profit dollars and grow adjusted EBITDA,” said Chairman and CEO Pietro Satriano, in a press release. “Through the continued execution of our Great Food. Made Easy. strategy, we increased sales with our targeted customers, including accelerating quarterly volume growth with independent restaurants. In 2018, we will continue to leverage our innovative products, industry-leading technology, and value-added services to drive profitable growth.”
Highlights from the company’s fourth quarter 2017 report include:
- Total case volume increased 1.9%; independent restaurant case volume increased 7.1%
- Net sales increased 5.6% to $6.0 billion
- Gross profit of $1.1 billion increased 4.6%
- Operating income increased $66 million to $182 million
- Net income of $256 million increased $179 million
- Adjusted EBITDA increased 9.4% to $290 million
- Diluted EPS of $1.15; adjusted diluted EPS of $0.44
US Foods also noted that, for Q1 fiscal 2018, the company expects year-over-year adjusted EBITDA growth to be approximately 100 basis points below the low end of the range—and attributed this to poor weather conditions and timing of the New Year’s holiday. The company expects EBITDA growth to accelerate throughout 2018 and announced that it is raising its mid-term target for adjusted EBITDA growth from 7-10% to 8-10%.
The company also announced highlights for the entirety of its 2017 fiscal year, including:
- Total case volume increased 2.9%, independent restaurant case volume increased 5.2%
- Net sales increased 5.4% to $24.1 billion
- Gross profit of $4.2 billion increased 4.1%
- Operating income increased $160 million to $574 million
- Net income of $444 million increased $234 million
- Adjusted EBITDA increased 8.8% to $1.1 billion
- Diluted EPS of $1.97; adjusted diluted EPS of $1.38
To read more about US Foods’ Q4, see the company’s fiscal earnings report in its entirety here.
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