US Foods Reports $400M Gain in First Quarter Fiscal Year 2023; Dave Flitman and Dirk Locascio Comment
ROSEMONT, IL - US Foods Holding Corp. revealed the results for the first quarter fiscal year 2023 recently. In it, the foodservice distributor detailed its net sales increased 9.5 percent, or a $400 million increase, from $7.8 billion to $8.5 billion.
“We are encouraged by our start to the year as US Foods delivered strong financial results again this quarter, demonstrating continued execution against our long-range plan,” said Dave Flitman, Chief Executive Officer. “We grew total case volume by nearly 6 percent and independent restaurant case volume by 8 percent, while improving our cost structure and profitability. For the quarter, we grew Adjusted EBITDA by 40 percent and expanded Adjusted EBITDA margin by 80 basis points. I am excited about the significant opportunity ahead, and I am highly confident that executing our strategic priorities will position US Foods for long-term success.”
As noted in the release, net income available to common shareholders was $75 million, an improvement of $91 million compared to the prior year.
Adjusted EBITDA was $337 million, an increase of $96 million or 39.8 percent, compared to the prior year.
“We’re very pleased with what we accomplished during the first quarter,” added Dirk Locascio, Executive Vice President and Chief Financial Officer. “Net sales were $8.5 billion in the first quarter, an increase of 9.5 percent over the prior year, driven by case volume growth and inflation. We also drove strong gross profit growth of 19 percent again in the first quarter, which was well above growth in operating expenses. Importantly, we meaningfully reduced our net leverage compared to both the first and fourth quarter 2022 and repurchased $34 million in shares as part of our $500 million repurchase program. Based on the significant momentum we continue to drive against our long-range plan, we are reaffirming our full year 2023 guidance.”
The distributor also noted its total case volume increased 5.7 percent from the prior year, driven by an 8.1 percent increase in independent restaurant case volume.
For more information, check out the release here.
ANUK will keep an eye on the wires for more updates in our industry.
