Foodservice

COVID-19 delivers US Foods Q4 2020 sales and earnings losses

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February 17, 2021

US Foods Holding Corp. sales decreased 11.5% from $6.93 billion in 2019's fourth quarter to $6.1 billion for the quarter ending Jan. 2, 2021, according to an earnings report.

Net income fell from $92 million in 2019's third quarter to a $10 million loss in 2020's third quarter.

Net loss available to common shareholders was $23 million.

Diluted EPS fell from 43 cents in 2019's third quarter to an 11 cents loss in 2020. while adjusted diluted EPS was 5 cents.

Total case volume decreased 10.2%; independent restaurant case volume decreased 6.0%. Excluding the extra week, total case volume decreased 15.5% and independent restaurant case volume decreased 11.8%.

For fiscal 2020, net sales fell 11.8% from $25.9 billion in fiscal 2019 to $22.8 billion. Net income fell from $385 million in 2019 to a $226 million loss in 2020.

Basic EPS fell from $1.77 in 2019 to a $1.15 loss in 2020.

Total case volume and net sales results for fiscal 2020 were negatively impacted by the COVID-19 pandemic and measures implemented to mitigate its spread.

Shares traded at $35.96 Tuesday against a range of $8.32-$40.78.

"Our industry, our customers and our company faced many challenges in 2020 from the spread of COVID-19," Chairman and CEO Pietro Satriano said in the press release. "Net sales and adjusted EBITDA improved in the second half of 2020; a result of industry rebounds, market share gains and a continued focus on operational efficiencies."

"While the timing of the recovery remains uncertain, we remain confident in the resiliency of the industry and believe that the actions we have taken in 2020 have positioned the company well for future growth," he said.

For an update on how the coronavirus pandemic affected convenience services, click here.