Foodservice

US Foods lifts Q1 2023 results on cost inflation, volume growth

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May 15, 2023

US Foods Holding Corp. lifted its Q1 2023 sales and earnings boosted by cost inflation and case volume growth, according to an earnings release, beating analyst expectations. Highlights include:

• Net sales rose 9.5% from $7.8 billion in Q1 2022 to $8.5 billion for the quarter ending April 1, 2023, driven by case volume growth and food cost inflation of 3.7%.
• Total case volume increased 5.7% from the prior year driven by an 8.1% increase in independent restaurant case volume, an 18.8% increase in hospitality volume and a 5.9% increase in healthcare volume, offset by a 1.1% decrease in chain volume.
• Net income rose from a $7 million loss to $82 million in the comparative quarters.
• Net income per share on a basic basis rose from a 7-cent loss to 33 cents and on a diluted basis from a 7-cent loss to 32 cents.
• Adjusted diluted EPS rose 38.9% from 36 cents to 50 cents.

Shares traded today at $40.40 against a 52-week range of $25.49-$41.28.

The $8.54 billion in quarterly revenue beat analyst expectations by $50 million while the non-GAAP EPS of 50 cents beat expectations by 8 cents, according to Seeking Alpha.

"We're very pleased with what we accomplished during the first quarter," Dirk Locascio, executive vice president and CFO, said in the press release. "Net sales were $8.5 billion in the first quarter, an increase of 9.5% over the prior year driven by case volume growth and inflation. We also drove strong gross profit growth of 19% again in the first quarter, which was well above growth in operating expenses."

The company reaffirmed its fiscal 2023 outlook of adjusted EPITDA of $1.45 billion to $1.51 billion and adjusted diluted EPS of $2.45 to $2.65.