Foodservice

US Foods lifts Q4, FY 2023 sales, earnings

Image: Adobe Stock

February 15, 2024

US Foods Holding Corp., a warehouse foodservice distributor, lifted its Q4 and FY 2023 results over the prior periods, driven by case volume growth. Highlights include:

• Net sales rose 4.9% from $8.5 billion in Q3 2022 to $8.9 billion in the quarter ending Dec. 30, 2023, driven by case volume growth. Total case volume increased 5.6% from the prior year on a 7.3% increase in independent restaurant case volume, an 8.1% increase in healthcare volume, a 5% increase in hospitality volume and a 0.8% increase in chain volume.
• Net income rose from $93 million to $147 million in the comparative quarters.
• Net income per share rose from 37 cents to 60 cents on a basic basis and from 37 cents to 49 cents on a diluted basis.
• Adjusted diluted EPS rose 16.4% from 55 cents to 64 cents.
• Full year net sales rose 4.5% from $34.05 billion to $35.6 billion, driven by case volume growth. Total case volume increased 4.4% from the prior year on a 6.9% increase in independent restaurant case volume, a 7.2% increase in healthcare volume and an 8.9% increase in hospitality volume, offset by a 2.1% decrease in chain volume.
• Full year net income rose from $265 million to $506 million.
• Full year net income per shar rose from $1.02 to $2.09 on a basic basis and from $1.01 to $2.02 on a diluted basis.

Shares traded at $48.02 today against a 52-week range of $33.96 to $48.28.

The $8.9 billion in quarterly revenue beat analyst expectations by $100 million while the non-GAAP EPS of 64 cents missed expectations by 2 cents, according to Seeking Alpha.

"Through execution of our strategy and long-range plan, we captured profitable market share and enhanced margins," CEO Dave Flitman said in the press release. "This resulted in record full-year 2023 adjusted EBITDA of $1.56 billion, driven by strong case growth with our independent restaurant, healthcare and hospitality customers and the implementation of key operational initiatives."

The company provided fiscal 2024 guidance of net sales from $37.5 billion to $38.5 billion and adjusted diluted EPS of $3 to $3.20.