US Foods Posts Better First Quarter Earnings and Confirms FY24 Outlook By Investing.com

ROSEMONT, Ill. – American Foods Holding Corp . (NYSE: NYSE:), a leading foodservice distributor in the United States, reported modest first-quarter earnings, exceeding analyst expectations.

The company announced first-quarter adjusted earnings per share of $0.54, slightly above analyst expectations of $0.53. Revenue for the quarter was also higher, coming in at $8.95 billion versus the consensus estimate of $8.9 billion, marking a 4.8% increase from the same period last year.

The company’s net sales growth was attributed to a combination of case volume growth and food cost inflation, which was 1.5%. Gross profit increased 4.9% to $1.5 billion, primarily due to an increase in organic business, improved cost of goods sold, the impact of acquisitions and pricing optimization.

US Foods CEO Dave Flitman said of the quarter: “Our first quarter results were in line with our expectations, demonstrating the strength of our business model and our ability to win in any environment as we drive both internal and overcome internal problems.” external headwinds to start the year.”

He highlighted the company’s continued growth in market share among independent restaurants for twelve consecutive quarters and improvements in operating performance, including a 30% improvement in safety results and a nearly 4% increase in delivery productivity.

The company’s net income available to common shareholders was $82 million, an increase from the previous year. Adjusted EBITDA also grew 5.6% to $356 million, with an adjusted EBITDA margin of 4.0%, up slightly from the prior year.

Looking ahead, US Foods reaffirmed its guidance for fiscal 2024, expecting net sales to be in the range of $37.5 billion to $38.5 billion and adjusted EBITDA to be in the range of $1.69 billion to $1.74 billion. Adjusted diluted EPS guidance is set at $3.00 to $3.20, with the midpoint of the EPS guidance at $3.10, just below the analyst consensus of $3.11.

CFO Dirk Locascio added: “Given our first quarter performance and full year outlook, we reaffirm our expectations for fiscal 2024.” He emphasized on executing the company’s strategy, focusing on improving profitability and maintaining a strong balance sheet.

The company also completed the acquisition of IWC Food Service, which is expected to expand its presence in the central Tennessee market, including the fast-growing Nashville area.

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