US Foods Hits 8.9B in Net Sales in 2024 Q1 Results; Dave Flitman and Dirk Locascio Discuss

US Foods recently came off of a strategic acquisition play and naturally, the industry is interested to see how that shook out in the operator's recent financial results. Both Chief Executive Officer Dave Flitman and Chief Financial Officer Dirk Locascio provided an update.

“Our results for the first quarter were in line with our expectations, demonstrating the strength of our business model and our ability to win in any environment as we overcame both internal and external headwinds to start the year,” said Dave Flitman, Chief Executive Officer. “Our team remains focused on capturing profitable market share with our target customer types and driving further progress on our strategic initiatives to improve profitability.”

US Foods’ net sales reached $8.9 billion for the quarter, showing an increase of 4.8 percent from the prior year. This was driven by case volume growth and food cost inflation of 1.5 percent.

“Our differentiated model and strong value proposition are resonating with our customers which has helped propel us to grow share with independent restaurants for 12 consecutive quarters,” Flitman continued.

According to a press release, additional highlights from the 2024 Q1 report include:

• Gross profit increased 4.9 percent to $1.5 billion
• Total case volume increased 4.2 percent; independent restaurant case volume increased 4.6 percent
• Net income available to common shareholders was $82 million
• Adjusted EBITDA increased 5.6 percent to $356 million

“We closed on our previously announced acquisition of IWC Food Service in April and are excited to welcome the team to US Foods. IWC expands our presence in the central Tennessee market and serves the greater Nashville area, one of the fastest growing markets in the country,” Flitman added.

Locascio, Chief Financial Officer, also offered his input on the company's performance.

“We executed well in the first quarter despite the challenging start to the year by staying focused on what we can control,” Locascio said. “We continue to execute our strategy and focus on driving profitability improvement, accelerating free cash flow generation, and maintaining our strong balance sheet. Given our performance for the first quarter and outlook for the full year, we are reaffirming our fiscal year 2024 guidance.”

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