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US Foods Reports Fourth Quarter and Fiscal 2019 Year Earnings

US Foods Reports Fourth Quarter and Fiscal 2019 Year Earnings


ROSEMONT, IL
Wednesday, February 12th, 2020

Since acquiring the Food Group of Companies for $1.8 billion, US Foods is still seeing an upward growth trend. The distributor recently announced its fourth quarter and fiscal year 2019 results, in which it described that key acquisitions and new products were instrumental to its success.

Pietro Satriano, Chairman and CEO, US Foods“Our Great Food. Made Easy. strategy continues to resonate with customers, with 56 new Scoop products launched during the year and continued enhancements to our value-added services platform,” said Chairman and CEO Pietro Satriano. “The integration of the Food Group is progressing as planned with a new leadership organization in place and the successful launch of our best-selling Scoop products in our Northwest markets now complete. We are confident in the future growth prospects for our business and our ability to achieve the 2020 guidance targets we have set for the year."

According to a press release, highlights from US Foods’ fourth quarter fiscal 2019 included:

  • Total case volume increased 12.3 percent; independent restaurant case volume increased 11.9 percent
  • Total organic case volume increased 0.4 percent; independent restaurant organic case volume increased 2.9 percent
  • Net sales increased 14.8 percent to $6.9 billion; organic net sales increased 3.0 percent to $6.2 billion
  • Gross profit increased 13.3 percent to $1.2 billion
  • Income from continuing operations before income taxes decreased $10 million to $122 million
  • Net income decreased $8 million to $92 million
  • Adjusted EBITDA increased 12.8 percent to $335 million; organic Adjusted EBITDA increased 6.7 percent to $317 million
  • Diluted EPS of $0.42; Adjusted Diluted EPS increased 10.0 percent to $0.66

“In fiscal 2019, we continued to profitably grow our business while expanding our operating leverage for the fourth consecutive year,” continued Satriano. “Full year organic Adjusted EBITDA growth of 6.2 percent was in line with our guidance for the year and we grew Adjusted Diluted EPS by almost 10 percent.”

Key acquisitions, new products, and an ever-implementable strategy have all contributed to overall growth in 2019 for US Foods

Additional highlights from fiscal year 2019 included:

  • Total case volume increased 4.6 percent; independent restaurant case volume increased 7.1 percent
  • Total organic case volume increased 1.1 percent; independent restaurant organic case volume increased 4.4 percent
  • Net sales increased 7.3 percent to $25.9 billion; organic Net sales increased 3.8 percent to $25.1 billion
  • Gross profit increased 6.5 percent to $4.6 billion
  • Income from continuing operations before income taxes increased $15 million to $511 million
  • Net income decreased $22 million to $385 million
  • Adjusted EBITDA increased 8.3 percent to $1,194 million; organic Adjusted EBITDA increased 6.2 percent to $1,171 million
  • Diluted EPS of $1.75; Adjusted Diluted EPS increased 9.7 percent to $2.38

With such a successful ending to its 2019, US Foods is already charting the same growth for 2020. To read the distributor’s financial report in its entirety, click here.

To learn more about how the industry’s key players are utilizing acquisitions to their advantage, be sure to keep clicking back to Deli Market News.

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