US Foods Reports Third Quarter Fiscal 2019 Earnings

US Foods Reports Third Quarter Fiscal 2019 Earnings

Tuesday, November 5th, 2019

US Foods is finishing its third quarter of fiscal year 2019 off strong. After acquiring SGA’s Food Group of Companies in September and implementing an omni-channel selling approach, the foodservice distributor is positioned for even more growth as it heads into its fourth quarter.

Pietro Satriano, Chairman and CEO, US Foods“The integration of the Food Group is off to a good start, and we are excited to welcome our colleagues from the Food Group into US Foods,” said Chairman and CEO Pietro Satriano. “As a result of our year-to-date business performance, we are raising our fiscal 2019 organic Adjusted EBITDA growth guidance to 6.0 percent.”

US Foods continues its success and looks to more growth in the next quarter

According to a press release, US Foods’ third quarter fiscal 2019 highlights include the following:

  • Total case volume increased 3.0 percent; independent restaurant case volume increased 6.3 percent
  • Total organic case volume increased 0.9 percent; independent restaurant organic case volume increased 4.2 percent
  • Net sales increased 6.1 percent to $6.5 billion; organic Net sales increased 4.0 percent to $6.4 billion
  • Gross profit increased 4.3 percent to $1.2 billion
  • Income from continuing operations before income taxes increased $4 million to $144 million
  • Net income decreased $8 million to $106 million
  • Adjusted EBITDA increased 8.5 percent to $307 million; organic Adjusted EBITDA increased 6.7 percent to $302 million
  • Diluted EPS decreased 7.7 percent to $0.48; Adjusted Diluted EPS increased 12.1 percent to $0.65

“Our focus on profitable growth enabled us to deliver strong organic Adjusted EBITDA growth of 6.7 percent for the quarter,” continued Satriano. “We also delivered organic independent restaurant case growth of 4.2 percent as we continue to gain share with this target customer group.

In an earnings call presentation, US Foods went into detail about more of this quarter’s successes, including highlighting its omni-channel selling approach that the company is expecting to culminate in expanding its Pronto program to 15 markets, doubling its SKU count for its Direct program, and continuing the success of its Scoop offerings, which introduced a few new products this fall.

The presentation also noted that as part of the Food Group acquisition, three distribution centers were divested to three buyers. The closure of the acquisition also means products and customers are officially in US Foods’ system, with the foodservice provider already planning how to leverage its bolstered operation.

To read the financial report in its entirety, click here. And for more of the latest news as it affects deli, dairy, bakery, and specialty foods providers, stay right here with Deli Market News.

US Foods