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US Foods Closes Q2 2017 Strong: Eyes More Mergers & Acquisitions

US Foods Closes Q2 2017 Strong: Eyes More Mergers & Acquisitions

Wednesday, August 9th, 2017

As US Foods continues to gain steam following several early-year acquisitions, the foodservice giant is not yet done adding new companies to the fold. The company has ended its second quarter for fiscal 2017 showing a net sales increase of 6.1% to $6.2 billion, as well as a 1.9% boost to gross profit, coming out to $1.1 billion.

In US Foods' Q3 2017 report, President and CEO Pietro Satriano shared that strong Adjusted EBITDA growth of 10% and above-market independent restaurant case growth of 4.7% were highlights of “another successful quarter” for the company, and expects more of the same as the year continues.

Pietro Satriano, President and CEO, US Foods“We have successfully closed five acquisitions this year as we continue to focus on accretive M&A opportunities,” Satriano commented. “Continued growth with targeted customers, in combination with our portfolio of value-added services, innovative products, and enhanced digital platform, position us for success in the second half of the year.”

U.S. Foods

Additional highlights for the foodservice distributor’s second quarter included:

  • Total case volume increased 3.6%; independent restaurant case volume increased 4.7%
  • Operating income of $126 million increased $28 million
  • Net income of $65 million improved $78 million from a 2016 net loss of $13 million
  • Adjusted EBITDA increased 10.0% to $286 million
  • Diluted EPS of $0.29; Adjusted Diluted EPS of $0.37

US Foods attributed much of the $20 million increase in gross profit to a combination of higher volume and margin expansion initiatives, while its net sales increase of 6.1% compared to this time last year were driven by total case volume growth, product mix changes, and year-over-year inflation in grocery, produce, poultry, and seafood. The company also noted that about 1.8% of its net sales were increased by sales from acquisitions completed in the last 12 months.

With an adjusted expectation for net sales growth now marked at 3-5%, with an interest expense of $175-$180 million, Deli Market News will keep bringing you the latest on this foodservice company on the rise.

US Foods