ROSEMONT, Ill. - US Foods Holding Corp . (NYSE: NYSE:USFD), a leading foodservice distributor in the United States, reported a modest beat in its first-quarter earnings, surpassing analyst expectations.
The company announced a first-quarter adjusted EPS of $0.54, slightly above the analyst estimate of $0.53. Revenue for the quarter was also higher, coming in at $8.95 billion against 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 stood at 1.5%. Gross profit saw a 4.9% rise to $1.5 billion, mainly due to an increase in organic case volume, improved cost of goods sold, the impact of acquisitions, and pricing optimization.
US Foods' CEO, Dave Flitman, commented on the quarter, stating, "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."
He highlighted the company's continued market share growth with independent restaurants for twelve consecutive quarters and improvements in operational performance, including a 30% improvement in safety results and nearly a 4% increase in delivery productivity.
The company's net income available to common shareholders was reported at $82 million, an increase from the prior year. Adjusted EBITDA also grew by 5.6% to $356 million, with an adjusted EBITDA margin of 4.0%, a slight increase from the previous year.
Looking ahead, US Foods reaffirmed its fiscal year 2024 guidance, expecting net sales to range between $37.5 and $38.5 billion and adjusted EBITDA to be between $1.69 and $1.74 billion. The adjusted diluted EPS guidance is set at $3.00 to $3.20, with the midpoint of the EPS guidance range at $3.10, just below the analyst consensus of $3.11.
CFO Dirk Locascio added, "Given our performance for the first quarter and outlook for the full year, we are reaffirming our fiscal year 2024 guidance." He emphasized the company's strategy execution, focus on profitability improvement, 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 rapidly growing Nashville area.
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