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Intellectia.AI Updated: 1970-01-01
US Foods Holding Corp. Announces Second Quarter Fiscal Year 2024 Financial Results
US Foods Holding Corp. (NYSE: USFD), a leading foodservice distributor in the United States, reported its financial results for the second quarter of fiscal year 2024, showcasing notable improvements in key financial metrics.
Key Financial Metrics
| Metric | Q2 FY2024 | Q2 FY2023 | YoY Change | Q1 FY2024 | QoQ Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Total Revenue | $9.7B | $9.0B | +7.7% | $9.5B | +2.1% | $9.62B |
| Diluted EPS | $0.80 | $0.73 | +9.6% | $0.76 | +5.3% | |
| Adjusted Diluted EPS | $0.93 | $0.79 | +17.7% | $0.85 | +9.4% | $0.93 |
| Net Income | $198M | $182M | +8.8% | $190M | +4.2% | |
| Adjusted EBITDA | $489M | $432M | +13.2% | $475M | +2.9% | |
| Adjusted EBITDA Margin | 5.0% | 4.75% | +25bps | 5.0% | 0bps |
The company reported a 7.7% year-over-year increase in net sales to $9.7 billion, driven by total case volume growth and 2.9% food cost inflation. Gross profit also grew by 7.2% to $1.7 billion, and net income increased by 8.8% to $198 million. Diluted EPS rose by 9.6% to $0.80, while adjusted diluted EPS met the consensus estimate at $0.93.
Revenue Performance Across Major Segments
| Segment | Q2 FY2024 | YoY Change |
|---|---|---|
| Independent Restaurant Volume | +5.7% | |
| Healthcare Volume | +6.0% | |
| Hospitality Volume | +2.1% | |
| Chain Volume | +4.2% |
The increases in segment volumes emphasize strong performance in independent restaurants, healthcare, and chains. This resulted in a broad-based gain that underscores the effectiveness of US Foods' strategic initiatives.
Operational Data
| Data Category | Q2 FY2024 | YoY Change |
|---|---|---|
| Total Case Volume | +5.2% | |
| Cash Flow from Operations (First Six Months FY2024) | $621M | - |
Total case volume was up by 5.2% from the previous year.
Comments from Company's Officers
"During the second quarter, we delivered record Adjusted EBITDA and EBITDA margin in a softer macro environment," said CEO Dave Flitman. "Our team's success further emphasizes the strength of our operating model and ability to control the controllables."
CFO Dirk Locascio added, "We delivered record profitability in the second quarter through our balanced approach to drive top- and bottom-line gains despite the operating environment."
Dividends and Share Repurchase Program
The company repurchased $41 million of shares during the quarter and has approximately $918 million in remaining funds authorized under a new $1 billion share repurchase program.
Forward Guidance
US Foods reiterated its fiscal year 2024 guidance: - Net Sales: $37.5 to $38.5 billion - Adjusted EBITDA: $1.69 to $1.74 billion - Adjusted Diluted EPS: $3.00 to $3.20
Stock Price Movement
The company's stock price decreased by 0.70% following the earnings release.
In summary, US Foods reported robust second-quarter results with significant revenue and profit gains, aligning with its strategic objectives and market expectations. The company's diversified segment growth and strong operational performance continue to drive its optimistic outlook for the remainder of the fiscal year.
