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Sep 30, 2023
US Foods Q3 2023 Earnings Report
US Foods reported strong Q3 2023 results, driven by growth in target customer types and operational efficiencies.
Key Takeaways
US Foods reported a 2.1% increase in net sales to $9.1 billion, a 6% increase in gross profit to $1.5 billion, and a net income of $95 million. Adjusted EBITDA increased 15% to $402 million, with an expansion of Adjusted EBITDA margin by approximately 50 bps. The company also reduced net leverage to 2.9x, prepaid $60 million of debt, and repurchased $29 million of shares.
Net sales increased by 2.1% to $9.1 billion.
Total case volume increased by 4.0%, with independent restaurant case volume up by 5.8%.
Adjusted EBITDA increased by 14.5% to $402 million.
Company raised Adjusted EBITDA guidance for fiscal year 2023 to $1.54 billion - $1.56 billion.
Forward Guidance
The Company is updating its previously announced fiscal year 2023 guidance to Adjusted EBITDA of $1.54-$1.56 billion and Adjusted Diluted EPS of $2.60-$2.70.
Positive Outlook
- Adjusted EBITDA of $1.54-$1.56 billion, compared to previous guidance of $1.51-$1.54 billion
- Adjusted Diluted EPS of $2.60-$2.70, compared to previous guidance of $2.55-$2.65
- Interest expense of $320-$325 million
- Net Debt to Adjusted EBITDA leverage below 3.0x by end of fiscal year 2023
Challenges Ahead
- Total capital expenditures of $410-$430 million, consisting of $290-$310 million of cash capital expenditures and ~$120 million of fleet capital leases
Historical Earnings Impact
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Avg. Return Before/After Earnings
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