US Foods Q3 2023 Earnings Report
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.
US Foods
US Foods
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