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Dec 28, 2024
US Foods Q4 2024 Earnings Report
Key Takeaways
US Foods reported a 6.2% YoY increase in revenue to $9.49 billion, driven by strong case volume growth and food cost inflation. However, net income declined 55.1% due to a one-time pension settlement expense and LIFO adjustment impact. Adjusted EBITDA increased 13.7% to $441 million, with margin expansion of 30 basis points.
US Foods
US Foods
Forward Guidance
US Foods expects continued revenue growth of 4-6% in FY25, with margin expansion and strong adjusted EBITDA growth. The company is focused on operational efficiencies and volume growth to drive profitability.
Positive Outlook
- Revenue growth expected between 4% and 6%
- Adjusted EBITDA growth forecasted between 8% and 12%
- Adjusted EPS projected to grow between 17% and 23%
- Operational efficiencies and pricing optimization to support margins
- Acquisition of Jake's Finer Foods to expand market presence
Challenges Ahead
- Macroeconomic uncertainties may impact foodservice demand
- Labor cost inflation could pressure margins
- Potential supply chain disruptions remain a risk
- Higher interest rates may impact financing costs
- Ongoing cost inflation could affect pricing strategies