On August 8, 2024, US Foods Holding Corp (USFD, Financial) released its 8-K filing for the second quarter of fiscal year 2024. US Foods Holding Corp is a leading U.S. food service distributor, providing food and nonfood products to various industries including healthcare, hospitality, restaurants, education, government facilities, and grocers. The company also operates 80 cash-and-carry stores under the Chef'Store banner, with a significant portion of its revenue generated from meats and seafood products.
Performance Overview
US Foods Holding Corp (USFD, Financial) reported a 7.7% increase in net sales to $9.7 billion, surpassing the analyst estimate of $8.91 billion. The company also reported a gross profit increase of 7.2% to $1.7 billion and a net income increase of 8.8% to $198 million. The diluted EPS for the quarter was $0.80, significantly higher than the analyst estimate of $0.47.
Key Financial Achievements
US Foods Holding Corp (USFD, Financial) achieved record Adjusted EBITDA of $489 million, a 13.2% increase from the prior year, and an Adjusted EBITDA margin of 5.0%. The company also repurchased $41 million of shares and reduced its net leverage to 2.6x. These achievements are crucial for a company in the Retail - Defensive industry, as they indicate strong operational efficiency and financial health.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net Sales | $9.7 billion | $9.0 billion | +7.7% |
| Gross Profit | $1.7 billion | $1.6 billion | +7.2% |
| Net Income | $198 million | $182 million | +8.8% |
| Adjusted EBITDA | $489 million | $432 million | +13.2% |
| Diluted EPS | $0.80 | $0.73 | +9.6% |
Balance Sheet and Cash Flow
US Foods Holding Corp (USFD, Financial) reported cash flow from operating activities of $621 million for the first six months of fiscal year 2024, a decrease of $32 million from the prior year. Cash capital expenditures totaled $156 million, an increase of $48 million from the prior year. The company's net debt at the end of Q2 2024 was $4.3 billion, with a net leverage ratio of 2.6x, down from 3.0x in Q2 2023.
Commentary and Outlook
"During the second quarter, we delivered record Adjusted EBITDA and EBITDA margin in a softer macro environment. Our team’s success further emphasizes the strength of our operating model and ability to control the controllables," said Dave Flitman, CEO.
"We delivered record profitability in the second quarter through our balanced approach to drive top- and bottom-line gains despite the operating environment," added Dirk Locascio, CFO.
US Foods Holding Corp (USFD, Financial) reiterated its fiscal year 2024 guidance, expecting net sales of $37.5 to $38.5 billion, Adjusted EBITDA of $1.69 to $1.74 billion, and Adjusted Diluted EPS of $3.00 to $3.20.
For more detailed information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from US Foods Holding Corp for further details.
