Q1 2024 Chefs' Warehouse Inc Earnings Call Transcript
Key Points
- Net sales for the quarter increased by 21.5% to $874.5 million, driven by both organic growth and acquisitions.
- Gross profit increased by 23.4% to $209.4 million, with gross profit margins improving by approximately 37 basis points to 23.9%.
- Adjusted EBITDA increased to $40.2 million for the quarter, up from $32.8 million in the prior year.
- Successful consolidation of operations, such as the integration of seafood facilities in Massachusetts, aimed at reducing overhead and improving efficiency.
- Strong customer and supplier relationships, contributing to robust organic growth and operational performance.
- Selling, general, and administrative expenses increased by 21.9% to $190.3 million, primarily due to higher costs associated with acquisitions and facility investments.
- Net inflation was reported at 2.7% for the quarter, indicating ongoing cost pressures in certain categories.
- The company is still working through the integration and consolidation processes, which are expected to continue affecting operations into 2025.
- Total net debt stood at approximately $662 million, with a net debt to adjusted EBITDA ratio of about 3.3 times.
- Despite strong sales growth, there are ongoing concerns about macroeconomic conditions and their potential impact on the business.
Greetings, and welcome to The Chefs' Warehouse first quarter 2024 earnings conference call. As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Alex Aldous, General Counsel, Corporate Secretary and Chief Government Relations Officer. Please proceed.
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Thank you, operator. Good morning, everyone. With me on today's call are Chris Pappas, Founder, Chairman, and CEO; and Jim Leddy, our CFO. And by now you should have access to our first quarter 2024 earnings press release. It can also be found at www.chefswarehouse.com under the Investor Relations section.
Throughout this conference call, we will be presenting non-GAAP financial measures, including among others, historical and estimated EBITDA and adjusted EBITDA as well as both historical and estimated adjusted net
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