US Foods(USFD)2025-05-08 10:48Financial Performance - Net sales increased by 4.5% to $9.4 billion in Q1 FY 2025, driven by case volume growth and food cost inflation of 3.0%[4] - Adjusted EBITDA grew by 9.3% to $389 million, with an adjusted EBITDA margin of 4.2%[7] - Net income rose by 40.2% to $115 million, resulting in a net income margin of 1.2%[7] - Total case volume increased by 1.1%, with independent restaurant case volume up by 2.5%[4] - Adjusted diluted EPS increased by 25.9% to $0.68, while diluted EPS rose by 48.5% to $0.49[3] - Gross profit for the same period rose to $1,614 million, compared to $1,495 million in 2024, reflecting an increase of 8.0%[29] - Operating income improved to $224 million, up from $165 million year-over-year, marking a growth of 35.7%[29] - Adjusted diluted EPS increased to $0.49 from $0.33, representing a growth of 48.5%[29] - Adjusted EBITDA for the same period was $389 million, up 9.3% from $356 million year-over-year, with an adjusted EBITDA margin of 4.2%[34] - Net income for the 13 weeks ended March 29, 2025, was $115 million, compared to $82 million in the prior year, an increase of 40.2%[29] Cash Flow and Assets - Cash flow from operating activities for Q1 FY 2025 was $391 million, an increase of $252 million from the prior year[8] - Cash flows from operating activities for the 13 weeks ended March 29, 2025, were $391 million, significantly higher than $139 million in the same period last year[31] - Cash and cash equivalents at the end of the period were $101 million, up from $59 million, indicating a growth of 71.2%[31] - Total current assets as of March 29, 2025, were $4,091 million, compared to $3,974 million at the end of March 2024, an increase of 2.9%[27] Debt and Liabilities - Net debt at the end of Q1 FY 2025 was $4.7 billion, with a net debt to adjusted EBITDA ratio of 2.7x[9] - Total liabilities increased to $9,035 million from $8,908 million, reflecting a rise of 1.4%[27] - Total debt as of March 29, 2025, was $4,805 million, down from $4,928 million as of December 28, 2024[37] - Net debt decreased to $4,704 million from $4,869 million in the previous quarter[37] - The net leverage ratio improved to 2.7 from 2.8 in the previous quarter[37] Strategic Initiatives - The company reaffirmed its FY 2025 guidance of 8% to 12% adjusted EBITDA growth and 17% to 23% adjusted diluted EPS growth[12] - A new $1 billion share repurchase program was authorized, reflecting the company's commitment to return capital to shareholders[4] - The company acquired Jake's Finer Foods for $92 million, enhancing its distribution capabilities[11] Inventory and Operating Expenses - The company reported a decrease in inventories to $1,518 million from $1,626 million, a reduction of 6.7%[27] - Operating expenses increased to $1,390 million, a 4.5% rise from $1,330 million year-over-year[34] - Adjusted net income for the quarter was $159 million, an 18.7% increase from $134 million in the same period last year[34]