The Chefs' Warehouse(US:CHEF)2025-10-29 11:39Financial Performance - Net sales for the thirteen weeks ended September 26, 2025, increased by $89.9 million, or 9.6%, compared to the same period in 2024, driven by organic growth and inflation impacts [83]. - Gross profit for the same period rose to $247.2 million, a 10.0% increase, with a gross profit margin of 24.2%, up from 24.1% in the prior year [84]. - The company reported a net income of $19.1 million for the thirteen weeks ended September 26, 2025, compared to $14.1 million in the prior year, reflecting a 35.0% increase [82]. - For the thirty-nine weeks ended September 26, 2025, net sales increased by $246.3 million, or 8.9%, with organic growth contributing significantly [89]. - Gross profit for the thirty-nine weeks rose to $727.5 million, a 9.7% increase, maintaining a gross profit margin of 24.2% [90]. Expenses and Taxation - Selling, general and administrative expenses increased by $15.2 million, or 7.9%, but as a percentage of net sales, it decreased to 20.4% from 20.7% [85]. - Provision for income tax expense increased by $6.2 million, or 45.7%, from $13.5 million in 2024 to $19.7 million in 2025 [94]. - Effective tax rate decreased from 30.0% in 2024 to 28.0% in 2025 [94]. - Interest expense decreased by $5.2 million, or 14.1%, due to lower debt levels and interest rates compared to the previous year [93]. Cash Flow and Investments - Cash and cash equivalents decreased from $114.7 million in December 2024 to $65.1 million in September 2025 [102]. - Net cash provided by operating activities decreased from $80.1 million in 2024 to $55.4 million in 2025 [103]. - Net cash used in investing activities was $33.3 million for the thirty-nine weeks ended September 26, 2025, primarily driven by capital expenditures [104]. - Net cash used in financing activities was $71.6 million for the thirty-nine weeks ended September 26, 2025, including $20.0 million in payments under revolving credit facilities [105]. Debt and Financing - Aggregate indebtedness outstanding as of September 26, 2025, was $352.8 million, with a variable interest rate exposure [107]. - The company amended its asset-based loan agreement, extending the maturity date to August 20, 2030, with no changes to aggregate commitments of $300.0 million [98]. Shareholder Activities - The company repurchased 241,198 shares at an average price of $62.19 per share, with a remaining authorization of $67.6 million as of September 26, 2025 [101]. - The company expects capital expenditures for fiscal 2025 to be approximately $40.0 million to $50.0 million [102]. Customer Metrics - Unique customers in the specialty category increased by 2.6% for the thirteen weeks ended September 26, 2025, contributing to sales growth [83]. - Estimated inflation contributed an additional $80.6 million, or 4.7%, to sales in the specialty category for the thirty-nine weeks ended September 26, 2025 [89].