US Foods Holding Corp. reported significant financial performance improvements for the 13 and 39 weeks ended September 28, 2024, compared to the same periods in 2023. Net sales for the quarter increased by $622 million, or 6.8%, reaching $9,728 million, while year-to-date sales rose by $1,725 million, or 6.5%, totaling $28,386 million. This growth was attributed to organic case volume increases, acquisitions, and food cost inflation of 3.2% and 2.5%, respectively.

Total case volume for the quarter rose by 3.8%, with independent restaurant case volume increasing by 4.1%. Healthcare volume grew by 5.7%, hospitality by 3.0%, and chain volume by 2.4%. Organic case volume also saw a modest increase of 1.1% for the quarter, with independent restaurant organic growth at 2.4%.

Gross profit for the 13 weeks ended September 28, 2024, was $1,667 million, an increase of $125 million (8.1%) from the previous year, while gross profit for the 39 weeks rose by $310 million (6.8%) to $4,868 million. Operating income for the quarter increased by $49 million to $279 million, and net income rose by $53 million to $148 million. Adjusted EBITDA for the quarter was $455 million, up 13.2% from the prior year, representing 4.7% of net sales.

Operating expenses increased by $76 million (5.8%) for the quarter, totaling $1,388 million, while maintaining a consistent percentage of net sales at 14.3%. The company reported a net income margin of 1.5% for both the quarter and year-to-date periods, up from 1.0% in the previous year.

Strategically, US Foods completed the acquisition of IWC Food Service on April 5, 2024, for a net purchase price of $214 million, which included $81 million in goodwill and $82 million in intangible assets. The company is also exploring the potential sale of its CHEF’STORE wholesale restaurant supply business, focusing on its delivered broadline operations.

In terms of financial management, US Foods reported total debt of approximately $4.8 billion as of September 28, 2024, with a fair value consistent with its carrying value. The company has also initiated a supplier financing program and entered into interest rate cap agreements to manage exposure to interest rate fluctuations.

Overall, US Foods demonstrated robust growth in sales and profitability, supported by strategic acquisitions and effective cost management, while navigating market conditions and inflationary pressures.