On February 13, 2025, US Foods Holding Corp (USFD, Financial) released its 8-K filing, showcasing a robust performance for the fiscal year 2024. As one of the largest foodservice distributors in the United States, US Foods Holding Corp distributes food and nonfood products to various sectors, 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 and Challenges
US Foods Holding Corp reported a 6.4% increase in net sales, reaching a record $37.9 billion for fiscal year 2024. The company's net income stood at $494 million, while adjusted EBITDA grew by 11.7% to a record $1.74 billion. Despite these achievements, the company faced challenges such as a non-recurring pension termination settlement expense and an unfavorable year-over-year LIFO adjustment, which impacted net income margins.
Financial Achievements and Industry Significance
The company's financial achievements are noteworthy in the Retail - Defensive industry, where stability and consistent growth are crucial. The expansion of the adjusted EBITDA margin by 22 basis points to 4.6% and the repurchase of $958 million in shares highlight US Foods Holding Corp's commitment to shareholder value and operational efficiency.
Key Financial Metrics
US Foods Holding Corp's income statement revealed a gross profit increase of 6.3% to $6.5 billion, driven by case volume growth and pricing optimization. Operating expenses rose by 5.9% to $5.4 billion, reflecting higher distribution costs and labor expenses. The company's balance sheet showed total assets of $13.4 billion, with net debt at $4.9 billion, maintaining a net debt to adjusted EBITDA ratio of 2.8x.
| Metric | FY 2024 | FY 2023 | Change |
|---|---|---|---|
| Net Sales | $37.9 billion | $35.6 billion | +6.4% |
| Gross Profit | $6.5 billion | $6.1 billion | +6.3% |
| Adjusted EBITDA | $1.74 billion | $1.56 billion | +11.7% |
| Net Income | $494 million | $506 million | -2.4% |
Analysis of Company Performance
US Foods Holding Corp's performance in fiscal year 2024 demonstrates its ability to navigate industry challenges and capitalize on growth opportunities. The increase in case volumes across various sectors, coupled with strategic pricing and cost management, contributed to the company's strong financial results. The focus on expanding its presence through acquisitions, such as the purchase of Jake's Finer Foods, further underscores its growth strategy.
“We delivered another strong quarter which resulted in Adjusted EBITDA growth of 11.7% to a record $1.74 billion for 2024, capping off the final year of our long-range plan,” said Dave Flitman, CEO.
Overall, US Foods Holding Corp's fiscal year 2024 results reflect its resilience and strategic execution in a competitive market, positioning the company for continued success in the coming years.
Explore the complete 8-K earnings release (here) from US Foods Holding Corp for further details.
