US Foods Third Quarter 2020: Leader Pietro Satriano Sees Resiliency
Source: Deli Market News
The distributor delivers over double of a previous result as it adjusts to new restrictions, challenges, and more
It’s no secret that 2020 has thrown some curveballs at our industry. Despite this, we have maintained a resilient spirit that allowed us to prevail despite the changes. This is what US Foods’ Chairman and CEO Pietro Satriano has seen in the company’s third quarter results, pointing to key numbers that represent its efforts.
"In the third quarter, we demonstrated the resiliency of our business model by continuing to gain market share in an industry significantly impacted by COVID-19," Satriano stated. "Our case volumes continue to recover and Adjusted Gross Profit Margin improved by 70 basis points over the prior quarter. This profitable growth, along with our prudent approach to cost management, enabled us to deliver Adjusted EBITDA of $209 million for the quarter, more than double what we delivered in the second quarter. I'm proud of the hard work of all our associates, who remain focused on helping our customers Make It during this challenging time."
Highlights for the foodservice operator’s quarter included:
- Total case volume decreased 8.9 percent; total organic case volume decreased 22.2 percent
- Net sales decreased 10.5 percent to $5.8 billion
- Gross profit decreased 15.7 percent to $974 million
- Net loss available to common shareholders was $2 million
- Adjusted EBITDA decreased 31.9 percent to $209 million
- Diluted EPS loss was $0.01; adjusted Diluted EPS was $0.15
Both case volume and net sales improved throughout the quarter compared to the previous quarter, US Foods said, noting that many of its customers adjusted to social distancing measures and capacity restrictions put in place on non-essential businesses due to COVID-19.
While organic financial results excluded contributions during the respective period from Smart Stores Holding Corp., which US Foods acquired in April, The Food Group and Smart Foodservice acquisitions contributed net sales of $876 million, or 15.0 percent, for the quarter, according to a press release.
The report noted, too, that for the Food Group of Companies, which was acquired in September 2019, organic financial results include contributions for the September 14, 2020, through September 26, 2020, time period only.
The full release on the report with complete details can be found here. US Foods contributed to withdrawing its fiscal 2020 financial guidance in March 2020 and has not provided any additional financial guidance since due to the year’s uncertainty.