US Foods Improves First Quarter 2022 Results on Higher Volume and Food Cost Inflation

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U.S. Foods Holding Corp. improved its first-quarter 2022 results on higher total case volume and food cost inflation compared to the prior year period, according to an earnings report.

Highlights include:

  • Net sales decreased from $6.29 billion in the first quarter of 2021 to $7.8 billion for the quarter ending April 2, 2022, due to higher total case volume and inflation of the food costs by 17.3% compared to the same quarter a year ago.
  • Total case volume increased 4.1% year-on-year, driven by a 3% increase in total restaurant volume, a 64% increase in hospitality volume, and a 1% increase in volume of health care.
  • Growth in total restaurant volume was driven by a 9.2% increase in independent restaurant checkout volume and the successful integration of the profitable chain businesses acquired over the past year.
  • Net loss improved from a loss of $24 million to a loss of $7 million in the comparative quarters.
  • Net loss per share improved from a loss of 18 cents to a loss of 7 cents on both a basic and diluted basis.
  • Adjusted diluted EPS increased from 12 cents to 36 cents.

The shares traded today at $33.13 against a 52-week range of $30.02-$40.51.

Quarterly revenue of $7.8 billion was in line with analysts’ expectations, and non-GAAP EPS of 36 cents beat expectations by 2 cents, according to Looking for Alpha.

“Our results this quarter are a promising confirmation of our progress in executing our long-term plan to profitably grow our market share, further optimize gross margins and improve operational efficiency,” said the executive chairman Bob Dutkowsky in the release.