01—Abstract
Summary
Summary of the 10-Q filed May 8, 2025. Cited figures are marked; the original filing is the authoritative source.
US Foods Holding Corp. reported net sales of $9,351 milliona for the 13 weeks ended March 29, 2025, up $402 million, or 4.5%, from $8,949 million a year earlier, driven by case volume growth and food cost inflation of 3.0%.
Total case volume rose 1.1% (organic case volume rose 0.1%). Gross profit increased $119 millionb, or 8.0%, to $1,614 million, helped by volume, improved cost of goods sold, pricing optimization and a smaller LIFO expense ($5 million versus $45 million). Operating income rose to $224 million from $165 million, and net income increased to $115 million from $82 million.
Diluted EPS was $0.49c versus $0.33. Adjusted EBITDA increased $33 million, or 9.3%, to $389 million, with an Adjusted EBITDA margin of 4.2% versus 4.0%. Cash flow from operations was $391 million versus $139 million, and free cash flow was $308 million versus $53 million.
Cash flow improved mainly from changes in operating assets and liabilities. The company spent $85 milliond on the Jake's Finer Foods acquisition in Texas and received $38 million from the sale of the Freshway business. Capital expenditures were $84 million, and the company expects fiscal 2025 cash capital expenditures of $375 million to $425 million.
Total debt was $4,805 million at March 29, 2025, down from $4,928 million at December 28, 2024. The company had approximately $1.8 billion in cash and available liquidity, including $1,658 million of remaining ABL Facility capacity. The company repurchased $23 million of stock in the quarter, and on May 7, 2025, its Board authorized a new $1 billion share repurchase program.
02—Key points
Key Highlights
- Net sales rose $402 million, or 4.5%, to $9,351 million, with total case volume up 1.1% and independent restaurant case volume up 2.5%.
- Gross profit increased $119 million, or 8.0%, to $1,614 million; gross margin was 17.3% of net sales versus 16.7% a year earlier.
- Operating income increased to $224 million from $165 million, and net income increased to $115 million from $82 million.
- Adjusted EBITDA increased $33 million, or 9.3%, to $389 million, with an Adjusted EBITDA margin of 4.2% versus 4.0%.
- Operating cash flow was $391 million versus $139 million, and free cash flow was $308 million versus $53 million.
- Total debt declined to $4,805 million from $4,928 million, and the company had approximately $1.8 billion in cash and available liquidity.
- On May 7, 2025, the Board authorized a new $1 billion share repurchase program, following $23 million of repurchases in the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, US Foods Holding kept $0.01.
- Revenue$9.35B100.0%
- Cost of revenue−$7.74B82.7%
- Gross profit$1.61B17.3%
- Operating costs−$1.39B14.9%
- Operating income$224.0M2.4%
- Interest, other & tax−$109.0M1.2%
- Net income$115.0M1.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 8, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $9.35B$8.95B | +4.5% |
| Cost of Revenue | $7.74B$7.45B | +3.8% |
| Gross Profit | $1.61B$1.50B | +8.0% |
| SG&A Expenses | $1.39B$1.32B | +5.2% |
| Operating Expenses | $1.39B$1.33B | +4.5% |
| Operating Income | $224.00M$165.00M | +35.8% |
| Net Income | $115.00M$82.00M | +40.2% |
| EPS (Basic) | $0.50$0.33 | +51.5% |
| EPS (Diluted) | $0.49$0.33 | +48.5% |
| Shares Outstanding (Basic) | 231.00M245.00M | −5.7% |
| Shares Outstanding (Diluted) | 234.00M248.00M | −5.6% |
05—Questions
Frequently Asked Questions
What drove the increase in net sales this quarter?
Net sales increased $402 million, or 4.5%, driven by case volume growth and food cost inflation of 3.0%. Independent restaurant case volume rose 2.5%, healthcare volume rose 6.1%, and hospitality volume rose 3.6%, partially offset by a 4.3% decrease in chain volume. Organic case volume increased only 0.1%.
How much did LIFO affect gross profit?
LIFO expense was $5 million in the quarter compared with $45 million in the prior-year period, which the company cited as a favorable year-over-year LIFO adjustment that contributed to the gross profit increase.
How is the company's debt structure and liquidity positioned?
Total debt was $4,805 million at March 29, 2025, including $75 million outstanding under the ABL Facility and $1,658 million of remaining ABL capacity. The company stated it had approximately $1.8 billion in cash and available liquidity and believes operating cash flow and borrowing capacity will be adequate for the next 12 months. About 30% of total debt bore floating interest rates. A hypothetical 1% change in the applicable rate would change annual interest expense on floating-rate debt by approximately $16 million.
What acquisitions and divestitures occurred in the quarter?
The company acquired Jake's Finer Foods, a broadline distributor in Texas, on January 10, 2025, for a purchase price of $92 million subject to holdbacks and adjustments, with $85 million in cash paid. It also completed the sale of the Freshway business for net proceeds of approximately $38 million, which the company said did not qualify as discontinued operations.
What are the company's capital return plans?
The company repurchased 328,000 shares for approximately $23 million under the Amended Share Repurchase Program, which had about $52 million remaining at quarter end. On May 7, 2025, the Board authorized a new share repurchase program of up to $1 billion. The company expects fiscal 2025 cash capital expenditures between $375 million and $425 million.
06—Continue