10-Q - US Foods Holding Corp. (0001665918) (Filer)

Thu, May 8, 9:00 PM (10 days ago)

**US Foods Holding Corp. (USFD) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $9,351 million, up 4.5% YoY, driven by case volume growth and food cost inflation. - **Gross Profit:** $1,614 million, up 8.0% YoY, due to increased case volume, improved cost of goods sold, and favorable LIFO adjustments. - **Operating Income:** $224 million, up 36.4% YoY, reflecting increased operating expenses but higher gross profit. - **Net Income:** $115 million, up 39.8% YoY, with an effective tax rate of 22%. - **Cash Flow:** Operating cash flow increased to $391 million, driven by changes in operating assets and liabilities. **Profit Margins:** - **Gross Margin:** 17.3% (up from 16.7% YoY). - **Operating Margin:** 2.4% (up from 1.8% YoY). - **Net Margin:** 1.2% (up from 0.9% YoY). **Cash Flow & Earnings Changes:** - **Operating Cash Flow:** $391 million, up from $139 million YoY. - **Investing Cash Flow:** -$130 million, reflecting acquisitions and capital expenditures. - **Financing Cash Flow:** -$219 million, including debt repayments and share repurchases. **Quarterly Performance Discussion:** - **Acquisitions:** Acquired Jake’s Finer Foods for $92 million, expanding reach in Texas. - **Divestitures:** Sold Freshway business for $38 million, focusing on core operations. - **Share Repurchase:** Repurchased $23 million worth of shares under the Amended Share Repurchase Program. **Trends & Uncertainties:** - **Economic Factors:** Consumer confidence and discretionary spending impact foodservice demand. - **Fuel Costs:** Fluctuations in diesel fuel prices affect operational costs and pricing. - **Interest Rates:** Floating rate debt exposes the company to interest rate fluctuations. - **Regulatory Changes:** Compliance with new accounting standards and potential tax law changes. **Future Operations Impact:** - **Capital Expenditures:** Expected to be between $375 million and $425 million for fiscal 2025. - **Debt Management:** Monitoring credit markets and considering debt reduction or refinancing opportunities. - **Strategic Initiatives:** Continuing to optimize distribution, improve cost structures, and enhance customer support. **Ticker:** USFD