US Foods' net sales and case volume improve in second quarter

US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, announced improved sales results for its second quarter of fiscal 2021. US Foods said its total case volume increased 53.5% from the prior year, while total organic case volume rose 50.3%.

Independent restaurant case volume increased 79.1%, while organic independent restaurant case volume increased 74.4%, US Foods reported. Net sales of $7.7 billion increased 68% from the prior year. The increase in both case volume and net sales was a result of markets lifting in-person dining restrictions on restaurants and an increase in leisure travel.

COVID-19 related restrictions on in-person dining and travel more heavily impact the second quarter of fiscal 2020 compared to the second quarter of fiscal 2021. Net sales also benefited from food cost inflation of 8.2% in the second quarter.

The company's gross profit of $1.2 billion increased $498 million, or 74.2%, from the prior year, primarily as a result of an increase in total case volume and inflation in multiple product categories, including poultry, pork and disposables. 

"As markets around the United States reopen without restrictions, we have seen strong demand for our products, services and consultative expertise," said US Foods chairman and chief executive Pietro Satriano. "While supply chain labor is expected to remain challenging for the next few quarters, we remain focused on delivering profitable growth as our industry continues to recover."

KEY POINTS

• Total case volume increased 53.5%; independent restaurant case volume increased 79.1%.
• Total organic case volume increased 50.3%; organic independent restaurant case volume increased 74.4%.
• Net sales increased 68% to $7.7 billion.
• Gross profit increased 74.2% to $1.2 billion.
• Net income available to common shareholders was $46 million.
• Adjusted EBITDA increased 277.3% to $332 million.
• Diluted EPS was $0.20; Adjusted Diluted EPS was $0.58.