US Foods Holding Corp (USFD) has reported 2,560 percent jump in profit for the quarter ended Oct. 01, 2016. The company has earned $133 million, or $0.59 a share in the quarter, compared with $5 million, or $0.03 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $87 million, or $0.39 a share compared with $55 million or $0.32 a share, a year ago. Revenue during the quarter went up marginally by 0.78 percent to $5,841 million from $5,796 million in the previous year period. Gross margin for the quarter expanded 21 basis points over the previous year period to 17.69 percent. Total expenses were 98.03 percent of quarterly revenues, down from 98.74 percent for the same period last year. This has led to an improvement of 71 basis points in operating margin to 1.97 percent.
Operating income for the quarter was $115 million, compared with $73 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $244 million compared with $225 million in the prior year period. At the same time, adjusted EBITDA margin improved 30 basis points in the quarter to 4.18 percent from 3.88 percent in the last year period.
“Our third quarter results reflected strong performance in many areas, including volume growth and improved profitability,” said President and Chief executive officer Pietro Satriano. “Top line momentum and margin expansion, despite deflationary pressures, continue to demonstrate that our Great Food. Made Easy. strategy is resonating with independent restaurants and other customers. Our M&A pipeline remains strong, with two new acquisitions closed since the beginning of the fourth quarter. With the successful rollout of our new field operating model now substantially complete, we have launched two new initiatives that will contribute to EBITDA margin expansion. As a result of our strong year-to-date performance, we have increased our outlook for full year Adjusted EBITDA growth to 9-10%.”
Operating cash flow declines
US Foods Holding Corp has generated cash of $440 million from operating activities during the nine month period, down 24.91 percent or $146 million, when compared with the last year period. The company has spent $681 million cash to meet investing activities during the nine month period as against cash outgo of $158 million in the last year period. It has incurred net capital expenditure of $94 million on net basis during the nine month period, down 32.37 percent or $45 million from year ago period.
The company has spent $126 million cash to carry out financing activities during the nine month period as against cash outgo of $73 million in the last year period.
Cash and cash equivalents stood at stood at $150 million as at Oct. 01, 2016.
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