Operations

US Foods reports improved sales, earnings for Q2 2021

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August 10, 2021

US Foods Holding Corp. reported strong sales and earnings for the second quarter of 2021 ending July 3 as markets lifted in-person dining restrictions on restaurants and leisure travel increased, according to a press release.

Company sales rose 68% from $4.56 billion in Q2, 2020 to $7.66 billion in Q2, 2021, while income improved 160% from a $92 million loss to a $55 million gain in the comparative quarters.

Basic income per share improved from a 44-cent loss to a 21-cent gain, while diluted net income per share rose from a 44-cent loss to a 20-cent gain. Adjusted diluted EPS improved from a 22-cent loss to a 58-cent gain.

Organic financial results exclude contributions from Smart Foodservice, which was acquired on April 24, 2020.

Total case volume increased 53.5% from the prior year for the quarter, while total organic case volume increased 50.3%.

Independent restaurant case volume increased 79.1%, while organic independent restaurant case volume increased 74.4%.

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 impacted 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.

Net sales for the first six months of 2021 rose 28.1% over the prior year to $14 billion.

The $7.66 billion in quarterly revenue beat analyst expectations by $810 million, while the non-GAAP EPS of 58 cents beat expectations by 23 cents and the GAAP EPS of 20 cents beat expectations by 14 cents, according to Seeking Alpha.

Shares traded at $33.87 Monday against a 52-week range of $19.82-$42.10.

"As markets around the United States reopen without restrictions, we have seen strong demand for our products, services and consultative expertise," Chairman and CEO Pietro Satriano said in the release. "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."