On May 11, Rosemont, Illinois-based foodservice distributor US Foods reported its 2023 first-quarter financials, showing strong sales growth compared to 1Q 2022.
US Foods posted net sales of $8.5 billion in 1Q 2023, up 9.5% year-over-year. Sequentially, net sales were roughly flat when compared to 4Q 2022.
The distributor’s sales growth was driven primarily by a 5.7% increase in total case volume, including an 8.1% jump in independent restaurant case volume, according to a news release.
Adjusted EBITDA grew 39.8% year-over-year to $337 million while adjusted EBITDA margin was 3.9%, up 80 basis points year-over-year. Gross profit was $1.4 billion, an increase of 19.2% from the prior year, primarily as a result of cost of goods sold optimization, increased freight income from improved inbound logistics, optimized pricing and food cost inflation in multiple product categories, according to the release.
“We are encouraged by our start to the year as US Foods delivered strong financial results again this quarter, demonstrating continued execution against our long-range plan,” US Foods CEO Dave Flitman said in the release. “I am excited about the significant opportunity ahead, and I am highly confident that executing our strategic priorities will position US Foods for long-term success.”