Equipment & Supplies

US Foods Q1 2021 sales drop, earnings improve

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May 13, 2021

US Foods Holding Corp.'s net sales fell 0.7% from $6.34 billion in Q1 2020 to $6.3 billion in the quarter ending April 3, 2021, primarily as a result of the negative impact of COVID-19 on case volume, according to an earnings report.

The company improved its net loss 81.8% from a $132 million in Q1 2020 to $24 million in Q1 2021.

Adjusted diluted earnings per share fell 20% from 15 cents to 12 cents.

Total case volume decreased 0.9% from the prior year, while total organic case volume decreased 6.4%.

Independent restaurant case volume increased 8.1%, while organic independent restaurant case volume increased 0.2%.

Both case volume and net sales improved throughout the quarter as COVID-19 vaccine distributions became more widespread and restrictions on in-person dining eased in various markets.

The $6.3 billion in revenue beat analyst expectations by $340 million while the non-GAAP EPS of 12 cents beat expectations by 8 cents, according to Seeking Alpha.

Shares traded at $39.31 today against a 52-week range of $15.60-$42.10.

"During the first quarter, we saw a meaningful recovery in case volume with our restaurant and hospitality customers," Chairman and CEO Pietro Satriano said in the release. "This momentum has continued into the early part of the second quarter as restrictions on in-person dining continue to be lifted in markets across the country.

"Over the last 12 months, our scale and differentiated strategy have allowed us to gain market share with both large and small customers as operators continue to utilize our technology, innovative products and consultative services to help them manage their business."

Due to the continued uncertainty associated with COVID-19 and the timing of a recovery, the company is not providing financial guidance for fiscal 2021.

For an update on how the coronavirus pandemic has affected convenience services, click here.