Extra week throws curve at US Foods' 4Q results

ROSEMONT - US Foods Holding Corp. said an extra week in the fourth quarter of 2015 adversely affected its 2016 quarterly figures, and the company saw gains in its overall numbers when the additional week is excluded from comparison.

The national distributor of food supplies to the commercial and hospitality industries reported fourth quarter net sales of $5.7 billion, down 4.3 percent from the prior year that includes the extra week of operations Excluding the extra week, net sales increased 1.7 percent driven by case volume growth offset by deflation in dairy and beef.

Sales from acquisitions completed in the last 12 months boosted net sales by approximately 1.7 percent.

Total case volume decreased 1.9 percent and Independent Restaurant case volume decreased 1 percent from prior year when including the extra week. Excluding it, total case volume increased 4.1 percent, of which 2 percent was organic growth, and Independent Restaurant case volume increased 6.1 percent, of which 3.8 percent was organic growth. Strong growth with Independent Restaurants and the addition of new health care and hospitality business contributed to the fourth quarter volume growth.

"In our first year as a public company, we grew volumes with Independent Restaurant customers well above market rates and expanded profit margins in a challenging, deflationary environment," said CEO Pietro Satriano. "We also expanded both our broadline and specialty distribution capabilities through the successful integration of five acquisitions in the last year."

Satriano said the company will "remain disciplined in our efforts to drive improved volumes and profitability" for 2017, expect to deliver full year results in line with midterm guidance.