Pandemic hits bottom line at US Foods

ROSEMONT - US Foods Holding Corp. said Tuesday its gross profit for fiscal year 2020 was down 19%, primarily because the COVID-19 pandemic resulted in restrictions on in-person dining in many markets, causing a slowdown in total case volume.

"Our industry, our customers and our company faced many challenges in 2020 from the spread of COVID-19," said Pietro Satriano, chairman and CEO of the food service supplier. "We took quick and decisive action in the first half of 2020 to ensure the safety of our associates, support our customers, strengthen liquidity and reduce our operating costs."

Gross profit of $3.7 billion decreased $868 million, or 18.9%, from the prior year, the company said. Operating expenses of $3.8 billion decreased $92 million, or 2.4% from the prior year.

Net sales of $22.9 billion decreased 11.8% compared to fiscal year 2019.

US Foods' recent acquisitions of The Food Group and Smart Foodservice contributed an aggregate of $3.1 billion to net sales in fiscal year 2020, the company said. Those acquisitions brought total debt at the end of the fiscal year to $5.7 billion, an increase of $1 billion versus the end of fiscal 2019.

The company also reported restaurants continue to struggle with the pandemic, as US Foods experienced an $18 million reduction in the fourth quarter in its reserve for uncollectible accounts.