Double-Digit Vistar Earnings Growth Fuels Strong Q1 For PFG

Posted On: 11/7/2018

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RICHMOND, VA -- Performance Food Group Co. reported that net sales for its Vistar segment in the third quarter were driven by strong case sales growth in the segment's theater, retail, office coffee service and hospitality channels.
 
Net sales for Vistar, the nation's largest vending distributor, increased 22.5%, to $31.6 million, versus the prior year period. Gross profit dollar growth of 16.9% for the first quarter of fiscal 2019 compared to the prior year period was fueled by an increase in the number of cases sold. Operating expense dollar growth of 15.1% for the first quarter of fiscal 2019 was primarily the result of higher variable operating costs associated with higher case volume.
 
"Our first quarter results were in line with our expectations," said PFG president and chief executive George Holm. "Vistar had another strong quarter growing EBITDA by over 20%, fueled by its theater, retail, office coffee service and hospitality channels. Our Foodservice segment's strategic investments in people and technology are on track to support our growth objectives for fiscal 2019 and beyond."
 
In the first quarter of fiscal 2019, the company changed its operating segments to reflect the manner in which the business is managed. It now has two reportable segments: Foodservice and Vistar.
 
Overall, PFG's net sales for the first quarter of fiscal 2019 grew 4% to $4.5 billion over the prior-year period. Net income for the first quarter of fiscal 2019 grew 24.8% year-over-year to $28.2 million.
 
The increase in net sales was primarily attributable to growth in Vistar, most notably in the theater and retail channels and case growth in Foodservice, specifically in the independent restaurant channel. The increase in net sales was also attributable to an increase in selling price per case as a result of inflation and mix.
 
Gross profit for the first quarter of fiscal 2019 grew 7% compared to the prior year period to $593.6 million, led by case growth and from selling an improved mix of customer channels and products, specifically in Vistar's channels and to the independent restaurant channel.