Vistar Momentum Fuels Performance Food Group's Strong Q3 Results

Posted On: 5/15/2018

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RICHMOND, VA -- Performance Food Group's net income for the third quarter of fiscal 2018 grew 62% year-over-year to $33.7 million. Net sales increased 2.7% to $4.3 billion versus the comparable prior-year period. The climb in net sales was primarily attributable to an increase in selling price per case as a result of inflation and mix.

The increase in net sales was also attributable to growth in Vistar, the company's vending distribution segment, and case growth in Performance Foodservice, specifically in the independent restaurant channel, and recent acquisitions.

Total case volume increased 0.8% in the third quarter of fiscal 2018 compared to the prior year period, with underlying organic growth of 0.1%. Total case volume included a 4.8% increase in independent cases, growth in Performance Brands cases and broad-based growth in Vistar's sales channels, partially offset by declines in the casual dining segment within its PFG Customized business and the impact of an unusually large number of snow storms.

For the third quarter of fiscal 2018, Vistar net sales grew 9.3% to $820.2 million compared to the prior year period. This increase was driven by broad-based growth in the vending distribution segment's sales channels and as a result of recent acquisitions.

"We are pleased with our third-quarter net sales and profitability, particularly given the multiple snow storms that occurred in March," said PFG president and chief executive George Holm. "Vistar's third-quarter results were strong with EBITDA up 14%, driven by its strong channel growth. As a result of our businesses' strong performance during the first nine months, we are tightening our fiscal 2018 Adjusted EBITDA outlook for growth from a range of 8% to 11% to a range of 9% to 11%. We remain confident in our full-year outlook and our strategies for future growth."

Through its family of foodservice distributors -- Performance Foodservice, Vistar, and PFG Customized -- Performance Food Group markets and distributes approximately 150,000 food and food-related products from 76 distribution centers to more than 150,000 customer locations across the United States.

Click here to see the full third-quarter report.