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Vistar Growth Drives Performance Food Groups Q4 Momentum

RICHMOND, VA -- Performance Food Group's net sales climbed 28.4% to $5.9 billion in the fiscal 2019 fourth quarter versus the comparable prior-year period. The distribution giant attributed the increase in net sales primarily to growth in its Vistar business, most notably in the vending, office coffee service and corrections channels, along with case growth in foodservice and recent acquisitions. Net income declined 1.9% to $63.2 million. For the full-year fiscal 2019, net sales increased 12.1% to...

August 26, 2019 by Emily Jed

RICHMOND, VA -- Performance Food Group's net sales climbed 28.4% to $5.9 billion in the fiscal 2019 fourth quarter versus the comparable prior-year period. The distribution giant attributed the increase in net sales primarily to growth in its Vistar business, most notably in the vending, office coffee service and corrections channels, along with case growth in foodservice and recent acquisitions. Net income declined 1.9% to $63.2 million.

For the full-year fiscal 2019, net sales increased 12.1% to $19.7 billion and net income declined 16.1% to $166.8 million.

"Fiscal 2019 was a successful year for PFG, and I'm very pleased with our team's execution," said George Holm, PFG's Chairman, President and Chief Executive Officer. "Our strong top-line growth, combined with increased gross profit per case, led to profitability at the high end of our expectations for the year. Our core business segments delivered strong financial results led by Vistar's double-digit EBITDA growth. Looking ahead to fiscal 2020, we believe our two recently announced strategic acquisitions position us well across our business and we expect fiscal 2020 to be another year of solid earnings growth."

PRG's total case volume increased 9.2% for the fourth quarter of fiscal 2019 compared to the prior year period, with underlying organic growth of 2.9%. Total case volume included a 4.9% increase in independent cases, growth in Performance Brands cases and broad-based growth across Vistar's sales channels.

PFG's acquisition of convenience store distribution giant Eby-Brown Co. LLC in the fourth quarter of fiscal 2019 contributed $949.7 million to net sales, including $194.7 million related to tobacco excise taxes. Excluding Eby-Brown, net sales increased 7.7%. The increase in net sales was also attributable to an increase in selling price per case as a result of inflation and mix. Overall food cost inflation was approximately 2.3% in the fourth quarter.

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