Vending

Performance Food Group boosts sales, earnings for Q4 and FY 2021

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August 20, 2021

Performance Food Group, which owns Vistar, the nationwide vend product wholesale distributor, reported sales and earnings gains for both the fourth quarter ending July 3, 2021 and for the full year, primarily due to the easing of pandemic restrictions and an extra week, according to a press release.

Net sales increased 61.1% from $5.57 billion in Q4 2020 to $9.3 billion in Q4, 3031. In addition to the pandemic, the increase in net sales also reflected an increase in selling price per case as a result of inflation and mix. Overall company cost inflation was approximately 7.8%. Net sales for the extra week in fiscal 2021 were approximately $664.6 million.

Net sales for Vistar increased 43.4% from $1.76 billion to $2.5 billion in the comparative quarters, driven by growth in cases sold as certain states began to ease COVID-19 restrictions, along with the 53rd week in fiscal 2021. Net sales for the extra week in the fourth quarter of fiscal 2021 were approximately $180.2 million.

Vistar recorded a benefit of $6.2 million related to reserves for expected credit losses in the fourth quarter of fiscal 2021, compared to bad debt expense of $6.9 million in the prior year period.

PFG's fourth quarter of fiscal 2021 resulted in a net income of $31.4 million compared to net loss of $151.2 million in the prior year period. The improvement was primarily a result of a $306.2 million increase in operating profit, partially offset by a $123.5 million increase in income tax expense. The effective tax rate for the fourth quarter of fiscal 2021 was approximately 28.5% compared to 42.3% in the fourth quarter of fiscal 2020.

Diluted EPS rose 119.3% from a $1.19 loss to a 23-cent gain in the comparative quarters.

Adjusted diluted EPS rose 165.1% from an 86-cent loss to a 56-cent gain in the comparative quarters.

"We are incredibly pleased with our fiscal fourth quarter results, particularly the momentum we achieved in our sales growth," George Holm, PFG's chairman, president and CEO, said in the release. "The quarter saw record sales. Although the labor market remains challenging, we posted significant year-over-year increases in our gross profit and adjusted EBITDA."

The $9.3 billion in quarterly revenue beat analyst expectations by $520 million while the non-GAAP EPS of 56 cents beat expectations by 2 cents and the GAAP EPS of 23 cents missed expectations by 23 cents, according to Seeking Alpha.

Shares traded at $42.33 today against a 52-week range of $31.69-$59.89.

Net sales for fiscal 2021 were $30.4 billion, an increase of 21.2% versus the prior year. The increase in net sales was primarily attributable to the acquisition of Reinhart, which includes an additional six months of sales for fiscal 2021, and the 53rd week in fiscal year 2021, partially offset by the effects of the COVID-19 pandemic. The acquisition of Reinhart contributed $6.0 billion to net sales for fiscal 2021 compared to $2.5 billion of net sales in the prior year. Net sales for the extra week in fiscal 2021 were approximately $664.6 million.

The company recorded net income of $40.7 million for fiscal 2021 compared to a net loss of $114.1 million for the prior year. The improvement in net income was primarily attributable to a $299.7 million increase in operating profit, partially offset by a $35.5 million increase in interest expense and a $122.1 million increase in income tax expense.

Diluted EPS was 30 cents in fiscal 2021 compared to diluted loss per share of $1.01 for the prior year. Adjusted diluted EPS increased 92.9% over the prior year to $1.35 in fiscal 2021.

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