Vending

Performance Food Group lifts Q1 2023 results; inflation, volume gains boost Vistar

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November 9, 2022

Performance Food Group, the parent company of Vistar, the national vending product warehouse distributor, delivered strong sales and earnings for Q1 2023 over the prior year period, with Vistar posting high double digit growth, according to an earnings release. Highlights include:

• Net sales grew 41.7% from $10.36 billion in Q1 2022 to $14.72 billion in the quarter ending Oct. 2, 2022, primarily attributable to the acquisition of Core-Mark in the first quarter of fiscal 2022 and an increase in selling price per case as a result of inflation. The acquisition of Core-Mark contributed $4.7 billion of net sales for the first quarter of fiscal 2023, compared to $1.6 billion of net sales for the first quarter of fiscal 2022.
• Overall product cost inflation for the company was approximately 12.3%.
• Net income increased from $4.7 million to $95.7 million in the comparative quarters, primarily a result of the $143 million increase in operating profit, partially offset by a $33.4 million increase in income tax expense.
• EPS rose from 3 cents to 62 cents on both a basic and diluted basis.
• Adjusted diluted EPS rose 151.2% from 43 cents to $1.08.
• First-quarter net sales for foodservice increased 15.2% to $7.3 billion compared to the prior year period driven by an increase in selling price per case as a result of inflation. Overall product cost inflation for foodservice was approximately 13.6%.
• Net sales for Vistar increased 28.8% to $1.1 billion driven primarily by an increase in selling price per case as a result of inflation, as well as case volume growth.
• Net sales for convenience stores increased 98.2% to $6.3 billion primarily attributable to the acquisition of Core-Mark.

Shares traded today at $54.17 against a 52-week range of $38.23-$58.13.

The quarterly revenue of $14.72 billion beat analyst expectations by $280 million, while the non-GAAP EPS of $1.08 beat expectations by 28 cents, according to Seeking Alpha.

"Our results in the first quarter were well ahead of our prior announced expectations, leading to a strong start to the fiscal year," George Holm, chairman and CEO, said in the press release.

For the fiscal second quarter of 2023, PFG now expects net sales to be in a range of $13.6 billion to $13.9 billion. The company had previously expected second quarter net sales to be in a range of $13.5 billion to $13.8 billion.