Vending

Performance Food Group lifts Q2 2023 results, Vistar sales jump 23%

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February 8, 2023

Performance Food Group, which owns Vistar, a national convenience services wholesale distributor, reported improved results for Q2 2023 supported by inflation and channel mix, according to an earnings release.

Highlights include:

• Net sales rose 8.3%, from $12.83 billion in Q2 2022 to $13.89 billion for the quarter ending Dec. 31, 2022, primarily attributable to an increase in selling price per case as a result of inflation and channel mix.
• Net income increased $62.7 million, from $8.4 million to $71.1 million, primarily a result of the $86.2 million increase in operating profit, partially offset by a $22.1 million increase in income tax expense.
• EPS on both a basic and diluted basis rose from 5 cents to 46 cents in the compared quarters.
• Adjusted diluted EPS increased 45.6%, from 57 cents to 83 cents in the comparative quarters.
• Net sales for Vistar increased 23.3%, from $907.3 million to $1.1 billion in the comparative quarters, driven primarily by an increase in selling price per case as a result of inflation and channel mix, as well as case volume growth.
• Net sales for foodservice increased 11%, from $6.2 billion to $6.9 billion in the comparative quarters, driven by an increase in selling price per case as a result of inflation and a prior year acquisition.
• Net sales for convenience increased 2.7%, from $5.7 billion to $5.9 billion, primarily attributable to case growth in foodservice-related products and an increase in selling price per case as a result of inflation.
• Half year net sales rose from $23.2 billion in 2022 to $28.6 billion in 2023.
• Half year net income jumped from $13.1 million to $166.8 million.
• Half year basic EPS rose from 9 cents to $1.08, while half year diluted EPS rose from 9 cents to $1.07.
• Half year adjusted EPS rose from $1.01 to $1.91.

Shares traded today at $59.94 against a 52-week range of $38.23-$63.13.

The $13.89 billion in quarterly revenue was in line with analyst expectations while the non-GAAP EPS of 83 cents beat analyst expectations by 8 cents, according to Seeking Alpha.

"Our momentum continued into the fiscal second quarter, with another period of strong sales and profit results for our company," George Holm, PFG's chairman and CEO, said in the press release. "We are increasing the bottom end of our full year adjusted EBITDA target as we look to complete the year with encouraging profit results."

For the third quarter of fiscal 2023, PFG expects net sales to be in a range of $13.7 billion to $14 billion and adjusted EBITDA to be in a range of $270 million to $290 million.

For the full fiscal year 2023, PFG continues to expect net sales to be in a range of $57 billion to $59 billion and adjusted EBITDA to be in a range of $1.27 billion to $1.35 billion compared to the prior expectation of $1.25 billion to $1.35 billion.