Vending
Performance Food Group reports strong Q3 2022; Vistar boosts sales
May 11, 2022
Performance Food Group, which owns Vistar, a national convenience services wholesale distributor, posted strong Q3 2022 results, driven by the acquisition of Core-Mark, higher prices and declining effects of the coronavirus pandemic, according to an earnings report. Highlights include:
- Net sales grew 81.6% from $7.2 billion in Q3 2021 to $13.1 billion in Q3 2022. The acquisition of Core-Mark contributed $4.1 billion of net sales for the third quarter of fiscal 2022.
- Net income increased 407.9% from a $7.6 million loss to $23.4 million in the comparative quarters, primarily a result of the $45.2 million increase in operating profit, partially offset by a $15.1 million increase in income tax expense.
- Diluted EPS increased 350% from a 6-cent loss to 15 cents per share in the third quarter of fiscal 2022 on both a basic and diluted basis.
- Adjusted diluted EPS increased 168.4% to 51 cents per share in the comparative quarters.
- Net sales for Vistar increased 51.1% to $892.2 million compared to the prior year period, driven primarily by the declining adverse effects of the COVID-19 pandemic.
- Third-quarter net sales for foodservice increased 27.3% to $6.6 billion compared to the prior year period.
- Convenience store sales increased 292.9% to $5.6 billion compared to the prior year period.
- Net sales for the first nine months of fiscal 2022 was $36.3 billion, an increase of 72.1% versus the prior year period.
- Net income increased 292.5% to $36.5 million for the first nine months compared to the prior year period.
- Diluted EPS increased 242.9% to 24 cents per share in the first nine months compared to the prior year period while adjusted diluted EPS increased 92.4% to $1.52 per share.
Shares traded today at $45.22 against a 52-week range of $38.32-$58.13.
The $13.1 billion in quarterly revenue beat analyst expectations by $20 million and the non-GAAP EPS of 51 cents missed expectations by 1 cent, according to Seeking Alpha.
"PFG again delivered strong results in the fiscal third quarter as our company builds on the strength of all three operating segments," George Holm, PFG's chairman and CEO, said in the press release "Vistar is experiencing very strong profit performance, and we are increasingly confident in a recovery as the theater and office coffee channels show signs of improvement."
For the full fiscal year 2022, PFG now expects net sales to be in a range of $50.5 billion to $51 billion, having previously expected net sales to be in a range of $50 billion to $51 billion.
For an update on how the coronavirus pandemic has affected convenience services, click here.
