Vending

PFG boosts Q1 2022 results, Vistar sales recover

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November 10, 2021

Performance Food Group Inc., which owns Vistar, the only nationwide wholesale vending product distributor, improved sales and earnings for Q1, 2022, due to declining impact of the coronavirus pandemic and the acquisition of Core-Mark, according to an earnings release.

Net sales for the first quarter of fiscal 2022 grew 47.4% from $7.05 billion in Q1, 2021 to $10.4 billion, primarily attributable to the acquisition of Core-Mark, an increase in selling price per case as a result of inflation and the declining adverse effects of the novel coronavirus pandemic, which had a more significant adverse impact in the first quarter of the prior year.

The acquisition of Core-Mark contributed $1.57 billion to net sales since the acquisition date of Sept. 1, 2021, for the first three months of fiscal 2022. Overall food cost inflation was approximately 11.1%.

The first quarter of fiscal 2022 resulted in net income of $4.7 million compared to a net loss of $700,000 in the prior year period.

Diluted EPS was 3 cents in the first quarter of fiscal 2022 compared to diluted loss per share of one cent in the prior year period. Adjusted diluted EPS increased 72% to 43 cents per share in the first quarter of fiscal 2022 compared to adjusted diluted EPS of 25 cents per share in the prior year period.

For the first quarter of fiscal 2022, net sales for Vistar increased 100.4% to $4 billion compared to the prior year period. Included in net sales for the first three months of fiscal 2022 was $586 million related to tobacco excise taxes, compared to $305.3 million of tobacco excise taxes for the prior year period.

The $10.4 billion in quarterly revenue missed analyst expectations by $330 million, while the non-GAAP EPS of 43 cents beat expectations by one cent and the GAAP EPS of 3 cents missed expectations by 17 cents, according to Seeking Alpha.

Shares traded at $48.60 today against a 52-week range of $41.12-$59.89.

"Performance Food Group is off to a great start to fiscal 2022, with a record level of sales and strong underlying business trends," George Holm, Performance Food Group's chairman, president and CEO, said in the release. "We are also very pleased to see Vistar experience consistent sequential improvement as their key channels, including theater and offices, continue to recover."

For the fiscal second quarter of 2022, PFG expects net sales to be in a range of $12.7 billion to $12.9 billion and Adjusted EBITDA to be in a range of $210 million to $225 million.

For an update on how the coronavirus pandemic has affected convenience services, click here.