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PFGs Sales Profit Climb In Q2 Vistar Case Sale Gains Spur Growth

RICHMOND, VA -- Performance Food Group Co., parent to vendible product distribution giant Vistar , saw net sales for the second quarter of fiscal 2018 increase 6.4% to $4.3 billion versus the comparable prior year period. Net income grew 240.6% year-over-year to $78 million PFG said the increase in net sales was driven by strong case sales growth in its Vistar segment, particularly in the vending, theater, hospitality and retail channels. For the second quarter of fiscal 2018, Vistar net sales grew 13.7%...

February 6, 2018

RICHMOND, VA -- Performance Food Group Co., parent to vendible product distribution giant Vistar, saw net sales for the second quarter of fiscal 2018 increase 6.4% to $4.3 billion versus the comparable prior year period. Net income grew 240.6% year-over-year to $78 million

PFG said the increase in net sales was driven by strong case sales growth in its Vistar segment, particularly in the vending, theater, hospitality and retail channels. For the second quarter of fiscal 2018, Vistar net sales grew 13.7% to $838.9 million compared to the prior-year period. Case growth in Performance Foodservice, particularly in the independent restaurant channel, and recent acquisitions also fueled net sales growth.

PFG's net income increase was a result of the $59.2 million decrease in income tax expense, primarily driven by the recently enacted Tax Cuts and Jobs Act.

The company's gross profit improved 9.7% to $567.6 million year over year, which PFG attributed to case growth and selling an improved mix of customer channels and products, specifically to the independent restaurant channel.

Total PFG case volume increased 4.2% in the 2018 second quarter compared to the prior-year period, driven by a 6.5% increase in independent cases, growth in Performance Brands cases and broad-based growth in Vistar's sales channels, partially offset by declines in the casual dining segment.

"We are pleased with our second-quarter results, which were driven by solid independent case growth and double-digit growth in Adjusted EBITDA," said PFG president and chief executive George Holm. "Our results reflect the consistent execution of our team's strategies across all of our business segments enabling us to grow both market share and margins."

Based on its strong first-half results and the U.S. tax reform changes, PFG increased its fiscal 2018 adjusted EPS outlook to growth of 24% to 30% year over year. This compares to its prior forecast of 13% to 18% growth for the year.