Performance Food Group (PFG) ended its fiscal first quarter today citing strong net sales and profit growth across all business segments.
“Our results in the first quarter were well ahead of our prior, announced, expectations, leading to a strong start to the fiscal year,” said George Holm, PFG’s Chairman & Chief Executive Officer. “All of our operating segments are driving high-quality top-line performance and margin expansion. Within the Foodservice segment, we continue to outperform in the independent restaurant segment, picking up market share and adding new customers to our portfolio. Vistar’s channel improvement continued, producing excellent profit growth compared to the prior year. In Convenience, we have now owned Core-Mark for just over a year and are extremely pleased with the integration and ongoing sales and profit performance. Our business is strong and delivered significant cash flow, which we used to reduce leverage and maintain a healthy balance sheet. Building upon our 1Q23 performance, we are confidently raising our sales and Adjusted EBITDA outlook for both the second quarter and the full fiscal year.”
This is much the same commentary as given for the success seen by PFG at the end of their last fiscal year three months ago. Just the same, it is noteworthy that after seeing similar success then, they continue to post incredible growth numbers.
Total case volume increased by 16.3%, largely due to the Vistar channel’s contribution.
Net sales increased a whopping 41.7% on the backs of the Core-Mark acquisition and increased pricing on products. Gross profit grew by an equally insane 37.9%.
Operating expenses grew by 26.5%, largely due to the Core-Mark acquisition, however, that investment clearly seems to be worth the extra costs.
All of this success has justifiably put more wind in PFG’s sails, and they have found it fit to increase their outlook for the coming fiscal year. No longer will net sales be expected to hit between $56 and $58 billion. That has been adjusted to between $57 and $59 billion. Hopes are all pinned on further Vistar-channel business and continued growth among independent restaurant accounts.