Performance Food Group Co. ( (PFGC) ) has released its Q1 earnings. Here is a breakdown of the information Performance Food Group Co. presented to its investors.
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Performance Food Group Company (PFG) is a leading food and foodservice distribution entity in North America, known for delivering a wide range of high-quality food and related products to various sectors, including restaurants, businesses, and retail establishments.
In its latest earnings report for the first quarter of fiscal 2025, PFG has demonstrated robust sales momentum with a 3.2% increase in net sales, reaching $15.4 billion. Despite this growth, the company reported a decline in net income by 10.5% to $108 million, attributed primarily to increased operating expenses and interest costs.
Key financial highlights include a 7.8% increase in independent foodservice case volume and a 6.1% rise in gross profit to $1.8 billion. Adjusted EBITDA grew by 7.3% to $411.9 million, reflecting strong performance in the Foodservice segment, which saw a significant 13.8% increase in Adjusted EBITDA. However, Vistar’s segment Adjusted EBITDA decreased by 6.1% due to higher operating expenses.
PFG’s strategic acquisitions of Cheney Brothers and José Santiago are expected to bolster future growth, with management optimistic about further integration benefits and market share expansion. Cash flow from operations was notably lower, influenced by strategic inventory purchases and increased capital expenditures.
Looking forward, PFG maintains a positive outlook for fiscal 2025, anticipating continued sales growth and profitability enhancements driven by its acquisitions and core business momentum. The company projects net sales between $62.5 billion and $63.5 billion for the full fiscal year, with Adjusted EBITDA expected to range from $1.7 billion to $1.8 billion.
