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Dec 31, 2022
PFG Q2 2023 Earnings Report
PFG's financial performance improved in Q2 2023, marked by substantial growth in net sales, gross profit, and adjusted EBITDA.
Key Takeaways
Performance Food Group Company (PFG) reported strong second-quarter fiscal 2023 results, with net sales increasing by 8% to $13.9 billion and adjusted EBITDA rising by 28% to $308.8 million. The company also raised the bottom end of its fiscal 2023 adjusted EBITDA outlook.
Total case volume grew by 3%, driven by a 6.6% increase in independent case growth.
Net sales increased by 8% to $13.9 billion, primarily due to an increase in selling price per case as a result of inflation and channel mix.
Gross profit improved by 17% to $1.5 billion, attributed to an increase in gross profit per case driven by a favorable shift in the mix of cases sold and growth in the independent channel.
Adjusted diluted EPS increased by 46% to $0.83.
PFG
PFG
PFG Revenue by Segment
Revenue by Segment
Foodservice Revenue
CapyFin.comConvenience Revenue
CapyFin.com Forward Guidance
PFG expects net sales to be in a range of $13.7 billion to $14.0 billion and Adjusted EBITDA to be in a range of $270 million to $290 million for the third quarter of fiscal 2023. For the full fiscal year 2023, PFG continues to expect net sales to be in a range of $57 billion to $59 billion and now expects Adjusted EBITDA to be in a range of $1.27 billion to $1.35 billion.
Positive Outlook
- Net sales are expected to be between $13.7 billion and $14.0 billion for Q3 2023.
- Adjusted EBITDA is projected to be between $270 million and $290 million for Q3 2023.
- Full-year net sales are still expected to be between $57 billion and $59 billion for fiscal year 2023.
- Adjusted EBITDA is now expected to be between $1.27 billion and $1.35 billion for fiscal year 2023.
- Company continues to expect to achieve annual net sales of $62 to $64 billion and Adjusted EBITDA between $1.5 and $1.7 billion in fiscal 2025.
Challenges Ahead
- The Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations.
- These items may include loss on early extinguishment of debt, restructuring charges, certain tax items, and charges associated with non-recurring professional and legal fees associated with acquisitions.
- PFG's management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income.
- The impact of these items could be significant, are difficult to predict, and may be highly variable.
- PFG does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income