PFG Q2 2023 Earnings Report
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
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