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Apr 02, 2022
PFG Q3 2022 Earnings Report
PFG's third quarter reflected strong underlying net sales and profit growth, driven by the Core-Mark acquisition and double-digit growth in organic independent cases.
Key Takeaways
Performance Food Group Company reported strong third-quarter fiscal 2022 results, with net sales increasing by 82% to $13.1 billion and net income increasing by 408% to $23.4 million. The company's performance was fueled by the Core-Mark acquisition and double-digit growth in organic independent cases. PFG is raising its full year financial guidance and believes it now has a path to $1 billion of Adjusted EBITDA in the current fiscal year.
Total case volume grew 35%, including a 13.7% increase in organic independent cases.
Net sales increased 82% to $13.1 billion, with the Core-Mark acquisition contributing $4.1 billion.
Gross profit improved 62% to $1.3 billion, driven by the Core-Mark acquisition and growth in the independent channel.
Net income increased 408% to $23.4 million, and Adjusted EBITDA increased 96% to $237.9 million.
Revenue by Segment
Forward Guidance
For the full fiscal year 2022, PFG now expects net sales to be in a range of $50.5 billion to $51 billion and Adjusted EBITDA to be in a range of $990 million to $1 billion.
Positive Outlook
- Net sales expected to be in the range of $50.5 billion to $51 billion.
- Adjusted EBITDA expected to be in the range of $990 million to $1 billion.
- Outlook includes the impact of 10 months of Core-Mark’s business results.
- Increased full year financial guidance.
- Believes they have a path to $1 billion of Adjusted EBITDA in the current fiscal year.
Challenges Ahead
- 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, which could be significant, are difficult to predict and may be highly variable.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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