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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.
PFG
PFG
PFG Revenue by Segment
Revenue by Segment
Foodservice Revenue
CapyFin.comConvenience Revenue
CapyFin.com 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.
- The material adverse impact the COVID-19 pandemic has had and is expected to continue to have on the global markets, the restaurant industry, and our business specifically, including the effects on vehicle miles driven, on the financial health of our business partners, on supply chains, and on financial and capital markets.
- Competition in our industry is intense, and we may not be able to compete successfully.
Revenue & Expenses
Visualization of income flow from segment revenue to net income