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Performance Food pany(PFGC) - 2025 Q1 - Quarterly Results
PFGCPerformance Food pany(PFGC)2024-11-06 12:00

Revenue and Sales Performance - Total case volume increased 2.6% in Q1 fiscal 2025, with independent foodservice case volume growing 7.8% and organic independent foodservice case volume up 4.3%[1][3] - Net sales grew 3.2% to 15.4billioninQ1fiscal2025,drivenbyacquisitions,casevolumegrowth,andinflation−drivenpriceincreases[1][4]−Netsalesincreasedto15.4 billion in Q1 fiscal 2025, driven by acquisitions, case volume growth, and inflation-driven price increases[1][4] - Net sales increased to 15,415.5 million in Q3 2024, up 3.2% from 14,938.6millioninQ32023[25]−TotalnetsalesforQ32024were14,938.6 million in Q3 2023[25] - Total net sales for Q3 2024 were 15,415.5 million, an increase of 3.2% compared to 14,938.6millioninQ32023[40]−Foodservicesegmentnetsalesincreased5.714,938.6 million in Q3 2023[40] - Foodservice segment net sales increased 5.7% to 7.7 billion in Q1 fiscal 2025, with independent sales representing 41.7% of total segment sales[11] - Foodservice segment net sales for Q3 2024 were 7,692.1million,anincreaseof5.77,692.1 million, an increase of 5.7% compared to 7,277.0 million in Q3 2023[40] - Vistar segment net sales for Q3 2024 were 1,285.7million,anincreaseof2.81,285.7 million, an increase of 2.8% compared to 1,250.4 million in Q3 2023[40] - Convenience segment net sales for Q3 2024 were 6,363.7million,anincreaseof0.46,363.7 million, an increase of 0.4% compared to 6,337.0 million in Q3 2023[40] Profitability and Margins - Gross profit increased 6.1% to 1.8billioninQ1fiscal2025,primarilyduetoacquisitions,procurementefficiencies,andfavorableproductmix[1][5]−Grossprofitroseto1.8 billion in Q1 fiscal 2025, primarily due to acquisitions, procurement efficiencies, and favorable product mix[1][5] - Gross profit rose to 1,764.2 million in Q3 2024, a 6.1% increase from 1,662.9millioninQ32023[25]−Netincomedecreased10.51,662.9 million in Q3 2023[25] - Net income decreased 10.5% to 108.0 million in Q1 fiscal 2025, impacted by higher operating expenses and interest costs[1][7] - Net income decreased to 108.0millioninQ32024,down10.5108.0 million in Q3 2024, down 10.5% from 120.7 million in Q3 2023[25] - Net income (GAAP) for Q3 2024 was 108.0million,adecreaseof10.5108.0 million, a decrease of 10.5% compared to 120.7 million in Q3 2023[37] Adjusted EBITDA and Segment Performance - Adjusted EBITDA rose 7.3% to 411.9millioninQ1fiscal2025,withFoodservicesegmentAdjustedEBITDAup13.8411.9 million in Q1 fiscal 2025, with Foodservice segment Adjusted EBITDA up 13.8% to 280.0 million[1][8][12] - Adjusted EBITDA (Non-GAAP) for Q3 2024 was 411.9million,anincreaseof7.3411.9 million, an increase of 7.3% compared to 383.8 million in Q3 2023[37] - Foodservice Segment Adjusted EBITDA for Q3 2024 was 280.0million,anincreaseof13.8280.0 million, an increase of 13.8% compared to 246.0 million in Q3 2023[41] - Vistar Segment Adjusted EBITDA for Q3 2024 was 83.2million,adecreaseof6.183.2 million, a decrease of 6.1% compared to 88.6 million in Q3 2023[41] - Convenience Segment Adjusted EBITDA for Q3 2024 was 105.3million,anincreaseof11.2105.3 million, an increase of 11.2% compared to 94.7 million in Q3 2023[41] - Vistar segment Adjusted EBITDA decreased 6.1% to 83.2millioninQ1fiscal2025,impactedbya20.283.2 million in Q1 fiscal 2025, impacted by a 20.2% increase in operating expenses[13] Cash Flow and Financial Position - Operating cash flow decreased to 53.5 million in Q1 fiscal 2025 from 87.1millioninprioryear,duetoadvancedinventorypurchases[9]−Netcashprovidedbyoperatingactivitiesdecreasedto87.1 million in prior year, due to advanced inventory purchases[9] - Net cash provided by operating activities decreased to 53.5 million in Q3 2024, down 38.6% from 87.1millioninQ32023[27]−Freecashflow(Non−GAAP)forQ32024was−87.1 million in Q3 2023[27] - Free cash flow (Non-GAAP) for Q3 2024 was -43.0 million, compared to 33.9millioninQ32023[38]−Capitalexpendituresincreasedby33.9 million in Q3 2023[38] - Capital expenditures increased by 43.3 million to 96.5millioninQ1fiscal2025,resultinginnegativefreecashflowof96.5 million in Q1 fiscal 2025, resulting in negative free cash flow of 43.0 million[10] - Net cash used in investing activities increased to 669.8millioninQ32024,upfrom669.8 million in Q3 2024, up from 266.9 million in Q3 2023, primarily due to acquisitions[27] - Cash and restricted cash increased to 50.3millionasofSeptember28,2024,upfrom50.3 million as of September 28, 2024, up from 15.2 million as of September 30, 2023[27][28] - Long-term debt increased to 3,926.0millionasofSeptember28,2024,upfrom3,926.0 million as of September 28, 2024, up from 3,198.5 million as of June 29, 2024[26] - The company borrowed 1,000.0millionunderNotesdue2032inQ32024[27]FutureOutlookandRisks−Forfullfiscal2025,thecompanyexpectsnetsalesof1,000.0 million under Notes due 2032 in Q3 2024[27] Future Outlook and Risks - For full fiscal 2025, the company expects net sales of 62.5-63.5billionandAdjustedEBITDAof63.5 billion and Adjusted EBITDA of 1.7-1.8billion[15]−TheCheneyBrothersAcquisitionposesrisksincludingpotentialintegrationchallengesanduncertaintyinexpectedfinancialperformance[23]KeyPerformanceMetrics−AdjustedEBITDAisusedasakeyperformancemetricandistiedtothecompany′s1.8 billion[15] - The Cheney Brothers Acquisition poses risks including potential integration challenges and uncertainty in expected financial performance[23] Key Performance Metrics - Adjusted EBITDA is used as a key performance metric and is tied to the company's 5.0 billion secured credit facility[32]