Performance Food pany(US:PFGC)2025-11-05 12:00Financial Performance - Total net sales increased by 10.8% to $17.1 billion in Q1 fiscal 2026, driven by recent acquisitions and case volume growth[7] - Adjusted EBITDA rose 16.6% to $480.1 million in Q1 fiscal 2026, reflecting strong operational performance[11] - Gross profit improved by 14.3% to $2.0 billion, supported by acquisitions and pricing improvements[8] - Operating profit increased to $224.7 million from $215.3 million, indicating a growth of 6.5% year-over-year[30] - Net income decreased by 13.3% to $93.6 million, primarily due to increased operating expenses[10] - Net income for the three months ended September 27, 2025, was $93.6 million, down from $108.0 million, representing a decrease of 13.3%[30] - Basic earnings per share (EPS) decreased to $0.60 from $0.70, a decline of 14.3%[30] - Diluted earnings per share (GAAP) decreased to $0.60, down 13.0% from $0.69 in the same quarter last year[41] Sales and Revenue Guidance - For Q2 fiscal 2026, the company expects net sales between $16.4 billion and $16.7 billion[21] - Full fiscal year 2026 net sales guidance increased to a range of $67.5 billion to $68.5 billion[22] - Net sales for the three months ended September 27, 2025, were $17,075.9 million, an increase of 10.8% compared to $15,415.5 million for the same period in 2024[30] - Total net sales rose by 10.8% to $17,075.9 million, up from $15,415.5 million year-over-year[47] - Foodservice segment sales increased by 18.8% to $9,146.1 million, while Convenience segment sales grew by 3.5% to $6,586.9 million[47] Expenses and Cash Flow - Operating expenses rose by 15.7% to $1.8 billion, influenced by recent acquisitions and higher personnel costs[9] - The company reported negative free cash flow of $224.1 million in Q1 fiscal 2026, compared to negative free cash flow of $43.0 million in the prior year[13] - Free cash flow (Non-GAAP) was negative at $(224.1) million, compared to $(43.0) million in the prior year[44] - Interest expense increased significantly by 56.3% to $104.4 million from $66.8 million year-over-year[41] Assets and Liabilities - Total assets as of September 27, 2025, were $18,351.8 million, an increase from $17,881.2 million as of June 28, 2025[31] - Total liabilities increased to $13,778.3 million from $13,408.8 million, indicating a rise in financial obligations[31] - Cash and restricted cash at the end of the period was $46.4 million, down from $86.7 million at the beginning of the period[32] Tax and Other Financial Metrics - The effective tax rate for Q1 fiscal 2026 was approximately 23.0%, down from 26.5% in the prior year[10] - Adjusted EBITDA (Non-GAAP) increased by 16.6% to $480.1 million compared to $411.9 million for the three months ended September 28, 2024[41] - Segment Adjusted EBITDA for Foodservice improved by 18.1% to $324.4 million, and for Convenience, it rose by 14.9% to $121.0 million[47] - The company reported a change in LIFO reserve of $24.5 million, a 92.9% increase compared to $12.7 million in the previous year[41] - Corporate & All Other segment reported a loss of $(59.3) million, worsening by 15.8% from $(51.2) million in the prior year[47]