- Performance Food Group Co (NYSE:PFGC) reported third-quarter FY22 sales growth of 81.6% year-on-year to $13.08 billion, marginally missing the consensus of $13.09 billion. Total case volume grew 35% Y/Y.
- Net sales for Foodservice increased 27.3% to $6.6 billion, and Vistar increased 51.1% to $892.2 million.
- Convenience net sales increased 292.9% to $5.6 billion, primarily attributable to the acquisition of Core-Mark, which contributed $4.15 billion in net sales.
- Operating expenses rose 57.8% to $1.3 billion.
- Gross profit increased 62% Y/Y to $1.3 billion, with the margin contracting 130 basis points to 10.3%.
- The operating margin was 0.5%, and operating income for the quarter rose 193% to $68.6 million.
- The company held $20.8 million in cash and equivalents as of April 2, 2022. Net cash provided by operating activities for nine months totaled $390.6 million.
- Adjusted EBITDA increased 96% Y/Y to $237.9 million.
- Adjusted EPS was $0.51, in-line with the Street view.
- Outlook: Performance Food sees FY22 sales of $50.5 billion - $51 billion (consensus $50.67 billion) versus the prior view of $50 billion - $51 billion.
- It sees an adjusted EBITDA of $990 million - $1 billion against the previous expectation of $970 million - $990 million.
- Price Action: PFGC shares are trading lower by 4.63% at $45.34 on the last check Wednesday.
