Performance Food Group Reports Strong Q2 Results

By Rob Curran

Performance Food Group (PFG), based in Richmond, Virginia, has announced a rise in net income for the fiscal second quarter. The company, which distributes snacks and perishable foods, reported earnings of $78.3 million, or 50 cents a share, for the three months ending in December. This is an increase from $71.1 million, or 46 cents a share, for the same period last year.

After adjusting for certain one-time items, per-share earnings stood at 90 cents a share, just below the average analyst estimate of 92 cents a share.

Second-quarter sales for PFG rose by 2.9% to $14.3 billion, surpassing the average Wall Street estimate of $14.2 billion. The growth was driven by increased sales volumes of processed foods.

The company's food-service unit, its largest division, experienced a sales increase of 2.6% to $7.1 billion during the second quarter. The Convenience unit, which supplies convenience stores, saw sales rise by 1.3% to $5.9 billion. This growth can be attributed to higher food prices and a cigarette price increase.

For the fiscal third quarter, PFG expects sales to range between $14 billion and $14.3 billion, with adjusted earnings before interest, taxes, depreciation, and amortization projected to be between $310 million and $330 million.

PFG remains confident in its growth projections for the full year, targeting sales of $59 billion to $60 billion. The company also maintains its adjusted EBITDA target of between $1.45 billion and $1.5 billion for the year.