Performance Food Group Co. ( (PFGC) ) has released its Q2 earnings. Here is a breakdown of the information Performance Food Group Co. presented to its investors.
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Performance Food Group Co. (PFG) is a leading food and foodservice distribution company in North America, offering a wide range of products to restaurants, businesses, schools, and various retail locations from its over 150 locations.
Performance Food Group Co. reported its financial results for the second quarter and first six months of fiscal 2025, highlighting strong growth in case volume and net sales, despite a decline in net income. The company emphasized successful business performance driven by strategic acquisitions and growth in its independent foodservice channel.
For the second quarter of fiscal 2025, PFG achieved a 9.8% increase in total case volume and a 9.4% rise in net sales to $15.6 billion. However, net income dropped by 45.8% to $42.4 million, attributed to higher interest expenses and a decrease in operating profit. Despite this, Adjusted EBITDA saw a significant increase of 22.5% to $423 million, reflecting robust underlying business operations. Over the first six months, net sales grew by 6.2% to $31.1 billion, with a 14.5% rise in Adjusted EBITDA to $834.9 million.
The company’s strategic acquisitions, including Cheney Brothers, significantly contributed to its growth, enhancing gross profit through procurement efficiencies and favorable sales mix shifts. Operating expenses increased due to these acquisitions, alongside rising personnel costs, yet were partly mitigated by lower fuel expenses. Despite a decrease in Diluted EPS, Adjusted Diluted EPS improved by 8.9% for the quarter, indicating positive operational performance adjustments.
Looking ahead, PFG maintains a positive outlook, adjusting its fiscal year 2025 guidance upwards for net sales and Adjusted EBITDA, reflecting confidence in its ongoing strategic initiatives and market position. The company anticipates continued growth through the integration of acquisitions and expansion in its business segments.
