NYSE$PFGC

Performance Food Group Co. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

PFG's financial performance improved in Q2 2023, marked by substantial growth in net sales, gross profit, and adjusted EBITDA.

Performance Food Group Company (PFG) reported strong second-quarter fiscal 2023 results, with net sales increasing by 8% to $13.9 billion and adjusted EBITDA rising by 28% to $308.8 million. The company also raised the bottom end of its fiscal 2023 adjusted EBITDA outlook.

  • Total case volume grew by 3%, driven by a 6.6% increase in independent case growth.
  • Net sales increased by 8% to $13.9 billion, primarily due to an increase in selling price per case as a result of inflation and channel mix.
  • Gross profit improved by 17% to $1.5 billion, attributed to an increase in gross profit per case driven by a favorable shift in the mix of cases sold and growth in the independent channel.
  • Adjusted diluted EPS increased by 46% to $0.83.

Headline financials

Total Revenue

$13.9B

Previous: $12.8B+8.3%
EPS (adj)

$0.83

Previous: $0.57+45.6%
Total Case Volume Growth

3.0%

Previous: 40.0%-92.5%
Capital Expenditures

-$58M

Previous: -$44.1M-31.5%
Free Cash Flow

$13.1M

Previous: -$35.7M+136.7%
Net Income

$71.1M

Previous: $8.4M+746.4%
Operating Income

$144M

Previous: $57.8M+149.1%
Gross Profit

$1.5B

Previous: $1.28B+17.3%
Cash & Equivalents

$6.1M

Previous: $9.6M-36.5%
Total Assets

$12.2B

Previous: $12B+2.0%
Stock-Based Comp

$11.4M

Previous: $14.3M-20.3%

Revenue & EPS history

PFG · Revenue · Quarterly

$13.9B

Q2 2023+8.3%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

PFG · $12.8B total across 2 segments · Q2 2023

  • Foodservice
    $6.9B+11.0%
  • Convenience
    $5.86B+2.7%

Forward guidance

PFG expects net sales to be in a range of $13.7 billion to $14.0 billion and Adjusted EBITDA to be in a range of $270 million to $290 million for the third quarter of fiscal 2023. For the full fiscal year 2023, PFG continues to expect net sales to be in a range of $57 billion to $59 billion and now expects Adjusted EBITDA to be in a range of $1.27 billion to $1.35 billion.

Tailwinds

  • Net sales are expected to be between $13.7 billion and $14.0 billion for Q3 2023.
  • Adjusted EBITDA is projected to be between $270 million and $290 million for Q3 2023.
  • Full-year net sales are still expected to be between $57 billion and $59 billion for fiscal year 2023.
  • Adjusted EBITDA is now expected to be between $1.27 billion and $1.35 billion for fiscal year 2023.
  • Company continues to expect to achieve annual net sales of $62 to $64 billion and Adjusted EBITDA between $1.5 and $1.7 billion in fiscal 2025.

Headwinds

  • The Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations.
  • These items may include loss on early extinguishment of debt, restructuring charges, certain tax items, and charges associated with non-recurring professional and legal fees associated with acquisitions.
  • PFG's management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income.
  • The impact of these items could be significant, are difficult to predict, and may be highly variable.
  • PFG does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.4%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+1.5%

Avg return

30 days after

48%

22 / 46 earnings

Positive

+16.8%

Q2 2022

Best reaction

-15.0%

Q2 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+6.1%+8.0%+11.5%
Q2 2026-15.0%-5.4%-9.9%
Q1 2026-1.3%+0.9%-5.3%
Q4 2025+2.8%+0.4%+7.6%
Q3 2025+2.4%+7.9%+8.9%
Q2 2025-2.6%-5.5%-14.0%
Q3 2024+2.5%+0.6%+0.3%
Q2 2024-1.0%+0.5%+4.1%
Q1 2024-0.6%+0.9%+8.2%
Q4 2023+9.2%+8.3%+5.2%
Q3 2023-2.6%-3.5%-10.5%
Q2 2023-4.7%-2.7%-11.6%
Q1 2023+8.5%+11.8%+15.1%
Q4 2022-2.0%-5.8%-8.9%
Q3 2022-9.5%-6.9%-13.9%
Q2 2022+16.8%+13.9%+4.5%
Q1 2022+3.4%+1.0%-1.4%
Q4 2021-3.7%+2.9%+1.1%
Q3 2021-3.7%-3.6%-11.9%
Q2 2021+5.0%+6.5%+10.8%
Q1 2021+0.4%+24.3%+29.1%
Q4 2020-1.6%-2.3%+7.3%
Q3 2020-9.7%-10.1%+6.9%
Q2 2020+0.0%+3.3%-25.5%
Q1 2020+6.0%+3.5%+9.4%
Q4 2019+3.3%+5.8%+6.4%
Q3 2019-4.7%-5.4%-2.8%
Q2 2019+8.0%+9.2%+7.4%
Q1 2019+9.2%+9.0%+14.2%
Q4 2018-10.4%-10.4%-13.9%
Q3 2018+7.5%+6.3%+8.4%
Q2 2018-3.8%-3.0%+0.9%
Q1 2018+4.1%+3.5%+17.4%
Q4 2017+2.3%+4.2%+9.6%
Q3 2017+11.0%+9.4%+10.6%
Q2 2017+5.7%+7.1%+6.6%
Q1 2017-2.9%+0.4%-5.9%
Q4 2014-4.1%-1.3%-9.5%
Q4 2016-2.8%+2.3%-9.3%
Q3 2015+6.1%
Q3 2016+6.1%
Q2 2016-2.0%
Q2 2015-2.0%
Q1 2016-6.4%
Q1 2015-6.4%
Q4 2015-6.4%
Q3 2014

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