RICHMOND, Va.--(BUSINESS WIRE)--Performance Food Group Company (“PFG”) announced its first-quarter fiscal 2018 business results.
“We started the year with strong momentum across our company and achieved adjusted EBITDA growth of nearly 20 percent,” said George Holm, PFG’s President and Chief Executive Officer. “Our team continues to execute on our customer-centric initiatives, and as a result of the quarter’s success in each of our three business segments, we reaffirm our fiscal 2018 outlook.”
First-Quarter Fiscal 2018 Financial Summary
Total case volume increased 3.5% in the first quarter of fiscal 2018 compared to the prior year period, with underlying organic growth of 2.1%. Total case volume was driven by a 6.3% increase in independent cases, growth in Performance Brands cases and broad-based growth in Vistar’s sales channels.
Net sales for the first quarter of fiscal 2018 increased 7.9% to $4.4 billion, versus the comparable prior year period. Gross profit for the first quarter of fiscal 2018 grew 8.5% compared to the prior year period, to $554.7 million. The gross profit increase was led by case growth and through selling an improved mix of customer channels and products, specifically to the independent channel. Gross margin as a percentage of net sales was up 10 basis points to 12.7%.
Operating expenses grew by 5.1% in the first quarter of fiscal 2018 compared to the prior year period, to $504.2 million. The increase was primarily due to growth in case volume and the resulting impact on variable operational and selling expenses, as well as an increase in personnel expenses, partially offset by decreases in professional, legal and consulting expenses.
Net income grew by 85.2% in the first quarter of fiscal 2018 compared to the prior year period, to $22.6 million. The growth was primarily a result of an increase in operating profit, partially offset by interest, income tax and other expenses. The increase in interest expense was primarily the result of higher average borrowings. For the quarter, the income tax rate was up 10 basis points to 37.5%.
Diluted EPS increased 83.3% in the first quarter of fiscal 2018 over the prior year period, to $0.22 per share. Adjusted diluted EPS grew by 35.0% in the first quarter over the prior year period, to $0.27 per share.
EBITDA was up 32.8% in the first quarter of fiscal 2018 compared to the prior year period, to $82.2 million. For the quarter, Adjusted EBITDA increased 19.3% to $90.7 million compared to the prior year period.