Performance Food Group (PFGC) reported quarterly earnings of $0.35 per share, beating estimates of $0.24 per share. This compares with earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.
PFG's quarterly report represents an earnings surprise of 45.83%. A quarter ago, it was expected that the food distributor would post earnings of $0.16 a share when it achieved earnings of $0.25, delivering a surprise of 56.25%.
The company has surpassed consensus EPS estimates three times in the past four quarters.
“I am proud of how our company has continued to navigate through the current market conditions and distinguish ourselves as leaders in the food distribution industry,” said president and chief executive George Holm. “Despite the new challenges the holiday season brought for our business, our foodservice segment still delivered a solid quarter while continuing the smooth integration of Reinhart. Looking ahead, I believe PFG is well-positioned to take advantage of a better operating environment in the not-too-distant future.”
PFG attributed double-digit net sales and gross profit growth to its Reinhart acquisition.
Second-quarter fiscal 2021 highlights
- Total case volume grew 8.4%
- Net sales increased 12.8% to $6.8 billion
- Gross profit improved 14.0% to $811.1 million
- Net income declined 57.3% to $17.6 million
- Adjusted EBITDA increased 10.6% to $158.0 million1
- Diluted Earnings Per Share (“EPS”) decreased 66.7% to $0.13
- Adjusted Diluted EPS declined 39.7% to $0.351
Vend product distributor Vistar sees declines
For the second quarter of fiscal 2021, net sales for Vistar, a division of PFG, decreased 11.9% to $2 billion, compared with the prior year period. This decrease was driven by the continued economic effects of the COVID-19 pandemic.
Second-quarter EBITDA for Vistar decreased 31.6% to $38.7 million versus the prior year period. Gross profit decline of 21.2% for the second quarter of fiscal 2021 compared to the prior year period was fueled by the current economic environment due to COVID-19. Operating expenses decreased primarily as a result of the decrease in sales volume, decreases in personnel and fuel expenses, and a reduction in contingent consideration accretion expense of $4.8 million as compared to the prior year period. In the second quarter of fiscal 2021, Vistar recorded bad debt expense of $1.1 million, which is a decrease of $0.5 million, compared with the prior year period.
Go here to see PFG's full Q2 press release.
