Performance Food Group reports strong growth through third quarter

Performance Food Group (PFG) reported solid growth across key business segments, with particular highlights in the convenience and specialty (formerly Vistar) channels, in its third-quarter and first-nine months fiscal 2025 report.

The company announced that the segment formerly known as Vistar will be referred to as Specialty going forward. For PFG, the Specialty segment, saw a slight decline in net sales (-0.2%) to $1.1 billion, compared to the prior year period, largely due to weaker performance in the theater and value channels. However, profitability improved as adjusted EBITDA increased 6.9% to $77.9 million, thanks to gross profit growth and reduced operating expenses, notably in personnel costs.

At PFG, the convenience segment continued to be a growth driver, posting a 1.8% increase in net sales to $5.7 billion for the quarter, driven primarily by higher selling prices per case resulting from ongoing inflation and a favorable shift in sales mix. This shift included increased case volumes of food and foodservice-related products. Convenience’s adjusted EBITDA rose 5.4% to $74.7 million, reflecting gains in gross profit due to inventory holding gains, pricing improvements from procurement efficiencies and a more favorable case mix. Operating expenses were up modestly by 1.4%, driven by higher insurance, occupancy, and freight costs, partially offset by lower fuel expenses.