Performance Food Group Company (PFGC) Bundle
A Brief History of Performance Food Group Company
Performance Food Group Company (PFGC) has shown significant growth and development in its operational history, especially as of 2024. The company specializes in the distribution of food and food-related products across various segments, including Foodservice, Vistar, and Convenience.
Financial Performance Overview
For the first three months of fiscal 2025, PFGC reported net sales of $15,415.5 million, an increase of 3.2% from $14,938.6 million in the same period of fiscal 2024. This growth was attributed to a combination of acquisitions, case growth, and pricing adjustments due to product inflation.
| Financial Metrics | Q1 FY2025 | Q1 FY2024 | Change (%) |
|---|---|---|---|
| Net Sales | $15,415.5 million | $14,938.6 million | 3.2% |
| Gross Profit | $1,764.2 million | $1,662.9 million | 6.1% |
| Operating Expenses | $1,548.9 million | $1,446.7 million | 7.1% |
| Net Income | $108.0 million | $120.7 million | -10.5% |
| Earnings per Share (Diluted) | $0.69 | $0.77 | -10.4% |
Segment Performance
PFGC operates through several key segments. The Foodservice segment generated significant sales, reflecting the company's focus on restaurants and institutional clients. The Vistar segment specializes in vending and office coffee services, while the Convenience segment caters to convenience stores.
| Segment | Net External Sales (Q1 FY2025) |
|---|---|
| Foodservice | $7,685.0 million |
| Vistar | $1,284.7 million |
| Convenience | $6,363.4 million |
| Corporate & All Other | $82.4 million |
Acquisitions and Growth Strategy
PFGC has actively pursued acquisitions to bolster its market position. In the first quarter of fiscal 2025, the company spent $574.3 million on acquisitions, compared to $214.6 million in the prior year period.
Liquidity and Capital Resources
As of September 28, 2024, PFGC had a total cash balance of $50.3 million, with $7.8 million classified as restricted cash. The company maintains a robust liquidity position, supported by cash flows from operations and access to credit facilities.
| Liquidity Metrics | As of September 28, 2024 |
|---|---|
| Cash and Restricted Cash | $50.3 million |
| Total Debt | $3,926.0 million |
| Share Repurchase Program Remaining | $181.1 million |
Commitments and Contingencies
PFGC reported outstanding purchase obligations of $199.7 million related to capital projects and services, indicating ongoing investment in infrastructure and operational capabilities.
The company's effective tax rate for the three months ended September 28, 2024, was 26.5%, slightly up from 26.1% for the same period in the prior year, reflecting changes in state and foreign income taxes.
A Who Owns Performance Food Group Company (PFGC)
Shareholder Composition
As of 2024, Performance Food Group Company (PFGC) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares (in millions) | Ownership Percentage (%) |
|---|---|---|
| Institutional Investors | 90.0 | 58.2 |
| Mutual Funds | 30.0 | 19.4 |
| Individual Investors | 34.7 | 22.4 |
| Total Shares Outstanding | 154.7 | 100.0 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of PFGC as of September 2024:
| Institution | Shares Owned (in millions) | Ownership Percentage (%) |
|---|---|---|
| The Vanguard Group, Inc. | 18.5 | 11.9 |
| BlackRock, Inc. | 15.2 | 9.8 |
| State Street Corporation | 12.8 | 8.3 |
| Wellington Management Group LLP | 8.9 | 5.8 |
| Invesco Ltd. | 7.1 | 4.6 |
Insider Ownership
Insider ownership at PFGC includes executive officers and board members, which is summarized in the following table:
| Name | Title | Shares Owned (in millions) | Ownership Percentage (%) |
|---|---|---|---|
| George L. Holm | Chairman and CEO | 1.0 | 0.6 |
| Craig H. Hoskins | President and COO | 0.5 | 0.3 |
| Patrick T. Hagerty | EVP and CCO | 0.4 | 0.3 |
| A. Brent King | EVP, General Counsel | 0.3 | 0.2 |
| Donald S. Bulmer | EVP and CIO | 0.2 | 0.1 |
Recent Stock Performance
As of September 28, 2024, PFGC's stock has demonstrated a consistent upward trend, as indicated by the following metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $75.32 |
| 52-Week High | $80.00 |
| 52-Week Low | $60.45 |
| Market Capitalization | $11.6 billion |
| P/E Ratio | 19.5 |
Recent Developments
On October 8, 2024, PFGC announced the acquisition of Cheney Brothers, Inc. for $2.1 billion. This strategic move is expected to enhance its market position and operational capabilities within the foodservice segment.
Additionally, PFGC's recent share repurchase program has authorized up to $300 million in stock repurchases, with approximately $181.1 million remaining as of September 28, 2024. This program reflects the company's commitment to returning value to shareholders.
Performance Food Group Company (PFGC) Mission Statement
Mission Statement Overview
The mission of Performance Food Group Company (PFGC) is to deliver exceptional food service solutions and products to its customers while maximizing value through operational efficiency, innovation, and sustainability. PFGC aims to be a leader in the food distribution industry by leveraging its scale and expertise to enhance customer satisfaction.
Key Components of the Mission Statement
- Customer Focus: PFGC is committed to providing high-quality products and services tailored to meet the diverse needs of its customers.
- Operational Excellence: The company strives for efficiency in its supply chain and logistics operations to ensure timely delivery and service.
- Innovation: PFGC emphasizes the importance of innovation in product offerings and service delivery to stay competitive.
- Sustainability: The company is dedicated to sustainable practices in sourcing, packaging, and distribution to minimize its environmental impact.
Financial Performance Indicators
As of September 28, 2024, PFGC's financial performance reflects its commitment to its mission:
| Metric | Value (in millions) |
|---|---|
| Net Sales | $15,415.5 |
| Cost of Goods Sold | $13,651.3 |
| Gross Profit | $1,764.2 |
| Operating Expenses | $1,548.9 |
| Operating Income | $215.3 |
| Net Income | $108.0 |
| Earnings Per Share (Diluted) | $0.69 |
Market Position and Strategic Goals
PFGC operates in a highly competitive landscape, focusing on three primary segments: Foodservice, Vistar, and Convenience. The company aims to enhance its market position through:
- Strategic acquisitions, such as the recent acquisition of Cheney Brothers for $2.1 billion, aimed at expanding its Foodservice segment.
- Investment in technology and logistics to improve delivery efficiency and customer service.
- Enhancing product offerings through the development of proprietary brands and partnerships with national brands.
Recent Developments
In fiscal 2024, PFGC has made significant investments in infrastructure and technology to support its mission. The company reported:
| Investment Type | Amount (in millions) |
|---|---|
| Acquisition of Cheney Brothers | $2,100.0 |
| Capital Expenditures for Property, Plant, and Equipment | $96.5 |
Shareholder Value and Financial Commitments
PFGC is also committed to enhancing shareholder value through strategic financial management:
- The company has a share repurchase program authorized for up to $300 million, with approximately $181.1 million remaining as of September 28, 2024.
- Debt management includes the issuance of $1.0 billion in Senior Notes due 2032 to finance growth initiatives and acquisitions.
Conclusion
Performance Food Group Company continues to align its operational strategies with its mission statement to achieve sustainable growth and profitability in the food distribution industry.
How Performance Food Group Company (PFGC) Works
Company Overview
Performance Food Group Company (PFGC) operates as a leading foodservice distributor in North America. The company distributes a variety of food and food-related products to various customer segments, including independent and multi-unit restaurants, schools, healthcare facilities, and convenience stores. PFGC is structured into three main segments: Foodservice, Vistar, and Convenience.
Financial Performance
As of the first quarter of fiscal 2025, PFGC reported the following financial metrics:
| Metrics | Three Months Ended September 28, 2024 | Three Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $15,415.5 million | $14,938.6 million | $476.9 million | 3.2% |
| Cost of Goods Sold | $13,651.3 million | $13,275.7 million | $375.6 million | 2.8% |
| Gross Profit | $1,764.2 million | $1,662.9 million | $101.3 million | 6.1% |
| Operating Expenses | $1,548.9 million | $1,446.7 million | $102.2 million | 7.1% |
| Operating Profit | $215.3 million | $216.2 million | ($0.9 million) | (0.4%) |
| Net Income | $108.0 million | $120.7 million | ($12.7 million) | (10.5%) |
| Adjusted EBITDA | $411.9 million | $383.8 million | $28.1 million | 7.3% |
Segment Performance
The company’s operations are divided into three reportable segments, with distinct performance metrics:
| Segment | Net Sales ($ million) | Adjusted EBITDA ($ million) |
|---|---|---|
| Foodservice | $7,685.0 | $284.0 |
| Vistar | $1,284.7 | $83.2 |
| Convenience | $6,363.4 | $105.3 |
Cash Flow Analysis
For the first three months of fiscal 2025, PFGC reported the following cash flow metrics:
| Cash Flow Category | Amount ($ million) |
|---|---|
| Net Cash Provided by Operating Activities | $53.5 |
| Net Cash Used in Investing Activities | ($669.8) |
| Net Cash Provided by Financing Activities | $638.9 |
Balance Sheet Highlights
As of September 28, 2024, the company’s balance sheet reflected the following key figures:
| Category | Amount ($ million) |
|---|---|
| Total Assets | $14,396.5 |
| Total Liabilities | $10,188.3 |
| Total Shareholders’ Equity | $4,208.2 |
Debt and Financing
PFGC has multiple financing arrangements, including an Asset-Based Lending (ABL) Facility and Senior Notes:
| Debt Type | Amount ($ million) | Interest Rate (%) |
|---|---|---|
| Aggregate Borrowings | $897.1 | 6.77 |
| Senior Notes due 2032 | $1,000.0 | 6.125 |
Future Outlook
In the context of future growth, PFGC's strategic plans involve continued expansion through acquisitions and enhancing operational efficiencies across its segments. The company aims to leverage its scale to improve profitability and market share.
How Performance Food Group Company (PFGC) Makes Money
Business Segments Overview
Performance Food Group Company (PFGC) operates through three main segments:
- Foodservice
- Vistar
- Convenience
Financial Performance
For the three months ended September 28, 2024, PFGC reported the following financial metrics:
| Metric | Q1 FY 2025 | Q1 FY 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $15,415.5 million | $14,938.6 million | $476.9 million | 3.2% |
| Gross Profit | $1,764.2 million | $1,662.9 million | $101.3 million | 6.1% |
| Operating Expenses | $1,548.9 million | $1,446.7 million | $102.2 million | 7.1% |
| Operating Profit | $215.3 million | $216.2 million | ($0.9 million) | (0.4%) |
| Net Income | $108.0 million | $120.7 million | ($12.7 million) | (10.5%) |
Segment Performance
The following table summarizes net sales and Adjusted EBITDA for each segment:
| Segment | Net Sales (Q1 FY 2025) | Net Sales (Q1 FY 2024) | Adjusted EBITDA (Q1 FY 2025) | Adjusted EBITDA (Q1 FY 2024) |
|---|---|---|---|---|
| Foodservice | $7,692.1 million | $7,277.0 million | $280.0 million | $246.0 million |
| Vistar | $1,285.7 million | $1,250.4 million | $83.2 million | $88.6 million |
| Convenience | $6,363.7 million | $6,337.0 million | $105.3 million | $94.7 million |
| Corporate & All Other | $256.1 million | $240.4 million | ($56.6 million) | ($45.5 million) |
| Total | $15,415.5 million | $14,938.6 million | $411.9 million | $383.8 million |
Revenue Drivers
PFGC's revenue is influenced by several factors:
- Recent acquisitions contributing to sales growth
- Increased selling prices due to inflation
- Case volume growth
Cost Structure
The cost of goods sold (COGS) for the three months ended September 28, 2024, was:
| Metric | Amount (Q1 FY 2025) | Amount (Q1 FY 2024) |
|---|---|---|
| Cost of Goods Sold | $13,651.3 million | $13,275.7 million |
Operating Expenses and Profitability
Operating expenses increased due to:
- Recent acquisitions
- Higher personnel expenses ($41.9 million increase)
- Increased insurance expenses ($12.2 million increase)
Operating profit for Q1 FY 2025 was $215.3 million, slightly down from $216.2 million in Q1 FY 2024.
Cash Flow and Investments
Cash flows from operating activities amounted to:
| Cash Flow Type | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Net Cash Provided by Operating Activities | $53.5 million | $87.1 million |
Investing activities included:
| Investment Type | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Net Cash Paid for Acquisitions | $574.3 million | $214.6 million |
| Capital Purchases of Property, Plant, and Equipment | $96.5 million | $53.2 million |
Debt Management
PFGC's borrowings as of September 28, 2024, included:
| Debt Type | Amount |
|---|---|
| Aggregate Borrowings | $897.1 million |
| Letters of Credit | $172.4 million |
The average interest rate on borrowings was 6.77%.
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Resources:
- Performance Food Group Company (PFGC) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Performance Food Group Company (PFGC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Performance Food Group Company (PFGC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.