Performance Food Group Q3: EPS Beat, Topline Miss, Solid Cash Flow & More - Performance Food Gr (NYSE:PFGC)

Performance Food Group Co PFGC reported third-quarter FY23 sales growth of 5% year-on-year to $13.77 billion, missing the consensus of $13.90 billion.
Total case volume grew 3.1% Y/Y. The increase in net sales was primarily attributable to the rise in selling price per case due to inflation, channel mix, and growth in cases sold.
Net sales for Foodservice increased 5.2% to $6.9 billion, and Vistar increased 24.9% to $1.1 billion.
Operating expenses rose 5.2% to $1.3 billion. Gross profit increased 12% Y/Y to $1.5 billion, with the margin expanding 70 basis points to 11%.
The operating margin was 1.2%, and operating income for the quarter was $168.8 million versus $68.6 million last year.
The company held $15.4 million in cash and equivalents as of April 1, 2023. Net cash provided by operating activities for the nine months totaled $657.2 million versus $390.6 million last year.
Adjusted EPS of $0.83 beat the analyst consensus of $0.71.
Outlook: The company cut the top end of its FY23 sales outlook range and sees $57 billion - $57.5 billion (prior $57 billion - $59 billion) versus the $57.93 billion consensus.
PFGC expects adjusted EBITDA of $1.34 billion - $1.36 billion (prior $1.27 billion - $1.35 billion)
The company reiterated its previously announced 3-year net sales and Adjusted EBITDA targets. The company continues to expect to achieve annual net sales of $62 billion - $64 billion and Adjusted EBITDA of $1.5 billion - $1.7 billion in fiscal 2025.
Price Action: PFGC shares are trading lower by 3.77% at $59.38 on the last check Wednesday.

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