Performance Food Group Reports 9.4% Net Sales Increase in Q2 Fiscal 2025

Performance Food Group Company (PFG) reported its financial results for the second quarter and first half of fiscal 2025, revealing a net sales increase of 9.4% to $15.6 billion for the three months ended December 28, 2024, compared to $14.3 billion in the same period last year. For the first six months, net sales rose 6.2% to $31.1 billion from $29.2 billion. However, net income for the quarter fell 45.8% to $42.4 million, down from $78.3 million, while for the first half, net income decreased 24.4% to $150.4 million from $199 million. The decline in profitability was attributed to increased interest expenses and a decrease in operating profit.

The company experienced significant changes in its financial metrics compared to the previous fiscal period. Gross profit for the second quarter increased by 14.4% to $1.8 billion, driven by recent acquisitions, including the acquisition of Cheney Brothers, which contributed $825 million to net sales. Operating expenses also rose, increasing 17.2% to $1.7 billion for the quarter, primarily due to higher personnel costs and professional fees related to acquisitions. Interest expenses surged by 63.2% to $100.2 million, reflecting increased borrowings to finance acquisitions.

PFG's strategic developments included the acquisition of Cheney Brothers on October 8, 2024, for approximately $2 billion, which expanded its Foodservice operations in the Southeastern U.S. This acquisition is expected to enhance PFG's market position and operational capabilities. The company also reported a total of 156.2 million shares outstanding as of January 29, 2025, and continued its share repurchase program, having repurchased 0.4 million shares for $33.6 million during the first half of fiscal 2025.

Operationally, PFG served over 300,000 customer locations across North America, with total case volume increasing by 9.8% in the second quarter. The Foodservice segment saw a notable 18.2% increase in net sales, while the Vistar and Convenience segments reported modest growth. The company’s total assets rose to $17.1 billion as of December 28, 2024, up from $13.4 billion at the end of the previous fiscal year, largely due to the acquisition and increased inventory levels.

Looking ahead, PFG anticipates continued growth driven by strategic acquisitions and operational efficiencies. The company remains focused on expanding its market share and enhancing its service offerings to independent and chain customers. However, management acknowledged potential risks, including economic factors, labor availability, and competition, which could impact future performance.