Performance Food Group Reports 10.5% Increase in Q3 Net Sales, Net Income Declines

Performance Food Group Company (PFG) reported its financial results for the third quarter and nine months ended March 29, 2025, revealing a notable increase in net sales and a strategic acquisition that has significantly impacted its operations. For the third quarter, PFG's net sales reached $15.3 billion, a 10.5% increase from $13.9 billion in the same period last year. The nine-month figures also showed growth, with net sales of $46.4 billion, up 7.6% from $43.1 billion. However, net income for the third quarter decreased to $58.3 million, down 17.2% from $70.4 million, and for the nine months, it fell to $208.7 million, a 22.5% decline from $269.4 million.

The decline in profitability was attributed to increased operating expenses and interest costs, particularly following the acquisition of Cheney Brothers, Inc. for approximately $2.0 billion in October 2024. This acquisition has expanded PFG's footprint in the Southeastern U.S. and contributed $1.8 billion to net sales since its integration. The company reported a significant increase in operating expenses, which rose by 16.5% in the third quarter and 13.6% for the nine months, driven by higher personnel costs and depreciation expenses related to the new acquisition.

Operationally, PFG has seen a 10% increase in total case volume during the third quarter, with organic case volume growth of 1.3%. The Foodservice segment, which includes the newly acquired Cheney Brothers, reported a 19.2% increase in net sales for the quarter, reflecting strong demand and effective pricing strategies. The Specialty and Convenience segments also contributed to overall sales growth, although the Specialty segment experienced a slight decline in the third quarter.

Looking ahead, PFG remains focused on leveraging its recent acquisitions to drive growth and improve profitability. The company has approximately $166.4 million remaining under its share repurchase program, which is set to expire in November 2026. Management expressed optimism about future performance, citing ongoing efforts to enhance operational efficiencies and expand market share across its segments. The company continues to navigate challenges related to inflation and supply chain dynamics while aiming to capitalize on the growing demand in the foodservice industry.