On Feb. 8, Richmond, Virginia-based distributor Performance Food Group Company announced its fiscal 2023 second-quarter earnings report, which showed net sales increased 8% over the same period last year to $13.9 billion.
Gross profit during the quarter (October-December) improved 17% to $1.5 billion, while net income increased to $71.1 million.
For the first six months of fiscal 2023, net sales increased 23% to $28.6 billion, while gross profit improved 27% to $3.1 billion. Net income for the first half of the fiscal year increased to $166.8 million.
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“Our momentum continued into the fiscal second quarter, with another period of strong sales and profit results for our company,” said George Holm, PFG’s Chairman & CEO. “Our Foodservice segment produced organic independent restaurant case growth, leading to another quarter of market share gains. Our execution across all business segments, along with positive mix shift, led to margin expansion and strong cash flow generation. We are increasing the bottom end of our full year Adjusted EBITDA target as we look to complete the year with encouraging profit results. I am proud of how our organization has risen to the challenges in the external operating environment and believe we are well positioned to see continued success in the years ahead.”
Fiscal 2023 2Q net sales for PFG’s Foodservice segment increased 11% to $6.9 billion compared to the prior-year period. The increase was driven by an uptick in selling price per case as a result of inflation and a prior-year acquisition, PFG said. Overall product cost inflation for Foodservice was approximately 9.6% for 2Q.