RICHMOND, Va.--(BUSINESS WIRE)--Performance Food Group Company today announced its first-quarter fiscal 2016 business results.
First-Quarter Fiscal 2016 Financial Summary
Organic case volume grew 4.9% during the quarter and 5.1% including acquisitions. Case growth reflects new and expanding business with Street customers in the Performance Foodservice segment, growth in Vistar’s sales in the theater, retail, and hospitality channels, and a small acquisition in the Vistar segment.
Net sales for the first quarter were $3.9 billion, an increase of 6.3% versus the comparable prior year period. That growth was primarily driven by an increase in cases sold. The estimated annual rate of inflation in the first quarter was 0.1% compared to an estimated annual rate of 3.2% during the prior year period.
Gross profit increased $31.7 million, or 7.1%, to $481.1 million in the first quarter compared to the prior year period. The increase in gross profit was the result of growth in cases sold and a higher gross profit per case, which in turn was the result of selling an improved mix of channels and products. Adjusted Gross Profit increased 6.7% to $481.3 million.
Initial Public Offering
On October 6, 2015, PFG completed its initial public offering of 16,675,000 shares of common stock for cash consideration of $19.00 per share ($17.955 per share net of underwriting discounts), including the exercise in full by the underwriters of their option to purchase additional shares. PFG sold 12,777,325 shares of common stock and certain selling stockholders sold 3,897,675 shares (including the shares sold pursuant to the underwriters’ option to purchase additional shares).
Vistar
In the first quarter of fiscal 2016, net sales for Vistar increased 9.8%, or $56.5 million, versus the prior year period. The increase in sales was primarily driven by case sales growth in the theater, retail, and hospitality channels. Segment EBITDA decreased $1.6 million, or 6.7%, versus the prior year period. The decrease was the result of an increase in operating expense excluding depreciation and amortization and was driven primarily by an increase in case sales, investments in additional sales force capacity, and transaction expenses related to an acquisition, all of which was partially offset by an increase in gross profit dollars. Gross profit growth was driven primarily by an increase in case sales and partially offset by inflation-based inventory gains in the prior year. Full report.
