Core-Mark acquisition boosts PFG's Q2 case volume and profits; Vistar sales skyrocket 54%
Source Performance Food Group Co.
For the second quarter of fiscal 2022, Performance Food Group Co., parent of vend product distributor Vistar, said its total case volume increased 40%. Total case volume included Core-Mark Holding Co. and a 21.% increase in independent cases. Excluding the impact of the Core-Mark acquisition, organic case volume increased 15.5% in the second quarter of fiscal 2022, compared with the prior year period.
PFG's sales for the second quarter of fiscal 2022 grew 87.6% to $12.8 billion, compared with the prior year period. The increase in net sales was primarily attributable to the acquisition of Core-Mark, an increase in selling price per case as a result of inflation and the declining adverse effects of the novel coronavirus ("COVID-19") pandemic, which had a more significant adverse impact in the second quarter of the prior year.
The acquisition of Core-Mark contributed $4.2 billion of net sales for the second quarter of fiscal 2022. Overall cost inflation was approximately 12.5%.
Gross profit for the second quarter of fiscal 2022 grew 57.7% to $1.3 billion, compared with the prior year period. The gross profit increase was led by the acquisition of Core-Mark and an increase in gross profit per case in foodservice driven by growth in the independent channel. The Core-Mark acquisition contributed gross profit of $245.2 million in the second quarter of fiscal 2022.
PFG's operating expenses rose 62.8% to $1.2 billion in the second quarter. Core-Mark contributed $217 million of operating expenses in the second quarter of fiscal 2022.
Performance Food Group now has three reportable segments: foodservice, convenience and Vistar.
"Our foodservice segment produced another quarter with strong sales and profit results. And we have seen meaningful progress at Vistar, with sequential improvement in both sales and margins," said PFG chairman chief executive George Holm.
Vistar report
For the second quarter of fiscal 2022, net sales for Vistar increased 54.3% to $907.3 million, compared with the prior year period. This increase was driven primarily by the improving economic conditions due to the declining effects of the COVID-19 pandemic.
Second-quarter EBITDA for Vistar increased 123.6% to $49.2 million versus the prior year period. The increase was the result of a 53.8% increase in gross profit for the second quarter of fiscal 2022, compared wit the prior year period, partially offset by a 34.2% increase in operating expenses.
Operating expenses increased primarily as a result of increased sales volume described above, and the resulting impact on variable operational and selling expenses. Operating expenses also increased as a result of increases in personnel expense and fuel expense.
