Performance Food Group Company (NYSE:PFGC) Q1 2024 Earnings Call Transcript

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Performance Food Group Company (NYSE:PFGC) Q1 2024 Earnings Call Transcript November 8, 2023

Performance Food Group Company beats earnings expectations. Reported EPS is $1.15, expectations were $1.11.

Operator: Good day and welcome to PFG's Fiscal Year Q1 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Bill Marshall, Vice President, Investor Relations for PFG. Please go ahead, sir.

William Marshall: Thank you and good morning. We're here with George Holm, PFG's CEO; and Patrick Hatcher, PFG's CFO. We issued a press release this morning regarding our 2024 fiscal first quarter results, which can be found in the Investor Relations section of our website at pfgc.com. During our call today, unless otherwise stated, we're comparing results to the result in the same period in fiscal 2023. The results discussed on this call will include GAAP and non-GAAP results adjusted for certain items. The reconciliation of these non-GAAP measures to the corresponding GAAP measures can be found in the back of the earnings release. As a reminder, in the fiscal first quarter of 2023, we updated our segment reporting metrics to adjusted EBITDA from the prior EBITDA metric.

Our remarks on this call and in the earnings release contain forward-looking statements and projections of future results. Please review the cautionary forward-looking statements section in today's earnings release and our SEC filings for various factors that could cause our actual results to differ materially from our forward-looking statements and projections. Now, I'd like to turn the call over to George.

George Holm: Thanks Bill. Good morning, everyone, and thank you for joining our call today. I'm pleased to share our strong first quarter fiscal 2024 results with you today, highlighting our business momentum, which continues despite a range of macroeconomic factors. As you saw in our release this morning, our top line performance was just below the top end of the guidance range we laid out in August, and our adjusted EBITDA was above the top end of our guidance range. Our results show our company's ability to perform at a high-level through a range of economic scenarios, and we expect this to continue going forward. Once again, we are very pleased with our independent restaurant case growth, which was 7.6% in the quarter as we continue to add new accounts and grow our share in this important channel.

We recognize that economic backdrop is a dominant factor in the investment decisions that each of you make on a daily basis. In a moment, I will address a few of these items and share our view on the current state of the foodservice distribution industry. But first, I want to discuss PFG's strategic focus and reasons that we believe our company will thrive in the years ahead. PFG has evolved significantly since we went public in 2015. We have added new lines of business, broadened our end market channels and added products and services to capture market share in the large food-away-from-home industry. This shift has been deliberate, and we believe it positions PFG to grow both our top and bottom line for years to come. Our Foodservice business has built scale and breadth in an effort to elevate our independent restaurant sales.