Q4 2024 Performance Food Group Co Earnings Call Transcript
Key Points
- Performance Food Group Co (PFGC) reported strong fiscal 2024 results with adjusted EBITDA growing 18.4% year over year.
- The company announced the acquisition of Cheney Brothers, expected to be accretive to adjusted diluted EPS by the end of the first fiscal year after closing.
- PFGC also acquired José Santiago, expanding its presence into the Caribbean market.
- The company achieved record results in the Food Away from Home channel, with top-line growth of 2.2% in the fiscal fourth quarter.
- PFGC generated significant cash flow, with operating cash flow of approximately $1.2 billion and free cash flow of over $767 million for fiscal 2024.
- The macroeconomic environment remains challenging, impacting consumer purchasing behavior, particularly in candy and snacks.
- Same-store sales in the convenience segment are experiencing declines, with nicotine sales being a significant drag.
- The company faces increased competition in the food service industry, particularly in acquiring new accounts.
- Inflation remains a concern, with total company cost inflation at 4.7% in the fiscal fourth quarter.
- The company's leverage is expected to move to or slightly above the top end of its 2.5x to 3.5x range following the Cheney acquisition.
Good day and welcome to PFG's fiscal year Q4 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.
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-fourth 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 are comparing results to the results 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
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