Performance Food Group Company (PFGC) delivered a solid Fiscal Q4 2024 with earnings momentum supported by mix, disciplined OpEx management, and favorable inflation dynamics. Reported revenue of $15.19 billion and net income of $166.5 million ($1.07 per diluted share) alongside adjusted EBITDA of approximately $456 million, marking an 18.4% year-over-year increase and placing results at or above the prior guidance. The company’s margin expansion was driven by favorable mix and tight cost control across segments, with gross profit rising 4.7% and gross profit per case up by $0.24 versus the prior year. Management highlighted continued profitability despite elevated cost inflation (total inflation of 4.7% in Q4: Foodservice 2.9%, Vistar 3.0%, Convenience 7%), and signaled an expectation for low-single-digit inflation to persist into fiscal 2025, which should support topline and margin resilience.
Strategically, PFGC announced two transformative acquisitions: Jose Santiago (Puerto Rico) and Cheney Brothers (Southeast U.S.). Jose Santiago broadens PFGC's footprint into the Caribbean and is expected to be accretive to earnings, cash flow, and margins immediately. Cheney Brothers, announced in the earnings cycle, is a larger, cash-funded acquisition intended to accelerate growth in the Southeast, particularly in Florida. Management stressed that Cheney will be integrated as a separate platform within the organization, preserving Cheney’s operating model while leveraging PFGC’s scale and procurement strengths. The combination of these deals positions PFGC for expanded foodservice coverage and branded product penetration, with an expected EPS accretion by the end of the first fiscal year post-close and meaningful margin upside through mix and capacity utilization.
From a financial health perspective, PFGC generated robust operating cash flow (~$1.2B in FY2024) and free cash flow (~$767M), supporting ongoing capital deployment (organic investment, M&A, and share repurchases). The company maintained a disciplined balance sheet, with total debt of ~$4.98B and net debt of ~$4.96B, and a leverage range aimed at 2.5x–3.5x prior to Cheney closing. Guidance for FY2025 remains ambitious but achievable: net sales of $60–$61B and adjusted EBITDA of $1.6–$1.7B, with the first fiscal quarter (Q1 FY2025) expected to show $15.2–$15.5B in net sales and $400–$420M in adjusted EBITDA, with stronger performance anticipated in later quarters. Overall, the quarter sets a constructive tone for 2025, balancing near-term macroheadwinds with structural growth via acquisitions and mix-driven margin expansion.