Performance Food Group Co Q1 FY2025 earnings call

• Acquisitions: Acquired Jose Santiago early in fiscal year, integrated well with Foodservice operations. Closed Cheney Brothers acquisition in early October, welcomed ~3,600 associates, and made progress onboarding. - Hurricane response: Focused on associates' well-being, shipped food supplies, and associates volunteered to help impacted areas. - Industry events: PFG had a strong showing at IFDA's National Championship and Core-Mark displayed strength at NACS conference. - Digital ordering: Customer-first digital ordering application expanded across segments, with progress seen in Foodservice and Vistar, and Convenience to go-live with platform in Q1.

PFG's net sales grew 3.2% in fiscal first quarter. Total case volume increased 2.6%, with a 7.8% increase in total independent restaurant volume. Foodservice cost inflation was 3.8%, with adjusted EBITDA up 13.8%. Convenience segment had 7% cost inflation and adjusted EBITDA up 11.2%. Vistar's cost inflation decelerated, but adjusted EBITDA decreased modestly due to lower foot traffic in some channels. Revenue contribution details weren't explicitly broken down by percentage in the transcript but focus was on segment financial performance.

• Full year 2025: Net sales expected $62.5B-$63.5B, adjusted EBITDA $1.7B-$1.8B. - Second fiscal quarter 2025: Net sales anticipated $15.2B-$15.6B, adjusted EBITDA $400M-$420M. - Benefits from acquisitions: Expected $50M annual run rate synergies by third full fiscal year following Cheney closing, and accretion to adjusted diluted EPS by end of first full fiscal year including year one synergies.

• Consumer landscape challenges with some price sensitivity and market adjustments. - Cost inflation, particularly in foodservice with double-digit inflation in poultry and cheese. - Impact of hurricanes on certain regions affecting business, though Cheney operations performed well despite storms. - Competitive challenges in Vistar's theater and retail channels, and impulse buy product closings in value stores.

Q: On food inflation outlook and Vistar margin progression?

A: Food inflation expected low-single digits for Food, mid-single digits for Convenience; Vistar margin pressure from channel mix and consumer trends, expecting theater recovery and new channel exploration in back half.

Q: On Convenience EBITDA growth and independent case volume return?

A: Convenience EBITDA growth due to mix, volumes expected to recover as consumer adjusts to price points; independent case volume growth aimed for 6%-10%, seen as back-end loaded with improved confidence.

Q: On digital ordering tool breadth and Cheney's tool?

A: Digital ordering tool expanding, with Vistar and Foodservice making progress, Convenience to go-live in Q1; Cheney has its own tool, with slow adoption of customer digital ordering.