US private label food company Performance Food Group has reported lower quarterly net earnings, despite an 11.5% increase in sales.
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The company said net earnings for the third quarter to 2 October declined 18% to US$17.8m, or 37 cents per share, compared to the year-ago period. Net sales rose to $1.5bn from $1.4bn a year earlier.
The company said net earnings declined as a result of the impact of recent hurricanes and slower category growth of retail packaged salads.
“We are pleased with our solid internal sales growth of 11.5% in the quarter despite the recent hurricane-related challenges in the Southeast markets. Our third quarter results represent the 39th consecutive quarter in which sales have increased compared to the same period in the previous year. Both our broadline and customised distribution segments continued to generate solid growth in the quarter. In our Fresh-cut business, we remain focused on optimising our infrastructure to drive our future earnings growth in the segment,” said chairman and CEO Bob Sledd.
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