PFG promotes Hoskins to president, posts Q2 2019 earnings
PFG Foodservice sales, profit rise on case volume, sales mix
Performance Food Group (PFG) has promoted its interim Foodservice head to the chief post in that division. Craig Hoskins is tapped for the role of president & chief executive, Foodservice Segment, and executive vice president of PFG, per an announcement February 4. Hoskins, who transitioned to PFG following the company’s merger with Vistar in 2008, will report to George Holm, PFG chairman, president and chief executive . PFG announced the decision on the eve of reporting earnings financial results for Q2 2019.
PFG reports favorable Q2 2019 results
PFG total case volume grew 5.5 percent in Q2 as net sales increased 7.1 percent to $4.6B. Gross profit in Q2 increased 8.3 percent from the comparable prior year period and adjusted EBITDA was $116.9M, increasing 11.3 percent. Q2 Foodservice Segment sales increased 5.8 percent to $3.7B, primarily driven by growth in case units sold to independent restaurants, as well as the selling price per case. Due to a shift in the sales mix to more PFG (private-label) brands, the company reported profit per case also increased. Foodservice gross profit rose 5.3 percent and EBITDA was $104.3M, rising 2.2 percent.
For the first half of the year (Q2 year-to-date), total PFG case volume grew 4.6 percent as net sales increased to $9.3B, representing a 5.5-increase from last year’s comparable period. PFG gross profit rose 7.7 percent to $1.2B and adjusted EBITDA grew 8.5 percent to $212.4M. Year-to-date Foodservice Segment sales increased to $7.3B, up 4 percent from last year. PFG reported first-half Foodservice EBITDA of $196.3M, down 1.5 percent.
According to PFG, its Q2 results were primilary driven by Vistar’s performance in the theater, retail and vending channels, and the solid performance of PFG Foodservice with independent restaurants, with a slight contribution from casual dining chain customer sales increases. PFG common stock was up 7.1 percent to $37.88 on the day Q2 earnings were released (February 6).
Hoskins’ rise to chief executive of Foodservice Segment
Hoskins was named president & chief executive of PFG Customized Distribution and a senior vice president of PFG in January 2012 after serving as president and chief operating officer of Customized Distribution. He was charged with the additional responsibility of Foodservice sales and marketing in January 2018. Hoskins had been serving as the interim head of PFG Foodservice since August 2018.
“His background in senior commercial and operating roles will be integral to our continued success as we grow the business and execute on our long-term strategic goals.”George Hold, PFG chairman, president and chief executive
On its earnings call, PFG did reveal that a full internal and external search was conducted before naming Hoskins to the permanent role of chief executive and president of PFG Foodservice. “Craig is an industry expert with nearly three decades of distribution experience, “ said Holm. “His background in senior commercial and operating roles will be integral to our continued success as we grow the business and execute on our long-term strategic goals.”
At Vistar, Hoskins rose through the ranks in sales and marketing, merchandising/purchasing, and operations. He earned a bachelor’s degree in business administration from the University of Northern Colorado and a master’s degree in marketing from the University of Colorado at Denver.
Photo credit: PFG
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