PREMIUM BRANDS HOLDINGS CORPORATION REPORTS RECORD FIRST QUARTER SALES AND ADJUSTED EBITDA AND DECLARES SECOND QUARTER DIVIDEND
Canada NewsWire
VANCOUVER, BC, May 7, 2025
VANCOUVER, BC, May 7, 2025 /CNW/ - Premium Brands Holdings Corporation (TSX: PBH), a leading producer, marketer and distributor of branded specialty food products, announced today its results for the first quarter of 2025.
QUARTER HIGHLIGHTS
-- Record first quarter revenue of $1.68 billion representing a 14.9%, or
$217.4 million, increase as compared to the first quarter of 2024
-- Solid progress on Specialty Foods' core U.S. growth initiatives in
protein, sandwiches and baked goods, which for the quarter generated a
combined organic volume growth rate of 9.9%. Including acquisitions,
Specialty Foods' total U.S. sales, which represented 68.6% of its first
quarter sales, grew by $176.6 million to $804.4 million
-- Record first quarter adjusted EBITDA1 of $136.5 million representing a
12.8%, or $15.5 million, increase as compared to the first quarter of
2024
-- First quarter adjusted EPS1 of $0.68 per share representing a 25.9%, or
$0.14 per share, increase as compared to the first quarter of 2024
-- 2025 sales and adjusted EBITDA1 guidance ranges of $7.2 billion to $7.4
billion, and $680 million to $700 million, reaffirmed
-- Declared a dividend of $0.85 per common share for the second quarter of
2025
-- Completed the acquisition of Denmark Sausage, LLC
-- Completed $172.5 million convertible debenture issuance
(1) The Company reports its financial results in accordance
with International Financial Reporting Standards as
issued by the International Accounting Standards Board
(IFRS Accounting Standards). Adjusted EBITDA and adjusted
EPS are non-IFRS financial measures. Reconciliations
and explanations for all non-IFRS measures are included
in the Non-IFRS Financial Measures section of this
press release.
QUESTIONS AND ANSWERS SESSION
The Company will hold a Q&A session on its first quarter 2025 results today at 10:30 a.m. Vancouver time (1:30 p.m. Toronto time). Management's pre-recorded remarks and an investor presentation that will be referenced on the conference call are available here or by navigating through the Company's website at www.premiumbrandsholdings.com.
Access to the Q&A session may be obtained by calling the operator at (289) 514-5100 or (800) 717-1738 (Conference ID: 07724) up to ten minutes prior to the scheduled start time. For those who are unable to participate, a recording of the conference call will be available through to 11:59 p.m. Toronto time on June 7, 2025 at (289) 819-1325 or (888) 660-6264 (passcode: 07724#). Alternatively, a recording of the conference call will be available on the Company's website at www.premiumbrandsholdings.com.
SUMMARY FINANCIAL INFORMATION
(In millions of dollars except per share amounts and ratios)
13 weeksendedMar 13 weeksendedMar
29,2025 30,2024
Revenue 1,679.2 1,461.8
Adjusted EBITDA(1) 136.5 121.0
Earnings 2.6 6.3
EPS 0.06 0.14
Adjusted earnings(1) 30.5 24.0
Adjusted EPS(1) 0.68 0.54
Trailing Four Quarters Ended
Mar 29,2025 Mar 30,2024
Free cash flow(1) 258.1 251.0
Free cash flow per share 5.81 5.65
Declared dividends 152.1 141.1
Declared dividend per share 3.40 3.16
Payout ratio(1) 58.9 % 56.2 %
(1) Reconciliations for all non-IFRS measures are
included in the Non-IFRS Financial Measures section
of this press release.
"We are pleased to report another quarter of solid progress in leveraging recent capital allocations to create long-term sustainable value for our shareholders. This was despite significant cost inflation for certain raw materials and a volatile consumer environment created by tariff-related uncertainties.
"Our core protein, sandwich and bakery sales initiatives in the U.S. were again the big drivers of our performance generating total organic growth for the quarter of over $100 million and an organic volume growth rate of 9.9%. We have invested almost $900 million over the last three plus years to support these initiatives and are now starting to realize the related benefits. Corresponding with this progress, we reaffirmed our sales and adjusted EBITDA guidance for 2025," said Mr. George Paleologou, President and CEO.
"Recent acquisitions also helped drive our sales growth, however, as expected they were a drag on our profitability as we are in the early innings of implementing a variety of operational and best-practice initiatives that will significantly improve their margins over the coming quarters.
"On the acquisitions front, we continue to enjoy a robust deal pipeline and are working on several exciting opportunities that we expect to close in the coming quarters. We are, however, committed to deleveraging our balance sheet over the course of 2025 and any transactions we complete will be done within this context.
"In terms of the current tariff related challenges, we made solid progress in the quarter on mitigating our exposure and are confident that an escalation of the trade disputes between Canada and the U.S. will not have a direct material impact on our business," added Mr. Paleologou.
SECOND QUARTER 2025 DIVIDEND
The Company also announced that its Board of Directors approved a cash dividend of $0.85 per common share for the second quarter of 2025, which will be payable on July 15, 2025 to shareholders of record at the close of business on June 30, 2025.
Unless indicated otherwise in writing at or before the time the dividend is paid, each dividend paid by the Company in 2025 or a subsequent year is an eligible dividend for the purposes of the Enhanced Dividend Tax Credit System.
ABOUT PREMIUM BRANDS
Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada and the United States.
www.premiumbrandsholdings.com
RESULTS OF OPERATIONS
The Company reports on two reportable segments, Specialty Foods and Premium Food Distribution, as well as non-segmented investment income and corporate costs (Corporate). The Specialty Foods segment consists of the Company's specialty food manufacturing businesses while the Premium Food Distribution segment consists of the Company's differentiated distribution and wholesale businesses as well as certain seafood processing businesses. Investment income includes interest and management fees generated from the Company's businesses that are accounted for using the equity method.
Revenue
(in millions of dollars except percentages)
13 weeks %(1) 13 weeks %(1)
endedMar 29, endedMar 30,
2025 2024
Revenue by segment:
Specialty Foods 1,173.3 69.9 % 987.4 67.5 %
Premium Food Distribution 505.9 30.1 % 474.4 32.5 %
Consolidated 1,679.2 100.0 % 1,461.8 100.0 %
(1) Expressed as a percentage of consolidated revenue.
Specialty Foods' $(SF)$ revenue for the quarter increased by $185.9 million or 18.8% primarily due to: (i) business acquisitions, which generated $75.6 million in growth; (ii) organic volume growth of $58.2 million representing an organic volume growth rate (OVGR) of 5.9%; (iii) a $34.9 million increase in the translated value of sales generated by SF's U.S. based businesses due to a weaker Canadian dollar; and (iv) selling price increases of $17.2 million, which were put into place to address rising chicken and beef costs.
SF's OVGR of 5.9% was driven by: (i) a variety of protein, sandwich and baked goods growth initiatives in the U.S. which generated organic volume growth of $57.8 million representing an OVGR of 9.9%; and (ii) stabilization of its Canadian sales, which grew at an OVGR of just under 1%. These factors were partially offset by a decline in beef jerky sales as this category continues to be challenged by record high beef prices and consumer price sensitivity.
Premium Food Distribution's $(PFD)$ revenue for the quarter increased by $31.5 million or 6.6% due to: (i) selling price inflation of $28.9 million relating primarily to beef, lobster and to a lesser extent salmon products; and (ii) a $3.0 million increase in the translated value of sales generated by PFD's U.S. based businesses due to a weaker Canadian dollar. These factors were partially offset by a sales volume contraction of $0.4 million.
The contraction in PFD's sales volume was primarily due to lower lobster sales resulting from: (i) high selling prices, caused by a challenging Maine lobster fishery, which are impacting demand in the foodservice and retail channels; and (ii) reduced exports to China due to a tariff dispute between the U.S. and China. These factors were mostly offset by strong growth in PFD's Canadian distribution businesses, which grew at an OVGR of approximately 9.1%, driven by: (i) opportunistic inventory buys made in the fourth quarter of 2024; and (ii) solid momentum in several retail sales initiatives in eastern Canada.
Gross Profit
(in millions of dollars except percentages)
13 weeks %(1) 13 weeks %(1)
endedMar 29, endedMar 30,
2025 2024
Gross profit by segment:
Specialty Foods 247.1 21.1 % 223.0 22.6 %
Premium Food Distribution 74.6 14.7 % 74.7 15.7 %
Consolidated 321.7 19.2 % 297.7 20.4 %
(1) Expressed as a percentage of the corresponding
segment's revenue.
SF's gross profit as a percentage of its revenue (gross margin) for the quarter decreased by 150 basis points primarily due to: (i) raw material cost inflation, primarily associated with chicken and to a lesser extent beef products; and (ii) recent acquisitions, which on a combined basis are expected to generate margins below SF's average gross margin for the next several quarters as various sales and operational initiatives are implemented (see Forward Looking Statements). These factors were partially offset by: (i) production efficiency gains; and (ii) sales leveraging benefits associated with SF's organic volume growth.
PFD's gross margin for the quarter decreased by 100 basis points primarily due to: (i) the total of its selling price increases for lobster, beef and salmon products being only slightly higher than the associated commodity cost inflation; and (ii) a reduced allocation of production overhead to inventory resulting from low processed lobster production levels in the quarter.
Selling, General and Administrative Expenses (SG&A)
(in millions of dollars except percentages)
13 weeks %(1) 13 weeks %(1)
endedMar 29, endedMar 30,
2025 2024
SG&A by segment:
Specialty Foods 140.3 12.0 % 129.4 13.1 %
Premium Food Distribution 50.3 9.9 % 50.7 10.7 %
Corporate 9.6 9.5
Consolidated 200.2 11.9 % 189.6 13.0 %
(1) Expressed as a percentage of the corresponding
segment's revenue.
SF's SG&A as a percentage of sales (SG&A ratio) for the quarter decreased by 110 basis points primarily due to: (i) sales leveraging benefits associated with its sales growth; and (ii) recent acquisitions having a lower SG&A ratio relative to SF's average ratio.
PFD's SG&A ratio for the quarter decreased by 80 basis points primarily due to sales leveraging benefits associated with its sales growth.
Adjusted EBITDA (1)
(in millions of dollars except percentages)
13 weeks %(2) 13 weeks %(2)
endedMar 29, endedMar 30,
2025 2024
Adjusted EBITDA by segment:
Specialty Foods 106.8 9.1 % 93.6 9.5 %
Premium Food Distribution 24.3 4.8 % 24.0 5.1 %
Corporate (9.6) (9.5)
Interest income from investments 15.0 12.9
Consolidated 136.5 8.1 % 121.0 8.3 %
(1) Adjusted EBITDA is a non-IFRS financial measure.
Reconciliation and explanations are included in the
Non-IFRS Financial Measures section of this press
release.
(2) Expressed as a percentage of the corresponding
segment's revenue.
Plant Start-up and Restructuring Costs
Plant start-up and restructuring costs consist of expenses associated with: (i) the start-up of new production capacity; (ii) the reconfiguration of existing capacity to gain efficiencies and/or additional capacity; and/or (iii) the restructuring of a business to improve its profitability. The Company expects (see Forward Looking Statements) these investments to result in improvements in its future earnings and cash flows.
During the first quarter of 2025, the Company incurred $6.4 million in plant start-up and restructuring costs relating primarily to the following projects, all of which are expected to expand its capacity and/or generate improved operating efficiencies (see Forward Looking Statements):
-- Reconfiguration of two deli meats facilities in Ontario to improve
production efficiencies and increase dry cured production capacity;
-- Start-up of a new 352,000 square foot sandwich production facility in
Cleveland, Tennessee;
-- Start-up of new cooked protein capacity in Scranton, Pennsylvania; and
-- Start-up of new automation at a new 91,000 square foot artisan bakery in
San Francisco, California.
Equity Earnings (Losses) from Investments in Associates
Equity earnings (losses) from investments in associates includes the Company's proportionate share of the earnings and losses of its investments in associates.
(in millions of dollars) 13 weeks 13 weeks
endedMar 29, endedMar 30,
2025 2024
Clearwater:
Revenue 91.9 123.5
Loss before payments to shareholders (24.8) (6.9)
Net loss (48.2) (25.9)
The Company:
Equity loss in Clearwater (24.1) (13.0)
Other net equity losses (1.1) (0.3)
Equity losses from investments in associates (25.2) (13.3)
Clearwater Seafoods Incorporated (Clearwater)
Clearwater's revenue for the first quarter of 2025 as compared to the first quarter of 2024 decreased by $31.6 million primarily due to: (i) unexpected maintenance on two Canadian vessels that resulted in lost harvesting days; and (ii) below average harvesting conditions for Canadian scallops and clams due to natural variability in these resources and weather-related challenges. These factors were partially offset by higher Argentine scallop volumes due to improved harvesting conditions.
Clearwater's loss before payments to shareholders for the first quarter of 2025 as compared to the first quarter of 2024 increased by $17.9 million primarily due to: (i) lost contribution margin from lower sales volumes; (ii) harvesting and processing inefficiencies associated with lower catch rates; and (iii) higher non-recurring restructuring costs.
Revenue and Adjusted EBITDA Outlook
See Forward Looking Statements for a discussion of the risks and assumptions associated with forward looking statements.
2025 Outlook
(in millions of dollars) Bottom of Range Top of Range Revenue guidance range 7,200 7,400 Adjusted EBITDA guidance range 680 700
The Company is maintaining its 2025 sales and adjusted EBITDA guidance ranges of $7.20 billion to $7.40 billion and $680 million to $700 million, respectively.
These estimates are based on a range of assumptions (see Forward Looking Statements) including: (i) reasonably stable economic environments in Canada and the U.S.; (ii) the Company being able to mostly offset the impact of higher raw material costs (see Results of Operations - Gross Profit) with selling price increases; and (iii) the Canadian dollar remaining at current levels relative to the U.S. dollar.
The Company's guidance does not reflect any potential impact of tariffs imposed on trade between Canada and the U.S. due to a lack of visibility resulting from a rapidly changing state of affairs. It is, however, implementing strategies to mitigate potential impacts in the event that tariffs directly impacting the Company are put into place by the U.S. and/or Canadian governments.
The Company's guidance also does not reflect potential future acquisitions, however, it remains active on this front and is pursuing several opportunities (see Forward Looking Statements).
5 Year Plan
(in millions of dollars) 5-Year Target (2027) Revenue 10,000 Adjusted EBITDA 1,000
The Company has a strong pipeline of sales and acquisition opportunities and remains on track (see Forward Looking Statements) to meet or exceed the five-year targets it set at the beginning of 2023.
Premium Brands Holdings Corporation
Consolidated Balance Sheets
(in millions of Canadian dollars)
Mar 29, Mar 30, Dec 28, Dec 31,2023
2025 2024 2024Restated Restated
Restated
Current assets:
Cash and cash equivalents 14.9 10.2 49.2 27.6
Accounts receivable 476.7 491.2 495.8 509.9
Inventories 965.2 801.5 900.7 746.7
Prepaid expenses and other
assets 50.7 41.5 56.2 43.8
1,507.5 1,344.4 1,501.9 1,328.0
Capital assets 1,456.7 1,252.4 1,422.0 1,163.9
Right of use assets 681.2 575.0 681.6 565.3
Intangible assets 567.8 541.9 555.9 540.6
Goodwill 1,134.6 1,094.9 1,133.9 1,084.1
Investments in and advances
to associates 483.5 450.1 457.1 453.5
Other assets 54.9 21.1 51.4 22.7
Deferred income tax assets 23.0 11.6 14.4 10.2
5,909.2 5,291.4 5,818.2 5,168.3
Current liabilities:
Cheques outstanding 17.9 18.9 29.9 16.4
Bank indebtedness 56.8 14.9 19.1 -
Dividends payable 38.2 37.9 38.1 34.4
Accounts payable and accrued
liabilities 609.6 476.9 579.3 470.9
Current portion of puttable
interest in subsidiaries 32.7 29.2 31.7 30.4
Current portion of long-term
debt 0.9 2.4 1.0 2.0
Current portion of lease
obligations 60.5 54.3 61.9 53.9
Current portion of provisions 8.6 29.7 - 29.9
Convertible unsecured
subordinated debentures 625.1 466.1 470.9 484.5
1,450.3 1,130.3 1,231.9 1,122.4
Long-term debt 1,815.1 1,633.6 1,921.1 1,510.4
Lease obligations 699.1 597.8 695.0 583.4
Puttable interest in
subsidiaries 45.0 42.6 45.3 42.4
Deferred revenue 0.2 2.7 0.2 2.8
Provisions 15.7 17.5 24.2 14.5
Deferred income tax
liabilities 137.6 127.4 131.3 125.9
4,163.0 3,551.9 4,049.0 3,401.8
Equity attributable to
shareholders:
Retained earnings (deficit) (42.4) (12.8) (6.8) 18.8
Share capital 1,725.0 1,703.9 1,721.5 1,703.9
Reserves 63.6 48.4 54.5 43.8
1,746.2 1,739.5 1,769.2 1,766.5
5,909.2 5,291.4 5,818.2 5,168.3
Premium Brands Holdings Corporation
Consolidated Statements of Operations
(in millions of Canadian dollars except per share
amounts)
13 weeks 13 weeks
endedMar 29, endedMar 30,
2025 2024
Revenue 1,679.2 1,461.8
Cost of goods sold 1,357.5 1,164.1
Gross profit before depreciation, amortization,
and
plant start-up and restructuring costs 321.7 297.7
Interest income from investments in associates 15.0 12.9
Selling, general and administrative expenses
before
depreciation and amortization 200.2 189.6
Operating profit before depreciation,
amortization,
and plant start-up and restructuring costs 136.5 121.0
Depreciation of capital assets 26.1 24.4
Amortization of intangible assets 6.3 5.5
Amortization of right of use assets 19.3 16.8
Accretion of lease obligations 8.4 7.4
Plant start-up and restructuring costs 6.4 10.8
Interest and other financing costs 41.9 40.4
Acquisition transaction costs 0.7 1.1
Change in value of puttable interest in
subsidiaries 1.0 2.6
Change in value and accretion of provisions 0.2 3.3
Equity losses (earnings) from investments in
associates 25.2 13.3
Change in fair value of option liabilities (12.0) (20.0)
Other expenses 0.9 -
Earnings before income taxes 12.1 15.4
Provision for income taxes (recovery)
Current 11.4 10.2
Deferred (1.9) (1.1)
9.5 9.1
Earnings 2.6 6.3
Earnings per share:
Basic 0.06 0.14
Diluted 0.06 0.14
Weighted average shares outstanding (in
millions):
Basic 44.6 44.4
Diluted 44.8 44.6
Premium Brands Holdings Corporation
Consolidated Statements of Cash Flows
(in millions of Canadian dollars)
13 weeks 13 weeks
endedMar 29, endedMar 30,
2025 2024
Cash flows from (used in) operating activities:
Earnings 2.6 6.3
Items not involving cash:
Depreciation of capital assets 26.1 24.4
Amortization of intangible assets 6.3 5.5
Amortization of right of use assets 19.3 16.8
Accretion of lease obligations 8.4 7.4
Change in value of puttable interest in
subsidiaries 1.0 2.6
Equity losses (earnings) from investments in
associates 25.2 13.3
Non-cash financing costs 2.2 1.9
Change in value and accretion of provisions 0.2 3.3
Change in fair value of option liabilities (12.0) (20.0)
Deferred income tax recovery (1.9) (1.1)
Other expenses 0.9 -
78.3 60.4
Change in non-cash working capital (27.6) (32.3)
50.7 28.1
Cash flows from (used in) financing activities:
Long-term debt, borrowings 305.0 131.6
Long-term debt, repayments (393.4) (40.7)
Payments for lease obligations (24.4) (19.6)
Bank indebtedness and cheques outstanding 25.7 17.4
Dividends paid to shareholders (38.1) (34.4)
Proceeds from issuance of convertible debentures
--
net of issuance costs 164.6 -
39.4 54.3
Cash flows from (used in) investing activities:
Capital asset additions (66.2) (98.0)
Business acquisitions (19.8) -
Payment of provisions - (1.4)
Payment to shareholders of non-wholly owned
subsidiaries - (3.0)
Net change in share purchase loans and notes
receivable 0.2 0.8
Investments in and advances to associates -- net
of
distributions (38.6) 1.8
(124.4) (99.8)
Change in cash and cash equivalents (34.3) (17.4)
Cash and cash equivalents -- beginning of period 49.2 27.6
Cash and cash equivalents -- end of period 14.9 10.2
Supplemental cash flow information
Interest and other financing costs paid 41.8 40.2
Income taxes paid 23.0 14.4
NON-IFRS FINANCIAL MEASURES
The Company uses certain non-IFRS financial measures including adjusted EBITDA, free cash flow, adjusted earnings and adjusted earnings per share, which are not defined under IFRS and, as a result, may not be comparable to similarly titled measures presented by other publicly traded entities, nor should they be construed as an alternative to other earnings measures determined in accordance with IFRS. These non-IFRS measures are calculated as follows:
Adjusted EBITDA
(in millions of dollars) 13 weeks 13 weeks
endedMar 29,2025 endedMar 30,2024
Earnings before income taxes 12.1 15.4
Plant start-up and restructuring
costs 6.4 10.8
Depreciation of capital assets 26.1 24.4
Amortization of intangible assets 6.3 5.5
Amortization of right of use assets 19.3 16.8
Accretion of lease obligations 8.4 7.4
Interest and other financing costs 41.9 40.4
Acquisition transaction costs 0.7 1.1
Change in value of puttable interest
in subsidiaries 1.0 2.6
Change in value and accretion of
provisions 0.2 3.3
Equity losses (earnings) from
investments in associates 25.2 13.3
Change in fair value of option
liabilities (12.0) (20.0) Other expenses 0.9 - Adjusted EBITDA 136.5 121.0
Free Cash Flow
(in millions of 52 13 13 RollingFourQuarters
dollars) weeksendedDec weeksendedMar weeksendedMar
28,2024 29,2025 30,2024
Cash flow from
operating
activities 253.1 50.7 28.1 275.7
Changes in
non-cash
working capital 74.9 27.6 32.3 70.2
328.0 78.3 60.4 345.9
Lease obligation
payments (81.5) (24.4) (19.6) (86.3)
Business
acquisition
transaction
costs 5.8 0.7 1.1 5.4
Plant start-up
and
restructuring
costs 43.7 6.4 10.8 39.3
Maintenance
capital
expenditures (45.2) (14.3) (13.3) (46.2)
Free cash flow 250.8 46.7 39.4 258.1
Adjusted Earnings and Adjusted Earnings per Share
(in millions of dollars except per share amounts) 13 weeks 13 weeks
endedMar 29, endedMar 30,
2025 2024
Earnings 2.6 6.3
Plant start-up and restructuring costs 6.4 10.8
Amortization of intangible assets 6.3 5.5
Acquisition transaction costs 0.7 1.1
Change in value of puttable interest in subsidiaries 1.0 2.6
Change in value and accretion of provisions 0.2 3.3
Equity losses (earnings) from investments in associates 25.2 13.3
Change in fair value of option liabilities (12.0) (20.0)
Other expenses 0.9 -
31.3 22.9
Current and deferred income tax effect of above items,
and unusual tax recovery (0.8) 1.1
Adjusted earnings 30.5 24.0
Weighted average shares outstanding 44.6 44.4
Adjusted earnings per share 0.68 0.54
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements with respect to the Company, including, without limitation, statements regarding its business operations, strategy and financial performance and condition, cash distributions, proposed acquisitions, budgets, projected costs and plans and objectives of or involving the Company. While management believes that the expectations reflected in such forward looking statements are reasonable and represent the Company's internal expectations and belief as of May 7, 2025, there can be no assurance that such expectations will prove to be correct as such forward looking statements involve unknown risks and uncertainties beyond the Company's control which may cause its actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward looking statements.
Forward looking statements generally can be identified by the use of the words "may", "could", "should", "would", "will", "expect", "intend", "plan", "estimate", "project", "anticipate", "believe" or "continue", or the negative thereof or similar variations. Forward looking statements in this press release include statements with respect to the Company's expectations and/or projections on its: revenue; adjusted EBITDA; plant start-up and restructuring costs; income tax rates; dividends and dividend policy; capital expenditures and business acquisitions; convertible debentures; net working capital; liquidity outlook; financial leverage ratios; value of puttable interests; and sale and leaseback and lease renewal transactions.
Some of the factors that could cause actual results to differ materially from the Company's expectations are referenced in the Risks and Uncertainties section in the Company's MD&A for the 13 weeks ended March 29, 2025.
Assumptions used by the Company to develop forward looking statements contained or incorporated by reference in this press release are based on information currently available to it and include those outlined below as well as those outlined elsewhere in this document. Readers are cautioned that this information is not exhaustive.
-- The Company will be able to achieve the projected sales growth and
operating efficiencies associated with the capital investments it has
made in recent years.
-- There will not be any material changes in the long-term food trends that
have been driving growth in many of the Company's businesses. These
include: (i) growing demand for higher quality foods made with simpler,
more wholesome ingredients and/or with differentiated attributes such as
zero sugar, antibiotic free, no added hormones or use of organic
ingredients; (ii) increased reliance on healthier and less processed
convenience-oriented foods both for on-the-go snacking as well as easy
meal preparation, both at home and in foodservice; (iii) healthier eating,
including reduced sugar consumption and an increased emphasis on animal
protein and seafood; (iv) increased snacking in between and in place of
meals; (v) increased interest in understanding the provenance of
individual food products; and (vi) increased social awareness of issues
such as reconciliation with Indigenous Peoples, sustainability, and
ethical supply chain practices.
-- There will not be any material changes in the competitive environment of
the markets in which the Company's businesses compete.
-- There will not be any material changes in the Company's relationships
with its larger customers including the loss of a major product listing
and/or being forced to give significant product pricing concessions.
-- The Company will be able to offset significant increases in the average
cost of procured products and raw materials purchased by it with selling
price increases.
-- The Company will be able to access sufficient goods and services at
reasonable prices.
-- The Company will be able to access sufficient skilled and unskilled labor
at reasonable wage levels.
-- The value of the Canadian dollar relative to the U.S. dollar will
fluctuate in line with the levels seen over the last several months.
-- The Company's major capital projects, plant start-up and restructuring,
and business acquisition initiatives will progress in line with its
expectations.
-- Weather conditions in the Company's core markets will not have a
significant impact on any of its businesses.
-- The Company will be able to negotiate new collective agreements with no
labor disruptions.
-- The Company will be able to access reasonably priced debt and equity
capital.
-- Contractual counterparties will continue to fulfill their obligations to
the Company.
-- There will be no material changes to the tax, environmental and other
regulatory requirements governing the Company.
Management has set out the above summary of assumptions related to forward looking statements included in this press release to provide a more complete perspective on the Company's future operations. Readers are cautioned that these statements may not be appropriate for other purposes.
Unless otherwise indicated, the forward looking statements in this press release are made as of May 7, 2025 and, except as required by applicable law, will not be publicly updated or revised. This cautionary statement expressly qualifies the forward looking statements in this press release.
SOURCE Premium Brands Holdings Corporation
View original content: http://www.newswire.ca/en/releases/archive/May2025/07/c8486.html
/CONTACT:
For further information, please contact George Paleologou, President and CEO, or Will Kalutycz, CFO at (604) 656-3100.
Copyright CNW Group 2025
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May 07, 2025 07:30 ET (11:30 GMT)
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