- Adjusted Earnings Per Share (EPS) for Premium Brands in Q2 was C$1.33, surpassing both last year’s C$1.28 and the estimated C$1.30.
- Total revenue increased by 12% year-over-year to C$1.91 billion, beating the estimate of C$1.87 billion.
- Specialty Foods revenue rose by 14% to C$1.31 billion, matching the estimate.
- Premium Food Distribution revenue went up by 9.5% year-over-year to C$603.1 million, exceeding the expected C$573.3 million.
- Gross profit totaled C$361.9 million, which is a 3.5% increase from the previous year.
- Specialty Foods gross profit saw a 4.2% rise to C$265.7 million, though falling short of the C$280.3 million estimate.
- Premium Food Distribution gross profit amounted to C$96.2 million, up by 1.6% and surpassing the forecast of C$92.3 million.
- Adjusted EBITDA was C$177.1 million, an increase of 7.6% year-over-year, beating the C$174 million estimate.
- Specialty Foods Adjusted EBITDA increased by 5% to C$126.9 million, but did not meet the C$131.3 million estimate.
- Premium Food Distribution Adjusted EBITDA rose 7.8% to C$44.0 million, surpassing the expected C$38.2 million.
- The company reaffirmed its 2025 sales and adjusted EBITDA guidance ranges, projecting sales between $7.2 billion and $7.4 billion, and EBITDA between $680 million and $700 million.
- Premium Brands’ Sandwich Group experienced a slight volume contraction due to a challenging comparison with a significant product launch in the second quarter of 2024.
- The company noted that their Q2 sales performance reflects ongoing success in capital investments and acquisitions aimed at achieving sustained growth.
- The stock has 8 buy recommendations, 4 holds, and no sell recommendations from analysts.
“`
A look at Premium Brands Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Premium Brands Holdings is positioned for a positive long-term outlook. With strong ratings in Dividend and Momentum, the company shows promise for steady returns and growth. Additionally, its resilience score indicates a stable foundation in the face of market fluctuations. These factors suggest that Premium Brands Holdings is well-positioned for future success in the food processing industry.
As a food processing company operating in both Canada and the United States, Premium Brands Holdings offers a diverse range of branded specialty processed meats, sandwiches, burgers, and frozen foods. Catering to various segments including food service, retail, and wholesale, the company has established a solid presence in the market. With a balanced mix of value, growth, and dividend potential, Premium Brands Holdings presents a compelling investment opportunity for those eyeing long-term gains in the sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
