Premium Brands Reports Record Q1 2024 Results, Reaffirms Outlook

Premium Brands Holdings Corporation reports record Q1 2024 sales of $1.46 billion, a 2.2% increase from Q1 2023. The company also declares a second-quarter dividend of $0.85 per share, payable on July 15, 2024.

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Aqsa Younas Rana
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Premium Brands Reports Record Q1 2024 Results, Reaffirms Outlook

Premium Brands Reports Record Q1 2024 Results, Reaffirms Outlook

Premium Brands Holdings Corporation (TSX: PBH) announced its record-breaking first-quarter results for 2024 on May 13, with revenue reaching $1.46 billion, a 2.2% or $31.3 million increase compared to Q1 2023. The company also reported solid progress on its Specialty Foods core U.S. growth initiatives in sandwiches, protein, and baked goods, generating an organic volume growth rate of 9.7% and total sales of $580.8 million.

Why this matters: The strong performance of Premium Brands Holdings Corporation has implications for the overall food industry, as it demonstrates the company's ability to adapt to changing market conditions and invest in growth initiatives. This could have a ripple effect on other companies in the industry, influencing their strategies and investments in the coming quarters.

Other key highlights for the quarter include record first-quarter adjusted EBITDA of $121.0 million, up 9.3% or $10.3 million from Q1 2023, and an adjusted EBITDA margin of 8.3%, an improvement from 7.7% in the prior year. The Specialty Foods adjusted EBITDA margin reached 9.5%, a 90 basis point increase. Adjusted EPS came in at $0.54 per share, a 15.6% or $0.10 per share decrease from Q1 2023.

Mr. Paleologou, President and CEO, commented on the results, stating, "Over the last three years, we have made significant capital investments in building the capacity needed to support our U.S. growth initiatives in protein, sandwiches, and artisan baked goods. With many of these projects now coming online, we are starting to see their potential as shown in our record sales and adjusted EBITDA for the quarter, despite facing a challenging macroeconomic backdrop in Canada." Premium Brands Holdings reports positive signs for its lobster businesses, with a solid start to the first Canadian fishery of 2024.

Looking ahead, Premium Brands expects its U.S. growth initiatives to continue building momentum in the busier second and third quarters, driven by new customer and product listing opportunities. The company is also seeing positive signs for its lobster businesses, with a solid start to the first Canadian fishery of 2024. As a result, Premium Brands is reaffirming its previous sales and adjusted EBITDA guidance for the full year 2024.

On the acquisition front, Premium Brands continues to enjoy a robust deal pipeline and is working on several exciting opportunities that it expects to close in the coming quarters. The company's Board of Directors has approved a cash dividend of $0.85 per share for the second quarter of 2024, payable on July 15, 2024, to shareholders of record at the close of business on June 28, 2024.

Premium Brands' first-quarter results demonstrate the company's ability to drive growth and improve profitability, particularly in its core U.S. Specialty Foods business, despite challenges in the Canadian market. With a strong pipeline of acquisition opportunities and the continued momentum of its growth initiatives, Premium Brands is well-positioned for success in the remainder of 2024.

Key Takeaways

  • Premium Brands reports record Q1 sales of $1.46 billion, up 2.2% from Q1 2023.
  • Specialty Foods core U.S. growth initiatives drive 9.7% organic volume growth.
  • Record Q1 adjusted EBITDA of $121.0 million, up 9.3% from Q1 2023.
  • Company reaffirms full-year 2024 sales and adjusted EBITDA guidance.
  • Declares $0.85 per share dividend for Q2 2024, payable on July 15, 2024.