Premium Brands: Announces Record Q2-2018 Results

Vancouver / CA. (pbh) Premium Brands Holdings Corporation, a leading producer, marketer and distributor of branded specialty food products, announced its results for the second quarter of 2018. Highlights:

• Record revenue of CAD 761.5 million representing a 31.9 percent or CAD 184.1 million increase as compared to the second quarter of 2017. The Company’s organic volume growth rate for the quarter was 6.6 percent.
• Record adjusted Ebitda of CAD 74.2 million representing a 34.9 percent or CAD 19.2 million increase as compared to the second quarter of 2017.
• Record adjusted earnings of CAD 1.10 per share representing a 17.0 percent or CAD 0.16 per share increase as compared to the second quarter of 2017.
• The Company increased its sales and adjusted Ebitda guidance for 2018.
• Subsequent to the quarter the Company acquired a 62.6 percent interest in Ontario based chicken processor Yorkshire Valley Farms and the sandwich business of Minnesota based Select Food Products for a total combined purchase price of approximately CAD 46.2 million.
• Also subsequent to the quarter the Company declared a quarterly dividend of CAD 0.475 per share.

«We continue to make solid progress in building our business platforms into industry leaders by providing our talented management teams with the resources they need to grow and diversify their businesses, both through organic initiatives and acquisitions. In turn this is resulting in continued record top and bottom line growth for Premium Brands as shown by our most recent quarterly results», said George Paleologou, President and CEO. «In particular, we are very pleased with how the talented management teams of our most recently acquired businesses are already leveraging their new relationships with us and our other partners to generate significant synergies and new growth opportunities. These entrepreneurs are not only opening up new product segments for us, but are further advancing our lead in many exciting categories such as meat snacks, sandwiches, dry cured meats, cooked protein and seafood.

«We are as excited about the future and about our ability to create long-term sustainable value for our shareholders as we have ever been. Inevitably there will be bumps in the road, but we have no doubts about the path we are on. A great example of how far we have come is that we now visualize many of our platforms becoming billion dollar businesses versus not that long ago when this was our goal for Premium Brands as a whole. Our Sandwich Platform is almost there and we expect several of our other platforms to reach the billion-dollar target within the next five years.

«Our strategy of empowering successful food entrepreneurs to build their businesses into world class entities, without compromising their values and passion for producing great tasting products, is simple but it is at the heart of what is driving our success.

«2018 has been a very busy year for us in terms of acquisitions. So far we have invested over CAD 541 million in new businesses and we expect the back half of the year to continue to be busy as our pipeline of opportunities remains very robust. As the partner of choice for a growing number of successful food entrepreneurs across North America, the length of our runway is expanding, not contracting», said Paleologou. «I am very much looking forward to welcoming more great companies to our unique ecosystem», added Paleologou.