Premium Brands Holdings Corp T.PBH.DB.G

Primary Symbol: T.PBH Alternate Symbol(s): PRBZF | T.PBH.DB.H | T.PBH.DB.I

Consumer Defensive Packaged Foods

Premium Brands Holdings Corporation is a Canada-based company, which owns a range of specialty food manufacturing and differentiated food distribution businesses with operations across Canada and the United States. The Company operates through two segments: Specialty Foods and Premium Food Distribution. The Specialty Foods segment consists of its specialty food manufacturing businesses. The Premium Food Distribution segment consists of its differentiated distribution and wholesale businesses as well as certain seafood processing businesses. It provides servicing to approximately 22,000 customers. The logo and its family of brands and businesses includes Harvest Meats, Hempler's, Piller's, Grimm's Fine Foods, Freybe, Isernio's, Expresco and SJ Fine Foods. The Company operates in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia and in Arizona, Minnesota, Mississippi, Nevada, Ohio and Washington.

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Premium Brands Holdings Corp

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Post by retiredcfon Aug 05, 2022 9:00am

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Post# 34873560

RBC

August 5, 2022

Premium Brands Holdings Corp.
Q2 revenue ahead of forecasts, Adjusted EBITDA in line

TSX: PBH | CAD 101.32 | Sector Perform | Price Target CAD 125.00

Sentiment: Neutral

First impression: Premium Brands Holdings Corp. (“PBH”) reported Q2 sales that were ahead of RBC and consensus forecasts. Adjusted EBITDA of $130.8MM was largely in line with RBC/consensus forecasts of $133.2MM/$127.7MM, while Adjusted EBITDA margin of 8.6% was in line with the consensus forecast of 8.7% (RBC: 9.2%). Segmented commentary indicates that Q2 YoY top- line growth in both segments was driven primarily by pricing, while organic volume growth was -0.5% in Specialty foods and +4.4% in Premium Food Distribution. On a consolidated basis, gross profit margin % was below our forecast, while SG&A as a % of sales was in line (Investment Income of $15.1MM was above our forecast of $13.0MM), driving Adjusted EBITDA largely in line with forecasts. See Exhibit 1 for results details vs. forecasts.

Revenue guidance increased: PBH increased its 2022 revenue guidance range to $5.75B-$6.00B (vs. $5.60B-$5.85B previously) and maintained its Adjusted EBITDA guidance range of $510MM-530MM (implying a 2022 margin of 8.5%-9.2%).

Q2 2022 results details:

• Consolidated Sales: $1,519.9MM (+23.1% YoY) vs. RBC/consensus forecast of $1,448.7MM/$1,459.5MM Specialty Foods: $929.3MM (+19.8% YoY), above RBC forecast of $898.6MM
Premium Food Distribution: $590.6MM (+28.6% YoY), above RBC forecast of $550.1M

• Consolidated Adjusted EBITDA: $130.8MM (+16.6% YoY) vs. RBC/ consensus forecasts of $133.2MM/$127.7MM Investment Income: $15.1MM, above RBC forecast of $13.0MM