Premium Brands Holdings Corp T.PBH

Teal Linde - BNN - BUY

[Possibleidiot01]

BUY

Premium Brands Holdings Corp(PBH-T)

11/12/2023

 

It is starting another 5 year plan to bring their sales up to $10 billion. This time it wants 80% of growth to be organic which is better since there will be more within its control. For this to happen it will need to increase revenue by 9 1/2%, more than the increase needed before. Although traction has not yet started, it can raise or hold prices since all are branded products. It is a good buy for the long term.

food processing

 

N/A

Owned

[Luxor69]

Long term are good words to focus in Teale's comments. In a deflationary market it could be difficult to hold, let alone raise prices. That said, inputs should cost less and gross margins could be maintained.  With a 10% deflationary decrease in selling prices, this equals $600 million to Premium annual top line using a 6 billion forecast. Based on most recent 9.7% adjusted EBITDA margin