PREMIUM BRANDS HOLDINGS CORPORATION REPORTS RECORD FIRST QUARTER SALES AND ADJUSTED EBITDA AND DECLARES SECOND QUARTER DIVIDEND

VANCOUVER, BC, May 15, 2023

• Record first quarter revenue of $1.43 billion representing a 14.3%, or $179.3 million, increase as compared to the first quarter of 2022
• Record first quarter adjusted EBITDA¹ of $110.7 million representing a 15.6%, or $14.9 million, increase as compared to the first quarter of 2022
• First quarter adjusted EPS¹ of $0.64 per share representing a 27.3%, or $0.24 per share decrease as compared to the first quarter of 2022
• Declared a dividend of $0.77 per common share for the second quarter of 2023
• Purchased 17,500 common shares under a normal course issuer bid for $1.4 million representing an average per share cost of $82.60
• Sales and adjusted EBITDA guidance for 2023 was reaffirmed

The Company will hold a conference call to discuss its first quarter 2023 results today at 10:30 a.m. Vancouver time (1:30 p.m. Toronto time).  An investor presentation that will be referenced on the conference call is available here or by navigating through the Company's website at www.premiumbrandsholdings.com.

Access to the call may be obtained by calling the operator at (416) 764-8646 or (888) 396-8049 (Conference ID: 594941184) up to ten minutes prior to the scheduled start time. For those who are unable to participate, a recording of the conference call will be available through to 12:00 a.m. Toronto time on May 29, 2023 at (877) 674-7070 (passcode: 494184#).  Alternatively, a recording of the conference call will be available at the Company's website at www.premiumbrandsholdings.com.

(In millions of dollars except per share amounts and ratios)
	13 weeks ARIVA.DE Börsen-Geflüster Kurse Prestige Brands 70,47 $ +0,47% ended Apr 1, 2023		13 weeks ended Mar 26, 2022
Revenue	1,430.5		1,251.2
Adjusted EBITDA1	110.7		95.8
Earnings	5.9		22.4
EPS	0.13		0.50
Adjusted earnings1	28.6		39.4
Adjusted EPS1	0.64		0.88
	Trailing Four Quarters Ended
	Apr 1, 2023		Mar 26, 2022
Free cash flow1	273.0		269.8
Free cash flow per share	6.13		6.16
Declared dividends	128.3		115.2
Declared dividend per share	2.87		2.61
Payout ratio1	47.0	%	42.7	%

"As we emerge from the challenges of the past several years, we continue to gain momentum posting another quarter of record sales and adjusted EBITDA.  Looking forward, we expect the steady improvement in our performance to accelerate through the year as many of our businesses have recently completed or are near completing major capacity expansions that will support a variety of new product launches as well as expansion into additional markets and channels.  Correspondingly, we are very well positioned to meet or exceed our 2023 sales and adjusted EBITDA targets," said Mr. Paleologou, President and CEO.

"While higher interest costs resulted in our earnings for the quarter being down from last year, we expect this to be an anomaly resulting from the first quarter being our seasonally slowest," stated Mr. Paleologou.  "As we head into our busier second and third quarters, we are very well positioned to generate another year of record earnings," added Mr. Paleologou.

"Subsequent to the quarter, our Sandwich Group commissioned a new 67,000 square foot state-of-the-art sandwich plant in Edmonton, Alberta.  The ramp-up is going very well, and the plant should be fully operational by the end of this month," said Mr. Paleologou.  "On the acquisitions front, we didn't complete any transactions during the quarter, however, our pipeline remains full, and we are working on several exciting opportunities that we expect to complete in the coming quarters," added Mr. Paleologou.

The Company also announced that its Board of Directors approved a cash dividend of $0.77 per share for the second quarter of 2023, which will be payable on July 14, 2023 to shareholders of record at the close of business on June 30, 2023.

Unless indicated otherwise in writing at or before the time the dividend is paid, each dividend paid by the Company in 2023 or a subsequent year is an eligible dividend for the purposes of the Enhanced Dividend Tax Credit System.

Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada and the United States.

www.premiumbrandsholdings.com

The Company reports on two reportable segments, Specialty Foods and Premium Food Distribution, as well as non-segmented investment income and corporate costs (Corporate).  The Specialty Foods segment consists of the Company's specialty food manufacturing businesses while the Premium Food Distribution segment consists of the Company's differentiated distribution and wholesale businesses as well as certain seafood processing businesses.  Investment income includes interest and management fees generated from the Company's businesses that are accounted for using the equity method.

As part of a realignment of certain businesses and management responsibilities, starting in fiscal 2023 the Company reclassified a business from the Premium Food Distribution segment to the Specialty Foods segment.  All comparative information has been retrospectively restated.

Specialty Foods' (SF) revenue for the quarter increased by $147.0 million or 18.3% primarily due to: (i) selling price inflation of $51.5 million; (ii) business acquisitions, which accounted for $32.4 million of SF's growth; (iii) a $33.7 million increase in the translated value of sales generated by SF's U.S. based businesses due to a weaker Canadian dollar – approximately 57% of SF's revenue for the quarter was generated by these businesses; and (iv) organic volume growth of $29.4 million representing an organic volume growth rate (OVGR) of 3.7%. 

SF's OVGR, which was driven primarily by its artisan sandwich, cooked protein and specialty baked goods initiatives, was slightly below its long-term targeted range of 4% to 6% primarily due to: (i) the first quarter generally being its slowest as a result of seasonal factors; (ii) lower sales of branded protein products in the retail channel as consumer spending on out-of-home dining normalized to pre-pandemic levels; and (iii) a shortage of turkey raw materials caused by industry wide supply challenges.

Premium Food Distribution's (PFD) revenue for the quarter increased by $32.3 million or 7.2% due to: (i) organic volume growth of $37.4 million representing an OVGR of 8.3%; and (ii) a $3.8 million increase in the translated value of sales generated by PFD's U.S. based businesses due to a weaker Canadian dollar.  These factors were partially offset by selling price deflation of $8.9 million, which related primarily to lower lobster market prices.

PFD's OVGR of 8.3%, which was above its long-term targeted range of 4% to 6%, was driven primarily by the continued post pandemic recovery in sales to foodservice and cruise line customers as consumer spending in these channels normalized to pre-pandemic levels. 

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