PREMIUM BRANDS HOLDINGS CORPORATION REPORTS RECORD SECOND QUARTER SALES AND ADJUSTED EBITDA AND DECLARES THIRD QUARTER DIVIDEND - 14.08.23 - News

VANCOUVER, BC, Aug. 14, 2023

SECOND QUARTER HIGHLIGHTS

Record second quarter revenue of $1.63 billion representing a 7.3%, or $111.0 million, increase as compared to the second quarter of 2022
Record second quarter revenue for the Company's Specialty Foods segment which generated organic volume growth of 8.1% and total growth of 14.2%
Record second quarter adjusted EBITDA¹ of $152.4 million representing a 16.5%, or $21.6 million, increase as compared to the second quarter of 2022
A 9.3% adjusted EBITDA margin, up from 8.6% in the second quarter of 2022
Second quarter adjusted EPS¹of $1.27 per share representing an 8.0%, or $0.11 per share decrease as compared to the second quarter of 2022
Declared a dividend of $0.77 per common share for the third quarter of 2023
Sales and adjusted EBITDA guidance for 2023 reaffirmed
Announced plans to consolidate three Ontario specialty foods production facilities totaling 65,000 square feet, into a new 109,000 square foot facility in Brampton, Ontario

¹	The Company reports its financial results in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Adjusted EBITDA and adjusted EPS are non-IFRS financial measures. Reconciliations and explanations for all non-IFRS measures are included in the Non-IFRS Financial Measures section of this press release.

QUESTIONS AND ANSWERS SESSION

The Company will hold a Q&A session on its second quarter 2023 results today at 10:30 a.m. Vancouver time (1:30 p.m. Toronto time). Management's pre-recorded remarks and an investor presentation that will be referenced on the conference call are available here or by navigating through the Company's website at www.premiumbrandsholdings.com.

Access to the Q&A session may be obtained by calling the operator at (416) 764-8646 or (888) 396-8049 (Conference ID: 57795699) 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 11:59 p.m. Toronto time on September 14, 2023 at (877) 674-7070 (passcode: 795699#). Alternatively, a recording of the conference call will be available at the Company's website at www.premiumbrandsholdings.com.

SUMMARY FINANCIAL INFORMATION

(In millions of dollars except per share amounts and ratios)

13 weeks
ended
Jul 1,
2023

ARIVA.DE Börsen-Geflüster

Kurse

Prestige Brands

70,47 $

+0,47%

13 weeks

ended

Jun 25,

2022

26 weeks

ended

Jul 1,

2023

26 weeks

ended

Jun 25,

2022

Revenue

1,630.9

1,519.9

3,061.4

2,771.1

Adjusted EBITDA¹

152.4

130.8

263.1

226.6

Earnings

33.9

63.3

39.8

85.7

EPS

0.76

1.42

0.90

1.92

Adjusted earnings¹

56.3

61.5

84.8

100.9

Adjusted EPS¹

1.27

1.38

1.91

2.26

	Trailing Four Quarters Ended
	Jul 1, 2023	Jun 25, 2022

Free cash flow¹	266.8	276.3
Free cash flow per share	5.99	6.27
Declared dividends	131.4	118.8
Declared dividend per share	2.94	2.67
Payout ratio¹	49.3 %	43.0 %


¹	Reconciliations for all non-IFRS measures are included in the Non-IFRS Financial Measures section of this press release.

"We are pleased to report another quarter of record sales and adjusted EBITDA as we continue to execute our various growth strategies," said Mr. George Paleologou, President and CEO. "The key driver of our performance was our Specialty Foods group of companies, which generated organic volume growth of over 8%, despite a difficult year-over-year comparison, while increasing its adjusted EBITDA margin by 80 basis points to 10.1%," said Mr. Paleologou. "With the chaos of the pandemic quickly fading, we are starting to show the value creation potential of this group, in which we have invested over $1.5 billion in the last five years. Looking forward, we expect the group's performance to continue to improve, and even accelerate in the latter part of the year as several major capacity expansions come on stream.

"A particular area of success for our Specialty Foods group of businesses, which produces a variety of premium products in high growth categories such as premium sandwiches, charcuterie, artisan baked goods, cooked protein and meat snacks, has been its U.S. based strategies, which drove approximately two thirds of its organic volume growth in the quarter," added Mr. Paleologou.

"Our overall results for the quarter were, however, tempered by several challenges faced by our Premium Food Distribution group of businesses," said Mr. Paleologou. "While some of these challenges will continue into the back half of the year, they are all transitory in nature and we remain confident in the long-term potential of this group.

"Our acquisitions pipeline remains full, and we are close to moving several early-stage conversations involving larger businesses into active and advanced stage discussions. Correspondingly we expect to complete several transactions in the coming quarters," added Mr. Paleologou.

"I am also pleased to report the publishing of this year's CEO Letter to Shareholders in which I provide an update on our strategic plans including a discussion of our recently announced new five-year plan. You can find it on our website at www.premiumbrandsholdings.com," said Mr. Paleologou.

THIRD QUARTER 2023 DIVIDEND

The Company also announced that its Board of Directors approved a cash dividend of $0.77 per share for the third quarter of 2023, which will be payable on October 13, 2023 to shareholders of record at the close of business on September 29, 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.

ABOUT PREMIUM BRANDS

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

RESULTS OF OPERATIONS

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.

Revenue

(in millions of dollars except percentages)

13 weeks

ended

Jul 1,

2023

%

⁽¹⁾

13 weeks

ended

Jun 25,

2022

%

⁽¹⁾

26 weeks

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