PREMIUM BRANDS HOLDINGS CORPORATION REPORTS RECORD THIRD QUARTER SALES AND ADJUSTED EBITDA AND DECLARES FOURTH QUARTER DIVIDEND

Executive Summary

• Premium Brands reported record Q3 2025 revenue of $2.0 billion (+19.1% YoY) and record adjusted EBITDA of $179.1 million (+12.4% YoY).
• Adjusted EPS rose to $1.27 per share (+14.4% YoY); the company also raised its full‑year sales guidance to $7.4‑$7.5 billion while narrowing the adjusted EBITDA range to $670‑$680 million.
• The Board declared a cash dividend of $0.85 per common share for Q4 2025 (payable 15 Jan 2026).

Key Details

• Revenue: $1,986 M for the quarter vs. $1,667 M in Q3 2024; FY‑2025 sales guidance increased to $7.4–$7.5 B (previously $7.2–$7.4 B).
• Adjusted EBITDA: $179.1 M (Q3 2025) vs. $159.4 M (Q3 2024); FY‑2025 adjusted EBITDA guidance narrowed to $670–$680 M (down from $680–$700 M).
• Adjusted EPS: $1.27 per share (up from $1.11 YoY).
• Organic volume growth: 10.3% overall; Specialty Foods U.S. initiatives delivered 24.3% organic volume growth.
• Segment performance:
• Specialty Foods revenue $1,322 M (+23.9% YoY), driven by $142.4 M organic volume, $73.3 M acquisitions, and $28.5 M price increases.
• Premium Food Distribution revenue $664 M (+10.7% YoY).
• Gross margin: Consolidated gross profit $364.3 M (18.3% of revenue), down 130 bps year‑over‑year due to beef cost inflation and plant start‑up costs.
• SG&A: $200.9 M (10.1% of revenue), down 60 bps YoY as a share of sales.
• Plant start‑up & restructuring costs: $19.0 M incurred this quarter for multiple capacity expansions (meat sticks, deli meats, sandwich facility, artisan bakeries).
• Free cash flow: $250.8 M for the 52‑week period ending 28 Dec 2024; FY‑2025 free cash flow guidance unchanged at $152.6 M.
• Balance sheet highlights (as of 27 Sep 2025): Cash $28.6 M, total assets $6.03 B, long‑term debt $1.95 B, convertible debentures $455.9 M.
• Dividend: Board approved $0.85 per share payable 15 Jan 2026 to shareholders of record 31 Dec 2025.
• Outlook & guidance: Revised FY‑2025 sales range $7.4–$7.5 B; adjusted EBITDA range $670–$680 M reflecting transitory beef cost inflation. Company remains active on acquisition pipeline and aims to deleverage through 2025‑2026.

Notable Quotes

“The North American food industry is undergoing significant disruption… we have invested heavily in product development and capacity, now seeing benefits across our core U.S. initiatives.” – George Paleologou, President & CEO
“While margins were pressured by double‑digit beef cost inflation, we view this as transitory and are taking pricing and procurement actions to restore profitability.” – George Paleologou

Materiality: Material – Positive (record financial results, guidance upgrade, dividend declaration).