PREMIUM BRANDS HOLDINGS CORPORATION REPORTS RECORD SECOND QUARTER SALES AND ADJUSTED EBITDA, DECLARES THIRD QUARTER DIVIDEND AND ANNOUNCES COMPLETION OF TENNESSEE SANDWICH PLANT SALE AND LEASEBACK

Executive Summary

• Premium Brands Holdings Corporation reported record second quarter 2025 revenue of $1.9 billion (a 12.5% increase year-over-year) and record adjusted EBITDA of $177.1 million (a 7.6% increase year-over-year).
• The company declared a third-quarter dividend of $0.85 per common share and announced the completion of a sale and leaseback transaction for its new Tennessee sandwich plant, generating US$166.0 million in proceeds.
• Management reaffirmed its 2025 guidance ranges of $7.2 billion to $7.4 billion in sales and $680 million to $700 million in adjusted EBITDA, while noting progress in deleveraging with a debt-to-EBITDA ratio of 4.2:1.

Key Details

• Q2 2025 Financial Performance:
  • Revenue: $1,914.9 million (up 12.5% or $212.2 million from Q2 2024).
  • Adjusted EBITDA: $177.1 million (up 7.6% or $12.5 million from Q2 2024).
  • Adjusted EPS: $1.33 per share (up 3.9% or $0.05 from Q2 2024).
  • Net Earnings: $27.9 million (down from $52.5 million in Q2 2024).
• Segment Performance (Specialty Foods):
  • Revenue increased by $160.0 million (13.9%) to $1,311.8 million.
  • Growth drivers included business acquisitions ($73.9 million), organic volume growth of 4.7% ($53.8 million), and selling price increases ($27.3 million).
  • U.S. protein initiatives generated 15.0% organic volume growth; artisan baked goods generated 98.1% organic volume growth.
  • Gross margin decreased by 180 basis points to 20.3%, primarily due to chicken and beef cost inflation and new plant overheads.
• Segment Performance (Premium Food Distribution):
  • Revenue increased by $52.2 million (9.5%) to $603.1 million.
  • Growth driven by organic volume growth of 5.2% ($28.6 million) and selling price increases of $23.1 million.
  • Gross margin decreased by 120 basis points to 16.0%.
• Capital Transactions & Balance Sheet:
  • Sale and Leaseback: Generated US$166.0 million from the sale of real estate associated with the new 352,000 square foot sandwich plant in Cleveland, TN.
  • Debt Repayment: Repaid a $172.5 million convertible debenture that matured on April 30, 2025.
  • Leverage: Total debt-to-EBITDA ratio declined to 4.2:1 from 4.6:1 in Q1 2025.
  • Free Cash Flow: Trailing four quarters ended June 28, 2025, free cash flow was $263.1 million.
• Dividends:
  • Declared a cash dividend of $0.85 per common share for Q3 2025.
  • Payable on October 15, 2025, to shareholders of record at the close of business on September 30, 2025.
• Guidance:
  • Reaffirmed 2025 sales guidance of $7.2 billion to $7.4 billion.
  • Reaffirmed 2025 adjusted EBITDA guidance of $680 million to $700 million.
  • Maintains 5-year plan targets of $10 billion revenue and $1 billion adjusted EBITDA by 2027.
• Investment Performance (Clearwater Seafoods):
  • Recorded an equity loss of $17.5 million in Q2 2025 (vs. loss of $8.7 million in Q2 2024).
  • Clearwater revenue decreased by $8.2 million due to below-average harvesting conditions for Canadian scallops and clams.

Notable Quotes

• "Our second quarter sales performance clearly reflects the progress we are making in leveraging recent capital investments and acquisitions to generate strong and sustainable growth. The big drivers of our sales increase were our U.S.-market-focused initiatives in protein and artisan baked goods, which generated organic volume growth rates of 15% and 98%, respectively." — George Paleologou, President and CEO
• "Our adjusted EBITDA, while reaching a record quarterly high, did not reflect our full potential due to significant chicken and beef commodity cost inflation in the quarter. The easing in the cost of certain commodities, combined with passing on targeted price increases where needed, will help to deal with this challenge and should put us back on the path to reaching our mid-term target of an annual adjusted EBITDA margin of 10%." — George Paleologou, President and CEO