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Premium Brands Holdings Corporation Reports Fourth Quarter And Full Year 2023 Financial Results And Announces A 10.4% Dividend Increase

Press Release

VANCOUVER, B.C., March 15, 2024. Premium Brands Holdings Corporation (TSX: PBH), a leading producer, marketer and distributor of branded specialty food products, announced today its results for the fourth quarter and fiscal year ended December 30, 2023.

2023 HIGHLIGHTS

  • Record revenue of $6.3 billion representing a 3.8%, or $231.2 million, increase as compared to 2022 despite 2022 having an extra week of sales
  • Record adjusted EBITDA1 of $559.1 million representing a 10.9%, or $54.9 million, increase as compared to 2022 despite 2022 having an extra week of sales
  • An 8.9% adjusted EBITDA margin, up from 8.4% in 2022
  • 2023 adjusted EPS1 of $4.03 per share representing a 16.4%, or $0.79 per share decrease as compared to 2022, with the decrease being driven by higher interest costs

FOURTH QUARTER HIGHLIGHTS

  • Fourth quarter revenue of $1.55 billion representing a 4.9%, or $80.1 million, decrease as compared to the fourth quarter of 2022. Normalizing for the extra week in 2022, fourth quarter revenue was up $1.4 million
  • Solid progress on Specialty Foods’ core U.S. growth initiatives in sandwiches, protein and baked goods, which for the quarter generated an organic volume growth rate of 9.3% and total sales of $580.9 million despite delays in new capacity coming online and the fourth quarter being slower for seasonal reasons. For the year, these initiatives generated an organic volume growth rate of 10.1% and total sales of $2.3 billion
  • Record fourth quarter adjusted EBITDA1 of $137.2 million representing a 0.6%, or $0.8 million, increase as compared to the fourth quarter of 2022. Normalizing for the extra week in 2022, fourth quarter adjusted EBITDA was up $3.2 million
  • An 8.8% adjusted EBITDA margin, up from 8.3% in the fourth quarter of 2022
  • Specialty Foods’ adjusted EBITDA margin continues to normalize reaching 9.2% for the quarter, a 100-basis point improvement as compared to the fourth quarter of 2022
  • Fourth quarter adjusted EPS1 of $0.85 per share representing a 28.6%, or $0.34 per share decrease as compared to the fourth quarter of 2022, with the decrease being driven by higher interest costs
  • Issued revenue and adjusted EBITDA guidance for 2024. Excluding potential acquisitions, the Company expects to generate revenue of $6.65 billion to $6.85 billion, and adjusted EBITDA of $630 million to $650 million in 2024
  • Declared a dividend of $0.85 per share for the first quarter of 2024, representing a 10.4% increase from the previous quarter’s dividend rate
  • 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 fourth 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 (289) 514-5100 or (800) 717-1738 (Conference ID: 66569) 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 10:30 a.m. Toronto time on April 15, 2024 at (888) 660-6264 (passcode: 66569#). 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 14 weeks 52 weeks 53 weeks
ended ended ended ended
Dec 30, Dec 31, Dec 30, Dec 31,
2023 2022 2023 2022
Revenue 1,554.7 1,634.8 6,261.0 6,029.8
Adjusted EBITDA1 137.2 136.4 559.1 504.2
Earnings 15.0 30.9 94.2 160.1
EPS 0.34 0.69 2.12 3.59
Adjusted earnings1 37.9 52.9 179.1 215.0
Adjusted EPS1 0.85 1.19 4.03 4.82
Trailing Four Quarters Ended
Dec 30, Dec 31,
2023 2022
Free cash flow1 253.0 285.8
Free cash flow per share 5.70 6.41
Declared dividends 137.5 125.3
Declared dividend per share 3.08 2.8
Payout ratio1 54.3% 43.8%

 

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

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