The producer of branded specialty food products – including Bakehouse, Conte Foods and Larosa Foods, among others – posted revenue of $577.4m for Q2 2017 versus $462.9m a year prior.
“In our Specialty Food segment, meat snacks, sandwiches and premium processed meats were all the key drivers of our growth,” said George Paleologou, president and CEO.
Adjusted EBITDA for the quarter increased by 37.2% to $55m.
Earnings were $29.7 million or $0.94 per share, a 45.1% and 40.6% increase over Q2 2016.
Sandwich plant expansion
Capital expenditures for the quarter were $37.1m, including $23.9m for a 212,000 square foot sandwich plant in Phoenix, Arizona, and $2.9m for a 105,000 square foot seafood and protein custom facility in the Greater Toronto area.
“Since its start-up, the Phoenix plant has expanded from two production lines to five and, based on the opportunities presenting themselves, we expect it to be operating 10 production lines by the end of this year,” said Paleologou.
Company highlights for Q2 2017
- Revenue of $577.4m, representing a growth of $114.5m or 24.7% versus YA
- Adjusted EBITDA increased by $14.9 million or 37.2%, to $55 million
- Adjusted EBITDA margin was 9.5% as compared to 8.7% YA.
- Earnings per share $0.90
- The company is maintaining its guidance for its 2017 adjusted EBITDA margin to be 8.5%-9.0%
Subsequent to the quarter, Premium Brands acquired a 25% interest in Partners, a family-run artisanal cracker producer based in Seattle, for $2m
“This platform, which has been generating tremendous growth, features a variety of high quality snack foods that cater to both busy and active on-the-go consumers as well as the festive occasions,” said Paleologou.
“[Our] investment once again demonstrates our ability to develop customized ownership solutions [to help] talented entrepreneurs to elevate their business to the next level.”
Strength against adversity
“Our first half performance has once again demonstrated the strength and resilience of our diversified business portfolio. This component enabled us to expand our overall margins during the first half of 2017, despite the [negative impact of] rising raw material commodity costs … and unusually poor weather conditions and economic challenges in certain markets,” said Paleologou.
Will Kalutycz, Premium Brands CFO added the company is on track to achieve its objective for 2017 of exceeding its long-term targeted range for organic volume growth of 4% to 6%.