Q4 2024 Premium Brands Holdings Corp Earnings Call (Pre-Recorded) Transcript
Key Points
- Premium Brands Holdings Corp (PRBZF) achieved a sales increase of $210 million or 3.3% to $6.5 billion in 2024.
- The company's adjusted EBITDA margins expanded by 30 basis points to 9.2%, marking the third consecutive year of margin expansion.
- Significant investments of $814 million over the past three years have expanded production capacity, particularly in the Protein, Sandwich, and Bakery Groups in the US.
- The company has a strong track record of raising dividends by 10% or more annually over the past decade.
- Recent acquisitions provide additional capacity in high-growth product categories, aligning with favorable consumer trends.
- The company decided to hold off on increasing its dividend for 2025 due to uncertainty around tariffs.
- There is exposure to trade risks as some Canadian businesses export to the US and vice versa, which could be impacted by tariffs.
- Lower lobster sales due to a poor Maine fishery and delayed customer orders impacted quarterly results.
- Sandwich sales volumes declined with a major foodservice customer, although there is an improving trend.
- Debt leverage levels increased slightly, with senior debt to EBITDA ratio rising from 3.4:1 to 3.5:1, partly due to currency fluctuations.
Welcome everyone to our 2024 year-end conference call. Thank you for joining us today. With me here is our CFO, Will Kalutycz. Our presentation will follow the deck that was posted on our website this morning. Later this morning, we will hold a separate live Q&A session at 10:30 AM. PST. Details to the call can be found on our press release posted on our website.
We are now on slide 3, which outlines certain key highlights for the year and the fourth quarter. We made solid progress during 2024, and we're well-positioned to meet or exceed our 2027 sales and adjusted EBITDA targets of $10 billion in sales and $1 billion, respectively. Our sales for the year increased by $210 million or 3.3% to $6.5 billion, while our adjusted EBITDA margins expanded by 30 basis points to 9.2%. This is the third consecutive year that we have expanded our adjusted EBITDA margin, which was 8.4% back in 2022.
Our success in 2024 was driven by our Protein, Sandwich and Bakery Groups initiatives in the US. We have
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