Premium Brands (TSE:PBH) Posts Earnings Results

by · The Markets Daily

Premium Brands (TSE:PBH – Get Free Report) posted its quarterly earnings results on Thursday. The company reported C$1.53 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$2.38 billion during the quarter. Premium Brands had a net margin of 0.52% and a return on equity of 2.21%.

Here are the key takeaways from Premium Brands’ conference call:

  • 2026 guidance was reduced, with the roughly CAD 200 million revenue and CAD 35 million midpoint EBITDA reductions attributed entirely to timing and mix. A major QSR LTO moved to early 2027, while one U.S. retail launch was phased in and another shifted to October.
  • Underlying demand and the sales pipeline remain strong, including 25% organic volume growth in U.S. protein initiatives. Management said its CAD 2 billion of added capacity is effectively sold out, with only about one-quarter of the pipeline tied to LTOs and the remainder focused on more permanent retail, B2B and QSR listings.
  • Management expects free cash flow to accelerate in the second half as working capital improves, EBITDA grows, CapEx declines and restructuring spending winds down. The company has about CAD 41 million remaining in its major CAD 1.1 billion investment cycle and remains on track for planned 2026 general and maintenance CapEx.
  • Commodity trends may provide upside not included in guidance, as beef and other input prices are beginning to flatten or decline. Benefits could emerge as early as late Q3, although lower costs would ultimately be passed through to customers with a delay.
  • Planned facility closures and consolidation into the new GTA facility are expected to improve efficiency and profitability, with no material additional closure costs anticipated in the remainder of 2026. Premium Brands also expects Specialty Foods margins to improve by roughly 30–40 basis points as overhead growth is lapped.

Premium Brands Stock Down 14.3%

Shares of PBH stock traded down C$13.55 during midday trading on Thursday, reaching C$81.29. 1,406,090 shares of the stock were exchanged, compared to its average volume of 168,933. The firm has a market cap of C$4.23 billion, a PE ratio of 90.32, a price-to-earnings-growth ratio of 1.10 and a beta of 0.90. The company has a current ratio of 1.28, a quick ratio of 1.16 and a debt-to-equity ratio of 163.05. Premium Brands has a 1 year low of C$80.24 and a 1 year high of C$106.79. The company’s 50 day moving average is C$88.60 and its two-hundred day moving average is C$91.02.

Analyst Ratings Changes

Several research firms have recently issued reports on PBH. Stifel Nicolaus set a C$117.00 target price on shares of Premium Brands and gave the stock a “buy” rating in a research note on Monday, July 20th. Ventum Financial set a C$124.00 price target on shares of Premium Brands and gave the stock a “buy” rating in a report on Wednesday, April 22nd. Royal Bank Of Canada upped their price objective on shares of Premium Brands from C$129.00 to C$131.00 and gave the stock an “outperform” rating in a research report on Friday, May 8th. Ventum Capital increased their price objective on shares of Premium Brands from C$124.00 to C$128.00 and gave the company a “buy” rating in a research note on Friday, May 8th. Finally, Scotia lifted their target price on shares of Premium Brands from C$100.00 to C$110.00 and gave the stock a “sector outperform” rating in a research report on Friday, May 8th. Eleven investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of C$118.62.

Check Out Our Latest Research Report on PBH

About Premium Brands

(Get Free Report)

Premium Brands Holdings Corp is engaged in specialty food manufacturing, premium food distribution, and wholesale businesses with operations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nevada, and Washington State. The company’s business segments include Specialty Foods, Premium Food Distribution, and Corporate. The Specialty Foods segment consists of its specialty food manufacturing businesses, which contributes about two-thirds of the group revenue; the Premium Food Distribution segment consists of the company’s distribution and wholesale businesses; the Corporate segment includes the company’s head office activities along with its finance and information systems.

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