Download PDF

1. Company Snapshot

1.a. Company Description

Premium Brands Holdings Corporation, through its subsidiaries, manufactures and distributes food products primarily in Canada and the United States.It operates in two segments, Specialty Foods and Premium Food Distribution.The company provides meat products and snacks, deli products, beef jerky and halal, sandwiches, pastries, specialty and gourmet products, salads and kettle products, entrees, panini, wraps, subs, hamburgers, burgers, muffins, breads, pastas, and baking and sushi products, as well as processed meat products and ready-to-eat meals.


It is also involved in the distribution of food products, including meat, seafood, and halal food products; operation of retail/convenience store and concessionary; and provision of food and seafood processing, and cold storage services.The company operates under the brand names of Grimm's, Freybe, Piller's, Black Kassel, MarcAngelo, Oberto, Bavarian Meats, McSweeney's, Cattleman's Cut, Harvest Meats, Hempler's, Pacific Gold Country, Prime Meats, Isernio's, Fletcher's (U.S.), Leadbetters, Mclean Meats, Shahir, Expresco, Fresh Additions, Lou's Kitchen, WestEnd, Cobblestone, Yorkshire Valley Farms, Premier Meats, Black River Angus, La Maison Du Gibier, Belmont Meats, Purely Crafted, Cowboy, Connie's Kitchen, Skoulakis, Premier Healthy Living, Raybern's, Hygaard, Quality Fast Foods, Buddy's, Bread Garden Go, Stovers Kitchen, Deli Chef, Leonetti's, Island City, Stuyver's, La Boulangerie, Vero Vero, Alive & Rise, Partners, Audrey's, Duso's, Gourmet Chef, Smart Soup, Clearwater, Hancock Gourmet, Diana's Seafood, Marco Polo, Seafood Lover, Ready Brothers, Cold Cracked Lobster, Maximum Seafood, Rocky Point.It serves chains and large format retailers, independent and specialty retailers, foodservice operators, foodservice distributors, and other food manufacturers and food brokers.


The company was founded in 1917 and is headquartered in Richmond, Canada.

Show Full description

1.b. Last Insights on PBH

Premium Brands Holdings Corporation's recent performance was driven by strong sales growth, with record second-quarter sales and adjusted EBITDA reported. The company's revenue beat expectations, reaching CA$1.91 billion, up 13% from the same quarter last year. Adjusted earnings also surpassed forecasts. Additionally, the company completed a Tennessee sandwich plant sale and leaseback, and declared a third-quarter dividend. National Bank of Canada maintained its sector-perform rating on the shares, raising its target. Jarislowsky, Fraser Limited also filed early warning reports, indicating increased interest from institutional investors.

1.c. Company Highlights

2. Disappointing Earnings Miss, But Bullish Outlook for 2026

The company's Q3 2025 earnings report was a disappointment, with an actual EPS of -0.03786, significantly missing analyst estimates of 1.34. Revenue growth was likely impacted by the challenging environment, with the Specialty Foods segment facing margin pressure due to high beef costs and plant overhead. However, the company is confident about its prospects, with a reiterated 2027 revenue goal of $10 billion, a 33% increase from the current year.

Publication Date: Nov -15

📋 Highlights
  • Debt Reduction Strategy:: Proceeds from asset sales will prioritize debt reduction, confirmed by CFO Will Kalutycz.
  • Specialty Foods Margin Stability:: Gross margin improved 70 bps (normalized), with EBITDA margin stable YoY despite Tennessee facility and second-shift overhead pressures.
  • 2026 Growth Outlook:: Anticipated strong 2026 driven by capacity utilization post-2025 CapEx, with Q3-Q4 2025 showing acceleration toward $10 billion 2027 revenue target.
  • Clearwater Recovery:: Subsidiary cleared $43 million in accrued payments, with new financing and $250 million in successful Q3 product launches boosting growth.
  • Beef Price Resolution:: Expected Q1 2026 resolution of beef inflation and overhead costs from second shifts, with procurement strategies and margin-accretive contracts (20-30% margins) to offset pressures.

Margin Pressure and Cost Inflation

The company's gross margin in the Specialty Foods segment increased by 70 basis points when normalized for high beef cost impact, implying stable EBITDA margin compared to last year. However, plant overhead contributed to margin pressure, mainly due to the Tennessee facility coming online and plants adding second shifts. The company expects Q4 to have modest margin improvement, despite beef headwinds and overhead impact, thanks to growth.

Growth Prospects and New Initiatives

The company is bullish about 2026, with top-line growth expected to accelerate. The U.S. Specialty Foods segment is expected to see continued acceleration, driven by protein, meat snacks, and cooked protein. The company is also seeing growth in the coffee channel and picking up new customers. Will Kalutycz mentioned that the company's sales pipeline continues to grow, with $250 million of successful launches pulled off this quarter.

Valuation and Leverage

With a P/E Ratio of 42.2 and an EV/EBITDA of 15.98, the company's valuation appears to be stretched. The Net Debt / EBITDA ratio is 7.28, indicating a high level of leverage. However, Will Kalutycz expects to make progress on debt-to-EBITDA ratios in Q4, driven by improving inventory. Analysts estimate next year's revenue growth at 10.0%, which may not be enough to justify the current valuation.

Monetization and Debt Reduction

George Paleologou announced that the company is expected to make an announcement soon regarding the monetization of assets, with proceeds likely to be used for debt reduction. This is a positive development, as it will help reduce the company's leverage and improve its financial flexibility.

Clearwater's Improving Business

Clearwater, a subsidiary, caught up on accrued payments, contributing to the $43 million in investments. Will Kalutycz stated that Clearwater's business is improving, with a new financing structure and opportunities in their business. The company is also seeing good things in the clam turbot and shrimp fisheries.

3. NewsRoom

Card image cap

Why The Story Around Premium Brands Holdings Is Changing After Recent Analyst Actions

Nov -12

Card image cap

Premium Brands Holdings Corp (PRBZF) Q3 2025 Earnings Call Highlights: Strong Organic Growth ...

Nov -11

Card image cap

Premium Brands Price Target Raised at RBC, CIBC

Nov -11

Card image cap

Premium Brands Holdings Corp (PRBZF) Q3 2025 Earnings Call Highlights: Record Sales and ...

Nov -10

Card image cap

Premium Brands Q3 Revenue Jumps 13% on Strong U.S. Specialty Foods Growth

Nov -10

Card image cap

Premium Brands Holdings trims earnings forecast on beef costs

Nov -10

Card image cap

PREMIUM BRANDS HOLDINGS CORPORATION REPORTS RECORD THIRD QUARTER SALES AND ADJUSTED EBITDA AND DECLARES FOURTH QUARTER DIVIDEND

Nov -10

Card image cap

Premium Brands Price Target Raised to $118 at RBC

Nov -04

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.38%)

6. Segments

Specialty Foods

Expected Growth: 8%

Premium Brands Holdings Corporation's Specialty Foods segment growth is driven by increasing demand for premium and artisanal products, strategic acquisitions, and expansion into new distribution channels. The company's focus on product innovation, quality, and customer relationships also contributes to its growth. Additionally, the rising trend of consumers seeking unique and gourmet food experiences supports the segment's 8% growth.

Premium Food Distribution

Expected Growth: 12%

Premium Food Distribution's 12% growth is driven by increasing demand for gourmet and specialty products, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on building strong relationships with suppliers and customers, as well as its ability to adapt to changing consumer preferences, contribute to its growth momentum.

7. Detailed Products

Meat Snacks

Premium Brands offers a wide range of meat snacks, including beef, turkey, and chicken-based products, under various brand names such as Oberto and Grimm's.

Sandwich Products

The company offers a variety of sandwich products, including cooked meats, cheeses, and baked goods, under brands like Harvest and Breadwinner.

Bakery Products

Premium Brands provides a range of bakery products, including bread, buns, and pastries, under brands like Freybe and Piller's.

Deli and Specialty Meats

The company offers a variety of deli and specialty meats, including salami, prosciutto, and ham, under brands like Oberto and Grimm's.

Seafood Products

Premium Brands provides a range of seafood products, including frozen fish, shellfish, and seafood-based snacks, under brands like Fin's and Ocean's.

8. Premium Brands Holdings Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Premium Brands Holdings Corporation operates in a competitive market with various substitutes available to customers. However, the company's focus on premium products and strong brand recognition helps to mitigate the threat of substitutes.

Bargaining Power Of Customers

Premium Brands Holdings Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's premium products and strong brand recognition give it an upper hand in negotiations with customers.

Bargaining Power Of Suppliers

Premium Brands Holdings Corporation relies on a network of suppliers for its raw materials and ingredients. While the company has some bargaining power due to its size and scale, suppliers also have some leverage due to the specialized nature of the products.

Threat Of New Entrants

The food processing industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to challenge established players like Premium Brands Holdings Corporation.

Intensity Of Rivalry

The food processing industry is highly competitive, with many established players competing for market share. Premium Brands Holdings Corporation faces intense competition from rivals, which can lead to pricing pressure and advertising wars.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.87%
Debt Cost 8.92%
Equity Weight 46.13%
Equity Cost 8.92%
WACC 8.92%
Leverage 116.79%

11. Quality Control: Premium Brands Holdings Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Pilgrim's Pride

A-Score: 6.7/10

Value: 7.6

Growth: 7.3

Quality: 6.9

Yield: 8.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

Stock-Card
Conagra Brands

A-Score: 6.0/10

Value: 7.9

Growth: 4.6

Quality: 4.8

Yield: 9.0

Momentum: 0.5

Volatility: 9.0

1-Year Total Return ->

Stock-Card
Flowers Foods

A-Score: 5.9/10

Value: 7.2

Growth: 4.7

Quality: 4.9

Yield: 9.0

Momentum: 0.5

Volatility: 9.0

1-Year Total Return ->

Stock-Card
Premium Brands

A-Score: 5.7/10

Value: 5.2

Growth: 6.3

Quality: 2.7

Yield: 6.0

Momentum: 4.5

Volatility: 9.3

1-Year Total Return ->

Stock-Card
Post Holdings

A-Score: 5.2/10

Value: 6.6

Growth: 7.6

Quality: 4.0

Yield: 0.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

Stock-Card
Campbell Soup

A-Score: 4.9/10

Value: 5.9

Growth: 3.3

Quality: 4.7

Yield: 7.0

Momentum: 0.5

Volatility: 8.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

98.89$

Current Price

98.89$

Potential

-0.00%

Expected Cash-Flows