Premium Brands Holdings, a Canadian specialty food manufacturing and distribution company, experienced challenges in its sandwich and protein segments, leading to lower than expected profit and revenue growth in the third quarter. The company’s profit decreased to 39.4 million Canadian dollars ($28.5 million), or C$0.88 a share, down from C$43.5 million, or C$0.97 a share, compared to the same quarter last year.
Despite the challenges, adjusted earnings before interest, taxes, depreciation, and amortization improved to C$158.8 million, up from C$141.2 million. However, revenue only saw a modest increase of 1.3% to C$1.64 billion, falling short of analyst forecasts of C$1.71 billion as reported by FactSet.
According to Chief Executive George Paleologou, the disappointing results were influenced by various factors specific to the third quarter. An unusually poor Maine lobster catch and delays in the expansion of cooked protein capacity contributed to the negative impact on the company’s sandwich and protein businesses.
Overall, Premium Brands Holdings will need to address these challenges in order to restore growth and meet investor expectations.
