Premium Brands (TSE:PBH) Issues Quarterly Earnings Results

Premium Brands (TSE:PBH) released its quarterly earnings data on Thursday. The company reported C$1.29 EPS for the quarter, FiscalAI reports. The company had revenue of C$1.90 billion for the quarter. Premium Brands had a return on equity of 3.82% and a net margin of 0.92%.

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

• Management set 2026 revenue guidance at about CAD 9.4 billion (midpoint)
• EBITDA/margin cadence should improve starting in Q2 as the Protein Group’s product margins are expected to be back to normal by end‑Q1 and the Lobster Group clears high‑cost inventory and normalizes by Q2.
• The company built about CAD 70 million of inventory to support three major protein programs (Bites, Sticks, Kebab) and expects to liquidate inventory and show free cash flow improvement beginning in Q2; maintenance CapEx is guided at ~CAD 70–75M with ~CAD 67M of committed project spend remaining.
• Sale of the 74% stake in Shaw Bakers generated ~CAD 114 million in proceeds and the guidance/2026 model excludes Shaw (roughly CAD 170M in sales and ~CAD 20M EBITDA), which also reduces leverage by ~0.2–0.3 turns toward the company’s target of ~3x net debt/EBITDA.
• Commodity risk remains: management expects beef inflation to be inflationary (built into guidance) and cited a ~CAD 6.5M Q4 lobster commodity hit, while noting fuel/energy/fertilizer volatility could still indirectly pressure input costs.

Premium Brands Stock Down 6.5%

TSE PBH opened at C$87.05 on Friday. The stock’s 50 day simple moving average is C$99.33 and its 200 day simple moving average is C$97.05. Premium Brands has a one year low of C$72.57 and a one year high of C$106.79. The firm has a market cap of C$3.89 billion, a PE ratio of 59.22, a price-to-earnings-growth ratio of 1.10 and a beta of 0.51. The company has a debt-to-equity ratio of 201.70, a current ratio of 1.33 and a quick ratio of 1.16.

Analysts Set New Price Targets

PBH has been the subject of several recent research reports. Desjardins set a C$120.00 price target on shares of Premium Brands and gave the stock a “buy” rating in a research report on Friday, December 19th. Scotiabank upgraded Premium Brands from a “hold” rating to an “outperform” rating and upped their price objective for the company from C$99.00 to C$120.00 in a research note on Thursday, December 18th. Raymond James Financial increased their target price on Premium Brands from C$115.00 to C$125.00 in a report on Thursday, December 18th. BMO Capital Markets raised their target price on Premium Brands from C$111.00 to C$125.00 in a research report on Thursday, December 18th. Finally, Stifel Nicolaus upped their price target on Premium Brands from C$106.00 to C$111.00 in a research report on Thursday, December 18th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of C$121.64.

Premium Brands Company Profile

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.

See Also

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