Premium Brands Holdings Corporation continued its streak of increased revenue and EBITDA in Q2 2025 and could potentially close an acquisition on a major seafood company in 2025.
Premium Brands achieved revenue of CAD 1.9 billion (USD 1.38 billion, EUR 1.18 billion) in Q2 2025, marking a 12.5 percent, or CAD 212.2 million (USD 154.4 million, EUR 132.7 million), increase over the same period in 2024. That revenue helped contribute to an increased adjusted EBITDA of CAD 177.1 million (USD 128.8 million, EUR 110.7 million), up from CAD 164.6 million (USD 119.8 million, EUR 102.9 million).
While its EBITDA and revenue increased, the company’s results indicate its earnings and earnings per share both dropped in Q2 2025 compared to the same period a year prior. Earnings fell to CAD 27.9 million (USD 20.3 million, EUR 17.4 million), down from CAD 52.5 million (USD 38.2 million, EUR 32.8 million), and earnings per share dropped to CAD 0.62 (USD 0.45, EUR 0.38) from CAD 1.18 (USD 0.85, EUR 0.73).
Premium Brands President and CEO George Paleologou said the overall sales performance reflects the progress the company has made in leveraging its investments and acquisitions, while its earnings reflect the challenges it is facing.
“Our adjusted EBITDA, while reaching a record quarterly high, did not reflect our full potential due to significant chicken and beef commodity cost inflation in the quarter,” Paleologou said.
During a recent conference call addressing the company’s results, Paleologou said Premium Brands did not close any new acquisitions during the quarter but continues to look for new opportunities.
For a brief period, Premium Brands acquired a number of companies in the North American lobster sector including Ready Seafood, Starboard Seafood, Maine Coast, Hancock Gourmet Lobster Co., Viandex, and North Delta Seafood. In 2020, it made another large purchase by acquiring Clearwater Seafoods via a partnership with the Mi’kmaq First Nation.
Since that time, the company has not announced any high-profile seafood company acquisitions, but in its Q2 results presentation, it said it is in active negotiations with one seafood company with CAD 500 million (USD 363.8 million, EUR 312.6 million) in yearly sales – though it did not name which company.
“Although we did not close any acquisitions during the quarter, our acquisition pipeline remains full, and we're involved in many advanced stage discussions with talented food entrepreneurs looking to join our unique ecosystem of best-in-class specialty food companies,” Paleologou said.
One of its largest seafood companies, Clearwater Seafoods, posted a loss in Q2 2025 and decreased revenue.
The company posted CAD 138.1 million (USD 100.5 million, EUR 86.3 million) in revenue in the quarter, down from CAD 146.3 million (USD 106.4 million, EUR 91.4 million) it posted in Q2 2024. Its net loss grew to CAD 35 million (USD 25.5 million, EUR 21.8 million), worsening from the CAD 17.4 million (USD 12.6 million, EUR 10.9 million) in losses it posted in Q2 2024.
Premium Brands said below-average harvesting conditions for Canadian scallops and clams, and poor turbot catch landings were reasons for a drop in revenue. Increased sales in snow crab and langoustine, as well as strong demand for Argentine scallops, both slightly offset those factors, it said.
Clearwater’s earnings were also lower due to restructuring costs associated with its recent exit from the land-based operations of Macduff Shellfish. According to Premium Brands, Clearwater’s sale of the operations occurred after the end of Q2 2025, but costs related to the restructuring hit during the quarter, worsening the results.
Looking forward, Paleologou said in a recent letter to shareholders that the company’s acquisition strategy and pipeline, which has historically played a major role in the company’s growth initiatives, is still in motion but has hit roadblocks in recent years as Premium Brands works to find the right fit.
“In recent years, we have not been able to rely on this strategy for two primary reasons,” Paleologou said. “First, there is a general lack of businesses with modern production facilities and excess capacity competing in the high growth categories we are investing in.”
He said there are some companies with older facilities open to being purchased, but Premium Brands would then need to essentially make another investment to modernize those facilities, hampering any benefit from the purchase.
“Investing in a business with older operating assets or operating at full capacity is incredibly challenging for us as we essentially pay for the business twice: once upfront and a second time to modernize or expand their production capacity,” he said.
Paleologou said the second reason for a lack of acquisitions is that any company it finds that meets its modern facility criteria is often valued at a higher level than Premium Brands is willing to pay based on its internal return on investment thresholds.
“Based on these two challenges, we have been supporting our growth opportunities through greenfield production capacity expansion projects,” Paleologou said.
In the context of looking for possible acquisitions, Paleologou said the company remains “committed to continuing to deleverage our balance sheet over the course of 2025 and any transactions will be done within this context.”
