Vancouver, British Columbia, Canada-based Premium Brands Holdings Corporation has posted record first-quarter revenue, with its new acquisition, Clearwater Seafoods, generating “significantly improved results.”
The company posted first-quarter 2022 revenues of CAD 1.25 billion (USD 965 million, EUR 915 million) in 2022, a 23.9 percent – or CAD 241.4 million (USD 186 million, EUR 176 million) – increase compared to the first quarter of 2021. The company’s first-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also increased by 16.1 percent, or CAD 13.3 million (USD 10.2 million, EUR 9.7 million), to CAD 95.8 million (USD 74 million, EUR 70.1 million).
Premium Brands President and CEO George Paleologou said in a release the company’s record results came amid unprecedented difficulties.
“Record inflationary cost pressures, the omicron outbreak that resulted in significant labor disruptions at the start of the year, ongoing global supply chain issues, and the general uncertainty caused by recent geopolitical events have created the most-challenging and unpredictable business environment we have had to face since the founding of Premium Brands in the early 2000s,” Paleologou said.
Despite those challenges, he said, the company continued to progress toward its goals of “North America’s leading specialty-food business.”
Premium Brands has posted a string of positive performances, and in 2021 posted its 18th consecutive year of record financial results. Paleologou said that the company has seen some negative impacts due to the challenges but is still on track to reach its goal of CAD 6 billion (USD 4.6 billion, EUR 4.4 billion) in sales and CAD 600 million (USD 463 million, EUR 439 million) in adjusted EBITDA by 2023.
“While we continue to generate record year-over-year results, the challenges of the current environment are impacting our growth rates and margins,” he said. “These impacts are, however, transitory; and as we return to a more normal operating environment, particularly with respect to inflation and global supply channels, we expect to see an even stronger acceleration in our performance.”
Clearwater Seafoods, which Premium Brands acquired in 2020, saw an increase in both its sales and profit in Q1 2022 compared to Q1 2021. The company posted sales of CAD 121 million (USD 93 million, EUR 88 million), a 28.9 percent increase over the CAD 93.9 million (USD 72.5 million, EUR 68.7 million) in sales it posted in Q1 2021. The company’s profit increased to CAD 38.4 million (USD EUR) in Q1 2022 from CAD 31.2 million (USD 29.6 million, EUR 28.1 million) in the same quarter last year.
Paleologou said the company will continue its acquisition strategy in 2022. The company has acquired multiple seafood companies in the past two years, including Clearwater Seafoods, Quebec, Canada-based Mermax, and Starboard Seafood.
“We continue to see exceptional capital allocation opportunities, both in terms of acquisitions as well as organic growth initiatives, as the consumer trends we have been investing in continue to strengthen,” Paleologou said. “Looking forward, I have no doubt that we will emerge from these troubling times a bigger, more-profitable, and diversified company with larger moats around our individual businesses.”
Photo courtesy of Premium Brands
