Canada-based food manufacturer Premium Brands Holdings has booked higher first-half sales and earnings, helped by a “record” second quarter.
Recent acquisitions and organic growth drove a 45.1% jump in earnings to CAD26.7m (US$21m), for the company’s second quarter, which ran to 1 July. The growth in profits came on the back of a 24.7% rise in revenue to CAD577.4m.
“We are very pleased with the steady progress made by all of our operating platforms as their ongoing growth and product sales mix optimisation initiatives propelled us to another quarter of record results,” president and CEO George Paleologou said. “We are particularly pleased that our improved earnings were despite significant volatility in the cost of a number of our input commodities, once again showing the strength and resiliency of our unique business model.
“The diversification we have built into our company combined with our partnerships with talented entrepreneurial management teams is resulting in long-term sustainable growth in both our top and bottom lines.”
First-half earnings increased 52.2% to CAD42m. Revenue was up 25% at CAD1.06bn.
Premium Brands Holdings reports results from two divisions: speciality foods and Premium Food Distribution.
First-half revenue from speciality foods climbed 18.1% to CAD632.2m. On an organic basis, volumes were up 6.7%. Premium Brands Holdings said meat snacks, “premium” processed meats and “artisan” sandwiches were the “main drivers” of the division’s volume growth.
The company’s Premium Food Distribution arm saw its first-half revenues rise 37.2% to CAD423.4m. Volumes were up 5.8% on an organic basis as the group expanded its foodservice distribution network in western Canada to parts of the retail channel and saw its recently-acquired C&C and Premier Meats operations increased their retail presence.
Alongside the results, Paleologou said he expects Premium Brands Holdings to complete “several transactions this year”.