Canada-based food producer Premium Brands Holdings has cut its full-year revenue and profit guidance amid a number of recent acquisitions.

The Toronto-listed firm lowered its estimate for sales to a range of CAD3bn to CAD3.06bn (US$2.27bn to $2.31bn), compared to its previous prediction of CAD3.01bn to CAD3.07bn, Premium Brands said as it released its earnings results for the third quarter and year-to-date.

Adjusted EBITDA is now seen at CAD255m to CAD265m, down from CAD278-287m. 

The EBITDA margin is expected to settle around 8.3% to 8.7%, lower than Premium Brands previously thought, due to lower margins from its recent acquisition of the US-based Ready Seafood business announced in September. The company also cited “transitory lower gross margins being generated on several new growth initiatives and lower-than-originally expected deflation in the cost of certain raw material commodities” for the downgrade.

Third-quarter adjusted EBITDA rose by 44% to CAD71.3m. The metric improved year-to-date to almost CAD189m from CAD142.9m.

Meanwhile, sales revenue climbed to CAD836m from CAD558m, and was up for the nine months at CAD2.18bn compared to CAD1.61bn a year earlier.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Third-quarter net earnings stood at CAD36.1m, up from CAD21.3m a year earlier. Nine-month net earnings reached CAD79.9m, versus CAD63.3m in the corresponding period of 2017.