Premium Brands Holdings, a Canadian specialty food manufacturing and distribution company, reported a decline in second-quarter profit, despite reaching record high revenue in the period.
Profit and Earnings
The company’s earnings fell to 33.9 million Canadian dollars ($25.2 million), or C$0.76 a share, compared with C$63.3 million, or C$1.42 a share, in the same period last year. On an adjusted basis, earnings fell to C$1.27 a share from C$1.38 a share, which is virtually in line with analyst expectations.
Revenue Growth
Despite the decline in profit, Premium Brands reported a 7.3% increase in revenue to C$1.63 billion in the second quarter. This marks the company’s highest second-quarter revenue on record.
Outlook and Challenges
Premium Brands faced challenges in its Premium Food Distribution group of businesses. However, Chief Executive George Paleologou expressed confidence in overcoming these challenges, stating that they are temporary in nature. He expects the group’s performance to continue to improve and even accelerate in the latter part of the year, as several major capacity expansions come on-stream.
Premium Brands Holdings remains optimistic about its future growth prospects despite the current challenges.
