PREMIUM BRANDS HOLDINGS CORPORATION REPORTS RECORD SECOND QUARTER SALES AND ADJUSTED EBITDA AND DECLARES THIRD QUARTER DIVIDEND
SECOND QUARTER HIGHLIGHTS
- Record second quarter revenue of
$1.70 billion representing a 4.4%, or$71.8 million , increase as compared to the second quarter of 2023 - Solid progress on
Specialty Foods' core U.S. growth initiatives in sandwiches, protein and baked goods, which for the quarter generated an organic volume growth rate of 12.9% and total sales of$661.4 million - Record second quarter adjusted EBITDA1 of
$164.6 million representing an 8.0%, or$12.2 million , increase as compared to the second quarter of 2023 - 9.7% adjusted EBITDA margin, up from 9.3% in the second quarter of 2023
-
Specialty Foods' adjusted EBITDA margin continues to normalize reaching 10.5% for the quarter, a 40-basis point improvement as compared to the second quarter of 2023 - Second quarter adjusted EPS1 of
$1.28 per share representing a 0.8%, or$0.01 per share, increase as compared to the second quarter of 2023 - Declared a dividend of
$0.85 per common share for the third quarter of 2024
1 |
The Company reports its financial results in accordance with International Financial Reporting Standards (IFRS) as issued by the |
QUESTIONS AND ANSWERS SESSION
The Company will hold a Q&A session on its second quarter 2024 results today at
Access to the Q&A session may be obtained by calling the operator at (289) 514-5100 or (800) 717-1738 (Conference ID: 19190) up to ten minutes prior to the scheduled start time. For those who are unable to participate, a recording of the conference call will be available through to 11:59 p.m. Toronto time on September 8, 2024 at (289) 819-1325 or (888) 660-6264 (passcode: 19190#). Alternatively, a recording of the conference call will be available at the Company's website at www.premiumbrandsholdings.com.
SUMMARY FINANCIAL INFORMATION
(In millions of dollars except per share amounts and ratios)
|
|
|
13 weeks ended
2024 |
13 weeks ended
2023 |
26 weeks ended
2024 |
26 weeks ended
2023 |
|
|
|
|
|
|
|
Revenue |
|
|
1,702.7 |
1,630.9 |
3,164.5 |
3,061.4 |
Adjusted EBITDA1 |
|
|
164.6 |
152.4 |
285.6 |
263.1 |
Earnings |
|
|
52.5 |
33.9 |
58.8 |
39.8 |
EPS |
|
|
1.18 |
0.76 |
1.32 |
0.90 |
Adjusted earnings1 |
|
|
56.9 |
56.3 |
80.9 |
84.8 |
Adjusted EPS1 |
|
|
1.28 |
1.27 |
1.82 |
1.91 |
|
|
|
Trailing Four Quarters Ended |
|
|
|
|
2024 |
2023 |
|
|
|
|
|
Free cash flow1 |
|
|
257.9 |
253.0 |
Free cash flow per share |
|
|
5.81 |
5.70 |
Declared dividends |
|
|
144.6 |
137.5 |
Declared dividend per share |
|
|
3.24 |
3.08 |
Payout ratio1 |
|
|
56.1 % |
54.3 % |
|
1 Reconciliations for all non-IFRS measures are included in the Non-IFRS Financial Measures section of this press release. |
"We are pleased to report another quarter of record sales and adjusted EBITDA as we make steady progress towards achieving our short and long-term strategic objectives," said Mr.
"Most of our
"The significant momentum of our
"Our results for the quarter represent our fifth consecutive quarter of year-over-year improvement in our adjusted EBITDA margin, which increased to 9.7% from 9.3% in the second quarter of last year. We have our mid-term target of an annual adjusted EBITDA margin of 10% well in sight and are confident we will easily exceed this in the coming years.
"We are also pleased to report the publishing of this year's CEO Letter to Shareholders titled Transformational Growth. Over the years we have grown from a small regional food company to a large diversified food platform by investing in the right macro trends and not being distracted by industry fads. My letter, which you can find on our website at www.premiumbrandsholdings.com, explains our progress, actions and strategies as we execute on our five-year plan," said
THIRD QUARTER 2024 DIVIDEND
The Company also announced that its Board of Directors approved a cash dividend of
Unless indicated otherwise in writing at or before the time the dividend is paid, each dividend paid by the Company in 2024 or a subsequent year is an eligible dividend for the purposes of the Enhanced Dividend Tax Credit System.
ABOUT
RESULTS OF OPERATIONS
The Company reports on two reportable segments,
Revenue
(in millions of dollars except percentages) |
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|
13 weeks ended
2024 |
% (1) |
13 weeks ended
2023 |
% (1) |
26 weeks ended
2024 |
% (1) |
26 weeks ended
2023 |
% (1) |
Revenue by segment: |
|
|
|
|
|
|
|
|
|
1,151.8 |
67.6 % |
1,085.0 |
66.5 % |
2,139.2 |
67.6 % |
2,033.7 |
66.4 % |
Premium Food Distribution |
550.9 |
32.4 % |
545.9 |
33.5 % |
1,025.3 |
32.4 % |
1,027.7 |
33.6 % |
Consolidated |
1,702.7 |
100.0 % |
1,630.9 |
100.0 % |
3,164.5 |
100.0 % |
3,061.4 |
100.0 % |
|
||||||||
(1) Expressed as a percentage of consolidated revenue. |
SF's OVGR was driven by its core
SF's overall OVGR was hampered or negatively impacted by: (i) a
SF's revenue for the first two quarters of 2024 increased by
Premium Food Distribution's (PFD) revenue for the quarter increased by
The contraction in PFD's sales volume, which was improved from a
PFD's revenue for the first two quarters of 2024 decreased by
Gross Profit
(in millions of dollars except percentages) |
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|
13 weeks ended
2024 |
% (1) |
13 weeks ended
2023 |
% (1) |
26 weeks ended
2024 |
% (1) |
26 weeks ended
2023 |
% (1) |
Gross profit by segment: |
|
|
|
|
|
|
|
|
|
255.1 |
22.1 % |
236.3 |
21.8 % |
478.1 |
22.3 % |
435.6 |
21.4 % |
Premium Food Distribution |
94.7 |
17.2 % |
87.1 |
16.0 % |
169.4 |
16.5 % |
157.6 |
15.3 % |
Consolidated |
349.8 |
20.5 % |
323.4 |
19.8 % |
647.5 |
20.5 % |
593.2 |
19.4 % |
|
||||||||
(1) Expressed as a percentage of the corresponding segment's revenue. |
SF's gross profit as a percentage of its revenue (gross margin) for the quarter increased by 30 basis points primarily due to: (i) production efficiency improvements resulting from investments in automation and new production capacity, continuous improvement projects, a more stable labor market and higher production throughput levels; and (ii) sales leveraging benefits associated with SF's organic volume growth. These factors were partially offset by additional plant overhead costs associated with new production capacity being brought online.
SF's gross margin for the first two quarters of 2024 increased by 90 basis points primarily due to the factors impacting the second quarter as well as the impact in the first quarter of lower raw material input costs combined with selling price increases on certain products.
PFD's gross margin for the quarter and for the first two quarters of 2024 increased by 120 basis points primarily due to: (i) higher margins on processed lobster; and (ii) an increased allocation of production overhead to inventory resulting mainly from an opportunistic processed lobster inventory build made possible by an above average Canadian spring fishery.
Selling, General and Administrative Expenses (SG&A)
(in millions of dollars except percentages) |
||||||||
|
13 weeks ended
2024 |
% (1) |
13 weeks ended
2023 |
% (1) |
26 weeks ended
2024 |
% (1) |
26 weeks ended
2023 |
% (1) |
SG&A by segment: |
|
|
|
|
|
|
|
|
|
134.2 |
11.7 % |
126.8 |
11.7 % |
263.6 |
12.3 % |
244.6 |
12.0 % |
Premium Food Distribution |
53.9 |
9.8 % |
51.5 |
9.4 % |
104.6 |
10.2 % |
99.6 |
9.7 % |
Corporate |
10.2 |
|
7.8 |
|
19.7 |
|
16.1 |
|
Consolidated |
198.3 |
11.6 % |
186.1 |
11.4 % |
387.9 |
12.3 % |
360.3 |
11.8 % |
|
||||||||
(1) Expressed as a percentage of the corresponding segment's revenue. |
SF's SG&A as a percentage of sales (SG&A ratio) for the quarter and for the first two quarters of 2024 was relatively stable as sales leveraging benefits associated with SF's organic growth offset, or partially offset in the case of the first two quarters of 2024: (i) wage inflation; and (ii) higher outside storage costs, which were mostly the result of providing a major customer with additional services, the cost of which is recovered through increased selling prices on applicable products.
PFD's SG&A ratio for the quarter and for the first two quarters of 2024 increased by 40 basis points and 50 basis points, respectively, primarily due to: (i) sales deleveraging associated with the contraction in its sales volumes; and (ii) wage inflation.
Adjusted EBITDA (1)
(in millions of dollars except percentages) |
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|
13 weeks ended
2024 |
% (2) |
13 weeks ended
2023 |
% (2) |
26 weeks ended
2024 |
% (2) |
26 weeks ended
2023 |
% (2) |
Adjusted EBITDA by segment: |
|
|
|
|
|
|
|
|
|
120.9 |
10.5 % |
109.5 |
10.1 % |
214.5 |
10.0 % |
191.0 |
9.4 % |
Premium Food Distribution |
40.8 |
7.4 % |
35.6 |
6.5 % |
64.8 |
6.3 % |
58.0 |
5.6 % |
Corporate |
(10.2) |
|
(7.8) |
|
(19.7) |
|
(16.1) |
|
Interest income from investments |
13.1 |
|
15.1 |
|
26.0 |
|
30.2 |
|
Consolidated |
164.6 |
9.7 % |
152.4 |
9.3 % |
285.6 |
9.0 % |
263.1 |
8.6 % |
(1) Adjusted EBITDA is a non-IFRS financial measure. Reconciliation and explanations are included in the Non-IFRS Financial Measures section of this press release. (2) Expressed as a percentage of the corresponding segment's revenue. |
Plant Start-up and Restructuring Costs
Plant start-up and restructuring costs consist of expenses associated with: (i) the start-up of new production capacity; (ii) the reconfiguration of existing capacity to gain efficiencies and/or additional capacity; and/or (iii) the restructuring of a business to improve its profitability. The Company expects (see Forward Looking Statements) these investments to result in improvements in its future earnings and cash flows.
During the first two quarters of 2024, the Company incurred
- Start-up of a new cooked protein capacity in
Versailles, Ohio - Start-up of new capacity associated with a 107,000 square foot expansion and reconfiguration of a meat snack and processed meats facility in Ferndale,
Washington - Reconfiguration of two deli meats facilities in
Ontario to improve production efficiencies and increase dry cured production capacity - Construction of a new 165,000 square foot distribution center and the related reconfiguration of a sandwich production facility in
Columbus, Ohio - Start-up of a new 91,000 square foot artisan bakery in
San Francisco, California - Reconfiguration of a kettle cooking facility in
Richmond, British Columbia - Reconfiguration of a 27,000 square foot production facility in
Richmond, British Columbia , from primarily fresh sandwich production to supporting the Company's Global Gourmet kettle business - Construction of a new 60,000 square foot value-added seafood processing facility in
Auburn, Maine
Equity Earnings (Loss) from Investments in Associates
Equity earnings (loss) from investments in associates includes the Company's proportionate share of the earnings and losses of its investments in associates.
(in millions of dollars) |
13 weeks ended
2024 |
13 weeks ended
2023 |
26 weeks ended
2024 |
26 weeks ended
2023 |
|
||||
|
||||
Revenue |
146.3 |
137.9 |
269.8 |
262.4 |
Earnings (loss) before payments to shareholders |
7.0 |
9.1 |
0.1 |
6.1 |
Net loss |
(17.4) |
(12.3) |
(43.3) |
(36.4) |
The Company: |
|
|
|
|
Equity loss in |
(8.7) |
(6.2) |
(21.7) |
(18.2) |
Other net equity earnings |
0.1 |
0.3 |
(0.2) |
- |
Equity loss from investments in associates |
(8.6) |
(5.9) |
(21.9) |
(18.2) |
Revenue and Adjusted EBITDA Outlook
See Forward Looking Statements for a discussion of the risks and assumptions associated with forward looking statements.
2024 Outlook
(in millions of dollars) |
Bottom of Range |
Top of Range |
Revenue guidance range |
6,650 |
6,850 |
Adjusted EBITDA guidance range |
630 |
650 |
While the Company is maintaining its 2024 guidance for sales of
The Company's guidance is based on a range of assumptions (see Forward Looking Statements) including: (i) reasonably stable economic environments in
5 Year Plan
(in millions of dollars) |
|
5-Year Target (2027) |
Revenue |
|
10,000 |
Adjusted EBITDA |
|
1,000 |
The Company remains on track (see Forward Looking Statements) to meet or exceed the five-year targets it set at the beginning of 2023.
|
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Consolidated Balance Sheets |
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(in millions of Canadian dollars) |
|||
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|
Current assets: |
|
|
|
Cash and cash equivalents |
12.1 |
27.6 |
27.4 |
Accounts receivable |
468.3 |
509.9 |
623.2 |
Inventories |
820.4 |
746.7 |
760.9 |
Prepaid expenses and other assets |
40.3 |
43.8 |
32.6 |
|
1,341.1 |
1,328.0 |
1,444.1 |
|
|
|
|
Capital assets |
1,337.5 |
1,163.9 |
985.2 |
Right of use assets |
568.6 |
565.3 |
561.2 |
Intangible assets |
539.3 |
540.6 |
544.2 |
Goodwill |
1,099.7 |
1,084.1 |
1,083.2 |
Investments in and advances to associates |
451.4 |
453.5 |
544.6 |
Other assets |
18.8 |
22.7 |
23.3 |
|
|
|
|
|
5,356.4 |
5,158.1 |
5,185.8 |
|
|
|
|
Current liabilities: |
|
|
|
Cheques outstanding |
20.2 |
16.4 |
18.6 |
Bank indebtedness |
17.7 |
- |
14.4 |
Dividends payable |
37.9 |
34.4 |
34.3 |
Accounts payable and accrued liabilities |
520.4 |
470.9 |
424.6 |
Current portion of puttable interest in subsidiaries |
30.2 |
30.4 |
22.6 |
Current portion of long-term debt |
2.5 |
2.0 |
0.8 |
Current portion of lease obligations |
57.7 |
53.9 |
48.7 |
Current portion of provisions |
4.0 |
29.9 |
28.3 |
Current portion of convertible unsecured subordinated debentures |
170.4 |
- |
- |
|
861.0 |
637.9 |
592.3 |
|
|
|
|
Long-term debt |
1,686.2 |
1,510.4 |
1,586.2 |
Lease obligations |
590.8 |
583.4 |
578.0 |
Puttable interest in subsidiaries |
43.0 |
42.4 |
46.0 |
Deferred revenue |
2.7 |
2.8 |
2.8 |
Provisions |
13.9 |
14.5 |
16.0 |
Deferred income taxes |
111.5 |
115.7 |
111.6 |
|
3,309.1 |
2,907.1 |
2,932.9 |
|
|
|
|
Convertible unsecured subordinated debentures |
297.2 |
484.5 |
481.4 |
|
|
|
|
Equity attributable to shareholders: |
|
|
|
Retained earnings |
1.8 |
18.8 |
34.2 |
Share capital |
1,707.4 |
1,703.9 |
1,703.9 |
Reserves |
40.9 |
43.8 |
33.4 |
|
1,750.1 |
1,766.5 |
1,771.5 |
|
|
|
|
|
5,356.4 |
5,158.1 |
5,185.8 |
|
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Consolidated Statements of Operations |
||||
(in millions of Canadian dollars except per share amounts) |
||||
|
|
|
|
|
|
13 weeks |
13 weeks
|
26 weeks
|
26 weeks
|
|
|
|
|
|
Revenue |
1,702.7 |
1,630.9 |
3,164.5 |
3,061.4 |
Cost of goods sold |
1,352.9 |
1,307.5 |
2,517.0 |
2,468.2 |
Gross profit before depreciation, amortization, and plant start-up and |
349.8 |
323.4 |
647.5 |
593.2 |
|
|
|
|
|
Interest income from investments in associates |
13.1 |
15.1 |
26.0 |
30.2 |
Selling, general and administrative expenses before depreciation and
|
198.3 |
186.1 |
387.9 |
360.3 |
Operating profit before depreciation, amortization, and plant start-up and |
164.6 |
152.4 |
285.6 |
263.1 |
|
|
|
|
|
Depreciation of capital assets |
23.5 |
19.1 |
47.9 |
41.3 |
Amortization of intangible assets |
5.2 |
4.0 |
10.7 |
8.0 |
Amortization of right of use assets |
15.9 |
14.9 |
32.7 |
29.7 |
Accretion of lease obligations |
6.8 |
6.6 |
14.2 |
13.2 |
Plant start-up and restructuring costs |
7.6 |
9.8 |
18.4 |
15.6 |
Interest and other financing costs |
43.4 |
37.6 |
83.8 |
71.0 |
Acquisition transaction costs |
1.2 |
1.2 |
2.3 |
2.2 |
Change in value of puttable interest in subsidiaries |
1.6 |
4.6 |
4.2 |
6.2 |
Change in value and accretion of provisions |
0.5 |
0.4 |
3.8 |
0.9 |
Provision released |
(20.5) |
- |
(20.5) |
- |
Equity losses from investments in associates |
8.6 |
5.9 |
21.9 |
18.2 |
Change in fair value of option liabilities |
- |
- |
(20.0) |
- |
Others |
4.8 |
- |
4.8 |
- |
Earnings before income taxes |
66.0 |
48.3 |
81.4 |
56.8 |
|
|
|
|
|
Provision for income taxes (recovery) |
|
|
|
|
Current |
18.2 |
16.7 |
28.4 |
24.9 |
Deferred |
(4.7) |
(2.3) |
(5.8) |
(7.9) |
|
13.5 |
14.4 |
22.6 |
17.0 |
Earnings |
52.5 |
33.9 |
58.8 |
39.8 |
|
|
|
|
|
Earnings per share: |
|
|
|
|
Basic |
1.18 |
0.76 |
1.32 |
0.90 |
Diluted |
1.18 |
0.76 |
1.32 |
0.89 |
|
|
|
|
|
Weighted average shares outstanding (in millions): |
|
|
|
|
Basic |
44.4 |
44.4 |
44.4 |
44.4 |
Diluted |
44.6 |
44.6 |
44.6 |
44.6 |
|
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Consolidated Statements of Cash Flows |
||||
(in millions of Canadian dollars) |
||||
|
|
|
|
|
|
13 weeks |
13 weeks
|
26 weeks
|
26 weeks
|
|
|
|
|
|
Cash flows from (used in) operating activities: |
|
|
|
|
Earnings |
52.5 |
33.9 |
58.8 |
39.8 |
Items not involving cash: |
|
|
|
|
Depreciation of capital assets |
23.5 |
19.1 |
47.9 |
41.3 |
Amortization of intangible assets |
5.2 |
4.0 |
10.7 |
8.0 |
Amortization of right of use assets |
15.9 |
14.9 |
32.7 |
29.7 |
Accretion of lease obligations |
6.8 |
6.6 |
14.2 |
13.2 |
Change in value of puttable interest in subsidiaries |
1.6 |
4.6 |
4.2 |
6.2 |
Equity losses from investments in associates |
8.6 |
5.9 |
21.9 |
18.2 |
Non-cash financing costs |
1.9 |
2.0 |
3.8 |
3.9 |
Change in value and accretion of provisions |
0.5 |
0.4 |
3.8 |
0.9 |
Provision released |
(20.5) |
- |
(20.5) |
- |
Change in fair value of option liabilities |
- |
- |
(20.0) |
- |
Deferred income taxes recovery |
(4.7) |
(2.3) |
(5.8) |
(7.9) |
Others |
4.8 |
- |
4.8 |
- |
|
96.1 |
89.1 |
156.5 |
153.3 |
Change in non-cash working capital |
30.4 |
(54.9) |
(1.9) |
(33.3) |
|
126.5 |
34.2 |
154.6 |
120.0 |
|
|
|
|
|
Cash flows from (used in) financing activities: |
|
|
|
|
Long-term debt, net |
41.4 |
108.1 |
132.3 |
182.3 |
Payments for lease obligations |
(20.0) |
(18.4) |
(39.6) |
(35.8) |
Bank indebtedness and cheques outstanding |
4.1 |
11.9 |
21.5 |
(4.3) |
Common shares purchased for cancellation |
- |
- |
- |
(1.4) |
Dividends paid to shareholders |
(37.9) |
(34.4) |
(72.3) |
(65.8) |
|
(12.4) |
67.2 |
41.9 |
75.0 |
|
|
|
|
|
Cash flows from (used in) investing activities: |
|
|
|
|
Capital asset additions |
(104.4) |
(100.9) |
(202.4) |
(175.2) |
Payment of provisions |
(9.3) |
(0.7) |
(10.7) |
(2.1) |
Payment to shareholders of non-wholly owned subsidiaries |
(0.6) |
(1.2) |
(3.6) |
(1.2) |
Payments for settlement of puttable interest of non-wholly owned |
- |
(2.3) |
- |
(2.3) |
Net change in share purchase loans and notes receivable |
0.4 |
0.1 |
1.2 |
(0.2) |
Investments in and advances to associates – net of distributions |
1.7 |
0.4 |
3.5 |
2.0 |
|
(112.2) |
(104.6) |
(212.0) |
(179.0) |
|
|
|
|
|
Change in cash and cash equivalents |
1.9 |
(3.2) |
(15.5) |
16.0 |
Cash and cash equivalents – beginning of period |
10.2 |
30.6 |
27.6 |
11.4 |
|
|
|
|
|
Cash and cash equivalents – end of period |
12.1 |
27.4 |
12.1 |
27.4 |
|
|
|
|
|
|
|
|
|
|
Interest and other financing costs paid |
38.7 |
34.2 |
78.9 |
69.7 |
Income taxes paid |
13.8 |
13.5 |
28.2 |
30.0 |
NON-IFRS FINANCIAL MEASURES
The Company uses certain non-IFRS financial measures including adjusted EBITDA, free cash flow, adjusted earnings and adjusted earnings per share, which are not defined under IFRS and, as a result, may not be comparable to similarly titled measures presented by other publicly traded entities, nor should they be construed as an alternative to other earnings measures determined in accordance with IFRS. These non-IFRS measures are calculated as follows:
Adjusted EBITDA
(in millions of dollars) |
13 weeks ended
2024 |
13 weeks ended
2023 |
26 weeks ended
2024 |
26 weeks ended
2023 |
|
|
|
|
|
Earnings before income taxes |
66.0 |
48.3 |
81.4 |
56.8 |
Plant start-up and restructuring costs |
7.6 |
9.8 |
18.4 |
15.6 |
Depreciation of capital assets |
23.5 |
19.1 |
47.9 |
41.3 |
Amortization of intangible assets |
5.2 |
4.0 |
10.7 |
8.0 |
Amortization of right of use assets |
15.9 |
14.9 |
32.7 |
29.7 |
Accretion of lease obligations |
6.8 |
6.6 |
14.2 |
13.2 |
Interest and other financing costs |
43.4 |
37.6 |
83.8 |
71.0 |
Acquisition transaction costs |
1.2 |
1.2 |
2.3 |
2.2 |
Change in value of puttable interest in subsidiaries |
1.6 |
4.6 |
4.2 |
6.2 |
Change in value and accretion of provisions |
0.5 |
0.4 |
3.8 |
0.9 |
Provision released |
(20.5) |
- |
(20.5) |
- |
Equity losses from investments in associates |
8.6 |
5.9 |
21.9 |
18.2 |
Change in fair value of option liabilities |
- |
- |
(20.0) |
- |
Others |
4.8 |
- |
4.8 |
- |
Adjusted EBITDA |
164.6 |
152.4 |
285.6 |
263.1 |
Free Cash Flow
(in millions of dollars) |
52 weeks ended
2023 |
26 weeks ended
2024 |
26 weeks ended
2023 |
Rolling Four Quarters |
|
|
|
|
|
Cash flow from operating activities |
433.9 |
154.6 |
120.0 |
468.5 |
Changes in non-cash working capital |
(110.6) |
1.9 |
33.3 |
(142.0) |
Lease obligation payments |
(74.0) |
(39.6) |
(35.8) |
(77.8) |
Business acquisition transaction costs |
4.4 |
2.3 |
2.2 |
4.5 |
Plant start-up and restructuring costs |
45.3 |
18.4 |
15.6 |
48.1 |
Maintenance capital expenditures |
(46.0) |
(23.0) |
(25.6) |
(43.4) |
Free cash flow |
253.0 |
114.6 |
109.7 |
257.9 |
Adjusted Earnings and Adjusted Earnings per Share
(in millions of dollars except per share amounts) |
13 weeks ended
2024 |
13 weeks ended
2023 |
26 weeks ended
2024 |
26 weeks ended
2023 |
|
|
|
|
|
Earnings |
52.5 |
33.9 |
58.8 |
39.8 |
Plant start-up and restructuring costs |
7.6 |
9.8 |
18.4 |
15.6 |
Acquisition transaction costs |
1.2 |
1.2 |
2.3 |
2.2 |
Change in value and accretion of provisions |
0.5 |
0.4 |
3.8 |
0.9 |
Provisions released |
(20.5) |
- |
(20.5) |
- |
Equity loss from investments in associates |
8.6 |
5.9 |
21.9 |
18.2 |
Change in value of puttable interest in subsidiaries |
1.6 |
4.6 |
4.2 |
6.2 |
Amortization of intangible assets associated with acquisitions |
5.2 |
4.0 |
10.7 |
8.0 |
Change in fair value of option liabilities |
- |
- |
(20.0) |
- |
Others |
4.8 |
- |
4.8 |
- |
|
61.5 |
59.8 |
84.4 |
90.9 |
Current and deferred income tax effect of above items, and |
(4.6) |
(3.5) |
(3.5) |
(6.1) |
Adjusted earnings |
56.9 |
56.3 |
80.9 |
84.8 |
Weighted average shares outstanding |
44.4 |
44.4 |
44.4 |
44.4 |
Adjusted earnings per share |
1.28 |
1.27 |
1.82 |
1.91 |
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements with respect to the Company, including, without limitation, statements regarding its business operations, strategy and financial performance and condition, cash distributions, proposed acquisitions, budgets, projected costs and plans and objectives of or involving the Company. While management believes that the expectations reflected in such forward looking statements are reasonable and represent the Company's internal expectations and belief as of
Forward looking statements generally can be identified by the use of the words "may", "could", "should", "would", "will", "expect", "intend", "plan", "estimate", "project", "anticipate", "believe" or "continue", or the negative thereof or similar variations. Forward looking statements in this press release include statements with respect to the Company's expectations and/or projections on its: revenue; adjusted EBITDA; plant start-up and restructuring costs; income tax rates; dividends and dividend policy; capital expenditures and business acquisitions; convertible debentures; net working capital; liquidity outlook; provisions; financial leverage ratios; value of puttable interests; and sale and leaseback and lease renewal transactions.
Some of the factors that could cause actual results to differ materially from the Company's expectations are referenced in the Risks and Uncertainties section in the Company's MD&A for the 13 and 26 Weeks Ended
Assumptions used by the Company to develop forward looking statements contained or incorporated by reference in this press release are based on information currently available to it and include those outlined below as well as those outlined elsewhere in this document. Readers are cautioned that this information is not exhaustive.
- Economic conditions in
Canada andthe United States will remain relatively stable with interest rates and inflation continuing to moderate. - The Company will be able to achieve the projected sales growth and operating efficiency improvement associated with the significant capital investments it has made in recent years.
- There will not be any material changes in the long-term food trends that have been driving growth in many of the Company's businesses. These include: (i) growing demand for higher quality foods made with simpler, more wholesome ingredients and/or with differentiated attributes such as antibiotic free, no added hormones or use of organic ingredients; (ii) increased reliance on healthier and less processed convenience-oriented foods both for on-the-go snacking as well as easy meal preparation, both at home and in foodservice; (iii) healthier eating, including reduced sugar consumption and an increased emphasis on animal protein and seafood; (iv) increased snacking in between and in place of meals; (v) increased interest in understanding the provenance of individual food products; and (vi) increased social awareness of issues such as reconciliation with Indigenous Peoples, sustainability, and ethical supply chain practices.
- There will not be any material changes in the competitive environment of the markets in which the Company's businesses compete.
- There will not be any material changes in the Company's relationships with its larger customers including the loss of a major product listing and/or being forced to give significant product pricing concessions.
- There will not be any material changes in the trade relationship between
Canada and the U.S. - The average cost of the basket of procured products and raw materials purchased by the Company will remain relatively stable.
- The Company will be able to access sufficient goods and services for its manufacturing and distribution operations.
- The Company will be able to access sufficient skilled and unskilled labor at reasonable wage levels.
- The value of the Canadian dollar relative to the U.S. dollar will fluctuate in line with the levels seen over the last several months.
- The Company's major capital projects, plant start-up and restructuring, and business acquisition initiatives will progress in line with its expectations.
- Weather conditions in the Company's core markets will not have a significant impact on any of its businesses.
- The Company will be able to negotiate new collective agreements with no labor disruptions.
- The Company will be able to access reasonably priced debt and equity capital.
- Contractual counterparties will continue to fulfill their obligations to the Company.
- There will be no material changes to the tax, environmental and other regulatory requirements governing the Company.
Management has set out the above summary of assumptions related to forward looking statements included in this press release to provide a more complete perspective on the Company's future operations. Readers are cautioned that these statements may not be appropriate for other purposes.
Unless otherwise indicated, the forward looking statements in this press release are made as of
SOURCE