Canada's Premium Brands Q3 adjusted EBITDA rises

Overview

• Q3 adjusted EBITDA rose 22% yr/yr to record level

Outlook

• Company sees 2026 revenue between C$9.1 bln and C$9.3 bln

• Company expects 2026 adjusted EBITDA between C$840 mln and C$870 mln

• Company expects U.S. organic volume growth rate to return to double digits in 2027

Result Drivers

• BUSINESS ACQUISITIONS - Co said revenue growth was mainly driven by acquisitions, with additional contributions from price increases and modest organic volume growth

• SOFT FOODSERVICE DEMAND - Lower U.S. organic volume growth reflected weaker foodservice and convenience channel sales, timing of promotions, and delayed product launches

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for Premium Brands Holdings Corporation is C$110.00, about 46.2% above its November 4 closing price of C$75.22

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 4 - Canada's Maple Leaf Foods misses Q3 revenue estimates; backs FY rev view

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• Nov 4 - Performance Food beats Q1 profit estimates on higher prices, cases sold

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)