Overview

* Premium Brands ( PRBZF ) Q3 revenue beats analyst expectations, reaching record C$2.0 bln

* Adjusted EPS for Q3 misses analyst expectations at C$1.27

* Record Q3 adjusted EBITDA of C$179.1 mln, despite beef cost inflation

Outlook

* Premium Brands ( PRBZF ) raises 2025 sales guidance to C$7.4 bln-C$7.5 bln

* Company lowers 2025 adjusted EBITDA guidance to C$670 mln-C$680 mln

* Company expects beef cost inflation to impact Q4 margins

Result Drivers

* ORGANIC GROWTH - Specialty Foods segment achieved a 24.3% organic volume growth rate in the U.S., driven by protein, sandwiches, and artisan baked goods initiatives

* COST INFLATION - Significant protein cost inflation, particularly in beef, impacted margins despite record adjusted EBITDA

* PRODUCT LAUNCH - Completed the largest new product launch in company history, expected to support future growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$2 bln C$1.90

Revenue bln (8

Analysts

)

Q3 Miss C$1.27 C$1.48

Adjusted (10

EPS Analysts

)

Q3 C$179.10

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and 1 "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 Corp ( PRBZF ) is C$108.50, about 14.2% above its November 7 closing price of C$93.04

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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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.)