Latest news with #PremiumBrands
Yahoo
01-06-2025
- Business
- Yahoo
Is Premium Brands Holdings Corporation's (TSE:PBH) 6.7% ROE Worse Than Average?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Premium Brands Holdings Corporation (TSE:PBH), by way of a worked example. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Premium Brands Holdings is: 6.7% = CA$118m ÷ CA$1.7b (Based on the trailing twelve months to March 2025). The 'return' is the yearly profit. That means that for every CA$1 worth of shareholders' equity, the company generated CA$0.07 in profit. Check out our latest analysis for Premium Brands Holdings One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, Premium Brands Holdings has a lower ROE than the average (11%) in the Food industry. That's not what we like to see. That being said, a low ROE is not always a bad thing, especially if the company has low leverage as this still leaves room for improvement if the company were to take on more debt. When a company has low ROE but high debt levels, we would be cautious as the risk involved is too high. Our risks dashboard should have the 3 risks we have identified for Premium Brands Holdings. Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. It's worth noting the high use of debt by Premium Brands Holdings, leading to its debt to equity ratio of 1.43. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it. Return on equity is one way we can compare its business quality of different companies. In our books, the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company. But note: Premium Brands Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-05-2025
- Business
- Yahoo
Premium Brands Holdings (TSE:PBH) Will Pay A Dividend Of CA$0.85
The board of Premium Brands Holdings Corporation (TSE:PBH) has announced that it will pay a dividend of CA$0.85 per share on the 15th of July. This means the annual payment is 4.1% of the current stock price, which is above the average for the industry. Our free stock report includes 2 warning signs investors should be aware of before investing in Premium Brands Holdings. Read for free now. We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Before this announcement, Premium Brands Holdings was paying out 128% of what it was earning, and not generating any free cash flows either. This high of a dividend payment could start to put pressure on the balance sheet in the future. According to analysts, EPS should be several times higher next year. If the dividend continues along recent trends, we estimate the payout ratio will be 46%, which would make us comfortable with the dividend's sustainability, despite the levels currently being elevated. View our latest analysis for Premium Brands Holdings The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The annual payment during the last 10 years was CA$1.25 in 2015, and the most recent fiscal year payment was CA$3.40. This implies that the company grew its distributions at a yearly rate of about 11% over that duration. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period. Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Earnings have grown at around 2.3% a year for the past five years, which isn't massive but still better than seeing them shrink. The earnings growth is anaemic, and the company is paying out 128% of its profit. As they say in finance, 'past performance is not indicative of future performance', but we are not confident a company with limited earnings growth and a high payout ratio will be a star dividend-payer over the next decade. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. We can't deny that the payments have been very stable, but we are a little bit worried about the very high payout ratio. We would be a touch cautious of relying on this stock primarily for the dividend income. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 2 warning signs for Premium Brands Holdings that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
08-04-2025
- Business
- Globe and Mail
Premium Brands Holdings Corporation Provides Clarification Regarding Upcoming Annual Meeting
VANCOUVER, BC , April 7, 2025 /CNW/ - Premium Brands Holdings Corporation ("Premium Brands" or the "Company") (TSX: PBH), a leading producer, marketer and distributor of branded specialty food products, has mailed materials to its shareholders in connection with its upcoming Annual Meeting to be held in hybrid format on Tuesday, May 6, 2025 (the "Meeting"), including a Notice of Meeting, Management Information Circular and form of Proxy (collectively, the "Meeting Materials"). Appendix D of the Management Information Circular sets out the text of three shareholder proposals, one of which was withdrawn and two of which will be put to the shareholders of the Company for consideration at the Meeting – Proposal #1, in respect of the proposed adoption of an "overboarding" policy for the Company's directors, and Proposal #2, in respect of the proposed disclosure of the percentage of pork produced by the Company using group sow housing (collectively, the "Shareholder Proposals"). Appendix D of the Management Information Circular also sets out the Board's responses to the Shareholder Proposals, and the recommendation that shareholders vote against both Proposal #1 and Proposal #2. The Company wishes to clarify that the form of Proxy included in the Meeting Materials includes a single spot for shareholders to VOTE FOR or to VOTE AGAINST the Shareholder Proposals. Accordingly, a VOTE FOR the Shareholder Proposals will be counted as an affirmative vote for both Proposal #1 and Proposal #2; conversely, a VOTE AGAINST the Shareholder Proposals will be counted as a negative vote against both Proposal #1 and Proposal #2. Shareholders who are in favor of either Shareholder Proposal are encouraged to vote for both. About Premium Brands Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada , the United States and Italy .
Yahoo
26-03-2025
- Business
- Yahoo
Premium Brands bags another acquisition as extra C$1bn sales eyed
Premium Brands Holdings is looking to add almost C$1bn ($698.4m) to its revenue coffers as the Canadian food business bagged yet another acquisition. As any potential damage from US tariffs on Canada was generally shrugged off by president and CEO George Paleologou last week, the manufacturer of fresh meats, seafood and bakery has guided to a sales revenue target of C$7.2-7.4bn for the new fiscal year. Reporting a 3.3% increase in revenue to C$6.47bn in the 12 months to 28 December, Premium Brands announced a deal last week for Peoria, Arizona-based premium sausage manufacturer Denmark Sausage for $21m US dollars. The acquisition hungry retail and foodservice supplier had already revealed a trio of new incumbents in December - NSP Quality Meats, Casa Di Bertacchi and Italia Salami. The first two are based in the US and the third in Canada. Paleologou confirmed in last week's results presentation to analysts that the US constitutes about 60% to 65% of the company's organic growth outlook, with a local manufacturing presence largely guarding Premium Brands against the Trump tariffs due to come into force on Canada in April. 'Ultimately, we're trying to grow the business and we're trying to improve our existing businesses. The four acquisitions that we've done will be incredibly accretive ultimately for our businesses,' Paleologou said. 'We're assessing all acquisitions in a conservative way. We're not going to be aggressive in terms of valuation. If we find acquisitions that help our growth, they're very accretive and improve the profile of our various businesses, we will do that.' Paleologou described Denmark Sausage as being similar to another portfolio business - Isernio's, a premium sausage, mince and marinated pork and chicken products company in Washington State. 'We want to build Denmark similarly the way we built Isernio's since we purchased it. I think Isernio's is four times bigger today than when we bought it a few years ago, and we see similar growth opportunities with Denmark,' Paleologou told analysts. US tariffs on Canada are due to kick in on 2 April, along with reciprocal taxes from the Canadian side. 'Canada has also imposed a first round of tariffs on $30 billion of certain US goods, with a second round on a wider list of US goods valued at $125 billion expected to come into effect in early April,' Premium Brands acknowledged in its results statement. 'Discussions between the US and Canadian governments remain ongoing, but there is no assurance that these discussions will result in a successful withdrawal or reduction of tariffs.' While Paleologou said the company's local manufacturing presence in the US and Canada markets generally insulates Premium Brands from the tariffs, it does ship a certain amount of business across borders. 'We are confident that we will be able to largely mitigate the impact of tariffs on these sales,' Paleologou told analysts. Both Premium Brands' main revenue generating division, Specialty Foods, and its wholesale business unit Premium Foods Distribution, have some exposure. In cooked meats, for example, some C$300m is shipped across the border. 'In terms of our Specialty Foods segment, its diversified network of production facilities across Canada and the US will enable it to shift production of many of its products crossing a border to the jurisdiction in which they are sold,' Paleologou explained. 'In terms of our Premium Foods Distribution segment, processed lobster is the primary product crossing a border. However, this is produced from a scarce resource and as a result customers have very limited supply options. 'Furthermore, our Premium Foods Distribution segment has major lobster processing operations in both Canada and the US.' Premium Brands effectively has another three years to make good on its five-year goal to achieve C$10bn in revenue in fiscal 2027 and C$1bn in adjusted EBITDA. The outlook for EBITDA in the new financial year was set at C$680-700m after increasing 6.2% to C$593.7m in the 12 months through December. Meanwhile, adjusted EPS dipped 1.2% last year to C$3.98. No guidance was issued for that metric for fiscal 2025. "Premium Brands bags another acquisition as extra C$1bn sales eyed" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Associated Press
19-03-2025
- Business
- Associated Press
Premium Brands Holdings Corporation Announces Completion of $150 Million Public Offering of 5.50% Convertible Unsecured Subordinated Debentures
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./ VANCOUVER, BC, March 19, 2025 /CNW/ - Premium Brands Holdings Corporation ('Premium Brands' or the 'Company') (TSX: PBH), a leading producer, marketer and distributor of branded specialty food products, is pleased to announce the successful closing of the issue and sale of $150,000,000 aggregate principal amount of 5.50% convertible unsecured subordinated debentures (the 'Offered Debentures') at a price (the 'Debenture Issuance Price') of $1,000 per Offered Debenture, for aggregate gross proceeds to the Company of $150,000,000 (the 'Offering'). The Offered Debentures were offered to the public through a syndicate of underwriters which was co-led by CIBC Capital Markets, National Bank Financial Inc., BMO Capital Markets and Scotiabank, and included Desjardins Securities Inc., Raymond James Ltd., RBC Dominion Securities Inc., TD Securities Inc., Canaccord Genuity Corp., Cormark Securities Inc., Stifel Nicolaus Canada Inc. and Ventum Capital Markets (collectively, the 'Underwriters'). The Company has also granted to the Underwriters an over-allotment option to purchase up to an additional $22,500,000 aggregate principal amount of 5.50% convertible unsecured subordinated debentures each at the Debenture Issuance Price per debenture, exercisable in whole or in part at any time for a period of up to 30 days following closing of the Offering. The Company intends to use the net proceeds of the Offering (including the net proceeds of the Over-Allotment Option, if any) to temporarily reduce existing indebtedness under one of its revolving credit facilities (the 'Credit Facility'), thereby increasing the amount available to be drawn under such Credit Facility, as required, to partially fund the payout of its 4.65% convertible unsecured debentures, due April 30, 2025 (including accrued but unpaid interest thereon). The Offered Debentures will bear interest from the date of issue at 5.50% per annum, payable semi‐annually in arrears on March 31 and September 30 of each year commencing September 30, 2025 and have a maturity date of March 31, 2030 (the 'Maturity Date'). The Offered Debentures are convertible at the holder's option at any time prior to the close of business on the earlier of the Maturity Date and the business day immediately preceding the date specified by the Company for redemption of the Offered Debentures into common shares at a conversion price of $126.15 per common share (the 'Conversion Price'), subject to adjustments as provided in the indenture governing the Offered Debentures. The Conversion Price equates to a conversion rate of 7.9271 common shares for each $1,000 principal amount of Offered Debentures. The Offered Debentures are listed on the Toronto Stock Exchange under the symbol ' About Premium Brands Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada, the United States and Italy. Forward-Looking Statements This press release contains forward looking statements with respect to the Company, including, without limitation, its intended use of the offering proceeds. 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 March 19, 2025, there can be no assurance that such expectations will prove to be correct as such forward looking statements involve unknown risks and uncertainties beyond the Company's control which may cause its actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward looking statements. Forward looking statements generally can be identified by the use of forward looking words such as 'may', 'could', 'should', 'would', 'will', 'expect', 'intend', 'plan', 'estimate', 'project', 'anticipate', 'believe' or 'continue', or the negative thereof or similar variations. These forward looking statements include statements with respect to the Company's intended use of the net proceeds of the Offering. Some of the factors that could cause actual results to differ materially from the Company's expectations are referenced in the Company's final short form prospectus dated March 14, 2025 under Risk Factors and in the Risks and Uncertainties section in the Company's MD&A for the 13 and 39 Weeks ended September 28, 2024, each of which is filed electronically through SEDAR+ and is available online at Assumptions used by the Company to develop forward looking statements contained in this press release are based on information currently available to the Company and include those assumptions outlined in the Company's final short form prospectus dated March 14, 2025 under Forward-Looking Information and in the Company's MD&A for the 13 and 39 Weeks ended September 28, 2024 under Forward Looking Statements. Readers are cautioned that this information is not exhaustive. Unless otherwise indicated, the forward looking statements in this document are made as of the date hereof and, except as required by applicable law, will not be publicly updated or revised. This cautionary statement expressly qualifies the forward looking statements in this press release.
