Premium Brands Holdings Corp. reported record second-quarter revenue and earnings on Thursday, while revising its 2026 sales and adjusted EBITDA guidance to reflect delays in certain product launches and customer promotional activity.
The specialty food producer and distributor said second-quarter revenue reached a record $2.4 billion, up 26.3 per cent, or $495 million, from the same period a year earlier. Organic sales growth was 7.5 per cent during the quarter.
Premium Brands owns specialty food manufacturing and differentiated food distribution businesses with operations across Canada and the United States.
Revenue and earnings increase
The company also reported record second-quarter adjusted EBITDA from continuing operations of $225 million, an increase of 29.5 per cent, or $51.2 million, from the second quarter of 2025. Adjusted earnings per share from continuing operations rose to a record $1.53, up 17.7 per cent, or 23 cents per share, from a year earlier.
Premium Brands said it generated record second-quarter steady state free cash flow of $116 million, or $2.22 per share, while net free cash flow for the quarter totalled $68.4 million. The company’s total debt-to-EBITDA ratio improved to 3.8:1 from 4.1:1 at the end of the first quarter of 2026.
“Our second quarter results provide an early indication of our earnings and cash flow potential as the investments we have made in recent years to position our company to benefit from fundamental changes occurring in the food industry begin to generate returns. Our sales grew by 26.3%, including 7.5% organic growth, our adjusted EBITDA and earnings per share grew by 29.5% and 17.7%, respectively, our total debt-to-EBITDA ratio fell to 3.8 : 1, and we are now once again generating solid net free cash flow,” said George Paleologou, president and chief executive officer.
Outlook revised
The company said it completed the sale of its 74 per cent interest in Shaw Bakers and announced the shutdown of an older value-added beef processing facility during the quarter.
Premium Brands revised its 2026 sales and adjusted EBITDA guidance ranges, saying the changes were based mainly on delays in certain new product launches, including a customer’s decision to postpone several large promotions that had been scheduled for the second half of 2026 until early 2027.
Despite the revised guidance, the company reaffirmed that it remains on track to exceed its five-year plan targets for 2027 sales of $10 billion and adjusted EBITDA of $1 billion.
Growth strategy
The company said its U.S. Specialty Foods business made progress on its core growth initiatives during the quarter, generating organic volume growth of 10.7 per cent despite delays affecting some customer promotions and new product launches.
“As outlined in my recently published letter to shareholders titled “A New Food Order”, consumers’ growing focus on health and wellness, along with their evolving sophistication in measuring and tracking personal health data, is disrupting the food universe in unprecedented ways. Our portfolio of best-in-class premium food products that cater to three key mega food trends, namely high in protein, convenience and premiumization, combined with our new state-of-the-art production capacities and innovation capabilities, uniquely position us to capitalize on this disruption,” added Paleologou.
Acquisitions and dividend
Premium Brands also said it continues to evaluate acquisition opportunities while maintaining its focus on strengthening its balance sheet.
“On the acquisitions front, we are evaluating several attractive opportunities, however, any transaction we complete will be done within the context of continuing to strengthen our financial position,” stated Mr. Paleologou.
Separately, the company’s board of directors approved a cash dividend of 85 cents per common share for the third quarter of 2026. The dividend will be paid on Oct. 15, 2026, to shareholders of record at the close of business on Sept. 30, 2026.
The company also said that, unless otherwise indicated in writing at or before the time a dividend is paid, each dividend paid in 2026 or a subsequent year will qualify as an eligible dividend for the purposes of the Enhanced Dividend Tax Credit System.
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