Premium Brands (TSE:PBH – Get Free Report) announced its earnings results on Thursday. The company reported C$1.38 EPS for the quarter, FiscalAI reports. The business had revenue of C$2.38 billion during the quarter. Premium Brands had a net margin of 1.01% and a return on equity of 4.19%.
Here are the key takeaways from Premium Brands’ conference call:
- Stampede’s foodservice softness drove the main Q3 shortfall: sales were about CAD 20 million below plan and EBITDA about CAD 12 million below plan. A delayed procurement initiative also weighed on results, though management said it is now expected to begin in January 2027.
- Management maintained its 2026 guidance and remains confident in its 2027 growth outlook, citing CAD 170 million of confirmed new customer business and more than CAD 900 million of initiatives in progress. It acknowledged execution and launch-timing risks, and said roughly 30%–40% of the expected 2027 sales growth would come from initiatives already ramping.
- Stampede’s new procurement program is projected to generate CAD 25 million–CAD 30 million in annual savings, with operations expected to begin in Q1 2027 and no material ramp-up. Management said the benefit will be shared with customers and suppliers, so Premium Brands will not retain all of the savings.
- Premium Brands has completed about CAD 250 million in asset monetizations and is pursuing a CAD 1 billion target, including evaluating options for its distribution business. Management’s stated priorities for proceeds are reducing debt and buying back shares, while noting that asset sales could affect its CAD 10 billion revenue target depending on timing.
- Executives described a mixed demand environment: foodservice is under pressure, while retail and club sales remain stronger, supported by premium private-label growth. They expect beef and chicken cost deflation to benefit Q4 results, but said some deflation also reflects weaker consumer demand.
Premium Brands Stock Down 0.6%
Shares of PBH traded down C$0.42 on Thursday, hitting C$74.80. 370,679 shares of the stock traded hands, compared to its average volume of 188,394. The company has a market capitalization of C$3.89 billion, a PE ratio of 45.61, a P/E/G ratio of 1.10 and a beta of 0.83. The business has a 50 day simple moving average of C$74.08 and a 200 day simple moving average of C$86.01. Premium Brands has a one year low of C$69.10 and a one year high of C$106.79. The company has a debt-to-equity ratio of 153.93, a quick ratio of 1.16 and a current ratio of 1.36.
Analyst Ratings Changes
PBH has been the topic of several research analyst reports. ATB Cormark Capital Markets reduced their target price on Premium Brands from C$150.00 to C$130.00 and set an “outperform” rating on the stock in a research note on Friday, August 7th. BMO Capital Markets decreased their price target on shares of Premium Brands from C$118.00 to C$111.00 in a research note on Friday, August 7th. Canadian Imperial Bank of Commerce lowered their price target on shares of Premium Brands from C$115.00 to C$100.00 and set a “strong-buy” rating for the company in a research report on Friday, August 7th. Canaccord Genuity Group dropped their price objective on shares of Premium Brands from C$123.00 to C$117.00 in a research note on Friday, August 7th. Finally, Royal Bank Of Canada lowered their target price on shares of Premium Brands from C$120.00 to C$110.00 and set an “outperform” rating for the company in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Buy” and an average target price of C$115.25.
View Our Latest Stock Report on PBH
About Premium Brands
Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada and the United States.
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