Premium Brands (PBH) Q2 2025 Prepared Remarks earnings summary

Executive summary

• Achieved record Q2 sales and adjusted EBITDA, driven by strong organic growth, U.S. protein and bakery initiatives, and acquisitions.

• Major new U.S. facility launches and program rollouts, including a 352,000 sq ft sandwich plant in Tennessee, are expected to drive significant growth in the second half.

• Specialty Foods' U.S. initiatives delivered organic volume growth of 15% in protein and 98% in bakery.

• Focus on operational execution, ramping up new capacity, and robust business development pipeline.

• Margins were temporarily impacted by rising chicken and beef input costs.

Financial highlights

• Q2 revenue reached $1,914.9 million, up 12.5% year-over-year; adjusted EBITDA was $192.5 million with a normalized margin of 10.1%.

• Adjusted EBITDA guidance for 2025 is $680–$700 million, requiring at least 18% growth in the second half.

• Organic volume growth contributed $82.4 million (4.8%) to Q2 revenue; acquisitions added $73.9 million.

• Price increases and easing commodity costs are expected to help normalize margins.

• Declared quarterly dividend of $0.85 per share.

Outlook and guidance

• Maintains 2025 sales guidance of $7.2–$7.4 billion and adjusted EBITDA guidance of $680–$700 million.

• Largest product launch in company history scheduled for early September, expected to drive Q4 performance.

• Five-year targets reaffirmed: $10 billion revenue and $1 billion adjusted EBITDA by 2027.

• Guidance assumes stable economic conditions, manageable commodity costs, and no major currency or tariff changes.

• Guidance assumes rapid ramp-up of new programs; slower ramp would shift timing, not overall 2025 outlook.