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Poor weather eats into Premium Brands profit

Premium Brands Holdings Corp. (TSX:PBH) recently demonstrated how much its business is weather dependent when it announced its quarterly earnings August 5.

Premium Brands Holdings Corp. (TSX:PBH) recently demonstrated how much its business is weather dependent when it announced its quarterly earnings August 5.

The producer, marketer and distributor of branded specialty food products saw earnings drop to $6.1 million in the second quarter, which ended June 26. In the same quarter a year ago, the company generated $6.6 million in profit.

“The biggest challenge we faced during the quarter was the unusually poor weather conditions that persisted across western Canada,” said Premium Brands president and CEO George Paleologou. “This impacted our top line as consumers curtailed their outdoor activities and stayed away from their barbecues resulting in lower sales of our convenience and barbecue-focused products.”

Despite the weather, the company’s revenue was up 1.3%, or $1.6 million, to a record $125.9 million.

Premium Brands acquired 80% of Vancouver-based Duso’s Enterprises Ltd. during the quarter (See “Premium Brands buys interest in local pasta and sauce maker” – BIV Daily, March 31, 2010). In its current quarter, Premium Brands completed its acquisition of a 76% interest in Toronto’s Maximum Seafood.

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