Richmond-based food processor and sandwich maker Premium Brands Holdings Corp. (TSX:PBH) chalked up record first quarter sales and profit on May 12 and CEO George Paleologou said the company was on track to meet or exceed annual performance projections.
Investors, however, beat the company’s stock price down 8% on Thursday, after the results were released. Premium Brands’ shares closed a day earlier at an all-time-high price of $59.68.
First quarter revenue jumped 16.1% to $381 million, compared with the same quarter in 2015. Profit soared 258% to $9.2 million, up from $3.6 million in the same quarter a year ago.
“The first quarter of the year is generally a challenging one due to the seasonality inherent in many of our businesses,” Paleologou said.
“We are, however, very pleased with our overall results for the quarter and with the fact that they were right on plan. Looking forward, we are well positioned to meet or exceed our growth and profitability objectives for 2016.”
Premium Brands is well known for being an acquisitive company, having acquired more than 60 companies in its 15-year history.
The first quarter, however, saw it close its largest-ever acquisition: a $146 million deal to buy Montreal meat packer C&C Packing Inc. and sister company Premier Meat Packers (2009) Inc.
Paleologou told Business in Vancouver earlier this year that the acquisition gives his company more of a national platform.
C&C’s business is centred in Ontario and Quebec, so buying that company helps Premium Brands broaden the distribution of its many processed food brands, such as Freybe and Grimm’s, that until now have been chiefly sold in the western provinces.
Paleologou also closed an $86.25 million financing April 12 to enable the deal.
During the first quarter, Premium Brands increased its annual dividend to $1.52 per share and the company on May 12 confirmed that it will pay a quarterly dividend of $0.38 per share.
