Premium Brands posts record revenue in Q3 2020

Premium Brands – a Canadian corporation that owns multiple North American lobster companies – announced it has had a record third quarter in 2020.

The company posted revenue of CAD 1.1 billion (USD 842 million, EUR 713 million) in Q3, an increase of 13.7 percent – or CAD 132.8 million (USD 101 million, EUR 86 million) over the same period last year. The company’s adjusted earnings before interest, taxes, debt, and amortization (EBITDA) were CAD 93.5 million (USD 71.6 million, EUR 60.6 million), which represents a 11.2 percent increase over last year.

Net direct costs related to the COVID-19 pandemic were CAD 3.6 million (USD 2.7 million, EUR 2.3 million) which, if subtracted from the company’s EBITDA, would increase the EBIDTA by 15.5 percent over the same period in 2019.

Premium Brands President and CEO George Paleologou was understandably happy with the company’s performance in Q3.

"We are very pleased with the progress we made during this past quarter,” he said. “As the economy began re-opening and demand returned in a robust manner in several key selling channels, the resiliency built into our businesses enabled them to quickly respond to the shifting needs of consumers and customers.”

Sales in most avenues of the company, Paleologou said, are back to pre-COVID-19 levels, aside from a few that are still struggling.

"While our sales in most channels, including QSR, convenience store and retail, were back to pre COVID-19 or better levels by the end of the quarter, some of our businesses continued to see demand destruction in the fine dining, airline and cruise line channels,” he said. “We were, however, still able to generate record results due to the dynamic and entrepreneurial nature of our businesses that enabled those impacted to pivot in new directions, finding new customers, channels and markets.”

Paleologou said that the company has a “record number of opportunities in our acquisition pipeline.”

Premium Brands announced in August that the company planned to resume its acquisitions after a COVID-19 related pause. The company has been leading an effort to consolidate the American lobster sector after acquiring Maine Coast, Hancock Gourmet Lobster Co., Viandex, and North Delta Seafood within the past year – after acquiring Ready Seafoods in 2018.

Most recently, the company acquired two Canadian companies: ready-to-eat cooked food maker Global Gourmet Foods, and fresh and frozen seafood distributor Allseas Fisheries in August. Those acquisitions resulted in CAD 127.3 (USD 97.5 million, EUR 82.6 million) in capital being allocated.

The company also had a record Q1, and managed a solid Q2 despite the challenges of COVID-19. Paleologou attributed the company’s performance to the hard work of its employees.  

"I would like to once again acknowledge the hard work and dedication of all our associates during these uncertain and volatile times,” he said. “They have truly been the key factor that has enabled us to manage through this incredibly challenging period and continue to make a meaningful contribution to the many communities that we are part of.  As I have said many times before, I am deeply humbled by how our people constantly rise to the occasion.”  

Photo courtesy of Chartered Professional Accountants of British Columbia