PREMIUM BRANDS HOLDINGS CORPORATION REPORTS RECORD SECOND QUARTER SALES AND ADJUSTED EBITDA, DECLARES THIRD QUARTER DIVIDEND AND ANNOUNCES COMPLETION OF TENNESSEE SANDWICH PLANT SALE AND LEASEBACK

VANCOUVER, BC, Aug. 6, 2025 /CNW/ - Premium Brands Holdings Corporation (TSX: PBH), a leading producer, marketer and distributor of branded specialty food products, announced today its results for the second quarter of 2025.

QUARTER HIGHLIGHTS

• Record second quarter revenue of $1.9 billion representing a 12.5%, or $212.2 million, increase as compared to the second quarter of 2024
  
  
• Solid progress on Specialty Foods' core U.S. growth initiatives in protein and artisan baked goods, which for the quarter generated organic volume growth rates of 15.0% and 98.1%, respectively. Specialty Foods' U.S. year-over-year growth rate for sandwich products was impacted by channel fill sales associated with a major new product launch in the second quarter of 2024
  
  
• Including acquisitions, Specialty Foods' total U.S. sales, which represented 64.3% of its second quarter sales, grew by $140.5 million to $843.7 million
  
  
• Record second quarter adjusted EBITDA¹ of $177.1 million representing a 7.6%, or $12.5 million, increase as compared to the second quarter of 2024, despite significant protein cost inflation challenges
  
  
• Second quarter adjusted EPS¹ of $1.33 per share representing a 3.9%, or $0.05 per share, increase as compared to the second quarter of 2024
  
  
• Reaffirmed 2025 sales and adjusted EBITDA¹ guidance ranges of $7.2 billion to $7.4 billion, and $680 million to $700 million, respectively
  
  
• Declared a dividend of $0.85 per common share for the third quarter of 2025
  
  
• Generated US$166.0 million from the sale and leaseback of the real estate associated with the Company's recently completed 352,000 square foot sandwich plant in Cleveland, TN
  
  
• Repaid a $172.5 million convertible debenture that matured on April 30, 2025
  
  
• Progress on debt deleveraging with the Company's total debt-to-EBITDA ratio declining to 4.2:1 from 4.6:1 in the first quarter of 2025
  
  
• Posted the 2025 CEO Letter to Shareholders titled "The Future of Food is in the Past" at www.premiumbrandsholdings.com

^1	The Company reports its financial results in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards). Adjusted EBITDA and adjusted EPS are non-IFRS financial measures. Reconciliations and explanations for all non-IFRS measures are included in the Non-IFRS Financial Measures section of this press release.

QUESTIONS AND ANSWERS SESSION

The Company will hold a Q&A session on its second quarter 2025 results today at 10:30 a.m. Vancouver time (1:30 p.m. Toronto time). Management's pre-recorded remarks and an investor presentation that will be referenced on the conference call are available here or by navigating through the Company's website at www.premiumbrandsholdings.com.

Access to the Q&A session may be obtained by calling the operator at [phone] or [phone] (Conference ID: 07291) up to ten minutes prior to the scheduled start time. For those who are unable to participate, a recording of the conference call will be available through to 11:59 p.m. Toronto time on September 6, 2025 at [phone] or [phone] (passcode: 07291#). Alternatively, a recording of the conference call will be available on the Company's website at www.premiumbrandsholdings.com.

SUMMARY FINANCIAL INFORMATION
(In millions of dollars except per share amounts and ratios)

			13 weeks ended Jun 28, 2025	13 weeks ended Jun 29, 2024	26 weeks ended Jun 28, 2025	26 weeks ended Jun 29, 2024
Revenue			1,914.9	1,702.7	3,594.1	3,164.5
Adjusted EBITDA^1			177.1	164.6	313.6	285.6
Earnings			27.9	52.5	30.5	58.8
EPS			0.62	1.18	0.68	1.32
Adjusted earnings^1			59.4	56.9	89.9	80.9
Adjusted EPS^1			1.33	1.28	2.01	1.82

			Trailing Four Quarters Ended
			Jun 28, 2025	Jun 29, 2024
Free cash flow^1			263.1	257.9
Free cash flow per share			5.91	5.81
Declared dividends			152.4	144.6
Declared dividend per share			3.40	3.24
Payout ratio^1			57.9 %	56.1 %

¹  Reconciliations for all non-IFRS measures are included in the Non-IFRS Financial Measures section of this press release.

"Our second quarter sales performance clearly reflects the progress we are making in leveraging recent capital investments and acquisitions to generate strong and sustainable growth. The big drivers of our sales increase were our U.S.-market-focused initiatives in protein and artisan baked goods, which generated organic volume growth rates of 15% and 98%, respectively. Our Sandwich Group, which has a robust pipeline of sales opportunities, had a small volume contraction due to an exceptionally tough year-over-year comparative resulting from a major new product launch in the second quarter of 2024. We do, however, expect the Sandwich Group to resume their historic growth trajectory very quickly as they leverage their new and recently commissioned 352,000 square foot facility in Cleveland, Tennessee," said Mr. George Paleologou, President and CEO.

"Our adjusted EBITDA, while reaching a record quarterly high, did not reflect our full potential due to significant chicken and beef commodity cost inflation in the quarter. The easing in the cost of certain commodities, combined with passing on targeted price increases where needed, will help to deal with this challenge and should put us back on the path to reaching our mid-term target of an annual adjusted EBITDA margin of 10%.

"Overall, our results for the quarter were in line with our expectations and we are well positioned to achieve our 2025 objectives of $7.2 billion to $7.4 billion in sales and $680 million to $700 million in adjusted EBITDA.

"In terms of acquisitions, we remain very active and continue to enjoy an especially robust deal pipeline. This includes several transactions that we could potentially complete this year. We remain, however, committed to continuing to deleverage our balance sheet over the course of 2025 and any transactions will be done within this context.

"For more color on our growth strategies and other company and industry topics, please see my 2025 Letter to Shareholders titled "The Future of Food is in the Past" which can be found on our website at www.premiumbrandsholdings.com," added Mr. Paleologou. 

THIRD QUARTER 2025 DIVIDEND

The Company also announced that its Board of Directors approved a cash dividend of $0.85 per common share for the third quarter of 2025, which will be payable on October 15, 2025 to shareholders of record at the close of business on September 30, 2025.

Unless indicated otherwise in writing at or before the time the dividend is paid, each dividend paid by the Company in 2025 or a subsequent year is an eligible dividend for the purposes of the Enhanced Dividend Tax Credit System.

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.

www.premiumbrandsholdings.com

RESULTS OF OPERATIONS

The Company reports on two reportable segments, Specialty Foods and Premium Food Distribution, as well as non-segmented investment income and corporate costs (Corporate). The Specialty Foods segment consists of the Company's specialty food manufacturing businesses while the Premium Food Distribution segment consists of the Company's differentiated distribution and wholesale businesses as well as certain seafood processing businesses. Investment income includes interest and management fees generated from the Company's businesses that are accounted for using the equity method.

Revenue

(in millions of dollars except percentages)
	13 weeks ended Jun 28, 2025	% ^(1)	13 weeks ended Jun 29, 2024	% ^(1)	26 weeks ended Jun 28, 2025	% ^(1)	26 weeks ended Jun 29, 2024	% ^(1)
Revenue by segment:
Specialty Foods	1,311.8	68.5 %	1,151.8	67.6 %	2,485.1	69.1 %	2,139.2	67.6 %
Premium Food Distribution	603.1	31.5 %	550.9	32.4 %	1,109.0	30.9 %	1,025.3	32.4 %
Consolidated	1,914.9	100.0 %	1,702.7	100.0 %	3,594.1	100.0 %	3,164.5	100.0 %
(1) Expressed as a percentage of consolidated revenue.

Specialty Foods' (SF) revenue for the quarter increased by $160.0 million or 13.9% primarily due to: (i) business acquisitions, which generated $73.9 million in growth; (ii) organic volume growth of $53.8 million representing an organic volume growth rate (OVGR) of 4.7%; (iii) selling price increases of $27.3 million, which were primarily in response to higher chicken and beef input costs; and (iv) a $5.0 million increase in the translated value of sales generated by SF's U.S. based businesses due to a weaker Canadian dollar.

SF's OVGR of 4.7% was driven by: (i) a variety of protein, sandwich and baked goods growth initiatives in the U.S. which generated organic volume growth of $72.0 million representing an OVGR of 10.9%; and (ii) continued improvement in its Canadian sales, which grew at an OVGR of 1.8%. These factors were partially offset by: (i) a contraction in sandwich sales volumes due to channel fill sales associated with a major new product launch in the second quarter of 2024; and (ii) a small decline in beef jerky sales as this category continues to be challenged by record high beef prices and consumer price sensitivity.

SF's revenue for the first two quarters of 2025 increased by $345.9 million or 16.2% primarily due to: (i) business acquisitions, which generated $149.5 million in growth; (ii) organic volume growth of $112.0 million representing an OVGR of 5.2%; (iii) selling price increases of $44.5 million; and (iv) a $39.9 million increase in the translated value of sales generated by SF's U.S. based businesses due to a weaker Canadian dollar.

Premium Food Distribution's (PFD) revenue for the quarter increased by $52.2 million or 9.5% due to: (i) organic volume growth of $28.6 million representing an OVGR of 5.2%; (ii) selling price increases of $23.1 million, which were primarily in response to higher beef and chicken input costs; and (iii) a $0.5 million increase in the translated value of sales generated by PFD's U.S. based businesses due to a weaker Canadian dollar.

PFD's OVGR of 5.2% was driven by: (i) continued year-over-year improvement in the Canadian retail and foodservice markets; (ii) opportunistic inventory buys made in the fourth quarter of 2024; and (iii) new retail selling relationships in Ontario and Quebec.

PFD's revenue for the first two quarters of 2025 increased by $83.7 million or 8.2% primarily due to: (i) selling price increases of $52.0 million; (ii) organic volume growth of $28.2 million representing an OVGR of 2.7%; and (iii) a $3.5 million increase in the translated value of sales generated by PFD's U.S. based businesses due to a weaker Canadian dollar.

Gross Profit

(in millions of dollars except percentages)
	13 weeks ended Jun 28, 2025	% ^(1)	13 weeks ended Jun 29, 2024	% ^(1)	26 weeks ended Jun 28, 2025	% ^(1)	26 weeks ended Jun 29, 2024	% ^(1)
Gross profit by segment:
Specialty Foods	265.7	20.3 %	255.1	22.1 %	512.8	20.6 %	478.1	22.3 %
Premium Food Distribution	96.2	16.0 %	94.7	17.2 %	170.8	15.4 %	169.4	16.5 %
Consolidated	361.9	18.9 %	349.8	20.5 %	683.6	19.0 %	647.5	20.5 %
(1)  Expressed as a percentage of the corresponding segment's revenue.

SF's gross profit as a percentage of its revenue (gross margin) for the quarter decreased by 180 basis points primarily due to: (i) raw material cost inflation, primarily associated with chicken and beef products - normalizing for this factor net of related selling price increases, SF's gross margin is 21.9%; (ii) increased plant overheads associated with new capacity coming on line including SF's new 352,000 square foot sandwich facility in Tennessee, which started production in early May 2025; and (iii) recent acquisitions, which on a combined basis are expected to generate margins below SF's average gross margin for the next several quarters as various sales and operational initiatives are implemented (see Forward Looking Statements). These factors were partially offset by: (i) sales leveraging benefits associated with SF's organic volume growth; and (ii) production efficiency gains.

SF's gross margin for first two quarters of 2025 decreased by 170 basis points primarily due to the same factors that impacted the current quarter.

PFD's gross margin for the quarter and the first two quarters of 2025 decreased by 120 basis points and 110 basis points, respectively, primarily due to: (i) a higher than normal gross margin in the second quarter of 2024 resulting from an increase in the allocation of production overhead to inventory associated with an opportunistic processed lobster inventory build; and (ii) its selling price increases being only slightly higher than the associated commodity cost inflation. These factors were partially offset by production efficiency gains in the second quarter of 2025.

Selling, General and Administrative Expenses (SG&A)

(in millions of dollars except percentages)
	13 weeks ended Jun 28, 2025	% ^(1)	13 weeks ended Jun 29, 2024	% ^(1)	26 weeks ended Jun 28, 2025	% ^(1)	26 weeks ended Jun 29, 2024	% ^(1)
SG&A by segment:
Specialty Foods	138.8	10.6 %	134.2	11.7 %	279.1	11.2 %	263.6	12.3 %
Premium Food Distribution	52.2	8.7 %	53.9	9.8 %	102.5	9.2 %	104.6	10.2 %
Corporate	9.1		10.2		18.7		19.7
Consolidated	200.1	10.4 %	198.3	11.6 %	400.3	11.1 %	387.9	12.3 %
(1)  Expressed as a percentage of the corresponding segment's revenue.

SF's SG&A as a percentage of sales (SG&A ratio) for the quarter and for the first two quarters of 2025 each decreased by 110 basis points primarily due to: (i) sales leveraging benefits associated with its growth; (ii) lower bonus accruals; (iii) freight cost deflation; and (iv) recent acquisitions having a lower SG&A ratio relative to SF's average ratio.

PFD's SG&A ratio for the quarter and for the first two quarters of 2025 decreased by 110 basis points and 100 basis points, respectively, primarily due to: (i) sales leveraging benefits associated with its growth; and (ii) lower bonus accruals.

Adjusted EBITDA ⁽¹⁾

(in millions of dollars except percentages)
	13 weeks ended Jun 28, 2025	% ^(2)	13 weeks ended Jun 29, 2024	% ^(2)	26 weeks ended Jun 28, 2025	% ^(2)	26 weeks ended Jun 29, 2024	% ^(2)
Adjusted EBITDA by segment:
Specialty Foods	126.9	9.7 %	120.9	10.5 %	233.7	9.4 %	214.5	10.0 %
Premium Food Distribution	44.0	7.3 %	40.8	7.4 %	68.3	6.2 %	64.8	6.3 %
Corporate	(9.1)		(10.2)		(18.7)		(19.7)
Interest income from investments	15.3		13.1		30.3		26.0
Consolidated	177.1	9.2 %	164.6	9.7 %	313.6	8.7 %	285.6	9.0 %
(1)  Adjusted EBITDA is a non-IFRS financial measure. Reconciliation and explanations are included in the Non-IFRS Financial Measures section of this press release.
(2)  Expressed as a percentage of the corresponding segment's revenue.

Plant Start-up and Restructuring Costs

Plant start-up and restructuring costs consist of expenses associated with: (i) the start-up of new production capacity; (ii) the reconfiguration of existing capacity to gain efficiencies and/or additional capacity; and/or (iii) the restructuring of a business to improve its profitability. The Company expects (see Forward Looking Statements) these investments to result in improvements in its future earnings and cash flows.

During the first two quarters of 2025, the Company incurred $16.5 million in plant start-up and restructuring costs relating primarily to the following projects, all of which are expected to expand its capacity and/or generate improved operating efficiencies (see Forward Looking Statements):

• Start-up in the second quarter of a new 352,000 square foot sandwich production facility in Cleveland, Tennessee;
• Reconfiguration of two deli meats facilities in Ontario to improve production efficiencies and increase dry cured production capacity;
• Ramp-up of new meat stick capacity at a recently expanded production facility in Ferndale, WA;
• Start-up in the first quarter of new cooked protein capacity in Scranton, Pennsylvania; and
• Start-up in the first quarter of new automation at a recently built 91,000 square foot artisan bakery in San Francisco, California.

Equity Earnings (Losses) from Investments in Associates

Equity earnings (losses) from investments in associates includes the Company's proportionate share of the earnings and losses of its investments in associates.

(in millions of dollars)	13 weeks ended Jun 28, 2025	13 weeks ended Jun 29, 2024	26 weeks ended Jun 28, 2025	26 weeks ended Jun 29, 2024
Clearwater:
Revenue	138.1	146.3	230.0	269.8
(Loss) earnings before payments to shareholders	(10.8)	7.0	(35.6)	0.1
Net loss	(35.0)	(17.4)	(83.2)	(43.3)
The Company:
Equity loss in Clearwater	(17.5)	(8.7)	(41.6)	(21.7)
Other net equity (losses) earnings	-	0.1	(1.1)	(0.2)
Equity losses from investments in associates	(17.5)	(8.6)	(42.7)	(21.9)

Clearwater Seafoods Incorporated (Clearwater)

Clearwater's revenue for the second quarter of 2025 as compared to the second quarter of 2024 decreased by $8.2 million primarily due to: (i) below average harvesting conditions for Canadian scallops and clams due to natural variability in these resources; and (ii) a turbot catch landing after the quarter versus in the second quarter in 2024. These factors were partially offset by (i) stronger demand for Argentine scallops; and (ii) increased procured sales for snow crab and langoustine.

Clearwater's earnings before payments to shareholders for the second quarter of 2025 as compared to the second quarter of 2024 decreased by $17.8 million primarily due to: (i) lost contribution margin from lower sales volumes as well as an overall lower contribution margin resulting from sales mix changes; (ii) harvesting and processing inefficiencies associated with lower catch rates; and (iii) restructuring costs associated with Clearwater's exit from its onshore lobster operations and the sale of its Macduff land based operations, which was completed after the quarter.

Revenue and Adjusted EBITDA Outlook

See Forward Looking Statements for a discussion of the risks and assumptions associated with forward looking statements.

2025 Outlook

The Company is maintaining its 2025 sales and adjusted EBITDA guidance ranges of $7.20 billion to $7.40 billion and $680 million to $700 million, respectively.

(in millions of dollars)	Bottom of Range	Top of Range
Revenue guidance range	7,200	7,400
Adjusted EBITDA guidance range	680	700

These estimates are based on a range of assumptions (see Forward Looking Statements) including: (i) reasonably stable economic environments in Canada and the U.S.; (ii) no significant changes in the tariffs associated with: (a) the Company's U.S. based operations importing raw materials; and (b) the Company's Canadian operations exporting finished goods to the U.S.; (iii) the moderation of certain raw material costs combined with the Company being able to mostly offset the impact of other rising raw material costs (see Results of Operations - Gross Profit) with selling price increases; and (iv) the Canadian dollar remaining at current levels relative to the U.S. dollar. 

The Company's guidance also does not reflect potential future acquisitions, however, it remains active on this front and is pursuing several opportunities (see Forward Looking Statements).

5 Year Plan

(in millions of dollars)	5-Year Target (2027)
Revenue	10,000
Adjusted EBITDA	1,000

The Company has a strong pipeline of sales and acquisition opportunities and remains on track to meet or exceed the five-year targets it set at the beginning of 2023 (see Forward Looking Statements).

Premium Brands Holdings Corporation
Consolidated Balance Sheets
(in millions of Canadian dollars)
	Jun 28, 2025	Jun 29, 2024 Restated	Dec 28, 2024 Restated	Dec 31, 2023 Restated
Current assets:
Cash and cash equivalents	12.9	12.1	49.2	27.6
Accounts receivable	580.2	468.3	495.8	509.9
Inventories	1,010.5	820.4	900.7	746.7
Prepaid expenses and other assets	44.5	40.3	56.2	43.8
	1,648.1	1,341.1	1,501.9	1,328.0
Capital assets	1,218.2	1,337.5	1,422.0	1,163.9
Right of use assets	884.9	568.6	681.6	565.3
Intangible assets	548.1	539.3	555.9	540.6
Goodwill	1,113.0	1,099.7	1,133.9	1,084.1
Investments in and advances to associates	477.8	451.4	457.1	453.5
Other assets	58.3	18.8	51.4	22.7
Deferred income tax assets	25.1	17.7	14.4	10.2
	5,973.5	5,374.1	5,818.2	5,168.3
Current liabilities:
Cheques outstanding	13.7	20.2	29.9	16.4
Bank indebtedness	27.3	17.7	19.1	-
Dividends payable	38.2	37.9	38.1	34.4
Accounts payable and accrued liabilities	679.9	520.4	579.3	470.9
Current portion of puttable interest in subsidiaries	33.7	30.2	31.7	30.4
Current portion of long-term debt	0.7	2.5	1.0	2.0
Current portion of lease obligations	79.1	57.7	61.9	53.9
Current portion of provisions	8.2	4.0	-	29.9
Convertible unsecured subordinated debentures	454.3	467.6	470.9	484.5
	1,335.1	1,158.2	1,231.9	1,122.4
Long-term debt	1,837.4	1,686.2	1,921.1	1,510.4
Lease obligations	886.9	590.8	695.0	583.4
Puttable interest in subsidiaries	43.0	43.0	45.3	42.4
Deferred revenue	0.2	2.7	0.2	2.8
Provisions	15.9	13.9	24.2	14.5
Deferred income tax liabilities	137.2	129.2	131.3	125.9
	4,255.7	3,624.0	4,049.0	3,401.8
Equity attributable to shareholders:
Retained earnings (deficit)	(52.7)	1.8	(6.8)	18.8
Share capital	1,727.5	1,707.4	1,721.5	1,703.9
Reserves	43.0	40.9	54.5	43.8
	1,717.8	1,750.1	1,769.2	1,766.5
	5,973.5	5,374.1	5,818.2	5,168.3

Premium Brands Holdings Corporation
Consolidated Statements of Operations
(in millions of Canadian dollars except per share amounts)
	13 weeks ended Jun 28, 2025	13 weeks ended  Jun 29, 2024	26 weeks ended Jun 28, 2025	26 weeks ended    Jun 29, 2024
Revenue	1,914.9	1,702.7	3,594.1	3,164.5
Cost of goods sold	1,553.0	1,352.9	2,910.5	2,517.0
Gross profit before depreciation, amortization, and plant start-up and      restructuring costs	361.9	349.8	683.6	647.5
Interest income from investments in associates	15.3	13.1	30.3	26.0
Selling, general and administrative expenses before depreciation and      amortization	200.1	198.3	400.3	387.9
Operating profit before depreciation, amortization, and plant start-up and      restructuring costs	177.1	164.6	313.6	285.6
Depreciation of capital assets	25.8	23.5	51.9	47.9
Amortization of intangible assets	5.7	5.2	12.0	10.7
Amortization of right of use assets	18.3	15.9	37.6	32.7
Accretion of lease obligations	9.1	6.8	17.5	14.2
Plant start-up and restructuring costs	10.1	7.6	16.5	18.4
Interest and other financing costs	44.7	43.4	86.6	83.8
Acquisition transaction costs	1.1	1.2	1.8	2.3
Change in value of puttable interest in subsidiaries	1.0	1.6	2.0	4.2
Change in value and accretion of provisions	0.2	0.5	0.4	3.8
Provision released	-	(20.5)	-	(20.5)
Equity losses (earnings) from investments in associates	17.5	8.6	42.7	21.9
Change in fair value of option liabilities	-	-	(12.0)	(20.0)
Other expenses	-	4.8	0.9	4.8
Earnings before income taxes	43.6	66.0	55.7	81.4
Provision for income taxes (recovery)
Current	15.7	18.2	27.1	28.4
Deferred	-	(4.7)	(1.9)	(5.8)
	15.7	13.5	25.2	22.6
Earnings	27.9	52.5	30.5	58.8
Earnings per share:
Basic	0.62	1.18	0.68	1.32
Diluted	0.62	1.18	0.68	1.32
Weighted average shares outstanding (in millions)
Basic	44.7	44.4	44.7	44.4
Diluted	44.9	44.6	44.9	44.6

Premium Brands Holdings Corporation
Consolidated Statements of Cash Flows
(in millions of Canadian dollars)
	13 weeks ended Jun 28, 2025	13 weeks ended  Jun 29, 2024	26 weeks ended Jun 28, 2025	26 weeks ended  Jun 29, 2024
Cash flows from (used in) operating activities:
Earnings	27.9	52.5	30.5	58.8
Items not involving cash:
Depreciation of capital assets	25.8	23.5	51.9	47.9
Amortization of intangible assets	5.7	5.2	12.0	10.7
Amortization of right of use assets	18.3	15.9	37.6	32.7
Accretion of lease obligations	9.1	6.8	17.5	14.2
Change in value of puttable interest in subsidiaries	1.0	1.6	2.0	4.2
Equity losses (earnings) from investments in associates	17.5	8.6	42.7	21.9
Non-cash financing costs	2.3	1.9	4.5	3.8
Change in value and accretion of provisions	0.2	0.5	0.4	3.8
Provision released	-	(20.5)	-	(20.5)
Change in fair value of option liabilities	-	-	(12.0)	(20.0)
Deferred income tax recovery	-	(4.7)	(1.9)	(5.8)
Other expenses	-	4.8	0.9	4.8
	107.8	96.1	186.1	156.5
Change in non-cash working capital	(113.3)	30.4	(140.9)	(1.9)
	(5.5)	126.5	45.2	154.6
Cash flows from (used in) financing activities:
Long-term debt, borrowings	448.3	190.1	753.3	321.7
Long-term debt, repayments	(357.7)	(148.7)	(751.1)	(189.4)
Payments for lease obligations	(24.3)	(20.0)	(48.7)	(39.6)
Bank indebtedness and cheques outstanding	(33.7)	4.1	(8.0)	21.5
Dividends paid to shareholders	(38.2)	(37.9)	(76.3)	(72.3)
Repayment of convertible debentures	(172.5)	-	(172.5)	-
Proceeds from issuance of convertible debentures – net of issuance      costs	-	-	164.6	-
	(178.1)	(12.4)	(138.7)	41.9
Cash flows from (used in) investing activities:
Capital asset additions	(52.4)	(104.4)	(118.6)	(202.4)
Business acquisitions	-	-	(19.8)	-
Payment of provisions	-	(9.3)	-	(10.7)
Payment to shareholders of non-wholly owned subsidiaries	-	(0.6)	-	(3.6)
Net change in share purchase loans and notes receivable	0.9	0.4	1.1	1.2
Investments in and advances to associates – net of distributions	0.3	1.7	(38.3)	3.5
Proceeds from sale of assets and leaseback of real estate	232.8	-	232.8	-
	181.6	(112.2)	57.2	(212.0)
Change in cash and cash equivalents	(2.0)	1.9	(36.3)	(15.5)
Cash and cash equivalents – beginning of period	14.9	10.2	49.2	27.6
Cash and cash equivalents – end of period	12.9	12.1	12.9	12.1
Interest and other financing costs paid	37.0	38.7	78.8	78.9
Income taxes paid	11.6	13.8	34.6	28.2

NON-IFRS FINANCIAL MEASURES

The Company uses certain non-IFRS financial measures including adjusted EBITDA, free cash flow, adjusted earnings and adjusted earnings per share, which are not defined under IFRS and, as a result, may not be comparable to similarly titled measures presented by other publicly traded entities, nor should they be construed as an alternative to other earnings measures determined in accordance with IFRS. These non-IFRS measures are calculated as follows:

Adjusted EBITDA

(in millions of dollars)	13 weeks ended Jun 28, 2025	13 weeks ended Jun 29, 2024	26 weeks ended Jun 28, 2025	26 weeks ended Jun 29, 2024
Earnings before income taxes	43.6	66.0	55.7	81.4
Plant start-up and restructuring costs	10.1	7.6	16.5	18.4
Depreciation of capital assets	25.8	23.5	51.9	47.9
Amortization of intangible assets	5.7	5.2	12.0	10.7
Amortization of right of use assets	18.3	15.9	37.6	32.7
Accretion of lease obligations	9.1	6.8	17.5	14.2
Interest and other financing costs	44.7	43.4	86.6	83.8
Acquisition transaction costs	1.1	1.2	1.8	2.3
Change in value of puttable interest in subsidiaries	1.0	1.6	2.0	4.2
Change in value and accretion of provisions	0.2	0.5	0.4	3.8
Provision released	-	(20.5)	-	(20.5)
Equity losses (earnings) from investments in associates	17.5	8.6	42.7	21.9
Change in fair value of option liabilities	-	-	(12.0)	(20.0)
Other expenses	-	4.8	0.9	4.8
Adjusted EBITDA	177.1	164.6	313.6	285.6

Free Cash Flow

(in millions of dollars)	52 weeks ended Dec 28, 2024	26 weeks ended Jun 28, 2025	26 weeks ended Jun 29, 2024	Rolling Four Quarters
Cash flow from operating activities	253.1	45.2	154.6	143.7
Changes in non-cash working capital	74.9	140.9	1.9	213.9
	328.0	186.1	156.5	357.6
Lease obligation payments	(81.5)	(48.7)	(39.6)	(90.6)
Business acquisition transaction costs	5.8	1.8	2.3	5.3
Plant start-up and restructuring costs	43.7	16.5	18.4	41.8
Maintenance capital expenditures	(45.2)	(28.8)	(23.0)	(51.0)
Free cash flow	250.8	126.9	114.6	263.1

Adjusted Earnings and Adjusted Earnings per Share

(in millions of dollars except per share amounts)	13 weeks ended Jun 28, 2025	13 weeks ended Jun 29, 2024	26 weeks ended Jun 28, 2025	26 weeks ended Jun 29, 2024
Earnings	27.9	52.5	30.5	58.8
Plant start-up and restructuring costs	10.1	7.6	16.5	18.4
Acquisition transaction costs	1.1	1.2	1.8	2.3
Change in value and accretion of provisions	0.2	0.5	0.4	3.8
Provision released	-	(20.5)	-	(20.5)
Equity losses (earnings) from investments in associates	17.5	8.6	42.7	21.9
Change in value of puttable interest in subsidiaries	1.0	1.6	2.0	4.2
Amortization of intangible assets associated with acquisitions	5.7	5.2	12.0	10.7
Change in fair value of option liabilities	-	-	(12.0)	(20.0)
Other expenses	-	4.8	0.9	4.8
	63.5	61.5	94.8	84.4
Current and deferred income tax effect of above items, and      unusual tax recovery	(4.1)	(4.6)	(4.9)	(3.5)
Adjusted earnings	59.4	56.9	89.9	80.9
Weighted average shares outstanding	44.7	44.4	44.7	44.4
Adjusted earnings per share	1.33	1.28	2.01	1.82

FORWARD LOOKING STATEMENTS

This press release contains forward looking statements with respect to the Company, including, without limitation, statements regarding its business operations, strategy and financial performance and condition, cash distributions, proposed acquisitions, budgets, projected costs and plans and objectives of or involving the Company. While management believes that the expectations reflected in such forward looking statements are reasonable and represent the Company's internal expectations and belief as of August 6, 2025, there can be no assurance that such expectations will prove to be correct as such forward looking statements involve unknown risks and uncertainties beyond the Company's control which may cause its actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward looking statements.

Forward looking statements generally can be identified by the use of the words "may", "could", "should", "would", "will", "expect", "intend", "plan", "estimate", "project", "anticipate", "believe" or "continue", or the negative thereof or similar variations.  Forward looking statements in this press release include statements with respect to the Company's expectations and/or projections on its: sales and operational initiatives; commodity costs; revenue and earnings; gross profit; adjusted EBITDA; plant start-up and restructuring costs; income tax rates; dividends and dividend policy; capital expenditures; business acquisitions; net working capital; liquidity and capital resources; performance; financial leverage ratios; value of puttable interests; lease renewal transactions; risks and uncertainties; and accounting policies.

Some of the factors that could cause actual results to differ materially from the Company's expectations are referenced under the Risks and Uncertainties section in the Company's Management Discussion & Analysis for the 13 and 26 weeks ended June 28, 2025.

Assumptions used by the Company to develop forward looking statements contained or incorporated by reference in this press release are based on information currently available to it and include those outlined below as well as those outlined elsewhere in this document. Readers are cautioned that this information is not exhaustive.

• The Company will be able to achieve the projected sales growth and operating efficiencies associated with the capital investments it has made in recent years.
  
  
• There will not be any material changes in the long-term food trends that have been driving growth in many of the Company's businesses. These include: (i) growing demand for higher quality foods made with simpler, more wholesome ingredients and/or with differentiated attributes such as zero sugar, antibiotic free, no added hormones or use of organic ingredients; (ii) increased reliance on healthier and less processed convenience-oriented foods both for on-the-go snacking as well as easy meal preparation, both at home and in foodservice; (iii) healthier eating, including reduced sugar consumption and an increased emphasis on animal protein and seafood; (iv) increased snacking in between and in place of meals; (v) increased interest in understanding the provenance of individual food products; and (vi) increased social awareness of issues such as reconciliation with Indigenous Peoples, sustainability, and ethical supply chain practices.
  
  
• There will not be any material changes in the competitive environment of the markets in which the Company's businesses compete.
  
  
• There will not be any material changes in the Company's relationships with its larger customers including the loss of a major product listing and/or being forced to give significant product pricing concessions.
  
  
• The Company will be able to offset significant increases in the average cost of procured products and raw materials purchased by it with selling price increases.
  
  
• The Company will be able to access sufficient goods and services at reasonable prices.
  
  
• The Company will be able to access sufficient skilled and unskilled labor at reasonable wage levels.
  
  
• The value of the Canadian dollar relative to the U.S. dollar will fluctuate in line with the levels seen over the last several months.
  
  
• The Company's major capital projects, plant start-up and restructuring, and business acquisition initiatives will progress in line with its expectations.
  
  
• Weather conditions in the Company's core markets will not have a significant impact on any of its businesses.
  
  
• The Company will be able to negotiate new collective agreements with no labor disruptions.
  
  
• The Company will be able to access reasonably priced debt and equity capital.
  
  
• Contractual counterparties will continue to fulfill their obligations to the Company.
  
  
• There will be no material changes to the tax, environmental and other regulatory requirements governing the Company.

Management has set out the above summary of assumptions related to forward looking statements included in this press release to provide a more complete perspective on the Company's future operations. Readers are cautioned that these statements may not be appropriate for other purposes.

Unless otherwise indicated, the forward looking statements in this press release are made as of August 6, 2025 and, except as required by applicable law, will not be publicly updated or revised. This cautionary statement expressly qualifies the forward looking statements in this press release.

SOURCE Premium Brands Holdings Corporation

For further information, please contact George Paleologou, President and CEO, or Will Kalutycz, CFO at [phone].