- Record second quarter revenue of
$1.63 billion representing a 7.3%, or$111.0 million , increase as compared to the second quarter of 2022 - Record second quarter revenue for the
Company's Specialty Foods segment which generated organic volume growth of 8.1% and total growth of 14.2% - Record second quarter adjusted EBITDA1 of
$152.4 million representing a 16.5%, or$21.6 million , increase as compared to the second quarter of 2022 - A 9.3% adjusted EBITDA margin, up from 8.6% in the second quarter of 2022
- Second quarter adjusted EPS1 of
$1.27 per share representing an 8.0%, or$0.11 per share decrease as compared to the second quarter of 2022 - Declared a dividend of
$0.77 per common share for the third quarter of 2023 - Sales and adjusted EBITDA guidance for 2023 reaffirmed
- Announced plans to consolidate three
Ontario specialty foods production facilities totaling 65,000 square feet, into a new 109,000 square foot facility inBrampton, Ontario
1 | The Company reports its financial results in accordance with International Financial Reporting Standards (IFRS) as issued by the |
The Company will hold a Q&A session on its second quarter 2023 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 (416) 764-8646 or (888) 396-8049 (Conference ID: 57795699) 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
(In millions of dollars except per share amounts and ratios) | ||||
13 weeks | 13 weeks ended 2022 | 26 weeks ended 2023 | 26 weeks ended 2022 | |
Revenue | 1,630.9 | 1,519.9 | 3,061.4 | 2,771.1 |
Adjusted EBITDA1 | 152.4 | 130.8 | 263.1 | 226.6 |
Earnings | 33.9 | 63.3 | 39.8 | 85.7 |
EPS | 0.76 | 1.42 | 0.90 | 1.92 |
Adjusted earnings1 | 56.3 | 61.5 | 84.8 | 100.9 |
Adjusted EPS1 | 1.27 | 1.38 | 1.91 | 2.26 |
Trailing Four Quarters Ended | ||
2023 | 2022 | |
Free cash flow1 | 266.8 | 276.3 |
Free cash flow per share | 5.99 | 6.27 |
Declared dividends | 131.4 | 118.8 |
Declared dividend per share | 2.94 | 2.67 |
Payout ratio1 | 49.3 % | 43.0 % |
1 | Reconciliations for all non-IFRS measures are included in the Non-IFRS Financial Measures section of this press release. |
"We are pleased to report another quarter of record sales and adjusted EBITDA as we continue to execute our various growth strategies," said Mr.
"A particular area of success for our
"Our overall results for the quarter were, however, tempered by several challenges faced by our Premium Food Distribution group of businesses," said
"Our acquisitions pipeline remains full, and we are close to moving several early-stage conversations involving larger businesses into active and advanced stage discussions. Correspondingly we expect to complete several transactions in the coming quarters," added
"I am also pleased to report the publishing of this year's CEO Letter to Shareholders in which I provide an update on our strategic plans including a discussion of our recently announced new five-year plan. You can find it on our website at www.premiumbrandsholdings.com," said
The Company also announced that its Board of Directors approved a cash dividend of
Unless indicated otherwise in writing at or before the time the dividend is paid, each dividend paid by the Company in 2023 or a subsequent year is an eligible dividend for the purposes of the Enhanced Dividend Tax Credit System.
www.premiumbrandsholdings.com
The Company reports on two reportable segments,
As part of a realignment of certain businesses and management responsibilities, starting in fiscal 2023 the Company reclassified a business from the Premium Food Distribution segment to the
Revenue
(in millions of dollars except percentages) | ||||||||
13 weeks ended 2023 | % (1) | 13 weeks ended 2022 | % (1) | 26 weeks ended 2023 | % (1) | 26 weeks ended 2022 | % (1) | |
Revenue by segment: | ||||||||
1,085.0 | 66.5 % | 949.8 | 62.5 % | 2,033.7 | 66.4 % | 1,751.6 | 63.2 % | |
Premium Food Distribution | 545.9 | 33.5 % | 570.1 | 37.5 % | 1,027.7 | 33.6 % | 1,019.5 | 36.8 % |
Consolidated | 1,630.9 | 100.0 % | 1,519.9 | 100.0 % | 3,061.4 | 100.0 % | 2,771.1 | 100.0 % |
(1) | Expressed as a percentage of consolidated revenue. |
SF's OVGR was driven primarily by its cooked protein, fresh skewers, artisan sandwiches, meat snack and charcuterie initiatives in the U.S. Normalizing for a new sandwich that was launched in the second quarter of 2022 then recalled and cancelled in the third quarter of 2022 due to third party supplier quality issues, SF's OVGR is 10.2%.
SF's revenue for the first two quarters of 2023 increased by
Premium Food Distribution's (PFD) revenue for the quarter decreased by
The contraction in PFD's sales volume was primarily due to: (i) less featuring of premium beef and seafood products by major retail customers as a result of several factors including general timing of promotions and historically high beef prices; (ii) PFD's lobster business choosing to temporarily reduce its participation in a seasonal Canadian fishery due to a run up in purchase prices caused by unusual speculative buying; and (iii) lower sales of fresh premium seafood as consumers increasingly shifted to shopping at discount grocery banners. These factors were partially offset by the continued post pandemic recovery in sales to foodservice customers, albeit at a slower pace than in prior quarters.
PFD's revenue for the first two quarters of 2023 increased by
Gross Profit
(in millions of dollars except percentages) | ||||||||
13 weeks ended 2023 | % (1) | 13 weeks ended 2022 | % (1) | 26 weeks ended 2023 | % | 26 weeks ended 2022 | % (1) | |
Gross profit by segment: | ||||||||
236.3 | 21.8 % | 196.5 | 20.7 % | 435.6 | 21.4 % | 362.1 | 20.7 % | |
Premium Food Distribution | 87.1 | 16.0 % | 80.6 | 14.1 % | 157.6 | 15.3 % | 141.8 | 13.9 % |
Consolidated | 323.4 | 19.8 % | 277.1 | 18.2 % | 593.2 | 19.4 % | 503.9 | 18.2 % |
(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 increased by 110 basis points primarily due to: (i) the moderation of certain input costs, including some raw materials and freight; and (ii) production efficiencies resulting from investments in automation, continuous improvement projects and a more stable labor market. These factors were partially offset by: (i) wage inflation; (ii) investments in additional plant infrastructure to support SF's current and future growth objectives; (iii) reduced overhead absorption as a result of lower production levels associated with SF's inventory reduction initiatives; and (iv) the write-off of
SF's gross margin for the first two quarters of 2023 increased by 70 basis points primarily due to the factors impacting the second quarter of 2023, partially offset by higher outside storage costs in the first quarter of 2023 that were the result of increased inventory levels.
PFD's gross margin for the quarter and for first two quarters of 2023 increased by 190 basis points and 140 basis points, respectively, primarily due to: (i) the moderation of certain raw material costs; (ii) sales mix changes including the impact of reduced lower-margin feature product sales; (iii) the reclassification of certain warehouse rental incomes; and (iv) improved operating efficiencies.
Selling, General and Administrative Expenses (SG&A)
(in millions of dollars except percentages) | ||||||||
13 weeks ended 2023 | % (1) | 13 weeks ended 2022 | % (1) | 26 weeks ended 2023 | % (1) | 26 weeks ended 2022 | % (1) | |
SG&A by segment: | ||||||||
126.8 | 11.7 % | 108.3 | 11.4 % | 244.6 | 12.0 % | 205.8 | 11.7 % | |
Premium Food Distribution | 51.5 | 9.4 % | 47.0 | 8.2 % | 99.6 | 9.7 % | 89.4 | 8.8 % |
Corporate | 7.8 | 6.1 | 16.1 | 12.0 | ||||
Consolidated | 186.1 | 11.4 % | 161.4 | 10.6 % | 360.3 | 11.8 % | 307.2 | 11.1 % |
(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 2023 increased by 30 basis points primarily due to: (i) increased promotional activities; and (ii) higher incentive-based compensation accruals. These factors were partially offset by sales leveraging associated with SF's organic sales growth.
PFD's SG&A ratio for the quarter increased by 120 basis points primarily due to: (i) wage, freight, and general cost inflation; and (ii) the impact of lower sales relative to a relatively fixed cost base.
PFD's SG&A ratio for the first two quarters of 2023 increased by 90 basis points primarily due to wage, freight, and general cost inflation.
Adjusted EBITDA (1)
(in millions of dollars except percentages) | ||||||||
13 weeks ended 2023 | % (2) | 13 weeks ended 2022 | % (2) | 26 weeks ended 2023 | % (2) | 26 weeks ended 2022 | % (2) | |
Adjusted EBITDA by segment: | ||||||||
109.5 | 10.1 % | 88.2 | 9.3 % | 191.0 | 9.4 % | 156.3 | 8.9 % | |
Premium Food Distribution | 35.6 | 6.5 % | 33.6 | 5.9 % | 58.0 | 5.6 % | 52.4 | 5.1 % |
Corporate | (7.8) | (6.1) | (16.1) | (12.0) | ||||
Interest Income from Investments | 15.1 | 15.1 | 30.2 | 29.9 | ||||
Consolidated | 152.4 | 9.3 % | 130.8 | 8.6 % | 263.1 | 8.6 % | 226.6 | 8.2 % |
(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 2023, the Company incurred
- Reconfiguration and 8,000 square foot expansion of its cooked protein facility in
Versailles, Ohio - Reconfiguration of its cooked protein facility in
Scranton, Pennsylvania , including the addition of another cooked products production line - 107,000 square foot expansion and reconfiguration of its meat snack and processed meats facility in
Ferndale, Washington - Reconfiguration of its meat snack facility in
Kent, Washington - Construction of a new 165,000 square foot distribution center and the related reconfiguration of its sandwich production facility in
Columbus, Ohio - Construction of a new 91,000 square foot artisan bakery in
San Francisco, California - Reconfiguration of its kettle cooking facility in
Richmond, British Columbia - Construction of a new 67,000 square foot sandwich production facility in
Edmonton, Alberta
Equity Earnings (Loss) in Investment in Associates
Equity earnings (loss) in investment 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 2023 | 13 weeks ended 2022 | 26 weeks ended 2023 | 26 weeks ended 2022 |
Revenue | 137.9 | 133.3 | 262.4 | 254.2 |
Earnings before payments to shareholders | 9.1 | 8.2 | 6.1 | 19.6 |
Net loss | (12.3) | (12.8) | (36.4) | (21.4) |
The Company: | ||||
Equity loss in | (6.2) | (6.4) | (18.2) | (10.7) |
Other net equity gains (losses) | 0.3 | (0.4) | - | (1.0) |
Equity loss in investment in associates | (5.9) | (6.8) | (18.2) | (11.7) |
Revenue and Adjusted EBITDA Outlook
See Forward Looking Statements for a discussion of the risks and assumptions associated with forward looking statements.
2023 Outlook
(in millions of dollars) | Bottom of Range | Top of Range |
Revenue guidance range | 6,400 | 6,600 |
Adjusted EBITDA guidance range | 590 | 610 |
The Company is maintaining its 2023 guidance for sales of between
The Company's sales and adjusted EBITDA outlooks for 2023 do not incorporate any provisions for potential future acquisitions, however, it remains very active on this front and expects (see Forward Looking Statements) to complete several transactions during the year.
Consolidated Balance Sheets | |||
(in millions of Canadian dollars) | |||
2023 | 2022 | 2022 | |
Current assets: | |||
Cash and cash equivalents | 27.4 | 11.4 | 13.8 |
Accounts receivable | 623.2 | 590.8 | 617.5 |
Inventories | 760.9 | 786.1 | 836.2 |
Prepaid expenses and other assets | 32.6 | 38.0 | 29.9 |
1,444.1 | 1,426.3 | 1,497.4 | |
Capital assets | 985.2 | 862.2 | 772.7 |
Right of use assets | 561.2 | 576.0 | 471.6 |
Intangible assets | 544.2 | 558.5 | 558.7 |
1,083.2 | 1,093.0 | 1,033.3 | |
Investments in and advances to associates | 544.6 | 538.9 | 555.9 |
Other assets | 23.3 | 23.7 | 21.8 |
5,185.8 | 5,078.6 | 4,911.4 | |
Current liabilities: | |||
Cheques outstanding | 18.6 | 19.3 | 19.1 |
Bank indebtedness | 14.4 | 18.0 | 14.1 |
Dividends payable | 34.3 | 31.3 | 31.4 |
Accounts payable and accrued liabilities | 424.6 | 419.4 | 448.9 |
Current portion of puttable interest in subsidiaries | 22.6 | 23.1 | 26.4 |
Current portion of long-term debt | 0.8 | 6.5 | 4.3 |
Current portion of lease obligations | 48.7 | 45.4 | 38.3 |
Current portion of provisions | 28.3 | 1.8 | 9.6 |
592.3 | 564.8 | 592.1 | |
Long-term debt | 1,586.2 | 1,421.4 | 1,374.6 |
Lease obligations | 578.0 | 589.3 | 484.5 |
Puttable interest in subsidiaries | 46.0 | 43.9 | 11.4 |
Deferred revenue | 2.8 | 2.8 | 2.8 |
Provisions | 16.0 | 44.2 | 62.4 |
Deferred income taxes | 111.6 | 120.6 | 114.9 |
2,932.9 | 2,787.0 | 2,642.7 | |
Convertible unsecured subordinated debentures | 481.4 | 478.6 | 475.8 |
Equity attributable to shareholders: | |||
Retained earnings | 34.2 | 63.8 | 58.6 |
Share capital | 1,703.9 | 1,702.6 | 1,712.4 |
Reserves | 33.4 | 46.6 | 21.9 |
1,771.5 | 1,813.0 | 1,792.9 | |
5,185.8 | 5,078.6 | 4,911.4 |
| ||||
(in millions of Canadian dollars except per share amounts) | ||||
13 weeks | 13 weeks | 26 weeks | 26 weeks | |
Revenue | 1,630.9 | 1,519.9 | 3,061.4 | 2,771.1 |
Cost of goods sold | 1,307.5 | 1,242.8 | 2,468.2 | 2,267.2 |
Gross profit before depreciation, amortization and plant start-up | 323.4 | 277.1 | 593.2 | 503.9 |
Interest income from investments in associates | 15.1 | 15.1 | 30.2 | 29.9 |
Selling, general and administrative expenses | 186.1 | 161.4 | 360.3 | 307.2 |
152.4 | 130.8 | 263.1 | 226.6 | |
Depreciation of capital assets | 19.1 | 18.2 | 41.3 | 35.7 |
Amortization of intangible assets | 4.0 | 7.7 | 8.0 | 15.2 |
Amortization of right of use assets | 14.9 | 11.2 | 29.7 | 22.0 |
Accretion of lease obligations | 6.6 | 5.5 | 13.2 | 10.8 |
Plant start-up and restructuring costs | 9.8 | 1.8 | 15.6 | 5.3 |
Interest and other financing costs | 37.6 | 15.7 | 71.0 | 27.1 |
Acquisition transaction costs | 1.2 | 2.5 | 2.2 | 3.7 |
Change in value of puttable interest in subsidiaries | 4.6 | - | 6.2 | - |
Accretion of provisions | 0.4 | 1.7 | 0.9 | 4.5 |
Equity loss in investments in associates | 5.9 | 6.8 | 18.2 | 11.7 |
Fair value gains on investments in associates | - | (19.8) | - | (19.8) |
Earnings before income taxes | 48.3 | 79.5 | 56.8 | 110.4 |
Provision for income taxes (recovery) | ||||
Current | 16.7 | 18.3 | 24.9 | 26.9 |
Deferred | (2.3) | (2.1) | (7.9) | (2.2) |
14.4 | 16.2 | 17.0 | 24.7 | |
Earnings | 33.9 | 63.3 | 39.8 | 85.7 |
Earnings per share: | ||||
Basic | 0.76 | 1.42 | 0.90 | 1.92 |
Diluted | 0.76 | 1.41 | 0.89 | 1.91 |
Weighted average shares outstanding (in millions): | ||||
Basic | 44.4 | 44.6 | 44.4 | 44.6 |
Diluted | 44.6 | 44.8 | 44.6 | 44.8 |
Consolidated Statements of Cash Flows | |||||
(in millions of Canadian dollars) | |||||
13 weeks | 13 weeks | 26 weeks | 26 weeks | ||
Cash flows from (used in) operating activities: | |||||
Earnings | 33.9 | 63.3 | 39.8 | 85.7 | |
Items not involving cash: | |||||
Depreciation of capital assets | 19.1 | 18.2 | 41.3 | 35.7 | |
Amortization of intangible assets | 4.0 | 7.7 | 8.0 | 15.2 | |
Amortization of right of use assets | 14.9 | 11.2 | 29.7 | 22.0 | |
Accretion of lease obligations | 6.6 | 5.5 | 13.2 | 10.8 | |
Change in value of puttable interest in subsidiaries | 4.6 | - | 6.2 | - | |
Accretion of provisions | 0.4 | 1.7 | 0.9 | 4.5 | |
Equity loss in investments in associates | 5.9 | 6.8 | 18.2 | 11.7 | |
Non-cash financing costs | 2.0 | 1.5 | 3.9 | 2.8 | |
Deferred income tax recovery | (2.3) | (2.1) | (7.9) | (2.2) | |
Fair value gains on investment in associates | - | (19.8) | - | (19.8) | |
89.1 | 94.0 | 153.3 | 166.4 | ||
Change in non-cash working capital | (54.9) | (165.1) | (33.3) | (288.5) | |
34.2 | (71.1) | 120.0 | (122.1) | ||
Cash flows from (used in) financing activities: | |||||
Long-term debt, net | 108.1 | 93.6 | 182.3 | 290.1 | |
Payments for lease obligations | (18.4) | (14.2) | (35.8) | (27.6) | |
Bank indebtedness and cheques outstanding | 11.9 | (5.0) | (4.3) | (1.8) | |
Common shares purchased for cancellation | - | - | (1.4) | - | |
Dividends paid to shareholders | (34.4) | (31.4) | (65.8) | (59.8) | |
Proceeds from issuance of convertible debentures – net of | - | 143.0 | - | 143.0 | |
67.2 | 186.0 | 75.0 | 343.9 | ||
Cash flows from (used in) investing activities: | |||||
Capital asset additions | (100.9) | (57.1) | (175.2) | (100.4) | |
Business and asset acquisitions | - | (81.8) | - | (117.5) | |
Payment of provisions | (0.7) | (4.3) | (2.1) | (6.3) | |
Net change in share purchase loans and notes receivable | 0.1 | 0.1 | (0.2) | (3.1) | |
Investment in and advances to associates – net of | 0.4 | 14.1 | 2.0 | 3.4 | |
Payment for settlement of puttable interest of non-wholly | (2.3) | - | (2.3) | - | |
Payments to shareholders of non-wholly owned subsidiaries | (1.2) | (0.6) | (1.2) | (0.6) | |
(104.6) | (129.6) | (179.0) | (224.5) | ||
Change in cash and cash equivalents | (3.2) | (14.7) | 16.0 | (2.7) | |
Cash and cash equivalents – beginning of period | 30.6 | 28.5 | 11.4 | 16.5 | |
Cash and cash equivalents – end of period | 27.4 | 13.8 | 27.4 | 13.8 | |
Interest and other financing costs paid | 34.2 | 18.0 | 69.7 | 24.0 | |
Income taxes paid | 13.5 | 18.6 | 30.0 | 56.6 |
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 2023 | 13 weeks ended 2022 | 26 weeks ended 2023 | 26 weeks ended 2022 |
Earnings before income taxes | 48.3 | 79.5 | 56.8 | 110.4 |
Plant start-up and restructuring costs | 9.8 | 1.8 | 15.6 | 5.3 |
Depreciation of capital assets | 19.1 | 18.2 | 41.3 | 35.7 |
Amortization of intangible assets | 4.0 | 7.7 | 8.0 | 15.2 |
Amortization of right of use assets | 14.9 | 11.2 | 29.7 | 22.0 |
Accretion of lease obligations | 6.6 | 5.5 | 13.2 | 10.8 |
Interest and other financing costs | 37.6 | 15.7 | 71.0 | 27.1 |
Acquisition transaction costs | 1.2 | 2.5 | 2.2 | 3.7 |
Change in value of puttable interest in subsidiaries | 4.6 | - | 6.2 | - |
Accretion of provisions | 0.4 | 1.7 | 0.9 | 4.5 |
Equity loss in investments in associates | 5.9 | 6.8 | 18.2 | 11.7 |
Fair value gains on investments in associates | - | (19.8) | - | (19.8) |
Adjusted EBITDA | 152.4 | 130.8 | 263.1 | 226.6 |
Free Cash Flow
(in millions of dollars) | 53 weeks ended 2022 | 26 weeks ended 2023 | 26 weeks ended 2022 | Rolling Four Quarters |
Cash flow from operating activities | 96.5 | 120.0 | (122.1) | 338.6 |
Changes in non-cash working capital | 263.3 | 33.3 | 288.5 | 8.1 |
Lease obligation payments | (64.2) | (35.8) | (27.6) | (72.4) |
Business acquisition transaction costs | 6.2 | 2.2 | 3.7 | 4.7 |
Plant start-up and restructuring costs | 27.2 | 15.6 | 5.3 | 37.5 |
Maintenance capital expenditures | (43.2) | (25.6) | (19.1) | (49.7) |
Free cash flow | 285.8 | 109.7 | 128.7 | 266.8 |
Adjusted Earnings and Adjusted Earnings per Share
(in millions of dollars except per share amounts) | 13 weeks ended 2023 | 13 weeks ended 2022 | 26 weeks ended 2023 | 26 weeks ended 2022 |
Earnings | 33.9 | 63.3 | 39.8 | 85.7 |
Plant start-up and restructuring costs | 9.8 | 1.8 | 15.6 | 5.3 |
Business acquisition transaction costs | 1.2 | 2.5 | 2.2 | 3.7 |
Accretion of provisions | 0.4 | 1.7 | 0.9 | 4.5 |
Equity loss from associates in start-up | 5.9 | 6.8 | 18.2 | 11.7 |
Change in value of puttable interest in subsidiaries | 4.6 | - | 6.2 | - |
Amortization of intangibles associated with acquisitions | 4.0 | 7.7 | 8.0 | 15.2 |
Fair value gains on investments in associates | - | (19.8) | - | (19.8) |
59.8 | 64.0 | 90.9 | 106.3 | |
Current and deferred income tax effect of above items, and | (3.5) | (2.5) | (6.1) | (5.4) |
Adjusted earnings | 56.3 | 61.5 | 84.8 | 100.9 |
Weighted average shares outstanding | 44.4 | 44.6 | 44.4 | 44.6 |
Adjusted earnings per share | 1.27 | 1.38 | 1.91 | 2.26 |
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
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: (i) revenue; (ii) adjusted EBITDA; (iii) plant start-up and restructuring costs; (iv) income tax rates; (v) dividends and dividend policy; (vi) capital expenditures and business acquisitions; (vii) convertible debentures; (viii) net working capital; (ix) liquidity outlook; * provisions; (xi) financial leverage ratios; (xii) value of puttable interests; and (xiii) sale and leaseback and lease renewal transactions.
Some of the factors that could cause actual results to differ materially from the Company's expectations are outlined in the Risks and Uncertainties section in the Company's MD&A for the 13 and 26 Weeks Ended
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.
- Economic conditions in
Canada andthe United States will remain relatively stable. - The average cost of the basket of procured products and raw materials purchased by the Company will remain relatively stable.
- The Company will be able to access sufficient goods and services for its manufacturing and distribution operations.
- Labor availability will continue to improve in
Canada and theU.S , enabling the Company to access sufficient skilled and unskilled labor at reasonable wage levels. - The value of the Canadian dollar relative to the
U.S. dollar will continue to 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.
- The Company will be able to achieve its projected operating efficiency improvements.
- There will not be any material changes in the competitive environment of the markets in which the Company's various businesses compete.
- 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 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.
- Weather conditions in the Company's core markets will not have a significant impact on any of its businesses.
- 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.
- There will not be any material changes in the trade relationship between
Canada and theU.S. , particularly with respect to certain protein commodities such as beef, pork and chicken. - 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 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
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