THIRD QUARTER HIGHLIGHTS
- Record third quarter revenue of
$1.64 billion representing a 1.3%, or$21.0 million , increase as compared to the third quarter of 2022 - Record third quarter adjusted EBITDA1 of
$158.8 million representing a 12.5%, or$17.6 million , increase as compared to the third quarter of 2022 - A 9.7% adjusted EBITDA margin, up from 8.7% in the third quarter of 2022
Specialty Foods segment's adjusted EBITDA margin continues to normalize reaching 11.0% for the quarter, a 300-basis point improvement as compared to the third quarter of 2022- Third quarter adjusted EPS1 of
$1.27 per share representing a 7.3%, or$0.10 per share decrease as compared to the third quarter of 2022 Specialty Foods set to complete five capacity expansion projects in the coming quarters with three of them coming online in the fourth quarter – a major headwind forSpecialty Foods sales growth in the quarter was a lack of capacity to support itsU.S. based growth initiatives- Solid progress made on reducing leverage ratios with the Company's senior debt to EBITDA ratio decreasing to 3.1:1 from 3.3:1 at the end of the previous quarter
- Declared a dividend of
$0.77 per share for the fourth quarter of 2023 - Announced acquisition of
Quebec based food distributorMenu-Mer
1 | The Company reports its financial results in accordance with International Financial Reporting Standards (IFRS) as issued by the |
QUESTIONS AND ANSWERS SESSION
The Company will hold a Q&A session on its third quarter 2023 results today at
Access to the Q&A session may be obtained by calling the operator at (416) 764-8646 or (888) 396-8049 (Conference ID: 60488678) 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 11:50 p.m.
SUMMARY FINANCIAL INFORMATION
(In millions of dollars except per share amounts and ratios)
13 weeks ended 2023 | 13 weeks ended 2022 | 39 weeks ended 2023 | 39 weeks ended 2022 | |||
Revenue | 1,644.9 | 1,623.9 | 4,706.3 | 4,395.0 | ||
Adjusted EBITDA1 | 158.8 | 141.2 | 421.9 | 367.8 | ||
Earnings | 39.4 | 43.5 | 79.2 | 129.2 | ||
EPS | 0.89 | 0.97 | 1.78 | 2.89 | ||
Adjusted earnings1 | 56.4 | 61.3 | 141.3 | 162.2 | ||
Adjusted EPS1 | 1.27 | 1.37 | 3.18 | 3.63 |
Trailing Four Quarters Ended | ||||
2023 | 2022 | |||
Free cash flow1 | 262.5 | 285.9 | ||
Free cash flow per share | 5.91 | 6.45 | ||
Declared dividends | 134.5 | 122.5 | ||
Declared dividend per share | 3.010 | 2.735 | ||
Payout ratio1 | 51.2 % | 42.8 % |
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 make solid progress on our long-term value creation strategies, a clear indication of which is the 300-basis point improvement in our Specialty Food segment's adjusted EBITDA margin," said
"Our results for the quarter were, however, tempered by an unusually poor
"Looking forward, we expect to see significant acceleration in our organic growth rate as five major capacity expansion projects get commissioned over the next several quarters, all of which are focused on supporting our very successful
"We are also pleased to announce the acquisition of
"Our acquisitions pipeline remains very robust and we are in active dialogues with many small and large businesses. Correspondingly, we are well positioned to complete more transactions in 2024," added
FOURTH QUARTER 2023 DIVIDEND
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.
ABOUT
www.premiumbrandsholdings.com
RESULTS OF OPERATIONS
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) | 39 weeks ended 2023 | % (1) | 39 weeks ended 2022 | % (1) | |
Revenue by segment: | ||||||||
1,058.0 | 64.3 % | 1,008.6 | 62.1 % | 3,091.8 | 65.7 % | 2,760.2 | 62.8 % | |
Premium Food Distribution | 586.9 | 35.7 % | 615.3 | 37.9 % | 1,614.5 | 34.3 % | 1,634.8 | 37.2 % |
Consolidated | 1,644.9 | 100.0 % | 1,623.9 | 100.0 % | 4,706.3 | 100.0 % | 4,395.0 | 100.0 % |
(1) Expressed as a percentage of consolidated revenue. |
SF's OVGR, which was driven primarily by its cooked protein, artisan sandwich, fresh skewer, meat snack and Italian charcuterie initiatives in the
The impact on SF's OVGR of
SF's revenue for the first three 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) a very challenging lobster market caused by several factors including a decline in the
PFD's revenue for the first three quarters of 2023 decreased by
Gross Profit
(in millions of dollars except percentages) | ||||||||
13 weeks ended 2023 | % (1) | 13 weeks ended 2022 | % (1) | 39 weeks ended 2023 | % (1) | 39 weeks ended 2022 | % (1) | |
Gross profit by segment: | ||||||||
235.9 | 22.3 % | 197.0 | 19.5 % | 671.5 | 21.7 % | 559.1 | 20.3 % | |
Premium Food Distribution | 84.1 | 14.3 % | 96.8 | 15.7 % | 241.7 | 15.0 % | 238.6 | 14.6 % |
Consolidated | 320.0 | 19.5 % | 293.8 | 18.1 % | 913.2 | 19.4 % | 797.7 | 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 280 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 wage inflation.
SF's gross margin for the first three quarters of 2023 increased by 140 basis points primarily due to the factors impacting the third quarter of 2023, partially offset by investments in additional plant infrastructure made in the first two quarters of 2023 to support SF's growth objectives.
PFD's gross margin for the quarter decreased by 140 basis points primarily due to the 20% decline in the
PFD's gross margin for the first three quarters of 2023 increased by 40 basis points primarily due to the moderation of some raw material costs in the first two quarters of 2023; partially offset by the impact of the challenges faced by PFD's lobster focused businesses in the third quarter.
Selling, General and Administrative Expenses (SG&A)
(in millions of dollars except percentages) | ||||||||
13 weeks ended 2023 | % (1) | 13 weeks ended 2022 | % (1) | 39 weeks ended 2023 | % (1) | 39 weeks ended 2022 | % (1) | |
SG&A by segment: | ||||||||
119.9 | 11.3 % | 116.0 | 11.5 % | 364.5 | 11.8 % | 321.8 | 11.7 % | |
Premium Food Distribution | 48.3 | 8.2 % | 46.4 | 7.5 % | 147.9 | 9.2 % | 135.8 | 8.3 % |
Corporate | 8.4 | 5.5 | 24.5 | 17.6 | ||||
Consolidated | 176.6 | 10.7 % | 167.9 | 10.3 % | 536.9 | 11.4 % | 475.2 | 10.8 % |
(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 the first three quarters of 2023 were relatively stable as the sales leveraging benefits associated with its organic growth were offset by higher promotion and wage costs.
PFD's SG&A ratio for the quarter and for the first three quarters of 2023 increased by 70 basis points and 90 basis points, respectively, primarily due to: (i) the impact of lower sales relative to a relatively fixed cost base; and (ii) 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) | 39 weeks ended 2023 | % (2) | 39 weeks ended 2022 | % (2) | |
Adjusted EBITDA by segment: | ||||||||
116.0 | 11.0 % | 81.0 | 8.0 % | 307.0 | 9.9 % | 237.3 | 8.6 % | |
Premium Food Distribution | 35.8 | 6.1 % | 50.4 | 8.2 % | 93.8 | 5.8 % | 102.8 | 6.3 % |
Corporate | (8.4) | (5.5) | (24.5) | (17.6) | ||||
Interest income from investments | 15.4 | 15.3 | 45.6 | 45.3 | ||||
Consolidated | 158.8 | 9.7 % | 141.2 | 8.7 % | 421.9 | 9.0 % | 367.8 | 8.4 % |
(1) Adjusted EBITDA is a non-IFRS 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 three 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 in combination with the shutdown of a sandwich production facility inLaval, Quebec - Construction of a new 60,000 square foot value-added seafood processing facility in
Auburn, Maine
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 | 39 weeks ended 2023 | 39 weeks ended 2022 |
Revenue | 149.6 | 157.7 | 412.0 | 412.0 |
Earnings before payments to shareholders | 18.5 | 11.9 | 24.6 | 31.5 |
Net loss | (3.2) | (9.2) | (39.6) | (30.6) |
The Company: | ||||
Equity loss in | (1.6) | (4.6) | (19.8) | (15.3) |
Other net equity gains (losses) | 0.8 | 2.0 | 0.8 | 1.0 |
Equity loss in investment in associates | (0.8) | (2.6) | (19.0) | (14.3) |
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 | 6,300 | 6,400 |
Adjusted EBITDA guidance range | 575 | 590 |
Revenue guidance range – previous | 6,400 | 6,600 |
Adjusted EBITDA guidance range – previous | 590 | 610 |
The Company is reducing its guidance range for 2023 based on the challenges faced by its lobster businesses in the third quarter, which are expected to continue into the fourth quarter, and the largely third quarter specific sales impacts experienced by its sandwich and cooked protein businesses (see Forward Looking Statements). The revised guidance ranges are based on a variety of assumptions (see Forward Looking Statements) including: (i) reasonably stable economic environments in
Consolidated Balance Sheets | |||
(in millions of Canadian dollars) | |||
2023 | 2022 | 2022 | |
Current assets: | |||
Cash and cash equivalents | 40.7 | 11.4 | 38.3 |
Accounts receivable | 545.5 | 590.8 | 632.6 |
Inventories | 756.7 | 786.1 | 821.1 |
Prepaid expenses and other assets | 27.6 | 38.0 | 34.5 |
1,370.5 | 1,426.3 | 1,526.5 | |
Capital assets | 1,066.9 | 862.2 | 820.9 |
Right of use assets | 551.7 | 576.0 | 494.2 |
Intangible assets | 547.5 | 558.5 | 564.4 |
1,092.5 | 1,093.0 | 1,057.9 | |
Investments in and advances to associates | 554.2 | 538.9 | 568.0 |
Other assets | 22.7 | 23.7 | 21.8 |
5,206.0 | 5,078.6 | 5,053.7 | |
Current liabilities: | |||
Cheques outstanding | 16.7 | 19.3 | 25.9 |
Bank indebtedness | - | 18.0 | 9.5 |
Dividends payable | 34.4 | 31.3 | 31.4 |
Accounts payable and accrued liabilities | 480.1 | 419.4 | 435.1 |
Current portion of puttable interest in subsidiaries | 24.0 | 23.1 | 24.1 |
Current portion of long-term debt | 2.0 | 6.5 | 4.3 |
Current portion of lease obligations | 49.6 | 45.4 | 41.9 |
Current portion of provisions | 29.2 | 1.8 | 4.8 |
636.0 | 564.8 | 577.0 | |
Long-term debt | 1,548.5 | 1,421.4 | 1,469.2 |
Lease obligations | 571.9 | 589.3 | 505.8 |
Puttable interest in subsidiaries | 48.7 | 43.9 | 12.0 |
Deferred revenue | 2.8 | 2.8 | 2.8 |
Provisions | 14.4 | 44.2 | 66.5 |
Deferred income taxes | 114.0 | 120.6 | 119.7 |
2,936.3 | 2,787.0 | 2,753.0 | |
Convertible unsecured subordinated debentures | 483.0 | 478.6 | 477.2 |
Equity attributable to shareholders: | |||
Retained earnings | 39.2 | 63.8 | 70.7 |
Share capital | 1,703.9 | 1,702.6 | 1,714.0 |
Reserves | 43.6 | 46.6 | 38.8 |
1,786.7 | 1,813.0 | 1,823.5 | |
5,206.0 | 5,078.6 | 5,053.7 |
| ||||
Consolidated Statements of Operations | ||||
(in millions of Canadian dollars except per share amounts) | ||||
13 weeks 2023 | 13 weeks ended | 39 weeks 2023 | 39 weeks | |
Revenue | 1,644.9 | 1,623.9 | 4,706.3 | 4,395.0 |
Cost of goods sold | 1,324.9 | 1,330.1 | 3,793.1 | 3,597.3 |
Gross profit before depreciation, amortization and plant start-up | 320.0 | 293.8 | 913.2 | 797.7 |
Interest income from investments in associates | 15.4 | 15.3 | 45.6 | 45.3 |
Selling, general and administrative expenses | 176.6 | 167.9 | 536.9 | 475.2 |
158.8 | 141.2 | 421.9 | 367.8 | |
Depreciation of capital assets | 21.7 | 21.8 | 63.0 | 57.5 |
Amortization of intangible assets | 2.5 | 7.8 | 10.5 | 23.0 |
Amortization of right of use assets | 15.3 | 11.6 | 45.0 | 33.6 |
Accretion of lease obligations | 6.5 | 5.5 | 19.7 | 16.3 |
Plant start-up and restructuring costs | 12.4 | 8.7 | 28.0 | 14.0 |
Interest and other financing costs | 39.5 | 22.6 | 110.5 | 49.7 |
Acquisition transaction costs | 1.1 | 1.3 | 3.3 | 5.0 |
Change in value of puttable interest in subsidiaries | 3.0 | - | 9.2 | - |
Accretion of provisions | 1.0 | 1.8 | 1.9 | 6.3 |
Equity loss in investments in associates | 0.8 | 2.6 | 19.0 | 14.3 |
Fair value gains on investments in associates | - | - | - | (19.8) |
Earnings before income taxes | 55.0 | 57.5 | 111.8 | 167.9 |
Provision for income taxes (recovery) | ||||
Current | 14.2 | 11.2 | 39.1 | 38.1 |
Deferred | 1.4 | 2.8 | (6.5) | 0.6 |
15.6 | 14.0 | 32.6 | 38.7 | |
Earnings | 39.4 | 43.5 | 79.2 | 129.2 |
Earnings per share: | ||||
Basic | 0.89 | 0.97 | 1.78 | 2.89 |
Diluted | 0.88 | 0.97 | 1.77 | 2.88 |
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 2023 | 13 weeks | 39 weeks 2023 | 39 weeks | ||
Cash flows from (used in) operating activities: | |||||
Earnings | 39.4 | 43.5 | 79.2 | 129.2 | |
Items not involving cash: | |||||
Depreciation of capital assets | 21.7 | 21.8 | 63.0 | 57.5 | |
Amortization of intangible assets | 2.5 | 7.8 | 10.5 | 23.0 | |
Amortization of right of use assets | 15.3 | 11.6 | 45.0 | 33.6 | |
Accretion of lease obligations | 6.5 | 5.5 | 19.7 | 16.3 | |
Change in value of puttable interest in subsidiaries | 3.0 | - | 9.2 | - | |
Accretion of provisions | 1.0 | 1.8 | 1.9 | 6.3 | |
Equity loss in investments in associates | 0.8 | 2.6 | 19.0 | 14.3 | |
Non-cash financing costs | 2.2 | 1.9 | 6.1 | 4.7 | |
Deferred income taxes (recovery) | 1.4 | 2.8 | (6.5) | 0.6 | |
Fair value gains on investment in associates | - | - | - | (19.8) | |
93.8 | 99.3 | 247.1 | 265.7 | ||
Change in non-cash working capital | 139.7 | (14.9) | 106.3 | (303.4) | |
233.5 | 84.4 | 353.4 | (37.7) | ||
Cash flows from (used in) financing activities: | |||||
Long-term debt, net | (60.0) | 47.1 | 122.3 | 337.2 | |
Payments for lease obligations | (18.9) | (15.2) | (54.7) | (42.8) | |
Bank indebtedness and cheques outstanding | (16.3) | 2.2 | (20.6) | 0.4 | |
Common shares purchased for cancellation | - | - | (1.4) | - | |
Dividends paid to shareholders | (34.3) | (31.4) | (100.0) | (91.2) | |
Proceeds from issuance of convertible debentures – net of | - | - | - | 143.0 | |
(129.5) | 2.7 | (54.4) | 346.6 | ||
Cash flows from (used in) investing activities: | |||||
Capital asset additions | (92.9) | (54.3) | (268.1) | (154.7) | |
Business and asset acquisitions | - | (3.0) | - | (120.5) | |
Payment of provisions | (2.2) | (5.2) | (4.3) | (11.5) | |
Net change in share purchase loans and notes receivable | 0.7 | 0.3 | 0.5 | (2.8) | |
Investment in and advances to associates – net of | 3.7 | 0.3 | 5.7 | 3.7 | |
Payments for settlement of puttable interest of non-wholly owned subsidiaries | - | (0.7) | (2.3) | (0.7) | |
Payments to shareholders of non-wholly owned subsidiaries | - | - | (1.2) | (0.6) | |
(90.7) | (62.6) | (269.7) | (287.1) | ||
Change in cash and cash equivalents | 13.3 | 24.5 | 29.3 | 21.8 | |
Cash and cash equivalents – beginning of period | 27.4 | 13.8 | 11.4 | 16.5 | |
Cash and cash equivalents – end of period | 40.7 | 38.3 | 40.7 | 38.3 | |
Interest and other financing costs paid | 38.8 | 14.9 | 108.5 | 38.9 | |
Income taxes paid (recovered) | (5.4) | 11.3 | 24.6 | 67.9 | |
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 2023 | 13 weeks ended 2022 | 39 weeks ended 2023 | 39 weeks ended 2022 |
Earnings before income taxes | 55.0 | 57.5 | 111.8 | 167.9 |
Plant start-up and restructuring costs | 12.4 | 8.7 | 28.0 | 14.0 |
Depreciation of capital assets | 21.7 | 21.8 | 63.0 | 57.5 |
Amortization of intangible assets | 2.5 | 7.8 | 10.5 | 23.0 |
Amortization of right of use assets | 15.3 | 11.6 | 45.0 | 33.6 |
Accretion of lease obligations | 6.5 | 5.5 | 19.7 | 16.3 |
Interest and other financing costs | 39.5 | 22.6 | 110.5 | 49.7 |
Acquisition transaction costs | 1.1 | 1.3 | 3.3 | 5.0 |
Change in value of puttable interest in subsidiaries | 3.0 | - | 9.2 | - |
Accretion of provisions | 1.0 | 1.8 | 1.9 | 6.3 |
Equity loss in investments in associates | 0.8 | 2.6 | 19.0 | 14.3 |
Fair value gains on investments in associates | - | - | - | (19.8) |
Adjusted EBITDA | 158.8 | 141.2 | 421.9 | 367.8 |
Free Cash Flow
(in millions of dollars) | 53 weeks ended 2022 | 39 weeks ended 2023 | 39 weeks ended 2022 |
Rolling Four Quarters |
Cash flow from operating activities | 96.5 | 353.4 | (37.7) | 487.6 |
Changes in non-cash working capital | 263.3 | (106.3) | 303.4 | (146.4) |
Lease obligation payments | (64.2) | (54.7) | (42.8) | (76.1) |
Business acquisition transaction costs | 6.2 | 3.3 | 5.0 | 4.5 |
Plant start-up and restructuring costs | 27.2 | 28.0 | 14.0 | 41.2 |
Maintenance capital expenditures | (43.2) | (34.4) | (29.3) | (48.3) |
Free cash flow | 285.8 | 189.3 | 212.6 | 262.5 |
Adjusted Earnings and Adjusted Earnings per Share
(in millions of dollars except per share amounts) | 13 weeks ended 2023 | 13 weeks ended 2022 | 39 weeks ended 2023 | 39 weeks ended 2022 |
Earnings | 39.4 | 43.5 | 79.2 | 129.2 |
Plant start-up and restructuring costs | 12.4 | 8.7 | 28.0 | 14.0 |
Business acquisition transaction costs | 1.1 | 1.3 | 3.3 | 5.0 |
Accretion of provisions | 1.0 | 1.8 | 1.9 | 6.3 |
Equity loss from associates in start-up | 0.8 | 2.6 | 19.0 | 14.3 |
Change in value of puttable interest in subsidiaries | 3.0 | - | 9.2 | - |
Amortization of intangibles associated with acquisitions | 2.5 | 7.8 | 10.5 | 23.0 |
Fair value gains on investments in associates | - | - | - | (19.8) |
60.2 | 65.7 | 151.1 | 172.0 | |
Current and deferred income tax effect of above items, and | (3.8) | (4.4) | (9.8) | (9.8) |
Adjusted earnings | 56.4 | 61.3 | 141.3 | 162.2 |
Weighted average shares outstanding | 44.4 | 44.6 | 44.4 | 44.6 |
Adjusted earnings per share | 1.27 | 1.37 | 3.18 | 3.63 |
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
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 MD&A 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 below under Risks and Uncertainties section in the Company's MD&A for the 13 and 39 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
SOURCE
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