Premium Brands Holdings Corp (PBH.TO)

If oil stays high, inflation will eventually impact consumers. Lots of ups and downs, but longer-term trend has been up. Fantastic M&A and integration, rinse and repeat.

Part of the "everything else" trade. Since software has been beaten down, and the Mag 7 is threatened, everything else (particularly small caps) has had a big rally. But these stocks may be less appealing once Mag 7's are back in vogue.

Good value. Time to buy? Depends on costs, and whether we'll see margin stabilization. Reasonable levels here. Trades at 12x PE for 2027, with 29% growth if things work out well. Good stock to own around $100. 

They were doing a huge expansion into the US. They have existing deals with Costco in Canada to build capacity and grow. She always adds shares below $100. Pays a 3% dividend.

Spent last year expanding US facilities to be able to take on US customers, such as COST. Their products are everywhere (such as breakfast sandwiches for SBUX), but you just don't know it. Able to grow, and believes expansion into US will continue to do well. Yield is ~3.4%.

PBH does not have the best record; it has missed seven of the past 12 quarters. But it did 'beat' in the most recent three quarters. The stock has finally caught a bid, and it is managing tariffs and other issues well. Consensus still calls for very good EPS growth next year. We have no reason to be overly concerned, but if one is trading the quarter (not advised) it looks to be a coin toss. We still think it is fine long term. If one is concerned or overweight we would be fine trimming in such a case.
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There is a move away from processed foods, but volumes are still growing. Client SBUX is closing stores, but also opening new ones. His firm started purchasing in March, but hasn't been able to buy full positions because the stock ran away on them. Perhaps on a broader market pullback.
 
Reporting soon, and the quarter could be a bit messy. Ramping up with COST, and that's taken a lot of capex and added capacity that has to be filled. Well managed. A dependable industry. Good dividend yield of 3.5%.

One of the strongest management teams in that retail space. About to capitalize on a large capacity buildout in US, now can handle extra orders coming in. COST is a big client. Sees stock going higher. RY recently upgraded it to "Buy".

His firm likes to hold stocks forever, or at least for 5 years. Really likes management -- focused on sustainably growing dividend, so doesn't take on too much risk all at once. Stock popped on recent earnings. 

Another good quarter as PBH remains fully in 'improvement' mode. EPS of $1.33 beat estimates of $1.30; revenue of $1.91B beat estimates of $1.87B. EBITDA of $177M beat estimates by 2%. Organic volume growth was good in the US. Guidance was maintained. Revenue rose 12%. Debt-de-leveraging continues with a sales/leaseback deal. Shareholders should be quite happy with these results.
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Turnaround story. Growth trajectory will be completely agnostic to what's going on in the economy right now. Costco Canada is one of its biggest clients, and now Costco USA is asking for its products. Has spent millions on US expansion; they had the orders, but didn't have the capacity. That capex is almost done, and they've had 2 really strong quarters of earnings. 

Growth in US is starting to take off. Pretty tariff agnostic, as production in both US and Canada means they don't have much cross-border traffic. Dividend usually grows ~10% a year, but probably not this year due to the buildout and M&A activity. She's happy to wait for the dividend growth if it means better growth overall down the road. Yield is 4.14%.

She has owned it in the past but not now. It is a wholesale business with premium food distribution.. It has been mostly under-performing for the past 5 years. Pays a 4.3% dividend. There is upside in the space.

Good stock, but frustrating. Has climbed back from downdraft last fall because investors have supported it on valuation. Growth plans are realistic, and will probably execute on them. Some upside momentum. Difficult space to be in right now -- tariff and trade uncertainty, plus affected by the economic outlook in NA. If dividend can grow over next 5 years, stock's in a good position.

A new position for clients this year. Consumer staple. Specialty foods (main segment) + food distribution to schools, hospitals, and restaurants. Operates under 60 different banners, so there's little brand risk. On a huge growth trajectory right now that's being discounted by the market. Yield is 4.42%.

Last few years spending big to increase US distribution. For example, one of its biggest customers in Canada is COST. With increased US presence, now has access to the US stores of COST as well. Through this, it can also change distribution, so not as much exposure to tariffs. Total exposure is less than 5%, and working to mitigate that even further.

Exposed to tariffs by only a small extent. What they are exposed to is the Canadian consumer, who might already be scaling back. It was one of his Top Picks last time around, mainly because added a lot of capacity in US. Concern around SBUX, its biggest client in the US; last quarter indicated this relationship is working. Interesting at these levels.

EPS of $1.05 beat estimates of 94c; revenue of $1.63B beat estimates of $1.60B. EBITDA of $148.7M beat estimates by 1.62%. 2025 guidance was raised to $7.20B+ from $7.15B+. Not a huge raise but it was a sigh of relief for investors. The dividend was not raised for the first year in 10. There remains some tariff concerns, though PBH says it is 'positioned well'. Sales rose 5.5% year over year. Specialty foods was very strong (+13%) but distribution was weak (-3.2%). But overall, good results. 
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