Premium Brands Holdings Corporation (PBH) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome, everyone, to our 2024 year-end conference call. Thank you for joining us today. With me here is our CFO, Will Kaludich. Our presentation will follow the deck that was posted on our website this morning. Later this morning, we will hold a separate live Q&A session at 10.30 a.m. PST. Details to the call can be found on our press release posted on our website. We are now on slide three, which outlines certain key highlights for the year and the fourth quarter. We made solid progress during 2024 and we're well positioned to meet or exceed our 2027 sales and adjusted EBITDA targets of $10 billion in sales and $1 billion respectively. Our sales for the year increased by $210 million or 3.3% to $6.5 billion, while our adjusted EBITDA margins expanded by 30 basis points to 9.2%. This is the third consecutive year that we have expanded our adjusted EBITDA margin, which was 8.4% back in 2022. Our success in 2024 was driven by our protein, sandwich, and bakery groups initiatives in the U.S. We have invested $814 million over the past three years to expand the production capacity of these businesses who are now leveraging this capacity to expand successful regional products nationally and to win new business with new customers and channels. Looking forward, the momentum of our U.S.-focused sales initiatives continues to build, and we're very excited by what lies ahead for 2025. In terms of the Canadian market, 2024 started slow as consumers felt the impact of high inflation and high interest rates. Things improved in the back half of the year, and the fourth quarter in particular, as interest rates came down, with our Canadian businesses generating 1.7% in organic growth for the fourth quarter. We're very pleased with our track record of raising our dividend by 10% or m...