Canada's Premium Brands posts higher profit on strong demand
(Reuters) - Food maker Premium Brands Holdings Corp's (PBH.TO: Quote) second-quarter profit rose 56 percent helped by retail demand for its products and revenue from its acquisitions.
The maker of McSweeney's meat snacks and Duso's pastas and sauces, expects retail sales growth to either exceed or be in the top end of its forecast of organic growth of 6 percent to 8 percent for the second half of 2012.
Premium Brands, however, trimmed its 2012 adjusted EBITDA guidance to between C$70 million and C$75 million from the previous range of C$75 million and C$80 million as drought in the U.S. Midwest could impact the food prices.
Net income rose to C$7 million, or 34 Canadian cents per share, up from C$4.5 million, or 24 Canadian cents per share, a year earlier.
On an adjusted basis, the company earned 39 Canadian cents per share.
Revenue for the Richmond, British Columbia-based company rose 37 percent to C$251 million.
Retail segment revenue rose 65 percent to C$152.2 million, helped in part by the acquisition of Piller's and SJ in 2011, the company said in a statement.
Shares of Premium Brands, which has a market value of C$366.22 million, closed at C$17.98 on Wednesday on the Toronto Stock Exchange.
(Reporting by Krithika Krishnamurthy in Bangalore; Editing by Akshay Lodaya)
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