August 6, 2009 / 3:35 PM / 9 years ago

UPDATE 1-Premium Brands posts lower Q2 profit

* Q2 profit C$0.38 vs C$0.43 last year

* Revenue up more than 8 pct

Aug 6 (Reuters) - Food products maker Premium Brands Holdings Corp (PBH.TO) posted a lower second-quarter profit as weaker economic conditions in western Canada hurt its foodservice segment.

The company also said it extended the maturity date of its senior credit facilities to July 2012, created a new C$10 million term facility and revised its financial covenants.

For the quarter ended June 27, the company reported earnings of C$6.6 million, or 38 Canadian cents per share, down from C$7.4 million, or 43 Canadian cents per share, a year-ago.

Two analysts had expected earnings of 40 Canadian cents a share, excluding items, according to Reuters Estimates.

Revenue for the quarter, however, rose 8.2 percent to C$124.3 million due to C$12.0 million in incremental sales from acquisitions.

“Looking forward, the general economic environment seems to be stabilizing and we are cautiously optimistic that we will see an improvement in conditions in the latter half of 2009,” CEO George Paleologou said in a statement.

Shares of Premium Brands were trading down more than 4 percent at C$9.77 in morning trade on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Maju Samuel)

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