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  5. PBH: Hi 5i, pls provide your analysis of their quarterly results and forward guidance. [Premium Brands Holdings Corporation]
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Q: Hi 5i, pls provide your analysis of their quarterly results and forward guidance. Also would you continue to buy/hold or sell and get into something better within the same sector. Thx.
Asked by Christopher on May 16, 2023
5i Research Answer:

EPS of $0.64 missed estimates of $0.745 and revenues of $1.43B beat estimates of $1.38B. Revenues grew by 14.3% and Adjusted EBITDA expanded by 15.6%. The company repurchased shares for $1.4M during the quarter, and management reaffirmed its sales and Adjusted EBITDA guidance for 2023. Management noted that many of its businesses have recently completed major capacity expansions that will support a variety of new product launches as well as expansion into additional markets or channels. Higher interest expenses resulted in an earnings decline for the quarter, however, the company is confident in its full pipeline and potential acquisition opportunities for the future. The results were OK, and while growth is good, its high debt balance is beginning to erode its profit margins with higher interest expenses. We continue to like the name for a long-term position, but in the short term, we feel that some price consolidation may occur until an improvement in margins in future quarters occurs.