Premium Brands profit slips

Premium Brands reports record sales of $584.9 million, an increase of 22.3 per cent for its first quarter, but profit slipped from $15.3 to $13.2 million.

The British Columbia company has signed deals to make more investments - Oberto Sausausage, to buy another third of McLean Meats so it now owns 66.2% andto buy Penguin Meats Supply, a distributor of protein products to foodservice and retail customers in B.C. The combined purchase price for these three investments is approximately $242.4 million.

Also subsequent to the quarter the company completed a $172.5 million convertible debenture offering and issued $172.7 million in common share subscription receipts that are contingent upon completion of the Oberto acquisition. The convertible debentures bear interest at 4.65 per cent and mature in April 2025.