Premium Brands had record revenues of $968.3 million in the third quarter, up by 15.9 per cent, but its earnings plunged from $36.1 to $26.9 million.
The company said it hit “an almost perfect storm” because of an “unprecedented dichotomy” in pork markets and prices between Europe and North America.
European pork prices soared as China came buying to fill the hole left by African Swine Fever, which has claimed about half of China’s pig population.
But pork prices remained much lower in North America, meaning that the Premium Brands businesses that buy deli meats from Europe were selling them against lower-priced competitors in North America.
George Paleologou, the company president and chief executive officer, said the long-term outlook remains good for the company. He noted that U.S. sales increased by 48 per cent.
The company revealed that it has bought Viandex and Maine Coast Shellfish and a half interest in North Delta Seafood for a combined $67.2 million.
The nation-wide company is a major player in the sandwich, deli meats and seafood markets in Canada and has recently been expanding aggressively in the United States.
