Farmer Brothers Company · NASDAQ:FARM
Farmer Brothers — Investor Presentation (March 2024)
19 slides from Farmer Brothers's investor presentation, Mar 15, 2024
Slide 1: Investor Presentation March 2024
Investor Presentation March 2024
Slide 2: Safe Harbor
Safe Harbor Certain statements contained in this presentation are forward-looking statements within the meaning of federal securities laws and regulations. These statements are based on management’s current expectations, estimates, forecasts and projections about us, our future performance, our fina
Slide 3: Our Company & Strategy
Farmer Brothers" Our Company & Strategy
Slide 4: Farmer Brothers is a nationwide coffee roaster, wholesaler and service provider
Farmer Brothers is a nationwide coffee roaster, wholesaler and service provider, specializing in regular and specialty coffee, and allied products, such as tea and food items. Farmer Brothers by the Numbers 110+ Years of coffee excellence 20+ million Coffee pounds(1) ~30,000 Food and beverage establ
Slide 5: Providing Coffee Solutions Across Several Brands and Customer Channels
Providing Coffee Solutions Across Several Brands and Customer Channels Established Brands Attractive Category Mix Diverse Customer Base(1) Hospitals Restaurants Convenience stores Hotels Coffee shops (1)Based % of FY 2023 total sales
Slide 6: Clearing the Path to Profitable Growth
Clearing the Path to Profitable Growth Strengthened balance sheet through application of proceeds to pay down debt. Transaction component Direct ship business and Northlake, Texas facility Sale price $100 million(1) Use of proceeds Paid off $45 million term loan and $45 million asset-backed loan Sav
Slide 7: World-class Coffee Sourcing & Roasting Capability
World-class Coffee Sourcing & Roasting Capability Extraordinary Sourcing and Quality Control Organization Team of six Coffee Quality Institute Certified Q Graders Global Supply Chain Access Access to 95% of global green coffee supply chains through trade relationships developed over decades Direct T
Slide 8: Leveraging Our DSD Network
Leveraging Our DSD Network A leading, independent U.S. coffee and tea distribution network Nationwide reach Long-standing ties with leading global green coffee and allied suppliers Trusted supplier relationships Nationwide, experienced fleet Robust fleet and skilled personnel Long-term partnerships
Slide 9: Key Leadership
Key Leadership Brad Bollner Interim Chief Financial Officer Jared Vitemb General Counsel John Moore President and Chief Executive Officer Tom Bauer Chief Commercial Officer, Head of DSD
Slide 10: Investment Drivers
Farmer Brothers" Investment Drivers
Slide 11: Growth & Profitability Drivers
Growth & Profitability Drivers Sale of direct ship business in June 2023 eliminated lower gross margin business, improved roasting efficiency and streamlined business for DSD operations. Sale of direct ship business Approximately 30,000 established customer relationships allow for scaled rollout of
Slide 12: Nationwide Distribution & Servicing Network
Nationwide Distribution & Servicing Network One of the largest independent networks, serving approximately 30,000 establishments across 49 states. Roasting Facility Portland, Oregon Distribution Centers Rialto, California Northlake, Illinois Moonachie, New Jersey Portland, Oregon Equipment Refurbish
Slide 13: Growth Industry with Favorable Pricing Forecast
Growth Industry with Favorable Pricing Forecast The Coffee Industry Coffee market outlook is improving and expected to reach $83.24 billion in 2027 at a CAGR of 5.9%.(1) Barring weather-related disruptions, commodity prices are expected to decline in 2024.(2) Coffee consumption is at a two-decade hi
Slide 14: Financial Highlights
Farmer Brothers’ Financial Highlights
Slide 15: DSD Focus Brings Stronger Margin Profile
DSD Focus Brings Stronger Margin Profile Q2 FY24 gross margin percentage up 550 basis points compared to Q2 FY23. Gains in pricing agility and efficient production indicate sustainably improved gross margins long term. Historical DSD gross margins(1) recovering from FY2023 margin erosion toward hist
Slide 16: Steady Gains in Operating Efficiency
Steady Gains in Operating Efficiency Sold Northlake, Texas facility and direct ship customers: Streamlined assets, reducing maintenance and operational burdens Eliminated non-recurring costs from direct ship sale and hedging Lowered CAPEX and right-sizing operations for DSD-focused business Realigni
Slide 17: Path to Free Cash Flow
Path to Free Cash Flow Step Two Margin Transformation Step Three Driving Growth DSD Reorganization Right-size cost structure, geographic reorganization. Step One Capture benefits of favorable market pricing and lower cost of goods sold (COGS). Continue to execute on AI-enhanced pricing strategies.(1
Slide 18: Near-term Enhancements & Outlook
Near-term Enhancements & Outlook Fiscal 2023 Executed direct ship sale at fiscal year end, improving balance sheet Launched new AI pricing engine Fiscal 2024 (first half) Commenced leadership transition Implemented DSD reorganization Sold through older, higher cost inventory Achieved 40% gross margi
Slide 19: Contact us
Contact us Investor Relations investor.relations@farmerbros.com