Slide 1: First Quarter 2024 Conference Call
First Quarter 2024 Conference Call May 13, 2024
Slide 2: Disclaimer
Disclaimer This presentation is not intended to form the basis of any investment decision and should not be considered as a recommendation by Premium Brands Holdings Corporation (the “Company”) or any other person in relation to the Company’s business or the securities of the Company. This presentat
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward looking statements with respect to the Company, including, without limitation, statements regarding its business operations, financial performance and condition, acquisition opportunities, capital projects and plans, outlook and objective
Slide 4: Today's Presenters
Today’s Presenters • George Paleologou President & Chief Executive Officer • Will Kalutycz Chief Financial Officer The Next Five Years – Accelerating Growth 3
Slide 5: Key Messages
Key Messages • 2024 first quarter highlights • Record first quarter revenue of $1.46 billion representing a 2.2%, or $31.3 million, increase as compared to the first quarter of 2023 • Solid progress on Specialty Foods’ core U.S. growth, which for the quarter generated an organic volume growth rate o
Slide 6: Acquisition Opportunities
Acquisition Opportunities (millions of dollars except transactions) Agreed to terms and in Identified future Past discussions and In negotiations In discussions due diligence opportunity currently on hold Platform Advanced Active Early Stage Opportunity Inactive Total # Sales # Sales # Sales # Sales
Slide 7: Belmont Food Group
Belmont Food Group BELMONT MEATS (2016) LEADBETTER FOODS (2017) MAID-RITE SPECIALTY FOODS (2021) BEECHGROVE COUNTRY FOODS (2022) KING’S COMMAND FOODS (2022) YORKSHIRE VALLEY FARMS (2018) Belmont platform companies The Next Five Years – Accelerating Growth 6
Slide 8: The Next Five Years – Accelerating Growth
The Next Five Years – Accelerating Growth 7
Slide 9: The Next Five Years – Accelerating Growth
The Next Five Years – Accelerating Growth 8
Slide 10: The Next Five Years – Accelerating Growth
The Next Five Years – Accelerating Growth 9
Slide 11: The Next Five Years – Accelerating Growth
The Next Five Years – Accelerating Growth 10
Slide 12: Q1-2024 Financial Update
Q1-2024 Financial Update The Next Five Years – Accelerating Growth 11
Slide 13: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 2024 Revenue 584.9 776.6 935.0 1,009.8 1,251.2 1,430.5 1,461.8 OGR 9.2% 1.8% 16.1% 1.7% 14.7% 11.7% 2.1% OVGR 10.6% 0.4% 14.6% 2.7% 2.7% 5.3% 1.9% 1,600.0 35% • The first quarter is generally the slowest
Slide 14: U.S. Sales Analysis
U.S. Sales Analysis (millions of dollars except percentages) FX Q1-2024 Adjusted Q1-2023 And Volume Q1-2024 OVGR OVGR Pricing Growth Core U.S. sales growth initiatives: Protein Group 200.4 (2.1) 19.8 218.1 9.9% 9.9% Sandwich Group 322.9 (11.1) 24.0 335.8 7.4% 12.1% Bakery Group 19.3 (1.1) 8.7 26.9 4
Slide 15: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P Revenue 535.2 794.3 960.1 1,043.0 1,221.8 1,484.5 1,857.5 2,198.3 3,025.8 3,649.4 4,068.9 4,931.7 6,029.8 6,261.0 6,750.0 OGR 2.6% 6.0% 4.8% 4.9% 13.5% 18.0% 6.1% 4.7% 6
Slide 16: Quarter Adjusted EBITDA Performance
Quarter Adjusted EBITDA Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 2024 EBITDA 43.0 60.3 64.3 82.5 95.8 110.7 121.0 Margin 7.3% 7.8% 6.9% 8.2% 7.7% 7.7% 8.3% • Targeted mid-term annual adjusted EBITDA 160.0 12.0% margin – 10% 140.0 11.0% • First quarter genera
Slide 17: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P EBITDA 42.0 54.9 66.8 69.3 77.6 111.6 154.8 190.2 280.2 307.7 312.6 430.7 504.2 559.1 640.0 Margin 7.8% 6.9% 7.0% 6.6% 6.4% 7.5% 8.3% 8.7% 9.3% 8.4% 7.7% 8.7% 8.4% 8.9% 9
Slide 18: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts) 2019 2020 2021 2022 2023 2024 Adj earnings 17.6 19.9 31.3 39.4 28.6 24.0 Adj EPS 0.52 0.53 0.72 0.88 0.64 0.54 Positive Factors • EBITDA growth 45.0 $1.60 Negative Factors 40.0 $1.40 • Growth investment with an esti
Slide 19: Capital Expenditures
Capital Expenditures (millions of dollars except percentages) • An unlevered, after-tax IRR of 15% or greater is expected on project capex Q1-2024 • Expect to spend an additional $296 million on approved major Major project capex 70.0 project capex over the next six quarters Other project capex 14.7
Slide 20: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 920.0 5.0 820.0 4.5 720.0 4.0 • Long-term targeted senior debt to EBITDA ratio – 2.5:1 to 3.0:1 620.0 3.5 • Long-term targeted total debt to 520.0 3.0 EBITDA ratio – 3.5:1 to 4.0:1 420.0 2.5 • Convertible debentures make up the difference bet
Slide 21: Free Cash Flow
Free Cash Flow (millions of dollars except per share amounts and percentages) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P Payout ratio 106.4% 77.7% 69.6% 70.6% 65.2% 59.4% 53.0% 53.9% 48.4% 43.2% 36.6% 38.5% 38.1% 43.1% 48.7% 42.3% 43.8% 54.3% Divi
Slide 22: The Next Five Years – Accelerating Growth
The Next Five Years – Accelerating Growth 21