Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Investor Presentation (September 2024)
40 slides from Lassonde Industries, Inc. Class A's investor presentation, September 2024
Slide 1: Introduction to Lassonde
Introduction to Lassonde Summer 2024
Slide 2: Forward-Looking Statements and use of financial measures not in accordance with IFRS
2 Forward-Looking Statements and use of financial measures not in accordance with IFRS This presentation contains “forward-looking information” and the Corporation’s oral and written public communications that do not constitute historical fact may be deemed to be “forward-looking information” within
Slide 3: Forward-Looking Statements and use of financial measures not in accordance with IFRS (cont'd)
3 Forward-Looking Statements and use of financial measures not in accordance with IFRS (cont’d) The Corporation’s ability to achieve its sustainability targets and goals is further subject to, among other factors, its ability to access and implement all technology necessary to achieve them as well a
Slide 4: Content
Content 1. Lassonde 101 2. Fiscal 2023 Financial Review 3. Q2 2024 Financial Review 4. Acquisition of Summer Garden
Slide 5: Lassonde Industries – Who We Are
5 Lassonde Industries – Who We Are A leader in the North American food and beverage industry • Deep roots in the Well established strength and reputation in beverages community with a proud 106-year history #1 in Canada - Fruit juices and drinks #2 in the U.S. - Store brand shelf-stable fruit juices
Slide 6: Lassonde Today
6 Lassonde Today Carver (MA) 1 Calgary (AB) 7 Cranberry receiving station 2 Thornbury (ON) 8 Seabrook (NJ) 3 Toronto (ON) Cherry Hill (NJ) 1 4 Rougemont, 9 Office 6 Saint-Damase, 14 Boisbriand (QC) 4 10 Hendersonville (NC) 2 Head office and multiple 3 7 facilities 13 5 11 Springdale (AR) 15 9 8 Niag
Slide 7: Breadth and Depth of Product Offering
7 Breadth and Depth of Product Offering Over 3,500 Unique Products and 200 Formats across Shelf-stable, Chilled and Frozen categories
Slide 8: Pro Forma Sales Distribution
8 Pro Forma Sales Distribution* Others** Specialty Foods Beverages Canada Beverages US - Branded Beverages US - Private Label * Industries Lassonde pro forma sales for the 12-month period ended June 29, 2024 ** Includes Snacks and Diamond
Slide 9: Sales by Country 2024 Pro Forma
9 Sales by Country 2024 Pro Forma* % of Sales from the U.S. 70% 60% Clement Pappas August 2011 43% 50% Sales in Canada 40% Old Orchard Apple & Eve May 2018 30% Summer Garden July 2014 August 2024 57% 20% Sales in the U.S. Sun-Rype 10% January 2020 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 10: Sales by Brand Type
10 Sales by Brand Type National Brands* Canada Sales by Brand Type – Pro Forma 2024** Partner Brands 43% 57% National Private Brands Label Products United States * Non exhaustive ** Industries Lassonde pro forma sales for the 12-month period ended June 29, 2024
Slide 11: Extensive Customer List
11 Extensive Customer List* * Only a sample of Lassonde’s customers are represented on this page
Slide 12: Sales by Market Segment – 2024 Pro Forma
12 Sales by Market Segment – 2024 Pro Forma* Institutions; directly or 10% Food retailers and Food through wholesalers Service wholesalers • Restaurants • Supermarket chains 90% • Hotels Retail • Independant grocers • Hospitals • Superstores • Schools • Warehouse clubs • Distributors • Major pharmac
Slide 13: Our Multi-Year Strategic Plan – Objectives
13 Our Multi-Year Strategic Plan – Objectives Drive long-term value Accelerate revenue growth Improve overall margins and profitability
Slide 14: A stronger, more diversified and leading NA agri-food and beverage player
14 A stronger, more diversified and leading NA agri-food and beverage player Our great tasting products in more hands, serving more needs, across more occasions, every day.
Slide 15: Multi-year Strategy Priorities
15 Multi-year Strategy 1 Priorities Build a Growth-oriented Portfolio 2 3 Drive Improve Sustainable Capacity Performance to Act
Slide 16: Build a Growth-Oriented Portfolio
16 Multi-year Strategy – Build a Growth-Oriented Portfolio Unlock the full potential of our U.S. operations • Reset and optimize private label activities • Build stronger branded operations to capture growth and improve profitability Sustain profitable growth in Canada • Invest in our brands • Stren
Slide 17: Drive Sustainable Performance
17 Multi-year Strategy – Drive Sustainable Performance Increase investment in our manufacturing network • New single-serve line in the U.S. • Higher speed juice box lines in Canada Continue to focus on our NA supply Chain • Network optimization • Best in class purchasing • Efficient delivery of our
Slide 18: Improve Capacity to Act
18 Multi-year Strategy – Improve Capacity to Act Implement a new operating model: The power of global at the speed of local • Operate in a manner that is close and responsive to the market • Leverage scale and common capabilities to capture synergies • Establish common best practices to enable servi
Slide 19: Adjusted EBITDA Margin – Past 11 Years
19 Adjusted EBITDA Margin(1) – Past 11 Years 12.0% Inflection point in U.S. divisions performance 11.0% (pre U.S. 11.5% challenges) 11.0% 10.6% (pre 2020) 10.5% 10.0% 10.1% average 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 LTM Q2- 24 (1) Financial measures
Slide 20: Adjusted EBITDA Margin of NA Selected Peers
20 Adjusted EBITDA Margin(1) of NA Selected Peers – Last 5 Years Average LASSONDE’S 10 Number of companies observed in the EBITDA% range 8.9% 2023 Adjusted EBITDA margin (1) 9 10.1% 11-yr average 8 10.6% pre 2020 average 7 11.0% pre U.S. challenges average 6 5 Peer group 10.6% Average 4 9.3% Median
Slide 21: Improving our Margin from Current Level
21 Improving our Margin from Current Level Material Assumptions Key factors driving progressive margin ▪ Inflation rate of ~2.0% over the period. improvement ▪ FX ~1.33 USD/CAD over the period. ▪ Profitability growth prevails over sales growth. 1. Building back volume at our U.S. operations 2. Run r
Slide 22: Net Debt to Adjusted EBITDA
22 Solid Financial Position to Finance Expansion Projects Net Debt(1) ($M) 4.0x 600.0 Apple & Eve 3.5x acquisition ~ 510.0 Old Orchard 500.0 Net Debt to Adjusted EBITDA(1) 3.0x Brands acquisition Supply chain 369.7 400.0 2.5x 340.5 Sun-Rype challenges 317.3 acquisition 2.0x 263.4 1.9x 300.0 252.0 24
Slide 23: Changes to Senior Management
23 Changes to Senior Management Pierre-Paul Lassonde to step down as Chairman of the Board in early 2025 • To become Vice-Chairman • Will continue to support Lassonde’s strong team Nathalie Lassonde became Co-Chair on September 1, 2024, to become Executive Chair of the Board in early 2025 • 20 years
Slide 24: Key Takeaways
24 Key Takeaways 1 Target of $3bn in sales by 2026 supported by clear growth platforms 2 Beyond top line expansion, opportunities to expand margins 3 Solid balance sheet to finance expansion 4 106-year history with solid track record of performance 5 Strong foundation to win in our markets: portfoli
Slide 25: Content
Content 1. Lassonde 101 2. Fiscal 2023 Financial Review 3. Q2 2024 Financial Review 4. Acquisition of Summer Garden
Slide 26: Fiscal 2023: A Solid Performance
26 Fiscal 2023 A Solid Performance Sales increased 7.6% to a record $2.3 billion • Selling price adjustments in Canada and the U.S. • Better sales mix in our private label activities • Partly offset by lower sales volume in the U.S. Strong profitability improvement • Improved operating performance •
Slide 27: Fiscal 2023 Profitability Improvement
27 Fiscal 2023 Profitability Improvement Sales ($B) Gross Profit ($M) Operating Profit ($M) & & Gross Margin Operating Margin 2.2 2.3 587.7 144.5 523.3 135.4 97.5 81.3 +7.6% 25.4% 5.8% 6.2% 24.3% 3.8% 4.5% 2022 2023 2022 2023 Operating Profit Adj. Operating Profit (1) Key Highlights 2022 2023 Exclud
Slide 28: Fiscal 2023 Profitability Improvement
28 Fiscal 2023 Profitability Improvement (1) Profit Attributable to the EBITDA ($M) Shareholders ($M) EPS ($) 87.5 89.9 13.18 207.1 12.83 197.5 64.4 9.37 157.1 140.9 53.9 7.85 (1) EBITDA Adj. EBITDA(1) Profit att. to the Adj. profit att. to EPS Adj. EPS (1) shareholders the shareholders (1) 2022 202
Slide 29: Content
Content 1. Lassonde 101 2. Fiscal 2023 Financial Review 3. Q2 2024 Financial Review 4. Acquisition of Summer Garden
Slide 30: Second Quarter Highlights
30 Second Quarter Highlights Further momentum in sales and profit growth Sales increased by 7.8% • Volume gains in the U.S. for both private label and branded products • Pricing adjustments in Canada 21% improvement in operating profit • Solid top-line performance • Securing favourable ingredient co
Slide 31: Q2 2024 Sales Increase ($M)
31 Q2 2024 Sales Increase ($M) Key Highlights ✓ Diamond’s sales: ▲ $3.2M $624.7 ✓ FX impact: ▲ $6.1M $579.4 +7.8% ✓ Selling price adjustments: ▲ $12.6M private labels ▲ $13.1M national brands ✓ Changes in sales mix: ▼ $9.0M ✓ Effect of sales volume (U.S. driven): ▲ $14.2M private labels ▲ $6.0M nati
Slide 32: Q2 2024 Improved Profitability
32 Q2 2024 Improved Profitability Adjusted Profit Attributable to the Gross Profit ($M) Adjusted EBITDA(1) ($M) Shareholders(1) ($M) & Adjusted EPS(1) $74.6 $39.1 $175.7 $152.3 $58.6 +27.3% +15.4% +47.5% $26.5 11.9% 28.1% $5.73 26.3% 10.1% $3.89 2023 2024 2023 2024 2023 2024 Key Highlights Net of Di
Slide 33: Content
Content 1. Lassonde 101 2. Fiscal 2023 Financial Review 3. Q2 2024 Financial Review 4. Acquisition of Summer Garden
Slide 34: Transaction Overview
34 Transaction Overview Ohio-based manufacturer and distributor of specialty food products Portfolio focused on premium pasta sauces and a range of sugar-free sauces and condiments • Early entrant and leader in the growing sugar-free segment of the BBQ sauces • Branded portfolio of approximately 250
Slide 35: Transaction Rationale
35 Transaction Rationale Enhances our position as a manufacturer of choice for retort-based products • Specialty food core capability • Better serve customers and remain competitive in a growing market Further growth potential by expanding retort capacity, financed through cash flows from current ac
Slide 36: Operations Overview
36 Operations Overview Production facility in Boardman, Ohio • Adjacent facilities for warehousing, R&D, offices • Already identified opportunities to add capacity and expand footprint High-acid manufacturing: tomato-based and BBQ sauces Low-acid manufacturing: dairy and egg-based sauces • Includes
Slide 37: Financial Overview
37 Financial Overview Financial Metrics Transaction Metrics Other Considerations For the 12-month period • US$237.2 M at closing • US$241.0 M paid at closing financed through: ended May 2024: • Including US$2.2 M in preliminary • US$224.5 M from Canadian revolving operating working capital adjustmen
Slide 38: Financial Measures Not in Accordance with IFRS
Financial Measures Not in Accordance with IFRS
Slide 39: Financial Measures Not in Accordance with IFRS
39 Financial Measures Not in Accordance with IFRS EBITDA and Adjusted EBITDA Adjusted Profit Attributable to the Corporation’s Shareholders and Adjusted EPS EBITDA is a financial measure used by the Corporation and investors to assess the Corporation’s capacity to generate future cash flows from ope
Slide 40: lassonde.com
B Lassonde lassonde.com
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