Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Q1 2023 Earnings Presentation
28 slides from Lassonde Industries, Inc. Class A's earnings presentation, May 12, 2023
Slide 1: Investor Presentation – First quarter ended April 1, 2023
Investor Presentation First quarter ended April 1, 2023 LASSONDE INDUSTRIES INC.
Slide 2: Forward-Looking Statements and use of financial measures not in accordance with IFRS
2 Forward-Looking Statements and use of financial Forward-Looking Statements measures not in accordance with IFRS This document 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-look
Slide 3: Forward-Looking Statements (cont'd)
3 Forward-Looking Statements and use of financial Forward-Looking Statements measures not in accordance with IFRS (cont’d) The Corporation cautions readers that the foregoing list of factors is not exhaustive. Readers are further cautioned that some of the forward-looking statements in this document
Slide 4: Good Progress in the First Quarter
4 Good Progress in the First Quarter Good Progress in the First Quarter Sales increased by 7.5% Financial performance marked noticeable improvements Stabilization in the inflation trend for most input costs Efforts to adjust pricing yielding benefits Laser focus on executing Multi-year Strategy and
Slide 5: Multi-Year Strategy: Benefits from Project Eagle
5 Multi-Year Strategy Benefits from Project Eagle Simplified our product portfolio to reduce execution complexity • Approximately 10-15% SKU reduction • Harmonize formats, consolidate formulas and eliminate low-margin products Offering better reflects what we can more efficiently produce • Improved
Slide 6: Multi-Year Strategy: Benefits from Project Eagle (cont'd)
6 Multi-Year Strategy Benefits from Project Eagle (cont’d) New transportation management system (TMS) • Better tools to identify most optimal routes and carriers • Review of processes and other tools for logistics management Improved efficiency in New Jersey plant and across most operations • Expect
Slide 7: Q1-23 – Financial Highlights
7 Q1 2023 Q1-23 – Financial Highlights 7.5% Sales Increase ($M) Key Highlights Excluding a favourable FX impact, $547.3 sales were up 3.7% ✓ Selling price adjustments: +7.5% + $37.7M private labels $509.0 + $24.0M national brands ✓ Favourable changes in sales mix: + $8.3M private labels, mainly U.S.
Slide 8: Q1-23 – Financial Highlights: Improved Profitability
8 Q1 2023 Q1-23 – Financial Highlights Improved Profitability Adjusted Profit Attributable to the Gross Profit ($M) Adjusted EBITDA(1) ($M) Shareholders(1) ($M) & Adjusted EPS(1) $135.6 $136.6 $43.1 $39.7 $16.4 $16.9 27.5% 25.0% $2.48 $2.37 2022 2023 2022 2023 2022 2023 Key Highlights Lower SG&A exp
Slide 9: Working Capital
9 Q1 2023 Days Operating Working Capital (1) Working Capital 100 95 87 86 90 82 81 80 80 76 75 73 73 72 71 69 69 68 68 68 68 70 65 65 64 64 64 62 60 57 60 Days 52 50 46 43 40 37 33 36 32 32 32 31 35 31 30 30 30 29 33 28 27 30 26 26 20 10 0 Q4-17 Q4-18 Q4-19 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22
Slide 10: Net Debt
10 Q1 2023 Net Debt(1) Net Debt (1) 400 3,00x 350 2,50x 300 $267.7 $246.7 2,00x 250 1.67x 200 1.57x 1,50x Ratio remains 150 well within the 1,00x 100 objective of less 50 0,50x than 3.25x 0 0,00x Dec. 31, 2022 Apr. 1, 2023 Net Debt (1) Net Debt to Adjusted EBITDA (1) (1) Financial measure not in acc
Slide 11: Cash Flows
11 Q1 2023 Cash Flows Cash Flows ($M) Operating Activities Key Highlights ✓ Reduction in cash outflows due to: ($20.6) ($4.9) ▪ Improved profitability ▪ Lower working capital requirements ▪ Lower net income tax paid 2022 2023 Acquisitions of PPE and ✓ Acquisitions of property, plant and equipment In
Slide 12: Looking Ahead
12 Looking Ahead Looking Ahead Drive continued improvement in our financial and operating performance Focus on executing our Multi-year Strategy ▪ Accelerate revenue growth ▪ Improve overall profitability ▪ Drive long-term value Pleased with progress accomplished ▪ Continue implementing cloud-based
Slide 13: Looking Ahead (cont'd)
13 Looking Ahead Looking Ahead (cont’d) Run rate of actions to gradually benefit rest of 2023 ▪ Implement further actions should inflation persist ▪ Monitor evolution of consumer habits and demand elasticity Expect 2023 sales growth rate in the mid to high single- digit range ▪ Excluding foreign exc
Slide 14: Financial Measures Not in Accordance with IFRS
Financial Measures Not in Accordance with IFRS
Slide 15: Financial Measures Not in Accordance with IFRS
15 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS Items impacting the comparability between periods The table on the right contains a list, description and quantification of items impacting the comparability of the financial performance between the peri
Slide 16: Financial Measures Not in Accordance with IFRS (cont'd)
16 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS (cont’d) Adjusted Profit Attributable to the Corporation’s Shareholders and Adjusted EPS Adjusted profit attributable to the Corporation’s shareholders and adjusted EPS are financial measures used by the
Slide 17: Financial Measures Not in Accordance with IFRS (cont'd)
17 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS (cont’d) Days Operating Working Capital is a financial efficiency measure used by the Corporation to represent the amount of sales tied up as operating working capital. To calculate this financial measur
Slide 18: Key Financial Information
Key Financial Information
Slide 19: Financial Highlights
19 Financial Highlights Financial Highlights (1) Financial measure not in accordance with IFRS. Please refer to section on Financial Measures Not in Accordance with IFRS.
Slide 20: Sales Evolution
Sales Evolution 20 Financial Highlights
Slide 21: Appendix
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Slide 22: About Lassonde - 2022
22 About Lassonde About Lassonde - 2022
Slide 23: Evolution – Frozen Concentrate Orange Juice
23 Evolution – Frozen Concentrate Orange Juice Appendix Source: tradingeconomics.com – As at May 8, 2023
Slide 24: Evolution - Apple Juice Concentrate
24 Appendix Evolution - Apple Juice Concentrate Source: USDA monthly reporting
Slide 25: Evolution - Resin PET
25 Appendix Evolution - Resin PET Source: ProPurchaser
Slide 26: Evolution - Ocean freight
26 Appendix Evolution - Ocean freight Source: Drewry’s composite World Container Index
Slide 27: Evolution – Fuel Surcharge – USA market
27 Evolution – Fuel Surcharge – USA market Appendix Source Exhibit 27: Morgan Stanley Research Source Exhibit 28: DAT Solutions
Slide 28: lassonde.com
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