Balchem Corporation · NASDAQ:BCPC
Balchem — Q1 2025 Earnings Presentation
33 slides from Balchem's earnings presentation, April 2025
Slide 1: Investor Presentation Q1 2025
Investor Presentation Q1 2025. 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement • During the course of this presentation, management may make forward-looking statements regarding financial performance and future events. • These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "foreca
Slide 3: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliation 3
Slide 4: Balchem Corporation At a Glance
Balchem Corporation At a Glance BCPC NASDAQ 2024 Sales $954 Million Approximate number of employees 1,400 2024 Adjusted EBITDA $250 Million Founded in 2024 Adjusted EBITDA margin 1967 26.3% 4
Slide 5: Three Business Segments – 2024 Revenue
Balchem Corporation Three Business Segments – 2024 Revenue Human Nutrition and Health Animal Nutrition and Health Specialty Products Human Nutrition & Health Animal Nutrition & Health Specialty Products 63% 23% 14% Provides a range of branded specialty Supplies science-based animal feed Provides cri
Slide 6: Balchem Corporation
Balchem Corporation Balchem develops, manufactures, and markets specialty ingredients that help make the world a healthier place. Corporate Headquarters: Montvale, NJ 22 Manufacturing Sites 8 Technology Centers 8 Regional Offices 6
Slide 7: Executive Leadership
Executive Leadership Ted Harris Chairman, President, and CEO • Joined Balchem in May 2015 • Prior to Balchem was a Senior VP of Ashland Inc. where he held a series of senior leadership roles over 10+ years • Independent director and member of the Board of Directors of Pentair plc. • MBA from Harvard
Slide 8: Balchem's Value Proposition
Balchem’s Value Proposition Balchem’s Technologies Value to our customers • High efficacy nutrients essential for life • Enhanced animal health and feed productivity • Functional ingredient systems formulations and application expertise • Crop protection and yield improvement • Complete supply chain
Slide 9: Segment Overview
Segment Overview Leveraging Solutions Across Segments Segment Markets Served Solutions 14% Human Nutrition • Nutritional Supplements • Microencapsulation & Health • Food and Beverage • Choline and Vitamin K2 23% • Infant and Toddler Formula • Chelated Minerals • Organic Cereal • Powder, Flavor, and
Slide 10: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliation 10
Slide 11: Our Vision, Mission and Core Values
Our Vision Our Mission is clear – to make is focused – to build a global the world a healthier nutrition and health company place. delivering trusted, innovative and science-based solutions to our customers. Our Core Values Always Collaborating Playing Staying Doing the and Growing to and Acting on
Slide 12: How Do We Make the World a Healthier Place?
How Do We Make the World a Healthier Place? Provide food, beverage, and Improve nutrient bioavailability Support prenatal, infant and Help farmers grow crops that Provide nutritious foods for dietary supplement ingredients for animals, reducing feed inputs toddler health with targeted are hardier wh
Slide 13: Strategic Focus
Strategic Focus 01 02 03 04 Strengthening Driving Organic Strategic M&A Excellence in Positions in Attractive, Growth Execution Growing Markets Building scale, adding Creating new demand Augment organic growth Maintaining a strong adjacent capabilities, through innovation, market and accelerate stra
Slide 14: Growth Platforms
Growth Platforms Multiple Platforms to Drive Growth Human Nutrition & Health Animal Nutrition & Health Specialty Products • VitaCholine® and K2Vital market • Rumen-protected nutrients for dairy • Metalosate® plant micronutrients penetration • ReaShure® market penetration penetration and application
Slide 15: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliation 15
Slide 16: Q1 2025 Financial Summary
Q1 2025 Financial Summary Sales growth, margin expansion, and profit growth Sales Adj. EBITDA Adj. Net Earnings Adj. EPS $M $M $M $/share 4.5% 8.9% 19.2% 18.4% 66.3 40.0 1.22 250.5 239.7 60.9 33.6 1.03 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 Growth in all 3 segments Adj. EBITDA growth driven
Slide 17: Historical Financials
Historical Financials Consistent performance over the years Sales Adj. EBITDA $M +8.2% $M 250 +9.4% CAGR 942 922 954 CAGR 231 216 799 190 704 174 644 160 66 251 2019 2020 2021 2022 2023 2024 Q1 2025 2019 2020 2021 2022 2023 2024 Q1 2025 Adj. Net Earnings Adj. EPS $M $/share +6.6% CAGR 143 131 130 +6
Slide 18: Balchem's Capital Allocation Strategy
Balchem’s Capital Allocation Strategy Capital Allocation Priorities Annual Cash Flow and Net Debt Leverage Ratio • Support organic growth opportunities 2.3 • Augment growth with targeted M&A • Diligent debt service 1.6 1.7 1.5 • Continue to pay and grow dividend 1.2 1.1 1.1 • Stock buy-backs for ant
Slide 19: Free Cash Flow Conversion
Free Cash Flow Conversion Translating profits into cash Free Cash Flow as % of Non-GAAP Net Earnings 116% 109% 107% 105% 103% 102% 102% 101% 93% 100% 79% 69% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 TTM* * TTM: Trailing Twelve Months 19
Slide 20: Key Acquisitions
Key Acquisitions Augmenting Organic Growth with Targeted Acquisitions Close to Core Kappa Bioscience • Portfolio extension in high growth specialty vitamin market • Vitamin K2 and MK-7 Albion Minerals Bioscreen • Adjacent product offering • Geographic expansion and Bergstrom Nutrition in high growth
Slide 21: Dividends
Dividends Consistent dividend policy ($/share) 0.87 +11.2% 0.79 Annual double-digit dividend growth for CAGR 0.71 the last decade 0.64 0.58 0.52 0.47 0.42 Consistency in 0.38 0.34 0.30 execution 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 21
Slide 22: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliation 22
Slide 23: Sustainability at Balchem
Sustainability at Balchem Our Sustainability Objectives & Framework Company Provide innovative solutions for the health 1.2 billion people Making & nutritional needs of the world. reached in 2024 the The total number of people impacted is calculated by world a measuring the annual consumption of pro
Slide 24: Recent Sustainability Progress
Recent Sustainability Progress Scope 3 Learn more 7th about our sustainability GHG emissions successfully programs: measured and reported sustainability report released in April 2025 4th anniversary of UN Global Compact Surpassed our 2030 GHG emissions reduction goal, by reducing Scope 1 and 2 commi
Slide 25: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliation 25
Slide 26: Balchem Summary
Balchem Summary A global nutrition and health company delivering trusted, innovative and science-based solutions to our customers Leading positions Creating new Strong financial Proven track in attractive demand through performance, record and markets innovation delivering healthy well positioned ma
Slide 27: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliation 27
Slide 28: Non-GAAP Financial Information
Non-GAAP Financial Information In addition to disclosing financial results in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains non-GAAP financial measures that we believe are helpful in understanding and comparing our past financial
Slide 29: Non-GAAP Financial Information
Non-GAAP Financial Information Reconciliation of Non-GAAP Measures to GAAP (Dollars in thousands, except per share data; unaudited) Three Months Ended March 31, Reconciliation of adjusted earnings from operations 2025 2024 GAAP earnings from operations $51,015 $41,676 (1) Amortization of intangible
Slide 30: Non-GAAP Financial Information
Non-GAAP Financial Information Reconciliation of GAAP Net Earnings to EBITDA and to Adjusted EBITDA (Dollars in thousands; unaudited) Three Months Ended March 31, 2025 2024 Net earnings – as reported $37,053 $28,986 Add back: Provision for income taxes 10,887 7,864 Interest and other expenses 3,075
Slide 31: Non-GAAP Financial Information
Non-GAAP Financial Information Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Effective Income Tax Rate (Dollars in thousands; unaudited) Three Months Ended March 31, 2025 2024 GAAP Income Tax Expense $10,887 $7,864 GAAP Effective Tax Rate 22.7% 21.3% (5) Impact of ASU 2016-09 590 708
Slide 32: Non-GAAP Financial Information - Continued
Non-GAAP Financial Information - Continued (1) Amortization of intangible assets and finance leases: Amortization of intangible assets and finance leases consists of amortization of customer relationships, trademarks and trade names, developed technology, regulatory registration costs, patents and t
Slide 33: bailchem
bailchem lve Today. Shape Tomorrow.