High Liner Foods Incorporated · TSX:HLF
High Liner Foods — Q1 2024 Earnings Presentation
30 slides from High Liner Foods's earnings presentation, May 2024
Slide 1: Investor Presentation
Investor Presentation May 2024
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation are forward-looking and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate and may differ materially from actual future events or results. Actual results or even
Slide 3: Presentation Notes
Presentation Notes Presentation Currency High Liner Foods (“the Company”) reports its earnings and financial statements in USD. The Company’s common shares trade on the TSX and are quoted in CAD and therefore references in this presentation to share price, dividends and market capitalization are in
Slide 4: Company Overview & Strategy
Company Overview & Strategy
Slide 5: High Liner Foods at a Glance
High Liner Foods at a Glance A publicly-traded Canadian company, listed on the RETAIL Toronto Stock Exchange under the symbol ‘HLF’ A leading North American processor and marketer of value-added frozen seafood to the foodservice and retail channels 125 years of seafood expertise Our core brands acro
Slide 6: Investment Thesis
Investment Thesis Why Now? Why Seafood? Why High Liner Foods? Proven ability to deliver strong financial results Healthy - for both people and the A North American leader in value- despite unprecedented challenges in recent environment added frozen seafood with 125 years years, including continued i
Slide 7: A North American Leader in Value-Added Frozen Seafood with a Diversified Portfolio
A North American Leader in Value-Added Frozen Seafood with a Diversified Portfolio Based on Fiscal 2023 Sales lbs • #1 frozen fish manufacturer and #1 frozen value-added seafood manufacturer in Canadian retail market (1) • #1 branded prepared frozen fish manufacturer and #4 branded frozen value-adde
Slide 8: Our Purpose: Reimagining Seafood to Nourish Life
Our Purpose Reimagining Seafood to Nourish Life At High Liner Foods, we recognize our responsibility to support healthy oceans, planets and communities. This is the foundation of our purpose, Reimagining Seafood to Nourish Life, which guides every decision we make and every action we take. Nothing e
Slide 9: Sustainability
Sustainability For 125 years, we have operated as a responsible corporate citizen and in the past two decades we have deeply embedded sustainability practices into our DNA. We are committed to continuous improvement and to build on our progress to date. Please visit www.highlinerfoods.com for more d
Slide 10: Financial Review & 2024 Outlook
Financial Review & 2024 Outlook
Slide 11: Q1 2024 Performance
Q1 2024 Performance In Q1 2024, gross profit as a percentage of Net Sales and Adjusted EBITDA improved due to normalized inventory levels, improved sales mix and lower raw material markets. Sales volume and net sales decreased due to a decline in contract manufacturing, the decision to exit some unp
Slide 12: 2024 Outlook
2024 Outlook We improved profitability in the first quarter which puts us in a strong position to deliver Adjusted EBITDA growth for the year, while taking the necessary strategic actions to address the Company's top line performance. In an uncertain macroeconomic environment, we are focused on deli
Slide 13: Q1 2024 Sales Volume and Net Sales
Q1 2024 Sales Volume and Net Sales Sales volume decreased 10.0M lbs (13.0%) to 67.0M lbs ▪ Foodservice: sales volume is lower due to a decline in contract manufacturing business, the decision to exit of some unprofitable business and market softness. ▪ Retail: sales are lower in 2024 compared to 202
Slide 14: Q1 2024 Adjusted EBITDA
Q1 2024 Adjusted EBITDA Earnings before Interest, Taxes, Depreciation and Amortization * Please refer to the Company’s MD&A for Q1 2024 for the definition of non-IFRS financial measures “Standardized EBITDA” and “Adjusted EBITDA” Adjusted EBITDA increased $3.0 M (9.6%) to $34.2M and increased by 290
Slide 15: Q1 2024 Earnings Per Share (EPS)
Q1 2024 Earnings Per Share (EPS) * Please refer to the Company’s MD&A for Q1 2024 for the definition of non-IFRS financial measure “Adjusted Diluted EPS” and “Adjusted Net Income.” Adjusted Diluted EPS increased by $0.07 (14.6%) to $0.55 ▪ Adjusted Net Income increased by $2.2M (13.4%) to $18.6M ref
Slide 16: Debt Leverage Ratio
Debt Leverage Ratio Net Debt* to Trailing 12-Month Adjusted EBITDA* Target (3.0x) *Please refer to the Company’s MD&A for Q1 2024 for the definition of non-IFRS financial measures “Net Debt” and “Adjusted EBITDA” • Net Debt* to Rolling Twelve-Month Adjusted EBITDA* was 2.5x at the end of Q1 2024 and
Slide 17: Dividend History
Dividend History * Reflects Q1/Q2/Q3/Q4 dividend of CAD$0.15 per share On May 14, 2024, the Board approved a quarterly dividend of CAD$0.15 per common share.
Slide 18: Appendix #1: Miscellaneous Company Information
Appendix #1: Miscellaneous Company Information
Slide 19: High Liner Foods
High Liner Foods Canadian public company since the 1960s, TSX-listed in 1971 Current price CAD$13.55* Shares outstanding ~33.0M Market capitalization ~CAD$446.8M* 52-week range CAD$10.11 - $15.66* Insider Holding %*** 38% Annual dividend CAD$0.60 per share** Current yield 4.4% * Source TSX, as of Ma
Slide 20: High Liner Foods: years of seafood expertise
High Liner Foods 125 years of seafood expertise 2017 Rubicon 2024 2013 Resources acquisition American Pride Seafood acquisition 2010 2014 1999 Viking Atlantic Trading Name Change acquisition to High Liner Foods 2011 Company acquisition 1986 Icelandic USA acquisition 1926 Fisher Boy acquisition 2007
Slide 21: Flexible, Integrated Operations
Flexible, Integrated Operations Three value-added seafood manufacturing facilities in North America Increased demand for value-added products increases plant efficiency Current manufacturing footprint: aggregate production Lunenburg, NS capacity of ~172M LBS based on current shift patterns (Canada)
Slide 22: Species Diversity
Species Diversity Based on 2023 Purchases (in USD) • In 2023, the Company purchased approximately 155M lbs of seafood with an approximate value of $511.4M, reflecting approximately 24 species from 20 different countries. • Major species (7) accounted for ~94% of the total dollar purchases. 22
Slide 23: ESG at High Liner Foods
ESG at High Liner Foods High Liner Foods began our responsible sourcing journey over a decade ago and has made steady gains since that time, working toward a goal of delivering products that are 100% responsibly sourced. In 2021, High Liner Foods took its next step in the ESG journey and completed a
Slide 24: Appendix #2: Historical Financial Performance
Appendix #2: Historical Financial Performance
Slide 25: 10 Year Sales History - Volume and USD
10 Year Sales History - Volume and USD Sold New Bedford Scallop business 25
Slide 26: 10 Year EBITDA History
10 Year EBITDA History Earnings before Interest, Taxes, Depreciation & Amortization Sold New Bedford Scallop business *Please refer to the Company’s MD&A for Fiscal 2023 for definition of non-IFRS measures “Standardized EBITDA” and “Adjusted EBITDA” 26
Slide 27: 10 Year EPS and ROE History
10 Year EPS and ROE* History Earnings per Share (EPS) and Return on Equity (ROE) Sold New Bedford Scallop business *Please refer to the Company’s MD&A for Fiscal 2023 for definition of non-IFRS measures “Adjusted Diluted EPS” and “Return on Equity” 27
Slide 28: 10 Year Debt Leverage Ratio
10 Year Debt Leverage Ratio Net Debt* to Trailing 12-Month Adjusted EBITDA* Sold New Bedford Scallop business Target (3.0x) *Please refer to the Company’s MD&A for Fiscal 2023 for the definition of non-IFRS measures “Adjusted EBITDA” and “Net Debt”. **Does not include trailing 12-month Adjusted EBIT
Slide 29: Thank You!
Thank You! The Company’s news release, MD&A and Financial Statements can be found in the Investor Center section of the High Liner Foods website. Please visit www.highlinerfoods.com for more details.
Slide 30: High Liner Foods
/ HIGH LINER FOODS Changing the way we see food