Sunopta — Q1 2024 Earnings Presentation

39 slides from Sunopta's earnings presentation, May 8, 2024

Slide 2: General Disclosures
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 General Disclosures This presentation contains forward-looking statements that reflect the Company’s current views about future events and financial performance. These forward-looking statements are subject to important risks and
Slide 3: Table of Contents
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Table of Contents ➢ SunOpta Overview ➢ Investment Overview ➢ Financial Performance Update ➢ Appendix © SunOpta Inc. 2024 3
Slide 5: SunOpta at a Glance
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 SunOpta at a Glance Headquarters Eden Prairie, MN Innovative and ~1,200 Total Employees sustainable manufacturer Inclusive fueling the future Innovative of food Entrepreneurial $630M $79M 7 FY23 Revenue FY23 Adj. EBITDA Manufactu
Slide 6: Strong, focused business serving growing categories
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Strong, focused business serving growing categories… 1 GEOGRAPHY 2 PLATFORMS NORTH AMERICA Beverages Fruit & Broth Snacks Plant-Based Nutritional 5 CATEGORIES Better For You Beverages* Beverages Tea Broth Snacks ~85% of Revenue ~
Slide 7: ...supported by coast-to-coast, full-service capability...
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 …supported by coast-to-coast, full-service capability… SCALED MANUFACTURING VALUE-ADDED SERVICES SUPPLY CHAIN R&D QUALITY Proven R&D and Rigorous testing Turnkey, end-to- product end supply chain and quality development standards
Slide 8: ...powered by our winning team and culture...
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 …powered by our winning team and culture… OUR CULTURAL VALUES CUSTOMER SPEED OWNERSHIP CENTRIC PROBLEM PASSION DEDICATION SOLVER © SunOpta Inc. 2024 8
Slide 9: ...and anchored by our commitment to sustainability
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 …and anchored by our commitment to sustainability Operations Supply Chain Packaging • Six facilities achieved Zero • Committed to responsible & • Aseptic packaging extends Waste to landfill in 2023 transparent sourcing shelf life
Slide 11: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer produ
Slide 12: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer produ
Slide 13: SunOpta is a growth business
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 SunOpta is a growth business REVENUE ADJUSTED EBITDA in $ millions in $ millions +13% CAGR +26% $630 CAGR $79 $591 $496 $64 $50 FY21A FY22A FY23A FY21A FY22A FY23A Adjusted 10.0% +250 12.5% EBITDA Margin BPS © SunOpta Inc. 2024 1
Slide 14: Serving large and growing markets
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Serving large and growing markets PLANT-BASED TEA NUTRITIONAL BROTH BFY SNACKS BEVERAGES BEVERAGES Core Addressable Market(1) $5B $6B $6B $2B $3B YoY ~1% >5% >20% >5% ~5% Growth YoY Growth(3) YoY Growth YoY Growth YoY Growth YoY
Slide 15: SunOpta is a leader in specialized, supply constrained markets
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 SunOpta is a leader in specialized, supply constrained markets LEADING SHELF STABLE MARKET SHARE LEADING SHELF STABLE SUPPLY POSITIONS SHELF STABLE PLANT-BASED MILKS PRIMARY SUPPLIER PRIMARY SUPPLIER Others OF PLANT-BASED OF FRUI
Slide 16: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer produ
Slide 17: Competitively advantaged, coast-to-coast beverage & broth network
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Competitively advantaged, coast-to-coast beverage & broth network FOOTPRINT CAPABILITIES Operate complex manufacturing at high Alexandria, MN (2 Facilities) volumes across varied pack sizes at multiple locations Allentown, PA Mod
Slide 18: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer produ
Slide 19: Go-to-market, channel and packaging versatility enables a diversified and resilient commercial model
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Go-to-market, channel and packaging versatility enables a diversified and resilient commercial model Diversified paths to market Multi-channel distribution Versatile packaging formats Single Multi Industrial Club and Supermarkets
Slide 20: Value-added services drive 'sticky', collaborative customer relationships
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Value-added services drive ‘sticky’, collaborative customer relationships SUPPLY CHAIN R&D QUALITY Turnkey, end-to-end supply Proven R&D partner and All raw materials, in-process chain management via deep innovator in new product
Slide 21: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer produ
Slide 22: Partner of choice for leading consumer product companies and retailers
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Partner of choice for leading consumer product companies and retailers Representative Retail and Foodservice Customer Base AVERAGE TENURE (ALL CUSTOMERS) >10 AVERAGE TENURE (TOP 3 CUSTOMERS*) >15 YEARS YEARS *Based on full-year F
Slide 23: State of the art, full-service innovation fuels customer-led innovation
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 State of the art, full-service innovation fuels customer-led innovation R&D LAB PILOT PLANT Holistic, fully Facilitates rapid integrated product product prototyping development from to accelerate formulation to customer innovatio
Slide 24: Investment Highlights
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Investment Highlights 1. High-growth business serving large and growing markets 2. Competitively advantaged, scalable network 3. Dynamic, flexible model drives commercial resilience 4. Partner of choice for leading consumer produ
Slide 25: Proven strategy to deliver and sustain profitable growth
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Proven strategy to deliver and sustain profitable growth Representative Retail and Foodservice Customer Base CUSTOMER-CENTERED • Focus on execution OPERATIONS • Maintain best-in-class fill rates • Support customer-led product dev
Slide 26: Focused execution driving sustained growth and deleveraging
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Focused execution driving sustained growth and deleveraging Representative Retail and in $ millions RevenueCustomer Foodservice Trended Base Adjusted EBITDA Leverage +15% 5x +13% $90 $700 4x -0.4x+ $630 $79 $591 3.7x 3.4x Leverag
Slide 27: Organic investments accelerating profitable growth and cash flow
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Organic investments accelerating profitable growth and cash flow Aggressive investment to Driving a ~60% increase in Adj. Generating higher cash flow from add capacity & capability EBITDA over the next ~24 months operations resul
Slide 28: Compelling growth algorithm underwrites sustained value creation
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Compelling growth algorithm underwrites sustained value creation METRIC AMBITION ASSUMPTIONS Annual Revenue Sustained growth supported by new and future capacity 10%+ and capabilities Growth Gross Continued margin improvement dri
Slide 30: Q1 2024 Key Takeaways
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Q1 2024 Key Takeaways  Strong start to the year − Revenue of +18% driven by volume growth (vs. +14% in Q4 2023 and 6% in Q3 2023) − Top three customers (by revenue) all grew double digits − Growing addressable market − Shelf-sta
Slide 31: Q1 2024 Financial Update
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Q1 2024 Financial Update in $ millions Revenue +18% • Revenue increased 18.0% to $183 million, driven by +11% $183 strong volume growth $140 $155 • Operating income of $10.2 million, or 5.6% of Q1-22 Q1-23 Q1-24 revenue, compared
Slide 32: Raised 2024 Outlook
SunOpta Inc. Investor Presentation Fueling the Future of Food May 2024 Raised 2024 Outlook in $ millions Metric Prior Outlook Updated Outlook Revenue $670-$700 $685-$715 (+6%-11% vs prior year) (+9%-13% vs prior year) Adjusted EBITDA $87-$92 $88-$92 (+11%-17% vs prior year) (+12%-17% vs prior year)
Slide 34: Income Statement
Key Financial Metrics Income Statement Continuing Operations ($ millions, except per share amounts) Q1 2024 Q1 2023 Revenues (1) $182.8 $155.0 Gross profit (2) $31.7 $24.1 As % of Revenue 17.4% 15.5% Operating income (3) $10.2 $0.5 As % of Revenue 5.6% 0.3% Adjusted earnings from continuing operatio
Slide 35: Balance Sheet & Debt Capital
Key Financial Metrics Balance Sheet & Debt Capital As at ($ millions) March 30, 2024 $91.0 Working capital (1) Total assets $671.8 Credit facilities $208.7 On December 8, 2023, the Company entered into a five-year Credit Agreement (the “Credit Agreement”) providing for (i) a $180.0 million term loan
Slide 36: Reconciliation of U.S. GAAP Results to Adjusted Earnings and Adjusted EPS
Reconciliation of U.S. GAAP Results to Adjusted Earnings and Adjusted EPS The following table presents a reconciliation of adjusted earnings from continuing operations from earnings (loss) from continuing operations which we consider to be the most directly comparable U.S. GAAP financial measure. (F
Slide 37: Reconciliation of U.S. GAAP Results to Adjusted EBITDA
Reconciliation of U.S. GAAP Results to Adjusted EBITDA The following table presents a reconciliation of adjusted EBITDA from continuing operations from earnings (loss) from continuing operations, which we consider to be the most directly comparable U.S. GAAP financial measure. (Figures in $ thousand
Slide 38: Adjusted EBITDA from Continuing Operations
Adjusted EBITDA from Continuing Operations The following table presents quarterly adjusted EBITDA trend from continuing operations. (Figures in $ thousands) Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Year ended Quarter ended Quarter ended Quarter ended Quarter ended Year ended Quarter ended Qua
Slide 39: 7078 Shady Oak Road Eden Prairie, Minnesota 55344 www.sunopta.com
7078 Shady Oak Road Eden Prairie, Minnesota 55344 www.sunopta.com © SunOpta Inc. 2024 39

SunOpta — Q1 2024 Earnings Presentation on 6ix

Sunopta — Q1 2024 Earnings Presentation

Slide 1: SunOpta Inc. Investor Presentation

Slide 2: General Disclosures

Slide 3: Table of Contents

Slide 4: SunOpta Overview

Slide 5: SunOpta at a Glance

Slide 6: Strong, focused business serving growing categories

Slide 7: ...supported by coast-to-coast, full-service capability...

Slide 8: ...powered by our winning team and culture...

Slide 9: ...and anchored by our commitment to sustainability

Slide 10: Investment Overview

Slide 11: Investment Highlights

Slide 12: Investment Highlights

Slide 13: SunOpta is a growth business

Slide 14: Serving large and growing markets

Slide 15: SunOpta is a leader in specialized, supply constrained markets

Slide 16: Investment Highlights

Slide 17: Competitively advantaged, coast-to-coast beverage & broth network

Slide 18: Investment Highlights

Slide 19: Go-to-market, channel and packaging versatility enables a diversified and resilient commercial model

Slide 20: Value-added services drive 'sticky', collaborative customer relationships

Slide 21: Investment Highlights

Slide 22: Partner of choice for leading consumer product companies and retailers

Slide 23: State of the art, full-service innovation fuels customer-led innovation

Slide 24: Investment Highlights

Slide 25: Proven strategy to deliver and sustain profitable growth

Slide 26: Focused execution driving sustained growth and deleveraging

Slide 27: Organic investments accelerating profitable growth and cash flow

Slide 28: Compelling growth algorithm underwrites sustained value creation

Slide 29: Financial Performance Update

Slide 30: Q1 2024 Key Takeaways

Slide 31: Q1 2024 Financial Update

Slide 32: Raised 2024 Outlook

Slide 33: Appendix

Slide 34: Income Statement

Slide 35: Balance Sheet & Debt Capital

Slide 36: Reconciliation of U.S. GAAP Results to Adjusted Earnings and Adjusted EPS

Slide 37: Reconciliation of U.S. GAAP Results to Adjusted EBITDA

Slide 38: Adjusted EBITDA from Continuing Operations

Slide 39: 7078 Shady Oak Road Eden Prairie, Minnesota 55344 www.sunopta.com