Slide 1: Fourth Quarter 2023 Conference Call
Fourth Quarter 2023 Conference Call March 15, 2024
Slide 2: Disclaimer
Disclaimer This presentation is not intended to form the basis of any investment decision and should not be considered as a recommendation by Premium Brands Holdings Corporation (the “Company”) or any other person in relation to the Company’s business or the securities of the Company. This presentat
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward looking statements with respect to the Company, including, without limitation, statements regarding its business operations, financial performance and condition, acquisition opportunities, capital projects and plans, outlook and objective
Slide 4: Today's Presenters
Today’s Presenters • George Paleologou President & Chief Executive Officer • Will Kalutycz Chief Financial Officer The Next Five Years – Accelerating Growth 3
Slide 5: Key Messages
Key Messages • 2023 fiscal year results • Sales up 3.8% to $6.3 billion • Core U.S. sales initiatives generate 10.1% organic growth reaching $2.3 billion in total sales • Adjusted EBITDA up 10.9% or $54.9 million • Adjusted EBITDA margin up 50 basis points to 8.9% • Adjusted EPS of $4.03 per share,
Slide 6: Quality Fast Foods – Edmonton, AB
Quality Fast Foods – Edmonton, AB The Next Five Years – Accelerating Growth 5
Slide 7: Hempler Fine Foods – Ferndale, WA
Hempler Fine Foods – Ferndale, WA The Next Five Years – Accelerating Growth 6
Slide 8: SK Food Group (in development) – Cleveland, TN
SK Food Group (in development) – Cleveland, TN The Next Five Years – Accelerating Growth 7
Slide 9: Concord Premium Meats
Concord Premium Meats The Next Five Years – Accelerating Growth 8
Slide 10: Acquisition Opportunities
Acquisition Opportunities (millions of dollars except transactions) Agreed to terms and in Identified future Past discussions and In negotiations In discussions due diligence opportunity currently on hold Platform Advanced Active Early Stage Opportunity Inactive Total # Sales # Sales # Sales # Sales
Slide 11: Q4-2023 Financial Update
Q4-2023 Financial Update The Next Five Years – Accelerating Growth 10
Slide 12: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 Revenue 843.9 959.1 1,056.2 1,345.4 1,634.8 1,554.7 OGR 4.6% 8.6% 5.5% 16.1% 12.3% 0.0% OVGR 4.5% 7.4% 5.5% 7.1% 4.5% (0.5%) Positive factors • Specialty Foods’ organic volume 1,800.0 Long-term targeted
Slide 13: U.S. Market Sales Initiatives
U.S. Market Sales Initiatives (millions of dollars except percentages) FX Q4-2022 Volume Adjusted Q4-2022 and Extra Q4-2023 OVGR Growth OVGR Pricing Week Core U.S. sales initiatives: Protein Group 207.1 (12.1) (16.4) 20.2 198.8 9.8% 12.1% Sandwich Group 347.5 (9.0) (10.6) 27.4 355.3 7.9% 11.7% Baker
Slide 14: Organic Volume Growth Rate
Organic Volume Growth Rate Long-term targeted organic volume growth rate range of 4% - 6% 20.0% 16.0% 12.0% 8.0% Segment OVGRs SF – 2.6% 4.0% PFD – (5.9%) 0.0% -4.0% -8.0% PBH Total Q4 Marker The Next Five Years – Accelerating Growth 13
Slide 15: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P Revenue 535.2 794.3 960.1 1,043.0 1,221.8 1,484.5 1,857.5 2,198.3 3,025.8 3,649.4 4,068.9 4,931.7 6,029.8 6,261.0 6,750.0 OGR 2.6% 6.0% 4.8% 4.9% 13.5% 18.0% 6.1% 4.7% 6
Slide 16: Quarter Adjusted EBITDA Performance
Quarter Adjusted EBITDA Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 EBITDA 70.8 75.1 87.7 113.4 136.4 137.2 Margin 8.4% 7.8% 8.3% 8.4% 8.3% 8.8% 160.0 12.0% Positive factors 140.0 11.0% • Plant efficiencies • Incentive based 120.0 10.0% compensation 100.0 9.0%
Slide 17: Adjusted EBITDA Margin
Adjusted EBITDA Margin 11.0% 10.5% 10.0% Adjusted EBITDA Margin 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% Margin Target Margin Q4 Marker The Next Five Years – Accelerating Growth 16
Slide 18: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P EBITDA 42.0 54.9 66.8 69.3 77.6 111.6 154.8 190.2 280.2 307.7 312.6 430.7 504.2 559.1 640.0 Margin 7.8% 6.9% 7.0% 6.6% 6.4% 7.5% 8.3% 8.7% 9.3% 8.4% 7.7% 8.7% 8.4% 8.9% 9
Slide 19: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts) 2019 2020 2021 2022 2023 Adj earnings 29.5 35.3 52.2 52.9 37.9 Adj EPS 0.79 0.86 1.19 1.19 0.85 Major positive factors • EBITDA growth • Change in depreciation due to 60.0 change in estimated useful life $1.90 of as
Slide 20: Capital Allocations – Project Capex
Capital Allocations – Project Capex (millions of dollars except percentages) Total Projected Net Investment Expected Q4-2023 2023 Projected Sale & Projected To-Date IRR Investment Leasebacks Investment 15% or Project capital expenditures 120.0 353.7 523.9 904.6 255.0 649.6 greater Maintenance capita
Slide 21: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 Top end of targeted 920.0 Top end of targeted total debt to EBITDA 5.0 total senior debt to ratio EBITDA ratio 820.0 4.5 720.0 4.0 620.0 3.5 520.0 3.0 420.0 2.5 320.0 2.0 220.0 1.5 120.0 1.0 20.0 0.5 Available Credit (LHS) Total Debt to EBITD
Slide 22: Free Cash Flow
Free Cash Flow (millions of dollars except per share amounts and percentages) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Payout ratio 106.4% 77.7% 69.6% 70.6% 65.2% 59.4% 53.0% 53.9% 48.4% 43.2% 36.6% 38.5% 38.1% 43.1% 48.7% 42.3% 43.8% 54.3% Dividend p
Slide 23: The Next Five Years – Accelerating Growth
The Next Five Years – Accelerating Growth 22