Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Q4 2023 Earnings Presentation
25 slides from Lassonde Industries, Inc. Class A's earnings presentation, Mar 22, 2024
Slide 1: Investor Presentation
Investor Presentation Fourth quarter and fiscal year ended December 31, 2023 LASSONDE INDUSTRIES INC.
Slide 2: Forward-Looking Statements
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’s ability to achieve its sustainability targets and goals is further subject to, among other factors, its ability to access and implement all technology necessar
Slide 4: Solid Performance in 2023
4 Solid Performance in 2023 Solid Performance in 2023 Sales increased by 7.6% • Pricing adjustments taken in response to cost inflation • Better sales mix in our U.S. operations Significant profitability improvement • Gross margin up by more than 100 basis points • 32% rise in Adjusted EBITDA (1) Su
Slide 5: Update on U.S. Turnaround Plan
5 Update on U.S. Turnaround Plan Update on U.S. Turnaround Plan Further performance improvement • Portfolio simplification freed-up valuable capacity • Important investments in New Jersey reduced conversion costs by improving yields and run speeds Efficiency gains and savings • Deployment of new dec
Slide 6: Market Share Growth Momentum in Canada
6 Market Share Growth Momentum in Canada Market Share Growth Momentum in Canada Driven by our diversified product portfolio, extensive market reach and solid customer relationships Slight shift in consumer preferences in favour of private labels Our brands continue to outperform their category • Oas
Slide 7: Q4-23 – 8.8% Sales Increase
7 Q4 2023 Q4-23 – 8.8% Sales Increase 8.8% Sales Increase ($M) Key Highlights $604.8 ✓ FX impact: ▲ $1.1M +8.8% ✓ Diamond Estates Wines & Spirits* contribution: ▲ $3.8M $556.0 ✓ Selling price adjustments: ▲ $18.1M private labels ▲ $23.8M national brands ✓ Changes in sales mix ▲ $0.6M ✓ Effect of sal
Slide 8: Q4-23 – Improved Profitability
8 Q4 2023 Improved Profitability Q4-23 – Improved Profitability Gross Profit ($M) Adjusted EBITDA(1) ($M) Adjusted Profit Attributable to the Shareholders(1) ($M) & Adjusted EPS(1) $152.5 $52.6 $21.5 $123.6 +23.4% +37.3% $38.3 +50.2% $14.3 8.7% 25.2% $3.14 22.2% 6.9% $2.09 2022 2023 2022 2023 2022 2
Slide 9: Fiscal 2023 Financial Highlights
9 Fiscal 2023 Fiscal 2023 Financial Highlights Financial Highlights Adjusted Profit Attributable to the Sales ($M) Adjusted EBITDA(1) ($M) Shareholders(1) ($M) & Adjusted EPS(1) $89.9 $2,314.9 $2,151.0 $207.1 +7.6% +39.6% +31.8% $64.4 $157.1 8.9% $13.18 7.3% $9.37 2022 2023 2022 2023 2022 2023 (1) F
Slide 10: Days Operating Working Capital
10 Q4 2023 Days Operating Working Capital (1,2) Days Operating Working Capital 100 95 High end of the 93 pre-Covid range 87 90 at the end of 80 80 78 80 2023 75 68 68 70 65 60 50 57 52 Days 47 50 46 46 49 44 43 43 Settle within the 42 41 40 39 44 40 39 40 38 pre-Covid range by the end of 30 2024 21
Slide 11: Cash Flows ($M)
11 Cash Flows ($M) Cash Flows Operating Activities Key Highlights $224.9 ✓ Significant increase in cash flow due to: $77.8 ▪ Improved profitability $51.8 ▪ Lower working capital requirements $24.0 Q4 Year 2022 Acquisitions of PPE and ✓ Acquisitions of property, plant and Intangible Assets equipment
Slide 12: Net Debt ($M)
12 Q4 2023 Net Debt (1) Net Debt(1) ($M) $267.7 $246.7 $228.4 Improvements: 1.57x 1.67x $188.4 $190.7 * 1.28x profitability + working capital 0.98x 0.92x ** Solid cash flow generation Dec. 31, Apr. 1, July 1, Sep. 30, Dec. 31, 2022 2023 2023 2023 2023 Debt reduction Net Debt (1) Net Debt to Adjusted
Slide 13: New Dividend Policy
13 New Dividend Policy New Dividend Policy Announced in February 2024 Dividend declaration, amount and payment at the discretion of the Board of Directors considering: ▪ Financial Results ▪ Capital requirements ▪ Available cash flows ▪ Outlook for activities ▪ Other factors deemed relevant Quarterly
Slide 14: Looking Ahead
14 Looking Ahead Looking Ahead Priorities for 2024 ▪ Build back U.S. volume ▪ Fortify our leadership position in Canada ▪ Assess options to grow our specialty food business Remain focused on executing our strategy ▪ Drive efficiency and productivity gains ▪ Deliver products at the lowest possible co
Slide 15: Input Costs
15 Input Costs Input Costs Orange costs remain at elevated levels ▪ Pulled back from peak, but remain high by historical standards ▪ Availability constraints are also anticipated Mitigate impact of cost increases through pricing ▪ Adjustments in Q4-2023 and Q1-2024 • Both branded and private label p
Slide 16: Our Core Strengths
16 Our Core Strengths Our Core Strenghts Portfolio diversification ▪ Branded and private label products ▪ Presence in multiple categories ▪ Further diversification to reduce commodity exposure is important Innovation ▪ Accelerate our focus through our new Centre of Excellence ▪ Bring novelty to mark
Slide 17: 2024 Sales Outlook
17 2024 Sales Outlook 2024 Sales Outlook Growth rate in the mid-single digit range ▪ Excluding FX impacts ▪ Driven by selling price adjustments ▪ Year-over-year volume growth in the second half Volume decline in the first half of 2024 Sequential improvement in the second half ▪ Gradual pace of U.S.
Slide 18: Financial Measures Not in Accordance with IFRS
Financial Measures Not in Accordance with IFRS
Slide 19: Financial Measures Not in Accordance with IFRS
19 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 20: Financial Measures Not in Accordance with IFRS (cont'd)
20 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 21: Financial Measures Not in Accordance with IFRS (cont'd)
21 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 As at As at represent the amount of sales tied up as operating working capital. To calculate this fina
Slide 22: Key Financial Information
Key Financial Information
Slide 23: Financial Highlights
23 Financial Highlights Financial Highlights Fourth quarters ended Years ended (in millions of dollars, unless otherwise indicated) Dec. 31, 2023 Dec. 31, 2022 ∆ Dec. 31, 2023 Dec. 31, 2022 ∆ $ $ $ $ $ $ Sales 604.8 556.0 48.8 2,314.9 2,151.0 164.0 Cost of sales 452.3 432.3 19.9 1,727.2 1,627.6 99.6
Slide 24: Sales Evolution
24 Sales Evolution Sales Evolution Fourth quarter Fiscal Year Private National Private National labels brands Total labels brands Total (in millions of dollars) $ $ $ $ $ $ Sales 2022 323.6 232.4 556.0 1,247.8 903.2 2,151.0 Selling price adjustments impact 18.1 23.8 41.9 113.7 89.2 203.0 Volume impa
Slide 25: lassonde.com
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