Laird Superfood, Inc. · AMEX:LSF
Laird Superfood — Q4 2023 Earnings Presentation
26 slides from Laird Superfood's earnings presentation, March 2024
Slide 1: Laird Superfood
Slide 2: Forward looking disclaimer
Forward looking disclaimer Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on the Company’s current expectations or forecasts of future events a
Slide 3: Our Mission
Our Mission: To fuel optimal daily performance by providing great-tasting, innovative, highest-quality superfoods that support the health and wellness journey of our consumers. 3
Slide 4: Laird Superfood was founded by two athletes and built to be a nutrition powerhouse
Laird Superfood was founded by two athletes and built to be a nutrition powerhouse to fuel their activities and life Laird Hamilton Gabby Reece • Big wave surfer and pioneer of action water sports • The Gabby Reece Show podcast host • Innovator • Best-selling author • Author • Former professional vo
Slide 5: Laird Superfood Strategic "Plan on a Page"
Laird Superfood Strategic “Plan on a Page” 1 Grow our core business 2 Innovate in Superfoods 3 Improve LSF Supply Chain • Expand distro & improve MAPS • Expand existing product lines • Ensure capacity and flexibility • Grow awareness and trial • Execute packaging innovation • Reduce operational cost
Slide 6: LSF investment highlights
LSF investment highlights ✓ Plant-based, clean, functional ingredients that are on-trend with consumers ✓ Large and growing addressable market across core categories ✓ Highly engaged founders with strong equity, reach and relevance ✓ Strong brand equity, net promoter score, and active social communi
Slide 7: LSF executive team with extensive experience
LSF executive team with extensive experience Jason Vieth Anya Hamill Martha Opela Jared Larkin Steve Richie CEO | President CFO VP, Marketing VP, Supply Chain General Counsel • President and CEO since • Chief Financial Officer • VP of Marketing since • VP of Supply Chain since • General Counsel sinc
Slide 8: The Laird Superfood portfolio spans large, attractive categories
The Laird Superfood portfolio spans large, attractive categories Liquid and Powder Coffee, Tea and Hot Snack, Nutrition, Hydration & Beverage Coffee Creamers Chocolate Products Performance Bars Enhancing Supplements Total Addressable $7.3 billion $29.4 billion $6.5 billion $7.4 billion Market (TAM)
Slide 9: Consumers are upgrading to a new generation of functional food and beverage
Consumer are upgrading to a new generation of functional food and beverage 59% 83% +39% Of consumers agree that functional drinks Of consumers claim to have recently used Growth in Functional / Mushroom based help them accomplish their health goals beverages containing at least one products in Coffe
Slide 10: LSF steadily increasing Wholesale business each year since 2021
LSF steadily increasing Wholesale business each year since 2021 Laird Superfood Total Brand YOY $ Sales (MM) by Quad Total Marketplace (MULO+NAT+WFM) (Does not include AO business*) 2021 2022 2023 Retail Sales ($M) 1.8 1.7 1.6 1.6 1.6 1.6 1.5 1.5 1.4 1.4 1.4 1.4 1.4 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.1 1
Slide 11: Wholesale becoming a larger share of LSF business
Wholesale becoming a larger share of LSF business 9.2 9.0 9.2 9.2 8.5 8.8 8.4 2022 2023 7.7 41% 34% 34% 34% Wholesale 37% 43% 39% 47% 47% 46% 59% 66% 66% 66% Ecomm 63% 57% 61% 53% 53% 54% Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 11
Slide 12: 2024 Natural Channel distribution points +24%, continuing years-long growth trend
2024 Natural Channel distribution points +24%, continuing years- long growth trend Laird Superfood rolling 12 weeks distribution metrics, Natural 2021 2022 2023 +24% 900 814 819 817 753 753 752 780 805 800 702 696 700 665 672 658 648 651 650 600 535 542 479 485 498 498 498 500 418 418 418 406 420 43
Slide 13: Dramatic improvement in our e-comm media spend efficiencies
Dramatic improvement in our e-comm media spend efficiencies LSF - DTC Paid Media Spend and Return, $K LSF - Amazon Media Spend and Return Gross Sales ($K) ACOS % Gross Sales ROAS 700 $675 70 $633 350 $318 5 600 $547 60 $301 $495 $490 300 500 $468 $460 $447 $456 50 $230 4 $423 $417 $430 250 $212 $218
Slide 14: Marketing plan includes a strong emphasis on key podcast partnerships
Marketing plan includes a strong emphasis on key podcast partnerships and continued emphasis on Laird and Gabby 14
Slide 15: Recently activated an aggressive PR campaign with Laird & Gabby
Recently activated an aggressive PR campaign with Laird & Gabby Muscle & Fitness Forbes FOX LA "Good Day LA" Men's Journal NOSH 15
Slide 16: And have stepped-up our use of influencer marketing
And have stepped-up our use of influencer marketing 16
Slide 17: 4Q23 Financial Performance
4Q23 Financial Performance 17
Slide 18: Financial highlights: Q4 LSF net sales returned to growth and gross margin exceeded 40%
Financial highlights: Q4 LSF net sales returned to growth and gross margin reached exceeded 40% • $9.2 million net sales grew 3% versus prior year period, driven by growth in both the Wholesale and Club Channels. ▪ E-commerce contributed 66% of total net sales in Q423 and grew +2% driven by DTC perf
Slide 19: Financial results
Financial results 4Q YoY change 4Q23 Net Sales $9.2M +$0.2M Gross Margin 40.4% +4,491 bp OPEX $3.7M ($11.6M) Net Income $0.1M +$15.6M 4Q22 Net Sales $9.0M Gross Margin (4.6%) OPEX $15.3M Net Loss ($15.5M) 19 * As reported
Slide 20: Gross Margin continuing to improve, to >40% in Q423
Gross Margin continuing to improve, to >40% in Q423 Gross Margin as % of Net Sales excl one-time adj One-time adjustments as % of Net Sales +21 points 40% 23% 31% 21% 23% 24% 18% 40% 27% 24% 30% 19% 18% 23% 19% 2% -4% 2% 1% -23% -5% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 • Unlike many peers
Slide 21: Net (Loss)/Income by quarter over the last two years
Net (Loss)/Income by quarter over the last two years $, Millions Net (Loss)/Income excl. one-time adj One-time adj +$15.7 $0.1 $0.0 $1.3 $0.1 $0.1 -$4.2 -$3.7 -$3.3 -$2.8 -$6.7 -$6.2 -$5.6 -$0.2 -$0.4 -$2.7 -$0.2 -$4.1 -$3.5 -$4.9 -$5.7 -$7.4 -$11.3 -$14.1 -$15.5 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23
Slide 22: Q423 results (excluding one-time adjustments)
Q423 results (excluding one-time adjustments) Net sales, $M Gross profit*, $M Net income/(loss)*, $M +3% +119% +$4.3 $9.0 $9.2 $3.6 0.0 $1.7 27% 19% -4.3 Q4’22 Q4’23 Q4’22 Q4’23 Q4’22 Q4’23 Net Sales +3% due to: Gross margin of 39.6%, +21 points versus • Net loss improved by $4.3 • Wholesale +3% pri
Slide 23: 2023 sales mix
2023 sales mix Gross sales by product line Net sales by channel 1% 20% Retail 43% 50% 17% 57% E-commerce 13% Coffee Creamers Wholesale Coffee, Tea, and Hot Chocolate Products E-commerce Harvest Snacks and other food items Hydration and Beverage Enhancing Supplements Other 23
Slide 24: Total Cash (Burn)/Gain
Total Cash (Burn)/Gain $, Millions $0.3 -$1.3 -$2.7 -$3.2 -$3.2 -$3.5 -$4.3 -$5.9 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 24
Slide 25: Slowing burn to target exiting 2024 with over $5M cash
Slowing burn to target exiting 2024 with over $5M cash LSF projected cash balance ($M) $7.7 • Seasonal product inventory build in late Q2 / early Q3 will deplete Cash, which we are targeting to remain >$4.0M $5.4 • Will rebuild Cash position during Q3-Q4 as we sell through Seasonal inventory and dec
Slide 26: Gross margin outlook
Gross margin outlook* 37.0%- 40.0% 30.4% 19.8% FY22 FY23 FY24 and beyond* • Margins dampened by • Partial year realization of co- • Selective pricing/trade optimization. underutilization and fixed packing model for both powder • Normalized trade promotion spend. overhead costs due to in-house and li