Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Q1 2024 Earnings Presentation
23 slides from Lassonde Industries, Inc. Class A's earnings presentation, May 10, 2024
Slide 1: Investor Presentation – First quarter ended March 30, 2024
Investor Presentation First quarter ended March 30, 2024 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 presentation 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-
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: First Quarter Highlights
4 First Quarter Highlights First Quarter Highlights Sustained sales and profit growth momentum Sales increased by 4.1% • Mainly reflecting selling price adjustments in Canada and sales from Diamond Estates Wines & Spirits Inc. (“Diamond”)* • Partly offset by a decrease in Canadian sales volume 32% g
Slide 5: U.S. Beverages
5 U.S. Beverages U.S. Beverages Happy with the progress after the first quarter Slightly higher volume compared to last year • Brands: volume momentum driven by single-serve formats • Private labels: complete lap of the portfolio simplification process and start of the build back phase Improvements
Slide 6: U.S. Beverages (cont'd)
6 U.S. Beverages (cont’d) U.S. Beverages North Carolina aseptic single-serve line expansion • Moving closer to the start of production in Q3 • Ramp-up in the 2nd half of 2024 • Full production by early 2025 Single-serve formats continue to show strength • New line to play a pivotal role in providing
Slide 7: Canadian Beverages
7 Canadian Beverages Canadian Beverages Focus on executing pricing adjustments to reflect higher input costs • Finding the sweet spot between growth and margin recovery Volume decline continues to affect the industry • Sales volume decline for our branded business • Market rate of decline did not wo
Slide 8: Specialty Food
8 Specialty Food Specialty Food A solid quarter • Success in leveraging Canton brand into premium glass jar soups Optimizing productivity and efficiency • TMS implementation during the quarter Confident about the Specialty Food division • Important platform in building a growth-oriented portfolio
Slide 9: Sales Increase
9 Q1 2024 Sales Increase Sales Increase ($M) Key Highlights ✓ Diamond’s* sales: ▲ $8.2M $569.8 ✓ FX impact: ▼ $0.8M $547.3 +4.1% ✓ Selling price adjustments: ▲ $12.4M private labels ▲ $11.0M national brands ✓ Changes in sales mix: ▼ $3.2M ✓ Effect of sales volume: By brand type By country ▼ $1.7M pr
Slide 10: Improved Profitability
10 Q1 2024 Improved Profitability Improved Profitability Adjusted Profit Attributable to the Gross Profit ($M) Adjusted EBITDA(1) ($M) Shareholders(1) ($M) & Adjusted EPS(1) $149.6 $52.4 $25.1 $136.6 +9.5% $43.1 +21.6% $16.9 +48.5% 9.2% 26.2% $3.68 25.0% 7.9% $2.48 2023 2024 2023 2024 2023 2024 Key
Slide 11: Days Operating Working Capital
11 Q1 2024 Days Operating Working Capital (1) Days Operating Working Capital (1) 100 95 93 88 87 90 80 80 78 80 75 Increases in DIO 68 70 and DPO in Q1-24 60 65 reflect advance 50 57 52 purchases of 50 Days apples to 47 46 46 50 49 48 44 43 43 temporarily secure 42 40 39 44 procurement 40 40 44 38 3
Slide 12: Cash Flows ($M)
12 Cash Flows ($M) Cash Flows Operating Activities Key Highlights $11.3 ✓ Important increase in cash flow mainly due to: ($4.9) ▪ Improved profitability ▪ Lower working capital requirements 2023 2024 Acquisitions of PP&E and Intangible Assets $26.4 ✓ 2024 capital expenditures estimated to reach up t
Slide 13: Net Debt ($M)
13 Q1 2024 Net Debt (1) Net Debt(1) ($M) $12.7 $267.7 $26.4 $6.8 $3.7 $228.4 $28.5 $218.2 $218.2 * $190.7 1.67x $188.4 $190.7 * ($50.6) 1.28x 0.98x 1.01x 0.92x (1) (1) (1) Net Debt Working CapEx Dividends FX Others EBITDA Net Debt Apr. 1, July 1, Sep. 30, Dec. 31, March 30, as at Cap Impact as at 20
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 Maintain our focus on execution to meet objectives ▪ Sales growth ▪ Improved profitability ▪ Long-term value creation Keep driv
Slide 15: 2024 Sales Outlook
15 2024 Sales Outlook 2024 Sales Outlook Growth rate in the mid-single digit range ▪ Excluding FX impacts ▪ Driven by the run rate of selling price adjustments ▪ Year-over-year volume growth in the second half Second half improvement resulting from: ▪ Gradual pace of U.S. demand build back ▪ Additio
Slide 16: Financial Measures Not in Accordance with IFRS
Financial Measures Not in Accordance with IFRS
Slide 17: Financial Measures Not in Accordance with IFRS
17 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 18: Financial Measures Not in Accordance with IFRS (cont'd)
18 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 19: Financial Measures Not in Accordance with IFRS (cont'd)
19 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 represent the number of days of sales tied up as operating working capital. To calculate this financia
Slide 20: Key Financial Information
Key Financial Information
Slide 21: Financial Highlights
21 Financial Highlights Financial Highlights (1) Financial measure not in accordance with IFRS. Please refer to section on Financial Measures Not in Accordance with IFRS.
Slide 22: Sales Evolution
22 Sales Evolution Sales Evolution
Slide 23: lassonde.com
B Lassonde lassonde.com