Sow Good Inc. · NASDAQ:SOWG
Sow Good — Investor Presentation (August 2024)
21 slides from Sow Good's investor presentation, August 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 2024
Slide 2: Disclaimers
Disclaimers This Presentation may not be reproduced, forwarded to any person or published, in whole or in part. Industry and Market Data We include in this Presentation statements regarding factors that have impacted our industry. Such statements are statements of belief and are based on industry da
Slide 3: Management Team
Management Team Ira Goldfarb Claudia Goldfarb Brendon Fischer Co-Founder & Chairman Co-Founder & CEO Interim CFO • 30+ years of retail, manufacturing and freeze • Significant expertise in food safety, supply • 20+ years of finance and investment drying experience chain and product innovation analysi
Slide 4: What is Freeze Dried Candy?
What is Freeze Dried Candy? Freeze drying removes moisture from the product, adding a crunch perfect for snackability and concentrating the flavor while extending the shelf-life by years 1• Hyper Crunchy Before After • Crunchy, not chewy. Expands, doubling or tripling in size, creating the perfectly
Slide 5: Company Overview
Company Overview Sow Good is a freeze dried candy and snack manufacturer providing customers with innovative freeze dried treats Overview Key Statistics Leading pioneer in an emerging freeze dried candy market with a March 2023 41.6M Candy Launch Date TTM Q2 2024 Revenue retail-ready product assor
Slide 6: Why We Are Unique
Why We Are Unique Freeze Drying Expertise Food Safety & Quality Branding & Packaging • Early adopter of freeze dried candy • Product integrity, health and • Distinctive, colorful and professional with custom in-house freeze driers compliance with rigorous safety packaging with clear window and propr
Slide 7: Broad Product Mix
Broad Product Mix Sow Good offers a diverse portfolio of sweet treats across multiple form factors of candy and ice cream Select Freeze Dried Candy Select Freeze Dried Ice Cream PAGE 7
Slide 8: Financial Performance
Financial Performance Revenue Adjusted EBITDA1 ( in millions) ( in millions) $6.2 $15.6 $11.4 $9.5 $2.3 $2.5 $5.0 $0.6 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Adj. Gross EBITDA Margin 46.0% 40.1% 40.6% 57.6% 12.5% 23.9% 21.6% 39.7% Margin Source: Publicly available filings an
Slide 9: Production Capacity
Production Capacity Owned Manufacturing Production Capacity Coming Online IRVING, TX • 6 additional freeze driers by the end of Q1 2025 • ~21,000 sq. ft warehouse and manufacturing facility, with 5 active freeze driers, 1 currently being installed and 5 more on order • Vertically integrating our ope
Slide 10: Manufacturing & Distribution Facilities
Manufacturing & Distribution Facilities Owned Manufacturing Co-Manufacturers Production Floor Packaging & Distribution Co-Manufacturing Irving, TX Dallas, TX China Freeze Driers Co-Manufacturing Irving, TX Colombia PAGE 10
Slide 11: Key Retailers
Key Retailers Product demand consistently outpaces available supply while distribution channels continue to increase scale PAGE 11
Slide 12: Case Study Overview
Case Study Overview Reasons for Success • Met at tradeshow in January 2023 • Strong Branding • Commitment to Quality • Distinctive Packaging • Ability to Execute • Five Below worked with other freeze dried candy suppliers at the time who did not (i) meet demand and (ii) have our brand • Broad SKU as
Slide 13: Growing Market Opportunity
Growing Market Opportunity The North American sugar confectionery industry is expected to grow 6% annually North America Sugar Confectionery Sales1 Freeze Dried Candy ( in billions) Rapidly growing demand from large retailers 22.5 23.1 23.6 and distributors 21.0 21.8 19.9 17.6 14.9 Competitors consi
Slide 14: Financial Overview
Financial Overview Co ee
Slide 15: Summary Income Statement
Summary Income Statement 2Q 2024 2Q 2023 6/30/24 6/30/23 Net Revenue 15,648,046 1,315,346 % Growth 1,089.7% Cost of Goods Sold 6,640,917 2,896,259 Gross Profit 9,007,129 (1,580,913) % Gross Margin 57.6% -120.2% Salaries and Benefits 2,123,572 319,608 Professional Services 594,278 63,330 Other Operat
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 3Q 2023 4Q 2023 1Q 2024 2Q 2024 LTM 9/30/23 12/31/23 3/31/24 6/30/24 6/30/24 Net income/(loss) $333,984 $1,328,013 $510,588 $3,389,763 $5,562,348 Depreciaton & Amortization (gross) $150,676 $153,252 $166,995 $199,789 $670,712 Interest Expense $3,641 $490,263 $418,669 $
Slide 17: Balance Sheet
Balance Sheet 2Q 2024 4Q 2023 2Q 2024 4Q 2023 6/30/24 12/31/23 6/30/24 12/31/23 Assets Liabilities & Equity Cash 14,373,035 2,410,037 Current Laibilities 5,450,623 2,363,175 Accounts Receivable, net 6,197,037 2,578,259 ST Notes Payable, Net 832,776 2,857,084 Inventory 10,319,489 4,123,246 Operating
Slide 18: Cash Flow Statement
Cash Flow Statement YTD 2024 YTD 2023 6/30/24 6/30/23 Net Income/(Loss) 3,845,730 (4,722,430) Depreciation and Amortization 366,784 155,416 Stock Compensation Expense 2,503,523 383,906 Working Capital (9,555,920) 511,985 Other Capital 1,900,349 1,249,863 Cash Flow from Operations (939,534) (2,421,26
Slide 19: Key Market Statistics
Key Market Statistics Share Price (as of 8/23/2024) $14. 52 Share Price Performance 52 Week High $24.83 52 Week Low $5.50 Average Daily Volume (30 day) 101,144 Common Shares Outstanding1 11.385 million Market Capitalization (as of 5/24/24) $165.3 million Cash (as of 6/30/24) $14.37 million Debt (as
Slide 20: Company Highlights
Company Highlights Proprietary freeze drying machinery, production & packaging infrastructure Diverse grocery, convenience store and mass distribution SQF-II certified production facility Rapidly expanding production capacity to meet unmet customer demand Positioned at the forefront of emerging free
Slide 21: The Possibilities Are Endless.
THE POSSIBILITIES ARE ENDLESS.