Slide 1: Second Quarter 2023 Conference Call
Second Quarter 2023 Conference Call August 14, 2023
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, strategy and financial performance and condition, acquisition opportunities, capital projects and plans, outlook
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 • Record second quarter results • Sales up 7.3% to $1.63 billion • Adjusted EBITDA up 16.5% to $152.4 million • Adjusted EPS at $1.27 per share • Specialty Foods segment organic volume growth rate of 8.1% while Premium Food Distribution segment was down slightly due to transitory factor
Slide 6: 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 7: Global Gourmet
Global Gourmet The Next Five Years – Accelerating Growth 6
Slide 8: The Next Five Years – Accelerating Growth
The Next Five Years – Accelerating Growth 7
Slide 9: Q2-2023 Financial Update
Q2-2023 Financial Update The Next Five Years – Accelerating Growth 8
Slide 10: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 Revenue 761.5 945.4 976.6 1,234.7 1,519.9 1,630.9 OGR 6.4% 4.2% 0.1% 17.9% 13.9% 6.2% OVGR 7.2% 5.5% (4.2%) 17.9% 1.3% 4.0% Growth Drivers • Organic volume growth – $61.2m 1,800.0 Long-term targeted orga
Slide 11: Organic Volume Growth Rate
Organic Volume Growth Rate Long-term targeted organic volume growth rate range of 4% - 6% 20.0% Factors impacting the Company’s Q2-2023 OVGR: 16.0% • Chicken sandwich launched in Q2-2022 and 12.0% recalled in Q3-2022 – normalized for this OVGR 8.0% is 5.2% • PFD’s challenges on the 4.0% sale of prem
Slide 12: Specialty Foods – Organic Volume Growth Rate
Specialty Foods – Organic Volume Growth Rate Long-term targeted organic volume growth rate range of 4% - 6% 28.0% Factors impacting the SF’s Q2-2023 OVGR: 24.0% • Chicken sandwich 20.0% launched in Q2-2022 and recalled in Q3-2022 – normalized for this OVGR 16.0% is 10.2% 12.0% • Lack of capacity in
Slide 13: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023P 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 6,500.0 OGR 2.6% 6.0% 4.8% 4.9% 13.5% 18.0% 6.1% 4.7% 6.7% 5.9% 7.6%
Slide 14: Weekly Sales Trend
Weekly Sales Trend 160,000 140,000 120,000 100,000 $000's 80,000 60,000 40,000 20,000 - 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Week # 2023 PBH Total 2022 PBH Total 2021 PBH Total 2020 PBH Total 2019 PBH Total The Next Five Years – Accelerating Growth 13
Slide 15: Quarter Adjusted EBITDA Performance
Quarter Adjusted EBITDA Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 EBITDA 80.8 88.2 67.1 112.2 130.8 152.4 Margin 10.6% 9.3% 6.9% 9.1% 8.6% 9.3% Positive factors • Price inflation net of raw material, wage and freight cost inflation / deflation 160.0 12.0% • O
Slide 16: Margin Recovery
Margin Recovery (millions of dollars except percentages) Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Selling price increases 122.6 134.4 89.5 61.9 42.6 3.9 Raw material, wage and freight costs (124.5) (130.9) (77.5) (45.8) (24.7) 21.0 Margin dollar impact (1.9) 3.5 12.0 16.1 17.9 24.9 Margin imp
Slide 17: Adjusted EBITDA Margin
Adjusted EBITDA Margin 11.0% 10.5% 10.0% Factors impacting the 9.5% Company’s Q2-2023 EBITDA margin relative to 10% target: 9.0% • Unutilized production 8.5% capacity 8.0% • Lost overhead absorption due to inventory reduction 7.5% initiatives – 22 bps 7.0% • Inventory write-off resulting from custom
Slide 18: Specialty Foods – Adjusted EBITDA Margin
Specialty Foods – Adjusted EBITDA Margin 14.0% 13.0% Factors impacting SF’s Q2- 12.0% 2023 EBITDA margin: • Unutilized production 11.0% capacity 10.0% • Lost overhead absorption due to inventory reduction 9.0% initiatives – 30 bps • Inventory write-off resulting 8.0% from customer bankruptcy filing
Slide 19: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023P EBITDA 42.0 54.9 66.8 69.3 77.6 111.6 154.8 190.2 280.2 307.7 312.6 430.7 504.2 600.0 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% 9.2% 700.0 12.0%
Slide 20: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts) 2019 2020 2021 2022 2023 Adj earnings 38.5 21.2 53.5 61.5 56.3 Adj EPS 1.10 0.57 1.23 1.38 1.27 Major positive factors: 70.0 • EBITDA growth – $21.6m $1.90 • Decreased income taxes – $0.8m 60.0 $1.70 50.0 Major nega
Slide 21: Inventory Trend Analysis
Inventory Trend Analysis (millions of dollars unless noted otherwise) Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Inventory 388.2 372.5 358.6 396.2 464.3 430.5 417.0 448.8 481.5 483.0 513.6 645.2 740.5 836.2 821.1 786.1 829.7 760.9 DPI
Slide 22: Capital Allocations – Project Capex
Capital Allocations – Project Capex (millions of dollars except percentages) Investment To- Investment Q2-2023 YTD-2023 Expected IRR Date Expected Project capital expenditures 87.5 149.6 325.6 692.5 15% or greater Maintenance capital expenditures 13.4 25.6 25.6 52.5 - 100.9 175.2 351.2 745.0 Based o
Slide 23: 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 24: The Next Five Years – Accelerating Growth
The Next Five Years – Accelerating Growth 23