Laird Superfood, Inc. · AMEX:LSF
Laird Superfood — Q1 2024 Earnings Presentation
25 slides from Laird Superfood's earnings presentation, May 10, 2024
Slide 1: Q1 2024 Investors presentation
Q1 2024 Investors presentation May 10th, 2024
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.
Slide 4: Laird Superfood was founded by two athletes
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 3 Innovate in Superfoods 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 • Chief Financial Officer • VP of Marketing • VP of Supply Chain • General Counsel since since January 20
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 functional food and beverages
Consumers are upgrading to functional food and beverages 59% 83% +39% Of consumers agree that functional Of consumers claim to have recently Growth in Functional / Mushroom based drinks help them accomplish their health used beverages containing at least one products in Coffee & Creamers. goals func
Slide 10: Q1 retail sales are outpacing prior year
After a strong finish to '23, Q1 '24 retail sales are outpacing prior year Laird Superfood Total Brand YOY $ Sales (MM) by Quad Total Marketplace (MULO+NAT+WFM) (Does not include Bars and AO SPINS business*) Retail Sales ($M) 2022 2023 2024 1.8 1.7 1.7 1.6 1.6 1.6 1.6 1.5 1.5 1.4 1.4 1.4 1.3 1.3 1.3
Slide 11: Strong Net Sales growth across all channels in Q1
Strong Net Sales growth across all channels in Q1 Net Sales by channel, $M* $9.9M 22% LSF 1.2 9% Club $8.1M Club 1.1 2.1 48% Amazon Amazon 1.4 2.8 10% Retail Retail 2.6 3.7 25% DTC DTC 3.0 Q123 Q124 *Net Sales, as reported 11
Slide 12: TDPs continue to grow in both Natural and MULO Channels
TDPs continue to grow in both Natural and MULO Channels Laird Superfood rolling 12-week distribution (Does not include Bars and AO SPINS business*) Total US – Natural Channel Total US - MULO +33% +23% 1,050 1,028 32 1,019 31 31 Total Distribution Points 1,000 Total Distribution Points 30 29 950 29 2
Slide 13: Marketing will push further on content and education
Marketing will push further on content and valuable education Establish LSF.com as Wellness Engaging Email Content with Accelerate Successful Podcast Hub Strategic Promo Strategy Content 13
Slide 14: Laird Superfood is ready to lead the functional food category
Laird Superfood is ready to lead the functional food category! 14
Slide 15: Q1 2024 Financial Performance
Q1 2024 Financial Performance
Slide 16: Financial highlights
Financial highlights: Q1 Net Sales +22% and Gross Margin of 40% • $9.9 million Net Sales, +22% versus prior year period. Double-digit growth in both Wholesale and E-commerce channels. o E-commerce: 59% of total Net Sales, 33% growth driven by DTC (+25%) and Amazon (+48%). o Wholesale: 41% of total N
Slide 17: Financial results
Financial results YoY change Q124 Net Sales $9.9M +$1.8M Gross Margin 40.0% +1,690 bp OPEX $5.1M ($1.1M) Net Income ($1.0M) +$3.1M Q123 Net Sales $8.1M Gross Margin 23.0% OPEX $6.2M Net Loss ($4.1M) 17
Slide 18: Gross Margin of 40% achieved for the 2nd consecutive quarter
Gross Margin of 40% achieved for the 2nd consecutive quarter +17 points 40% 40% 31% 23% 24% 21% 23% 18% 40% 40% 27% 30% 19% 23% 19% 24% 18% 2% 2% 1% -4% -23% -5% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Gross Margin as % of Net Sales excl one-time adj One-time adjustments as % of Net Sa
Slide 19: Net Loss narrowed every quarter over the last five quarters
Net Loss narrowed every quarter over the last five quarters $, Millions +$3.1 $1.3 $0.1 $0.1 -$3.7 -$3.3 -$2.8 -$1.0 -$4.2 -$6.7 -$6.2 -$5.6 -$0.2 -$0.4 -$2.7 -$4.1 -$3.5 -$0.2 -$4.9 -$5.7 -$7.4 -$11.3 -$14.1 -$15.5 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Net (Loss)/Income excl. one-ti
Slide 20: Q1 2024 Results
Q124 Results Net Sales, $M Gross Profit, $M Net Income/(Loss), $M +22% +112% +$3.1M $9.9 $4.0 $8.1 $1.9 -1.0 27% 19% -4.1 Q123 Q124 Q123 Q124 Q123 Q124 Net Sales +22% due to: Gross Margin of 40%, +17 points Net Loss improved by $3.1 • Wholesale +10% versus prior year driven by: million due to: - Ret
Slide 21: Q1 2024 Sales Mix
Q124 Sales Mix Gross Sales by Product Line Net Sales by Channel 1% 12% Retail 41% 18% 50% 59% E-commerce 19% Coffee Creamers Wholesale Coffee, Tea, and Hot Chocolate Products E-commerce Hydration and Beverage Enhancing Supplements Harvest Snacks and Other Food Items Other 21
Slide 22: Total Cash (Burn)/Add
Total Cash (Burn)/Add $, Millions $0.3 -$0.4 -$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 Q1 24 22
Slide 23: Targeting cash burn of less than $1 million in 2024
Targeting cash burn of less than $1 million in 2024 LSF projected cash balance ($M) $7.7 • Cash burn expected in H12024 due to stepped up $6.8 marketing investment and working capital needs driven by seasonal product inventory build. • Cash rebuild expected during Q3-Q4 as we sell through seasonal i
Slide 24: Gross Margin Outlook
Gross Margin Outlook* 37.0%- 41.0% 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
Slide 25: Full Year 2024 outlook
Full Year 2024 outlook* 2024 2024 Net Revenue Gross Margin $38 – $42 Million 37% - 41% * Management estimates, not guaranteed; excluding any one-time charges and benefits. 25