Slide 1: Second Quarter 2024 Conference Call
Second Quarter 2024 Conference Call August 8, 2024
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, financial performance and condition, acquisition opportunities, capital projects and plans, outlook and objective
Slide 4: Today's Presenters
Today’s Presenters • George Paleologou President & Chief Executive Officer • Will Kalutycz Chief Financial Officer Transformational Growth 3
Slide 5: Key Messages
Key Messages • 2024 second quarter highlights • Record second quarter revenue of $1.7 billion representing a 4.4%, or $71.8 million, increase as compared to the second quarter of 2023 • Solid progress on Specialty Foods’ core U.S. growth initiatives, which for the quarter generated an organic volume
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: Expresco Foods
Expresco Foods • Custom manufacturer of fully cooked grilled protein products, frozen and fresh, for foodservice and retail customers across North America • 75,000 square foot facility with capacity, flexibility and state-of-the-art technology • Integrated logistics and warehouse • 450 employees • F
Slide 8: Transformational Growth
Transformational Growth 7
Slide 9: Transformational Growth
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Slide 10: Transformational Growth
Transformational Growth 9
Slide 11: Q2-2024 Financial Update
Q2-2024 Financial Update Transformational Growth 10
Slide 12: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 2024 Revenue 761.5 945.4 976.6 1,234.7 1,519.9 1,630.9 1,702.7 OGR 6.4% 4.2% 0.1% 17.9% 13.9% 6.2% 4.0% OVGR 7.2% 5.5% (4.2%) 17.9% 1.3% 4.0% 3.1% 1,800.0 35% • Targeted long-term annual organic volume g
Slide 13: U.S. Sales Analysis
U.S. Sales Analysis (millions of dollars except percentages) Volume Q2-2023 FX & Pricing Growth Q2-2024 OVGR Core U.S. sales growth initiatives: Protein Group 238.7 0.9 17.1 256.7 7.2% Sandwich Group 329.1 0.5 55.0 384.6 16.7% Bakery Group 16.2 0.6 3.3 20.1 20.4% 584.0 2.0 75.4 661.4 12.9% Transform
Slide 14: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P 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 6,261.0 6,750.0 OGR 2.6% 6.0% 4.8% 4.9% 13.5% 18.0% 6.1% 4.7% 6
Slide 15: Quarter Adjusted EBITDA Performance
Quarter Adjusted EBITDA Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 2024 EBITDA 74.1 88.2 67.1 112.2 130.8 152.4 164.6 Margin 9.7% 9.3% 6.9% 9.1% 8.6% 9.3% 9.7% • Targeted mid-term annual adjusted EBITDA 160.0 12.0% margin – 10% 140.0 11.0% • Specialty Foods’ a
Slide 16: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P EBITDA 42.0 54.9 66.8 69.3 77.6 111.6 154.8 190.2 280.2 307.7 312.6 430.7 504.2 559.1 640.0 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% 8.9% 9
Slide 17: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts) 2019 2020 2021 2022 2023 2024 Adj earnings 38.5 21.2 53.5 61.5 56.3 56.9 Adj EPS 1.10 0.57 1.23 1.38 1.27 1.28 Positive Factors • EBITDA growth 70.0 $1.90 Negative Factors 60.0 $1.70 • Growth investment – estimated
Slide 18: Capital Expenditures
Capital Expenditures (millions of dollars except percentages) • An unlevered, after-tax IRR of 15% or greater is expected on project capex Q2-2024 • Expect to spend an additional $230 million on approved major Major project capex 83.2 project capex over the next five quarters Other project capex 11.
Slide 19: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 920.0 5.0 820.0 4.5 • Long-term targeted senior debt to 720.0 4.0 EBITDA ratio – 2.5:1 to 3.0:1 620.0 3.5 • Long-term targeted total debt to EBITDA ratio – 3.5:1 to 4.0:1 520.0 3.0 420.0 2.5 • Convertible debentures make up the difference bet
Slide 20: Free Cash Flow
Free Cash Flow (millions of dollars except per share amounts and percentages) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P Payout ratio 106.4% 77.7% 69.6% 70.6% 65.2% 59.4% 53.0% 53.9% 48.4% 43.2% 36.6% 38.5% 38.1% 43.1% 48.7% 42.3% 43.8% 54.3% Divi
Slide 21: Transformational Growth
J Premium Brands Transformational Growth