Sprouts Farmers Market, Inc. · NASDAQ:SFM
Sprouts Farmers Market — FY2021 Earnings Presentation
18 slides from Sprouts Farmers Market's earnings presentation, Feb 24, 2022
Slide 1: Q4 & Full Year 2021 Earnings
Q4 & Full Year 2021 Earnings February 2022 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein (including, but not limited to, statements to the effect that Sprouts Farmers Market, Inc. (the “Company”) or its
Slide 3: Jack Sinclair, CEO
Jack Sinclair CEO
Slide 4: 2021 Was a Year of Meaningful Accomplishments
2021 Was a Year of Meaningful Accomplishments Opened 2 new fresh Distribution Centers Opened 12 new stores & one relocation Launched 4 new format stores, including one remodel Launched over 5,700 new products Greatly improved our ESG reporting, resulting in AAA rating from MSCI Encouraged that 4th q
Slide 5: Chip Molloy, CFO
Chip Molloy CFO
Slide 6: Sprouts is on a Stronger Foundation with Strategic Initiatives Beginning to Take Hold
6 NET SALES $6.1B + 8% vs 2019 NET CASH PROVIDED by OPERATIONS $365M + 3% vs 2019 ADJUSTED DILUTED Earnings Per Share $2.10 + 68% vs 2019 ($ in mm) ($ in mm) (1) (3) (3) (3) See the Appendix to this presentation for a reconciliation of adjusted diluted EPS to net income The Company’s results for FY2
Slide 7: Ecommerce Remains Here to Stay and Sales are Settling at New Levels
Ecommerce Remains Here to Stay and Sales are Settling at New Levels Ecommerce Penetration > 50% of online orders can be identified to a customer In store Pick-up & Delivery available to all customers in all stores & markets
Slide 8: Maintained a Structurally Improved Margin Profile
Maintained a Structurally Improved Margin Profile 8 ($ in mm) ADJUSTED EBIT & Adjusted EBIT Margin(1) See the Appendix to this presentation for a reconciliation of EBIT to adjusted EBIT 2020 is presented on a 53-week basis (2)
Slide 9: Driving Shareholder Value Through an Ongoing Share Repurchase Program
In 2021 we repurchased 7.4 million shares for a total investment of $188M $112M remaining on our share repurchase authorization* $0 ($ in mm) Total Annual Share Repurchases * As of January 2, 2022 In Addition to Investing in Growth, We Drive Shareholder Value Through an Ongoing Share Repurchase Prog
Slide 10: 2022 Annual Outlook
2022 Annual Outlook 10 Net sales growth 4% to 6% 15-20 new stores Comps of 0% to 2% Adjusted EBIT $330M to $345M Adjusted EPS $2.14 to $2.24 Capex $150M to $170M Approximately 25% Corporate Tax Rate
Slide 11: 2022 First Quarter Outlook
2022 First Quarter Outlook 11 Adjusted EPS $0.69 to $0.73 Comps 0% to 2%
Slide 12: Jack Sinclair, CEO
Jack Sinclair CEO
Slide 13: Fourth Quarter Sales Highlights
Fourth Quarter Sales Highlights Released new deli meals created by our in-house chef as well as other attribute focused items Bakery continues to see year over year growth supported by seasonal events and innovation Vitamins benefited from immunity boosting products Grocery benefited from a strong h
Slide 14: Successfully Launched Additional New Format Stores in Q4 with Similar Results
Successfully Launched 2 Additional New Format Stores in Q4 with Similar Results EARLY DAYS… 2 more New Format stores FL (1) and GA (1) - 4 in total for 2021 Phoenix relocation – sales up significantly despite new store being 23% smaller Frozen sales up dramatically Protein sales above company averag
Slide 15: Growing our Customer Engagement
Growing our Customer Engagement Currently “speaking” to more than 5 million customers via multiple digital platforms +26% + 76% +36% (1) Growth rate is 2021 vs. 2020 (1) (1) (1)
Slide 16: Appendix
Appendix
Slide 17: Non-GAAP Measure Reconciliation
SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN THOUSANDS) Appendix The following table shows a reconciliation of EBITDA and adjusted EBITDA to net income, as well as a reconciliation of net income and diluted earnings per share to adjusted net income an
Slide 18: Appendix
Appendix Income tax provision includes approximately $12 million (or $0.10 per diluted share) benefit during the fifty-two weeks ended December 30, 2018 in excess federal and state tax benefits for share based compensation primarily associated with the exercise of expiring pre-IPO options. Includes
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