Sunopta — Q2 2016 Earnings Presentation
18 slides from Sunopta's earnings presentation, Aug 10, 2016
Slide 1: Q2 2016 Update
Q2 2016 August 10, 2016 Update
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may include forward-looking statements and therefore is subject to important risks and uncertainties. Actual results could differ materially from the conclusions, forecasts and projections as certain material factors and assumptions were applied in drawin
Slide 3: Investment Highlights
Investment Highlights “Pure play” exposure to organic/non- GMO foods, focused on private label FAVOURABLE CONSUMER TRENDS Largest supply chain in organic raw materials/ingredients in the world Awareness of Linkage Between Diet & Health Scalable business platform with significant revenue runway
Slide 4: Q2 2016 Recap
Q2 2016 Recap • Revenue of $348 million • Gross margin of $36.0M or 10.3% of revenues, excluding purchase accounting, start-up and other costs GM was 11.5% • Adjusted EBITDA of $23.5M • Adjusted EPS $0.05 4
Slide 5: Global Ingredients – Q2 Performance
Global Ingredients – Q2 Performance International: o Revenues up 22% vs Q2’15, lapping strong comps (PY increase was 19%) o Continue to outpace end-market growth o Further investment in new sources of supply and organic cocoa processing o Q2 product mix weighed slightly on margins Domestic: o Revenu
Slide 6: Consumer Products – Q2 Performance
Consumer Products – Q2 Performance Healthy Beverage: o Revenues up 17% vs PY (Aseptic ∼ 20%) o Capacity utilization increasing ahead of plan o Innovation driving sales in juice, and costs coming down o Pipeline indicates continued strong growth in 2H 2016 Healthy Snacks: o Revenues flat vs PY, growt
Slide 7: Consumer Products – Q2 Performance (cont.)
Consumer Products – Q2 Performance (cont.) Healthy Fruit o Significant shortfall in revenue and GM versus internal expectations o Three major factors impacting Q2 performance: 1. Very late start to freezer berry harvest 2. Increased field pricing 3. Softness and shift in order pattern with top retai
Slide 8: Q2 2016 Revenue
Q2 2016 Revenue Normalized Q2 2016 Q2 2015 Growth Q1 2016 ($ millions) Rate* Global Ingredients $158.5 $161.8 2.7% $146.0 Consumer Products $189.6 $115.7 -1.7% $206.3 Total Revenue $348.1 $277.6 0.3% $352.3 * Adjusted for the impact on revenues in the second quarter of 2016 of acquired businesses, i
Slide 9: Key Financial Statistics
Key Financial Statistics ($ millions, except percentage and per share Q2 Q2 YTD YTD Q1 amounts) 2016(1) 2015(1) 2016(1) 2015(1) 2016(1) Revenues $348.1 $277.6 $700.5 $551.5 $352.3 36.0 29.7 67.9 58.8 31.9 Gross Margin (2) 10.3% 10.7% 9.7% 10.7% 9.1% 8.8 9.0 11.5 18.9 2.6 Operating Income (2) 2.5% 3.
Slide 10: Cash Flow and EBITDA
Cash Flow and EBITDA Cash Provided by (used in) Q2 Q2 YTD YTD 2016 2015 2016 2015 ($ millions) Cash Flows from Operations (1) ($34.4) ($7.1) ($52.3) ($18.0) Cash Flows from Investing Activities (1) (8.6) (9.4) (13.2) (28.3) Cash Flows from Financing Activities (1) 38.7 17.3 64.5 40.7 (1) Reflects ca
Slide 11: Key Balance Sheet Metrics
Key Balance Sheet Metrics Balance Sheet July 2, 2016 January 2, 2016 ($ millions, except ratio and per share amounts) Working Capital (1) $419.3 $364.8 (3) Total Assets (2) $1,215.2 $1,154.9 Total Debt $557.8 $482.8 (3) Ratio of Total Debt to Equity 1.38 to 1.00 1.15 to 1.00 Book Value per Share $4.
Slide 12: Operational Goals 2016
Operational Goals 2016 Growth in CPG Revenue & Gross Margin + Beverage Fruit Snacks - Increase gross margin Successful integration Achieve growth in fruit by $6 million of Sunrise Growers snacks of at least 10% Achieve double-digit Deliver $5 to $7 million Fill bar/pouch Two- growth in non-dairy of
Slide 13: In Conclusion
In Conclusion Continue to capture market share in International Organic Ingredients with robust growth New sales from innovation well ahead of expectations and pipeline continues to grow Fruit platform negatively impacted in Q2, however business fundamentals and end markets intact Investment in Beve
Slide 14: SunOpta – Bringing well-being to life
SunCpta Bringing well-being to life
Slide 15: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures This presentation includes certain measures not derived in accordance with generally accepted accounting principles (“GAAP”). Such measures should not be considered substitutes for any measures derived in accordance with GAAP and may also be inconsistent
Slide 16: Reconciliation of GAAP Results to Adjusted Earnings and Adjusted EPS
Reconciliation of GAAP Results to Adjusted Earnings and Adjusted EPS ($ millions, except per share amounts; totals may not sum due to rounding) Q2 2016 Q2 2015 YTD 2016 YTD 2015 Earnings (loss) attributable to SunOpta Inc. $ (4.1) $ 2.0 $ (14.4) $ 7.3 Loss from discontinued operations attributable t
Slide 17: Reconciliation of GAAP Results to Operating Income, EBITDA and Adjusted EBITDA
Reconciliation of GAAP Results to Operating Income, EBITDA and Adjusted EBITDA ($ millions, totals may not sum due to rounding) Q2 2016 Q2 2015 YTD 2016 YTD 2015 Earnings (loss) from continuing operations $ (4.0) $ 4.8 $ (13.3) $ 10.7 Provision for income taxes (7.1) 2.4 (10.2) 5.4 Interest expense,
Slide 18: 2233 Argentia Road, Suite 401 Mississauga, Ontario L5N 2X7 www.sunopta.com
2233 Argentia Road, Suite 401 Mississauga, Ontario L5N 2X7 www.sunopta.com