Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Q3 2023 Earnings Presentation
26 slides from Lassonde Industries, Inc. Class A's earnings presentation, Nov 10, 2023
Slide 1: Investor Presentation Third Quarter Ended September 30, 2023
Investor Presentation Third quarter ended September 30, 2023 LASSONDE INDUSTRIES INC.
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements and use of financial Forward-Looking Statements measures not in accordance with IFRS This document contains “forward-looking information” and the Corporation’s oral and written public communications that do not constitute historical fact may be deemed to be “forward-look
Slide 3: Forward-Looking Statements (cont'd)
3 Forward-Looking Statements and use of financial Forward-Looking Statements measures not in accordance with IFRS (cont’d) The Corporation’s ability to achieve its environmental targets, and goals is further subject to, among other factors, its ability to access and implement all technology necessar
Slide 4: Solid Performance in the Third Quarter
4 Solid Performance in the Third Quarter Solid Performance in the Third Quarter Strong execution against our strategic priorities Sales increased by 4.9% • Pricing adjustments taken in 2022 and early 2023 in response to cost inflation • Partially offset by volume reduction Simplification of our U.
Slide 5: Update on U.S. Turnaround Plan
5 Update on U.S. Turnaround Plan Update on U.S. Turnaround Plan Portfolio optimization • Product rationalization • Pack harmonization • Formula consolidation Important investments in New Jersey Stabilized the labour pool Deployed new decision-making tools and technology • Demand Planning System comp
Slide 6: Update on U.S. Turnaround Plan
6 Update on U.S. Turnaround Plan Update on U.S. Turnaround Plan Efficiency improvements • Ultimately leads to increased production capacity Turning our attention to building back demand • Will drive better cost absorption and result in further profitability improvement Lower freight costs also drove
Slide 7: Capacity Expansion Initiatives
7 Capacity Expansion Initiatives Capacity Expansion Initiatives New aseptic single-serve line in North Carolina • On schedule for commissioning in the summer of 2024; full production to begin in early 2025 • Total investment estimated at US$53 million • Provide additional capacity for both branded a
Slide 8: Key Takeaways from September Investor Day
8 Key Takeaways from September 19 Investor Day Key Takeaways from Investor Day Objective to achieve an annual sales run rate of $3 billion by the end of 2026 • While sustaining our efforts to further improve profit margins Combination of organic and investment-driven growth • Organic: leveraging exi
Slide 9: Q3-23 – Financial Highlights
9 Q3 2023 4.9% Sales Increase ($M) Q3-23 – Financial Highlights Key Highlights Excluding a favourable FX impact, sales were up 3.4% $583.4 Selling price adjustments: $556.4 +4.9% ▲ $27.0M private labels ▲ $20.1M national brands Changes in sales mix: ▲ $3.3M private labels ▼ $0.4M national brands
Slide 10: Q3-23 – Financial Highlights: Improved Profitability
10 Q3 2023 Improved Profitability Q3-23 – Financial Highlights Gross Profit ($M) Adjusted EBITDA(1) ($M) Adjusted Profit Attributable to the Shareholders(1) ($M) & Adjusted EPS(1) $146.3 $52.9 $25.0 $125.4 +16.6% +36.0% $38.9 +43.7% $17.4 9.1% 25.1% $3.67 22.5% 7.0% $2.54 2022 2023 2022 2023 2022 20
Slide 11: Days Operating Working Capital
11 Q3 2023 Days Operating Working Capital (1) Days Operating Working Capital Represents a 100 $58M cash inflow 95 93 90 87 86 82 81 80 80 80 76 75 73 73 72 71 71 69 69 68 68 68 68 70 65 65 65 64 64 64 62 60 57 60 Days 50 51 Near higher end of 46 42 pre-Covid range by 40 37 36 end of 2023 33 32 32 32
Slide 12: Cash Flows ($M)
12 Q3 2023 Cash Flows ($M) Cash Flows Operating Activities Key Highlights $76.0 Significant increase in cash flow due to: Improved profitability ($0.7) Lower working capital requirements 2022 2023 Acquisitions of PPE and Intangible Assets Acquisitions of property, plant and equipment $21.6 m
Slide 13: Net Debt ($M)
13 Q3 2023 Net Debt(1) ($M) Net Debt (1) 400 3,00x 350 2,50x 300 $267.7 Improvements: $246.7 2,00x 250 $228.4 1.57x 1.67x $188.4 profitability + working capital 200 1,50x 1,28x 150 0.98x 1,00x 100 Solid cash flow generation 0,50x 50 0 0,00x Debt reduction Dec. 31, 2022 Apr. 1, 2023 July 1, 2023 Sep.
Slide 14: Financial Highlights: First Nine Months of 2023
14 First nine months of 2023 Financial Highlights First Nine Months of 2023 Adjusted Profit Attributable to the Sales ($M) Adjusted EBITDA(1) ($M) Shareholders(1) ($M) & Adjusted EPS(1) $68.4 $154,6 $1,710.2 +30.1% +36.5% $1,595.0 +7.2% $118,8 $50.2 9.0% $10.03 7.4% $7.27 2022 2023 2022 2023 2022 20
Slide 15: Looking Ahead
15 Looking Ahead Looking Ahead Remain focused on executing our strategy Expect to conclude 2023 with a sales growth rate in the mid-single digit range Excluding FX impact Primarily driven by price increases Includes further pricing actions in Q4 to reflect higher cost of orange
Slide 16: Input Costs
16 Input Costs Input Costs Orange costs remain high Reached another all-time high at the end of October Availability constraints are also anticipated Monitor the situation very closely Mitigate impact of cost increases through pricing Mechanisms in customer agreements Actions taken with a
Slide 17: Focus on Innovation
17 Focus on Innovation Focus on Innovation Orange situation highlights the importance of even further portfolio diversification Diversification possible through innovation Product formulation Formats and packaging New product development
Slide 18: Key Priorities Moving Forward
18 Key Priorities Moving Forward Key Priorities Moving Forward Build back U.S. demand Leveraging improvements in our operations Restoring relationships affected by earlier disruptions Protect core business in Canada Reinforce innovation to further diversify our portfolio Expand our presence
Slide 19: Financial Measures Not in Accordance with IFRS
Financial Measures Not in Accordance with IFRS
Slide 20: Financial Measures Not in Accordance with IFRS
20 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS Third quarters ended First nine months ended (in millions of dollars) Sept. 30,2023 Oct. 1, 2022 Sept. 30, 2023 Oct. 1, 2022 $ $ $ $ Costs related to the Strategy 0.7 1.5 1.3 6.1 Implementation costs of
Slide 21: Financial Measures Not in Accordance with IFRS (cont'd)
21 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS (in millions of dollars, unless otherwise Third quarters ended First nine months ended indicated) Sept. 30, 2023 Oct. 1, 2022 Sept. 30, 2023 Oct. 1, 2022 Adjusted Profit Attributable to the Corp
Slide 22: Financial Measures Not in Accordance with IFRS (cont'd)
22 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Days Operating Working Capital is a financial efficiency measure used by the As at As at in millions of dollars, except DSO) Sept. 30, 2023 Dec. 31, 2022 Corporation to represent the amount of s
Slide 23: Key Financial Information
Key Financial Information
Slide 24: Financial Highlights
24 Financial Highlights Financial Highlights Third quarters ended First nine months ended (in millions of dollars, unless otherwise indicated) Sept. 30, 2023 Oct. 1, 2022 ∆ Sept. 30, 2023 Oct. 1, 2022 ∆ $ $ $ $ $ $ Sales 583.4 556.4 27.0 1,710.2 1,595.0 115.2 Cost of sales 437.2 431.0 6.2 1,275.0 1,
Slide 25: Sales Evolution
25 Sales Evolution Sales Evolution Third quarters First nine months Private National Private National labels brands Total labels brands Total (in millions of dollars) $ $ $ $ $ $ Sales 2022 323.4 233.0 556.4 924.0 671.0 1,595.0 Selling price adjustments impact 27.0 20.1 47.1 96.0 65.2 161.2 Volume i
Slide 26: lassonde.com
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