Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Q3 2024 Earnings Presentation
27 slides from Lassonde Industries, Inc. Class A's earnings presentation, Nov 8, 2024
Slide 1: Investor Presentation Third quarter ended September 28, 2024
Investor Presentation Third quarter ended September 28, 2024 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 presentation 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-
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 sustainability targets and goals is further subject to, among other factors, its ability to access and implement all technology necessar
Slide 4: Third Quarter Highlights
4 Third Quarter Highlights Third Quarter Highlights Strong operating results • Solid sales and profit growth in all divisions • Contribution from Acquired Entities(1), mainly Summer Garden Excluding Acquired Entities and FX, sales were up 8.2% • U.S. volume gains for both private label and branded p
Slide 5: U.S. Beverages
5 U.S. Beverages U.S. Beverages Further volume gains driven by: • Build-back plan • Start of North Carolina single-serve line in late July North Carolina ramp-up progressing well • Confident to reach full production run rate in early 2025 Importance of single-serve formats • Main volume driver of ou
Slide 6: U.S. Beverages (cont'd)
6 U.S. Beverages (cont’d) U.S. Beverages Capital expenditure program • Enhance the competitiveness of our manufacturing network US$200 million investment for a new facility in New Jersey(1) • Replace the current plant • Construction should begin in early 2025 • Production activities progressively tr
Slide 7: Canadian Beverages
7 Canadian Beverages Canadian Beverages Focus on fortifying our leading position • Innovation, channel expansion, productivity improvements Balance between volume and margin given input cost inflation • Extensive product portfolio enables to target value-conscious consumers with affordable solutions
Slide 8: Specialty Food
8 Specialty Food Specialty Food A strong quarter • Solid sales growth of retort products for legacy operations • Sales of $26.7 million from Summer Garden (since August 8) Dedicated team to facilitate onboarding and integration of Summer Garden • Initiatives to secure continued engagement by key per
Slide 9: Sales Increase
9 Q3 2024 Sales Increase ($M) Sales Increase Key Highlights $668.3 ✓ Sales from Acquired Entities(1): ▲ $26.7M Summer Garden $583.4 +14.5% ▲ $4.7M Diamond ✓ FX impact: ▲ $5.6M ✓ Effect of sales volume (U.S. driven): ▲ $24.3M private labels ▲ $11.4M national brands ✓ Selling price adjustments: ▲ $12.
Slide 10: Improved Profitability
10 Q3 2024 Improved Profitability Improved Profitability Adjusted Profit Attributable to the Adjusted EBITDA(1) ($M) Gross Profit ($M) Shareholders(1) ($M) & Adjusted EPS(1) $69.3 $179.8 $30.9 $146.3 +22.9% $52.9 +31.0% $25.0 +23.6% 10.4% 26.9% $4.53 25.1% 9.1% $3.67 2023 2024 2023 2024 2023 2024 Ke
Slide 11: First nine months of 2024
11 First nine months of 2024 First nine months of 2024 Financial Highlights Adjusted Profit Attributable to the Sales ($M) Adjusted EBITDA(1) ($M) Shareholders(1) ($M) & Adjusted EPS(1) $1,862.8 $196.2 $95.0 $1,710.2 +8.9% +26.9% +38.9% $154.6 $68.4 10.5% $13.93 9.0% $10.03 2023 2024 2023 2024 2023
Slide 12: Cash Flows
12 Q3 2024 Cash Flows ($M) Cash Flows Operating Activities Key Highlights $87.5 $76.0 ✓ Increase in cash flow mainly due to: ▪ Higher EBITDA(1) ▪ Partly offset by an increase in net income tax paid 2023 2024 ✓ $83.2M in capital expenditures so far this year Acquisitions of PP&E and ✓ 2024 capital ex
Slide 13: Net Debt
13 Q3 2024 Net Debt (1) Net Debt(1) ($M) 500 $456.0 450 $28.4 $6.8 $9.3 400 $309.4 350 $456.0 ($67.7) 300 ($25.5) ($5.2) 250 $218.2 $190.7 $200.5 1.83x 200 $188.4 $200.5 150 0.98x 0.92x 1.01x 100 0.86x 50 (1) (1) (1) 0 Net Debt Summer CapEx Dividends Others EBITDA Working FX Impact Net Debt Sept. 30
Slide 14: Implication of Certain Elements on Financial Results
14 Implication of Certain Elements on Financial Results Implication of Certain Elements on Financial Results Summer Garden purchase price allocation ▪ Inventory step-up ▪ US$3.2M expensed in cost of sales in Q3-2024 ▪ Fair value of property, plant and equipment ▪ Annual depreciation expense currentl
Slide 15: Impact of Hurricane Helene
15 Impact of Hurricane Helene Impact of Hurricane Helene Little impact on our North Carolina facility ▪ More significant damage in the area forced the shutdown of the plant for 15 days ▪ Disruptions in product deliveries No significant impact on fourth quarter results ▪ Rapidly deployed mitigation m
Slide 16: Focus Unchanged as we Close 2024
16 Focus Unchanged as we Close 2024 Focus Unchanged as we Close 2024 U.S. Beverages ▪ Continue executing our private label volume build-back plan ▪ Ramping up our North Carolina single-serve expansion Canadian Beverages ▪ Pursue initiatives to fortify our leadership through: ▪ Innovation ▪ Channel e
Slide 17: Year-end Outlook
17 Year-end Outlook Year-end Outlook Conclude 2024 with a sales growth rate in the mid-to-high- single-digit range excluding Acquired Entities(1) and FX ▪ Run rate of selling price adjustments ▪ Sequential sales volume improvement in the fourth quarter ▪ Pace of U.S. build-back plan ▪ Incremental vo
Slide 18: Financial Measures Not in Accordance with IFRS
Financial Measures Not in Accordance with IFRS
Slide 19: Financial Measures Not in Accordance with IFRS
19 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS Items impacting the comparability between periods The table on the right contains a list, description and quantification of items impacting the comparability of the financial performance between the peri
Slide 20: Financial Measures Not in Accordance with IFRS (cont'd)
20 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS (cont’d) Adjusted Profit Attributable to the Corporation’s Shareholders and Adjusted EPS Adjusted profit attributable to the Corporation’s shareholders and adjusted EPS are financial measures used by the
Slide 21: Financial Measures Not in Accordance with IFRS (cont'd)
21 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS (cont’d) Days Operating Working Capital is a financial measure used by the Corporation to represent the number of days of sales tied up as operating working capital. To calculate this financial measure,
Slide 22: Key Information
Key Information
Slide 23: Financial Highlights
23 Financial Highlights Financial Highlights (1) Financial measure not in accordance with IFRS. Please refer to section on Financial Measures Not in Accordance with IFRS.
Slide 24: Sales Evolution
24 Sales Evolution Sales Evolution
Slide 25: New Facility in New Jersey
25 New Facility in New Jersey New Facility in New Jersey
Slide 26: Days Operating Working Capital
26 Q3 2024 Days Operating Working Capital (1) Days Operating Working Capital (1) 100 95 93 88 87 90 80 80 80 78 77 80 75 68 70 65 60 50 57 52 50 46 Days 45 47 46 46 50 49 48 44 43 43 42 42 42 40 39 44 40 40 44 38 34 30 21 21 20 20 20 18 18 18 18 18 17 20 16 10 0 Q4-18 Q4-19 Q4-20 Q4-21 Q4-22 Q1-23 Q
Slide 27: lassonde.com
B Lassonde lassonde.com