Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Shareholder Meeting (May 2024)
44 slides from Lassonde Industries, Inc. Class A's shareholder meeting presentation, May 17, 2024
Slide 1: Annual General Meeting
Annual General Meeting May 17, 2024 LASSONDE INDUSTRIES INC.
Slide 2: Caution Regarding Forward-Looking Statements
2 Caution Regarding Forward-Looking Statements Forward-Looking Statements 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-looking information” within the meaning of a
Slide 3: Caution Regarding Forward-Looking Statements (cont'd)
3 Caution Regarding Forward-Looking Statements (cont’d) Forward-Looking Statements 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 necessary to achieve them as well as the develop
Slide 4: Financial Measures Not in Accordance with IFRS
4 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS To provide more information for evaluating the Corporation’s performance, the financial information in the financial documents contains certain supplementary financial measures and certain data or ratios
Slide 5: Financial Measures Not in Accordance with IFRS (cont'd)
5 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Adjusted Operating Profit(1) is a financial measure used by the Corporation to compare multiplied by 91 days. Operating working capital consists of the sum of trade accounts operating profit betw
Slide 6: Notice of Proxy, Documents and Scrutineer's Report
Notice of Proxy, Documents and Scrutineer’s Report
Slide 7: Election of Directors
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Slide 8: Election of Directors
8 Election of Directors Election of Directors Chantal Bélanger Denis Boudreault Paul Bouthillier Corporate Director Corporate Director Corporate Director Luc Doyon Nathalie Lassonde Pierre-Paul Lassonde Corporate Director CEO & Vice-Chair of the Chairman of the Board Board of Directors of Directors
Slide 9: Appointment of Auditors
Appointment of Auditors
Slide 10: A Solid Performance
10 Fiscal 2023 A Solid Performance A Solid Performance Record sales of $2.3 billion Strong profitability improvement Heartfelt thanks to our employees Approximately 3,000 people in 18 plants across North America Passionate about making high-quality, delicious products A 106-year tradition, now i
Slide 11: Investor Day Highlights
11 Fiscal 2023 Investor Day Highlights Investor Day Highlights Reflects our desire to further reach out to the financial community Show the quality and the drive of our management team Set out financial objectives Achieve a $3 billion sales run rate by the end of 2026 Profit growth to prevail ov
Slide 12: Business Overview
Business Overview
Slide 13: A Solid Performance
13 Fiscal 2023 A Solid Performance A Solid Performance Sales increased 7.6% to a record $2.3 billion Selling price adjustments in Canada and the U.S. Better sales mix in our private label activities Partly offset by lower sales volume in the U.S. Strong profitability improvement Improved ope
Slide 14: Our Vision
14 A Stronger, More Diversified and Leading North American Agri-food and Beverage Player Our Vision OUR VISION OUR GREAT TASTING PRODUCTS IN MORE HANDS, SERVING MORE NEEDS, ACROSS MORE OCCASIONS, EVERY DAY.
Slide 15: Multi-Year Strategy Priorities
15 Multi-Year Strategy Multi-Year Strategy Priorities 1 Priorities Build a Growth-oriented Portfolio 2 3 Drive Improve Sustainable Capacity Performance to Act
Slide 16: Canadian Beverage Division
16 Canadian Beverage Division Canadian Beverage Division # 1 producer of fruit juices and drinks in Canada Market share growth in 2023 driven by diversified portfolio, extensive market reach and solid customer relationships Oasis is the largest brand by volume in the category Voted the most trus
Slide 17: Fortify our Leading Position
17 Fortify our Leading Position Fortify our Leading Position Innovation Reinforce our core Pursue opportunities in growing and on trend categories Channel expansion Further extend our presence in « away-from-home » category Brand marketing Grow consumer awareness and affinity with our brands
Slide 18: Focus on Innovation
18 Focus on Innovation Focus on Innovation Rapid commodity price variations in recent quarters Mitigated through pricing adjustments Mindful of pricing impact on customers and consumers’ purchasing behaviour Pursue opportunities to reduce costs and drive innovation to offer value and more option
Slide 19: U.S. Beverage Divisions
19 U.S. Beverage Divisions U.S. Beverage Divisions Improvement in 2023 Strengthened team and leadership Successful portfolio simplification initiatives Freed up valuable capacity by diminishing costly downtime associated with line changeovers New equipment, decision making tools and technology N
Slide 20: North Carolina Aseptic Single-Serve Project
20 North Carolina Aseptic Single-Serve Project North Carolina Aseptic Single-Serve Project Meets objectives of building a growth-oriented portfolio and delivering a more sustainable product at lower costs On track to commission the new line in the third quarter Single-serve market continues to show
Slide 21: Specialty Food Division
21 Specialty Food Division Specialty Food Division 2023 was another year of sales and profit growth Introduced new products to capture growth in premium categories Extended the Canton brand into premium glass jar soups Confident about the specialty food business Important platform in building a
Slide 22: Financial Review
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Slide 23: Sales Growth
23 Fiscal 2023 Sales Growth Sales Growth Sales ($B) By Market Segment By Geography By Brand Type 2.3 11% 2.2 Food Service 89% 46% 42% 58% National Private Retail Sales in Canada Brands Labels +7.6% 54% Sales in the U.S. 2022 2023 Key Highlights Excluding a favourable FX impact, and (+) Selling price
Slide 24: Profitability Improvement
24 Fiscal 2023 Profitability Improvement Profitability Improvement Gross Profit ($M) Selling & administrative Operating Profit ($M) & & Gross Margin expenses ($M) Operating Margin 588 442 452 145 523 135 98 81 25.4% 5.8% 6.2% 24.3% 4.5% 3.8% 2022 2023 2022 2023 Operating Profit Adj. Operating Profit
Slide 25: Profitability Improvement
25 Fiscal 2023 Profitability Improvement Profitability Improvement (1) Profit Attributable to the EBITDA ($M) Shareholders ($M) EPS ($) 88 90 13.18 207 12.83 198 157 64 9.37 141 54 7.85 (1) EBITDA Adj. EBITDA(1) Profit att. to the Adj. profit att. to EPS Adj. EPS (1) shareholders the shareholders (1
Slide 26: Days Operating Working Capital
26 Fiscal 2023 Days Operating Working Capital (1,2) Days Operating Working Capital 100 87 90 80 78 80 75 73 72 71 68 68 70 65 60 50 Days 50 50 46 48 45 44 43 43 42 41 41 40 44 44 40 39 40 36 38 31 34 30 23 23 21 21 20 18 18 20 17 16 16 10 0 Q4-14 Q4-15 Q4-16 Q4-17 Q4-18 Q4-19 Q4-20 Q4-21 Q4-22 Q4-23
Slide 27: Cash Flows
27 Fiscal 2023 Cash Flows Cash Flows Cash Flow from Cash Flow from (used by) Cash Flow used by Operating Activities ($M) Financing Activities ($M) Investing Activities ($M) 28 225 (92) (48) (115) 24 2022 2023 2022 2023 2022 2023 Higher profitability Debt repayment of $77 million Lower working
Slide 28: Net Debt ($M)
28 Fiscal 2023 Net Debt(1) ($M) Net Debt Apple & Eve acquisition Old Orchard 4,0x Brands acquisition 400,0 369,7 Supply chain 3,5x 340,5 350,0 challenges 317,3 Sun-Rype acquisition Net Debt to Adjusted EBITDA(1) 3,0x 300,0 263,4 252,0 246,7 2,5x 250,0 208,7 2,0x 190,7* 200,0 175,1 152,5 1,5x 1.57x 1
Slide 29: First Quarter Results
29 Q1-2024 First Quarter Results First Quarter Results Profit Attributable to the Sales ($M) Gross Profit ($M) Shareholders ($M) & EPS 547 570 150 25 137 24 17 17 $3.49 +4.1% 26.2% $3.68 25.0% $2.48 $2.51 2023 2024 2023 2024 Profit att. to the Adj. profit att. to the shareholders shareholders (1) Ke
Slide 30: Outlook for 2024
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Slide 31: Looking Ahead
31 Looking Ahead Looking Ahead Remain focused on executing our strategy Accelerate sales growth Improve profitability Create long-term value Priorities for 2024 Build back U.S. volume Fortify our leadership position in Canada Assess options to grow our specialty food business
Slide 32: Manage Input Cost Inflation
32 Manage Input Cost Inflation Manage Input Cost Inflation Closely monitor inflation affecting orange juice and concentrates Remains volatile and high by historical standards Aiming to reduce commodity exposure Driven by innovation
Slide 33: 2024 Sales Outlook
33 2024 Sales Outlook 2024 Sales Outlook Growth rate in the mid-single digit range Excluding FX impacts Driven by selling price adjustments Year-over-year volume growth in the second half Volume decline in the first half of 2024 Sequential improvement in the second half Gradual pace of U.S.
Slide 34: In Conclusion
34 In Conclusion In Conclusion Pleased with 2023 performance Focus on executing strategy should set the stage for further progress in 2024 Another important step towards achieving our long-term growth ambitions Sincere thanks to: All Lassonde employees Business partners Customers and supplie
Slide 35: Questions?
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Slide 36: lassonde.com
B Lassonde lassonde.com
Slide 37: Appendix
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Slide 38: Financial Measures Not in Accordance with IFRS
38 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS Items impacting the comparability between periods These tables contain a list, description and quantification of items impacting the comparability of the financial performance between the periods.
Slide 39: Financial Measures Not in Accordance with IFRS (cont'd)
39 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Adjusted Operating Profit EBITDA and Adjusted EBITDA
Slide 40: Financial Measures Not in Accordance with IFRS (cont'd)
40 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Adjusted Profit Attributable to the Corporation’s Shareholders and Adjusted EPS
Slide 41: Financial Measures Not in Accordance with IFRS (cont'd)
41 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Net Debt to Adjusted EBITDA
Slide 42: Financial Measures Not in Accordance with IFRS (cont'd)
42 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Days Operating Working Capital Days of Sales Outstanding
Slide 43: Financial Measures Not in Accordance with IFRS (cont'd)
43 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Days of Inventory Outstanding Days of Payable Outstanding
Slide 44: lassonde.com
B Lassonde lassonde.com