The Middleby Corporation · NASDAQ:MIDD
The Middleby — Q2 2023 Earnings Presentation
15 slides from The Middleby's earnings presentation, Aug 3, 2023
Slide 1: Q2 Earnings Update
Q2 Earnings Update August 3, 2023 www.middleby.com 1
Slide 2: Middleby Segment Summary
MIDDLEBY SEGMENT SUMMARY Three Industry-Leading Foodservice Platforms 2023 YTD PROFORMA REVENUE BY SEGMENT * Food Processing • 120+ highly-leading brands Commercial 18% 62% • Three highly synergistic foodservice segments Residential 20% • Technology and innovation leader • Differentiated go-to-marke
Slide 3: Financial Results
FINANCIAL RESULTS Q2 2023 Financial Results Results Commentary (in millions, except percentages) Q2 ‘23 Q2 ’22 Change • Organic revenue growth by segment: • Commercial Foodservice 2.9% Net Sales $1,040.0 $1,013.6 2.6% • Residential Kitchen -26.8% Gross Profit 393.2 360.7 • Food Processing 26.7% 9.0%
Slide 4: Commercial Foodservice
COMMERCIAL FOODSERVICE Q2 2023 Financial Results Results Commentary • Margin expansion over prior year as a result of shift (in millions, except percentages) Q2 ‘23 Q2 ’22 Change in mix towards higher technology solutions, Revenues $645.7 $606.3 6.5% manufacturing efficiencies gained through capital
Slide 5: Residential Kitchen
RESIDENTIAL KITCHEN Q2 2023 Financial Results Results Commentary • Residential brands continue to face headwinds from (in millions, except percentages) Q2 ‘23 Q2 ’22 Change higher channel inventory levels and inflationary Revenues $205.6 $280.0 -26.6% pressures Adjusted EBITDA 28.5 52.0 -45.2% • New
Slide 6: Food Processing
FOOD PROCESSING Q2 2023 Financial Results Results Commentary • Organic revenue growth across both bakery and (in millions, except percentages) Q2 ‘23 Q2 ’22 Change protein products Revenues $188.7 $127.3 48.2% • Full-line automated solutions for protein and bakery Adjusted EBITDA 41.4 24.1 71.8% pro
Slide 7: Debt and Liquidity
DEBT AND LIQUIDITY Q2 2023 Leverage Ratio (in $000s) Liquidity Commentary • YTD operating cash flows were $154 million versus Cash $157.3 $89 million in the prior year • LTM operating cash flows $397 million Debt $2,731.8 • Q2 operating cash flows with continued focus on strategic reinvestments: Net
Slide 8: Strategic M&A Focus
STRATEGIC M&A FOCUS Recent M&A Activity Strategic Investment Themes • Middleby has completed 30+ transactions since the beginning of 2019, investing • Automation, IoT and Digital Controls in key technology initiatives and trends, which have enhanced our capabilities • Beverage Platform Expansion and
Slide 9: Acquisitions
ACQUISITIONS www.micronpro.com terryh2o.com t-wusa.com • Micron-Pro brand is a leader in • Water treatment solutions including • Premier manufacturer of ventilation high-capacity oil management TERRY Citryne® used within the innovation for indoor and outdoor systems commercial foodservice industry r
Slide 10: New Product Spotlight: Residential Induction Launch
NEW PRODUCT SPOTLIGHT MIDDLEBY RESIDENTIAL INDUCTION LAUNCH • Induction taking over surface cooking as consumers look for innovative energy-savings products to meeting the electrification demand • Middleby Residential cooking brands bring high-performance induction across all platforms • Drop-ins, r
Slide 11: New Product Spotlight: Induction Range Drop-ins and Range Tops
NEW PRODUCT SPOTLIGHT INDUCTION RANGE DROP-INS AND RANGE TOPS AGA-Mercury 36” Induction Range Top Viking 5-Series 30” Induction Range Top AGA-Elise 36” Induction Range Top Viking 5-Series 36” Induction Range Top NOVY Drop-in range top with integrated downdraft ventilation AGA-Elise 48” Induction Ran
Slide 12: New Product Spotlight: Induction Ranges
NEW PRODUCT SPOTLIGHT INDUCTION RANGES Viking 5-Series 36” Induction Range AGA-Mercury 48” Induction Range La Cornue-CornuFe 48” Induction Range www.middleby.com 12
Slide 13: New Product Spotlight: Invisible Hob and Drop-in Wok Induction
NEW PRODUCT SPOTLIGHT INVISIBLE HOB AND DROP-IN WOK INDUCTION NOVY Invisible (undercounter) Induction Range CookTek Drop-in Induction WOK www.middleby.com 13
Slide 14: New Product Spotlight: NEXGEN Double-Sided Grill
NEW PRODUCT SPOTLIGHT NEXGEN DOUBLE-SIDED GRILL • Embedded automation enables griddling automation for our QSR and casual dining customers • The only true cooking grill with active compression and true parallelism and across the grilling surface • User controlled multi-point gap and leveling system
Slide 15: Grand Opening Residential Showroom Chicago
GRAND OPENING RESIDENTIAL SHOWROOM CHICAGO • Flagship residential showroom opened in June • 7,000 sq ft of indoor and outdoor products across our cooking, refrigeration and beverage brands • Over 20 vignettes for demonstrating and training on all live/active equipment with architects, designers, cha