Slide 1: First Quarter 2023 Conference Call
First Quarter 2023 Conference Call May 15, 2023
Slide 2: Disclaimer
Disclaimer This presentation is not intended to form the basis of any investment decision and should not be considered as a recommendation by Premium Brands Holdings Corporation (the “Company”) or any other person in relation to the Company’s business or the securities of the Company. This presentat
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward looking statements with respect to the Company, including, without limitation, statements regarding its business operations, strategy and financial performance and condition, acquisition opportunities, capital projects and plans, outlook
Slide 4: Today's Presenters
Today’s Presenters • George Paleologou President & Chief Executive Officer • Will Kalutycz Chief Financial Officer Staying the Course Through Adversity 3
Slide 5: Key Messages
Key Messages • Record first quarter results • Sales up 14.3% to $1.43 billion • Adjusted EBITDA up 15.6% to $110.7 million • Adjusted EPS at $0.64 per share • Slowest quarter of the year for seasonal reasons • Organic volume growth rate at 5.3%, up from 4.5% in Q4-2022 and 2.9% in Q3-2022 • Purchase
Slide 6: Acquisition Opportunities
Acquisition Opportunities (millions of dollars except transactions) Agreed to terms and in Identified future Past discussions and In negotiations In discussions due diligence opportunity currently on hold Platform Advanced Active Early Stage Opportunity Inactive Total # Sales # Sales # Sales # Sales
Slide 7: Staying the Course Through Adversity
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Slide 9: Staying the Course Through Adversity
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Slide 10: Staying the Course Through Adversity
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Slide 11: Staying the Course Through Adversity
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Slide 12: Specialty Dry Cured – Bulk & Sliced, Meat Snacks
• Specialty Dry Cured – • Meat Snacks Bulk & Sliced 11 Staying the Course Through Adversity 11
Slide 13: Staying the Course Through Adversity
12 Staying the Course Through Adversity 12
Slide 14: Q1-2023 Financial Update
Q1-2023 Financial Update Staying the Course Through Adversity 13
Slide 15: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 Revenue 584.9 776.6 935.0 1,009.8 1,251.2 1,430.5 OGR 9.2% 1.8% 16.1% 1.7% 14.7% 11.7% 1,600.0 35.0% Drivers Long-term targeted organic growth rate (6% - 8%) • Organic volume growth – $66.8m 1,400.0 30.0
Slide 16: Organic Volume Growth Rate
Organic Volume Growth Rate Long-term targeted organic volume growth 20.0% rate range of 4% - 6% 16.0% Challenges impacting 12.0% the Company’s Q1- 2023 OVGR: 8.0% • Q1 is generally the slowest growth quarter due to 4.0% seasonal factors • Turkey supply 0.0% challenges -4.0% -8.0% PBH Total Q1 Marker
Slide 17: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023P Revenue 535.2 794.3 960.1 1,043.0 1,221.8 1,484.5 1,857.5 2,198.3 3,025.8 3,649.4 4,068.9 4,931.7 6,029.8 6,500.0 OGR 2.6% 6.0% 4.8% 4.9% 13.5% 18.0% 6.1% 4.7% 6.7% 5.9% 7.6%
Slide 18: Weekly Sales Trend
Weekly Sales Trend 140,000 120,000 100,000 80,000 $000's 60,000 40,000 20,000 - 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Week # 2023 PBH Total 2022 PBH Total 2021 PBH Total 2020 PBH Total 2019 PBH Total Staying the Course Through Adversity 17
Slide 19: Quarter Adjusted EBITDA Performance
Quarter Adjusted EBITDA Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 EBITDA 43.0 60.3 64.3 82.5 95.8 110.7 Margin 7.3% 7.8% 6.9% 8.2% 7.7% 7.7% Major Positive Drivers • Price inflation net of raw material, Reflects IFRS-16 wage and freight cost inflation 120.0 1
Slide 20: Margin Recovery
Margin Recovery (millions of dollars except percentages) Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Selling price increases 122.6 134.4 89.5 61.9 42.6 Raw material, wage and freight cost inflation (124.5) (130.9) (77.5) (45.8) (24.7) Margin dollar impact (1.9) 3.5 12.0 16.1 17.9 Margin impact - 2.6% 13
Slide 21: Quarter Adjusted EBITDA Margin Performance
Quarter Adjusted EBITDA Margin Performance 10.0% Factors impacting the Company’s Q1-2023 EBITDA margin relative 8.0% to 10% target: • Q1 is generally a 6.0% lower margin quarter as a result of 4.0% seasonal factors • Unutilized production 2.0% capacity • Bolt-on turnaround 0.0% acquisitions • Retail
Slide 22: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023P EBITDA 42.0 54.9 66.8 69.3 77.6 111.6 154.8 190.2 280.2 307.7 312.6 430.7 504.2 600.0 Margin 7.8% 6.9% 7.0% 6.6% 6.4% 7.5% 8.3% 8.7% 9.3% 8.4% 7.7% 8.7% 8.4% 9.2% 700.0 12.0%
Slide 23: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts) 2019 2020 2021 2022 2023 Adj earnings 17.6 19.9 31.3 39.4 28.6 Adj EPS 0.52 0.53 0.72 0.88 0.64 Major positive factors: 45.0 • EBITDA growth – $14.9m 40.0 $1.60 • Income taxes – $6.3m 35.0 $1.40 Major negative facto
Slide 24: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 Top end of targeted total debt to EBITDA 920.0 ratio 5.0 Top end of targeted total senior debt to 820.0 EBITDA ratio 4.5 720.0 4.0 620.0 3.5 520.0 3.0 420.0 2.5 320.0 2.0 220.0 1.5 120.0 1.0 20.0 0.5 Available Credit (LHS) Total Debt to EBITD
Slide 25: Inventory Trend Analysis
Inventory Trend Analysis (millions of dollars unless noted otherwise) Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Inventory 388.2 372.5 358.6 396.2 464.3 430.5 417.0 448.8 481.5 483.0 513.6 645.2 740.5 836.2 821.1 786.1 829.7 DPI 57.3 45.2 42
Slide 26: Capital Allocations – Project Capex
Capital Allocations – Project Capex (millions of dollars except percentages) Investment To- Investment Group Q1-2023 Expected IRR Date Expected Viandex facility expansion Distribution 0.9 1.7 9.5 Hempler’s Ferndale facility expansion Protein US16.1 US47.4 US84.1 Piller’s Wismer facility replacement
Slide 27: Questions?
Questions? Staying the Course Through Adversity 26