Slide 1: Third Quarter 2022 Conference Call
Third Quarter 2022 Conference Call November 3, 2022
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, proposed acquisitions, capital projects and plans, outlook and
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 third quarter results despite ongoing headwinds • Sales up 21.0% to $1.62 billion • Adjusted EBITDA up 15.2% or $18.6 million • Adjusted EPS up 3.0% or $0.04 per share to $1.37 per share • Selling price increases of $89.5 million for the quarter – $458 million for the trailing
Slide 6: Environmental, social and governance (ESG)
Environmental, social and governance (ESG) • Released the 2022 ESG Progress Report on October 19th, 2022 that reflects our ongoing commitment to ESG • The report covers a range of ESG matters related to the following topics: People, Nutritious Food, Environment and Communities • Key ESG achievements
Slide 7: Staying the Course Through Adversity
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Slide 8: Staying the Course Through Adversity
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Slide 9: 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: Naturally Cold Wood Smoked, Dry Aged, Authentic European Recipes
Naturally Cold Wood Smoked Dry Aged Unique Deli Shapes Authentic European Recipes Staying the Course Through Adversity 12
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Slide 16: Acquisition Opportunities
Acquisition Opportunities (millions of dollars except transactions) Platform Advanced Active Early Stage Opportunity Inactive Total # Sales # Sales # Sales # Sales # Sales # Sales Seafood 1 40 3 369 10 554 4 100 4 1,025 22 2,088 Distribution - - 4 233 3 1,078 1 911 4 63 12 2,285 Protein - - 1 65 16
Slide 17: Q3-2022 Financial Update
Q3-2022 Financial Update Staying the Course Through Adversity 16
Slide 18: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 Revenue 835.5 968.3 1,101.1 1,341.8 1,623.9 OGR 7.1% 7.6% 10.3% 13.2% 9.6% Long-term targeted volume Positive Factors 1,800.0 50.0% growth rate (6% - 8%) • Acquisitions – $153.4m 1,600.0 45.0% • Selling price
Slide 19: Organic Volume Growth Rate
Organic Volume Growth Rate Temporary factors impacting organic volume growth rate: Long-term targeted organic volume growth • Lower retail channel sales 20.0% resulting from consumer rate range of 4% - 6% spending shifting to 16.0% foodservice and less featuring activity 12.0% • Cancellation of new
Slide 20: Major Organic Growth Drivers
Major Organic Growth Drivers Seafood Distribution Protein Sandwich Bakery Culinary Processed lobster and crab Non-distributive foodservice Branded meat snack sticks Leveraging IP and North Leveraging new Stuyver’s Product solution provider for initiatives in foodservice and sales of differentiated p
Slide 21: 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 # 2022 PBH Total 2021 PBH Total 2020 PBH Total 2019 PBH Total Staying the Course Through Adversity 20
Slide 22: Quarter Adjusted EBITDA Performance
Quarter Adjusted EBITDA Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 EBITDA 71.3 84.1 93.5 122.6 141.2 Margin 8.5% 8.7% 8.5% 9.1% 8.7% Positive factors • Selling price inflation – $89.5m 160.0 Reflects IFRS-16 12.0% • Acquisitions 140.0 11.0% • Organic sales growth •
Slide 23: Quarter Adjusted EBITDA Margin Performance
Quarter Adjusted EBITDA Margin Performance Temporary factors impacting Q3- 2022 EBITDA margin relative to 10% target: 10.0% • Underutilized capacity / sales mix 8.0% • Freight cost inflation • Increased outside storage 6.0% costs associated with high inventory levels 4.0% • Retailer selling price in
Slide 24: Commodity Trends – Pork
Commodity Trends – Pork Pork Index Chart 9.0 8.0 7.0 6.0 USD 5.0 Based Index 4.0 Per lbs 3.0 2.0 1.0 0.0 2019 2020 2021 2022 5yr Avg • Index is comprised of a weighted basket of the following pork products: legs, 72% trim and bellies • Source: USDA Staying the Course Through Adversity 23
Slide 25: Commodity Trends – Beef Index
Commodity Trends – Beef Index 18.0 16.0 14.0 12.0 10.0 USD Based Index 8.0 Per lbs 6.0 4.0 2.0 0.0 2019 2020 2021 2022 5yr Avg • Index is comprised of a weighted basket of the following beef products: striploins, top butts, inside rounds, and 50%, 85% and 90% trims • Source: USDA Staying the Course
Slide 26: Commodity Trends – Chicken Index
Commodity Trends – Chicken Index 4.0 3.5 3.0 2.5 USD 2.0 Based Index Per lbs 1.5 1.0 0.5 0.0 2019 2020 2021 2022 5yr Avg • Index is comprised of chicken: east jumbo boneless/skinless breasts tender out & East Line Run Breast Tenders • Source: Urner Barry Staying the Course Through Adversity 25
Slide 27: Commodity Trends – Lobster Index
Commodity Trends – Lobster Index 40.0 35.0 30.0 USD 25.0 Based Index Per lbs 20.0 15.0 10.0 2019 2020 2021 2022 5yr Avg Bar • Index is comprised of a weighted basket of the following lobster products: 4-5oz tails, claws and knuckles • Source: Urner Barry Staying the Course Through Adversity 26
Slide 28: Commodity Trends – Salmon Index
Commodity Trends – Salmon Index 10.0 9.0 8.0 7.0 CAD Based 6.0 Index Per lbs 5.0 4.0 3.0 2.0 2019 2020 2021 2022 5yr Avg • Index is comprised of following salmon products: farmed, fillet, fresh, Chile Atl.,D-Trim, FOB Miami,2-3 lbs; west coast Atlantic salmon 12-14 pound • Source: Urner Barry Stayin
Slide 29: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts) 2019 2020 2021 2022 Adj earnings 32.9 42.0 57.8 61.3 Adj EPS 0.88 1.07 1.33 1.37 Positive Factors 70.0 • EBITDA growth – $18.6m $1.90 • Decreased income taxes – $1.7m 60.0 $1.70 50.0 Negative Factors $1.50 • Increas
Slide 30: Five Year (2023) Sales Target
Five Year (2023) Sales Target (millions of dollars except percentages) Sales Notes Midpoint of 2022 guidance 5,875.0 Retroactive impact of delayed pricing increases 33.5 Consists of YTD Q3-22 impacts Organic growth for 2023 assuming at a nominal organic growth Organic growth rates for 2019, 2020 and
Slide 31: Five Year (2023) Adjusted EBITDA Target
Five Year (2023) Adjusted EBITDA Target (millions of dollars except percentages) % of EBITDA Notes Sales Low point of 2022 guidance 510.0 8.8% Retroactive impact of delayed pricing increases 33.5 Consists of YTD Q3-22 impacts 543.5 9.2% Contribution margins (CMs) for the Company’s existing portfolio
Slide 32: Projected Inventory
Projected Inventory (millions of dollars) Inventory Safety Q4-2022P Planned Q3-2022 Built for Stock Seasonality Q4-2022P at end of Reduction Q4-2022 Reduction Q2-2022 Seafood Group 101.8 (16.5) - (1.1) (17.6) 84.2 91.2 Distribution Group 146.4 - - (1.3) (1.3) 145.1 132.9 Protein Group 378.5 (18.6) (
Slide 33: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 Long-term targeted 920.0 5.0 Long-term targeted total debt to total senior debt to EBITDA ratio 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 EBITDA
Slide 34: USD / CAD Exchange Rate
USD / CAD Exchange Rate 1.50 1.40 1.30 $ 1.20 1.10 1.00 0.90 Staying the Course Through Adversity 33
Slide 35: Free Cash Flow
Free Cash Flow (millions of dollars except per share amounts and percentages) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 TTM 2022P Payout ratio 106.4% 77.7% 69.6% 70.6% 65.2% 59.4% 53.0% 53.9% 48.4% 43.2% 36.6% 38.5% 38.1% 43.1% 48.7% 42.3% 42.8% Dividend per sha
Slide 36: Capital Allocations – Project Capex
Capital Allocations – Project Capex (in millions of dollars except percentages) Investment Investment Expected Expected Group Q3-2022 YTD-2022 To-Date Expected Completion IRR Premier facility expansion Distribution 1.9 2.9 2.9 9.5 2023 Viandex facility expansion Distribution 0.3 0.3 0.3 9.1 2023 Pil
Slide 37: Questions?
Questions? Staying the Course Through Adversity 36