Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Q4 2024 Earnings Presentation
39 slides from Lassonde Industries, Inc. Class A's earnings presentation, Mar 28, 2025
Slide 1: Introduction to Lassonde
Introduction to Lassonde December 2024
Slide 2: Forward-Looking Statements and use of financial measures not in accordance with IFRS
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: Content
Content 1. Lassonde 101 2. Financial Review 3. Acquisition of Summer Garden 4. U.S. Capital Expenditure Program
Slide 5: Lassonde Industries – Who We Are
5 Lassonde Industries – Who We Are A leader in the North American food and beverage industry • Deep roots in the Well established strength and reputation in beverages community with a proud 100+ year history #1 in Canada - Fruit juices and drinks #2 in the U.S. - Store brand shelf-stable fruit juice
Slide 6: Lassonde Today
6 Lassonde Today Carver (MA) 1 Calgary (AB) 7 Cranberry receiving station 2 Thornbury (ON) 8 Seabrook (NJ) 3 Toronto (ON) Cherry Hill (NJ) 1 4 Rougemont, 9 Office 6 Saint-Damase, 14 Boisbriand (QC) 4 10 Hendersonville (NC) 2 Head office and multiple 3 7 facilities 13 5 11 Springdale (AR) 15 9 8 Niag
Slide 7: Breadth and Depth of Product Offering
7 Breadth and Depth of Product Offering Over 3,500 Unique Products and 200 Formats across Shelf-stable, Chilled and Frozen categories
Slide 8: Pro Forma Sales Distribution
8 Pro Forma Sales Distribution* Others** Specialty Foods Beverages Canada Beverages US - Branded Beverages US - Private Label * Industries Lassonde pro forma sales for the 12-month period ended September 28, 2024 ** Includes Snacks and Diamond
Slide 9: Sales by Country 2024 Pro Forma
9 Sales by Country 2024 Pro Forma* % of Sales from the U.S. 70% 60% Clement Pappas August 2011 43% 50% Sales in Canada 40% Old Orchard Apple & Eve May 2018 30% Summer Garden July 2014 August 2024 57% 20% Sales in the U.S. Sun-Rype 10% January 2020 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 10: Sales by Brand Type
10 Sales by Brand Type National Brands* Canada Sales by Brand Type – Pro Forma 2024** Partner Brands 43% 57% National Private Brands Label Products United States * Non exhaustive ** Industries Lassonde pro forma sales for the 12-month period ended September 28, 2024
Slide 11: Extensive Customer List
11 Extensive Customer List* * Only a sample of Lassonde’s customers are represented on this page
Slide 12: Sales by Market Segment – 2024 Pro Forma
12 Sales by Market Segment – 2024 Pro Forma* Institutions; directly or 10% Food retailers and Food through wholesalers Service wholesalers • Restaurants • Supermarket chains 90% • Hotels Retail • Independant grocers • Hospitals • Superstores • Schools • Warehouse clubs • Distributors • Major pharmac
Slide 13: A stronger, more diversified and leading NA agri-food and beverage player
13 A stronger, more diversified and leading NA agri-food and beverage player Our great tasting products in more hands, serving more needs, across more occasions, every day.
Slide 14: Our Multi-Year Strategic Plan
14 Our Multi-Year Strategic Plan OBJECTIVES PRIORITIES • Drive long-term value • Build a growth-oriented portfolio • Accelerate revenue growth • Drive sustainable performance • Improve overall margins and profitability • Improve capacity to act
Slide 15: Build a Growth-Oriented Portfolio
15 Multi-year Strategy – Build a Growth-Oriented Portfolio Unlock the full potential of our U.S. operations • Reset and optimize private label activities • Build stronger branded operations to capture growth and improve profitability Sustain profitable growth in Canada • Invest in our brands • Stren
Slide 16: Drive Sustainable Performance
16 Multi-year Strategy – Drive Sustainable Performance Increase investment in our manufacturing network • New single-serve line in the U.S. • Higher speed juice box lines in Canada • New facility in New Jersey Continue to focus on our NA supply Chain • Network optimization • Best in class purchasing
Slide 17: Improve Capacity to Act
17 Multi-year Strategy – Improve Capacity to Act Implement a new operating model: The power of global at the speed of local • Operate in a manner that is close and responsive to the market • Leverage scale and common capabilities to capture synergies • Establish common best practices to enable servi
Slide 18: Adjusted EBITDA Margin – Past 11 Years
18 Adjusted EBITDA Margin(1) – Past 11 Years 12.0% Inflection point in U.S. divisions performance 11.0% (pre U.S. 11.5% challenges) 11.0% 10.6% (pre 2020) 10.5% 10.0% 10.1% average 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 LTM Q3- 24 (1) Financial measure n
Slide 19: Adjusted EBITDA Margin of NA Selected Peers
19 Adjusted EBITDA Margin(1) of NA Selected Peers – Last 5 Years Average 10 LASSONDE’S Number of companies observed in the EBITDA% range 8.9% 2023 Adjusted EBITDA margin (1) 9 10.1% 11-yr average 8 10.6% pre 2020 average 7 11.0% pre U.S. challenges average 6 11.5% pro forma Summer Garden(2) 5 Peer g
Slide 20: Improving our Margin from Current Level
20 Improving our Margin from Current Level Key factors driving progressive margin Material Risks improvement • The occurrence of widespread economic 1. Building back volume at our U.S. operations restrictions, such as tariffs, supply chain delays or shocks due to, among other 2. Run rate effect of p
Slide 21: Net Debt to Adjusted EBITDA
21 Solid Financial Position to Finance Expansion Projects Net Debt(1) ($M) Summer Garden acquisition 4.0x 500.0 Apple & Eve $456.0 3.5x acquisition Old Orchard Brands acquisition $369.7 400.0 Supply chain Net Debt to Adjusted EBITDA(1) 3.0x $340.5 $317.3 Sun-Rype challenges 2.5x acquisition $263.4 3
Slide 22: Key Takeaways
22 Key Takeaways 1 Target of $3bn in sales by 2026 supported by clear growth platforms 2 Beyond top line expansion, opportunities to expand margins 3 Solid balance sheet to finance expansion 4 100+ year history with solid track record of performance 5 Strong foundation to win in our markets: portfol
Slide 23: Content
Content 1. Lassonde 101 2. Financial Review 3. Acquisition of Summer Garden 4. U.S. Capital Expenditure Program
Slide 24: Fiscal 2023 Profitability Improvement
24 Fiscal 2023 Profitability Improvement Gross Profit ($M) Adjusted Profit Attributable to the Sales ($M) & Gross Margin Shareholders(1) ($M) & Adjusted EPS(1) $2,314.9 $89.9 $2,151.0 +7.6% $587.7 $523.3 +12.3% $64.4 +39.6% 25.4% $13.18 24.3% $9.37 2022 2023 2022 2023 2022 2023 Key Highlights Higher
Slide 25: Q3 2024 Sales Increase
25 Q3 2024 Sales Increase ($M) Key Highlights ✓ Sales from Acquired Entities(1): $668.3 ▲ $26.7M Summer Garden +14.5% $583.4 ▲ $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: ▲ $12.6M private lab
Slide 26: Q3 2024 Improved Profitability
26 Q3 2024 Improved Profitability Adjusted Profit Attributable to the Adjusted EBITDA(1) ($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% $3.67 2023 2024 2023 2024 2023 2024 Key Highlights Net of Acq
Slide 27: Financial Highlights – First nine months of 2024
27 First nine months of 2024 Financial Highlights Adjusted Profit Attributable to the Sales ($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 2024 (1) Financial measure
Slide 28: Content
Content 1. Lassonde 101 2. Financial Review 3. Acquisition of Summer Garden 4. U.S. Capital Expenditure Program
Slide 29: Transaction Overview
29 Transaction Overview Ohio-based manufacturer and distributor of specialty food products Portfolio focused on premium pasta sauces and a range of sugar-free sauces and condiments • Early entrant and leader in the growing sugar-free segment of the BBQ sauces • Branded portfolio of approximately 250
Slide 30: Transaction Rationale
30 Transaction Rationale Enhances our position as a manufacturer of choice for retort-based products • Specialty food core capability • Better serve customers and remain competitive in a growing market Further growth potential by expanding retort capacity, financed through cash flows from current ac
Slide 31: Operations Overview
31 Operations Overview Production facility in Boardman, Ohio • Adjacent facilities for warehousing, R&D, offices • Already identified opportunities to add capacity and expand footprint High-acid manufacturing: tomato-based and BBQ sauces Low-acid manufacturing: dairy and egg-based sauces • Includes
Slide 32: Financial Overview
32 Financial Overview Financial Metrics Transaction Metrics Other Considerations For the 12-month period • US$237.2 M at closing • US$241.0 M paid at closing financed through: ended May 2024: - Including US$2.2 M in preliminary - US$224.5 M from Canadian revolving operating working capital adjustmen
Slide 33: Implication of Purchase Price Allocation on Financial Results
33 Implication of Purchase Price Allocation on Financial Results Inventory step-up • US$3.2M expensed in cost of sales in Q3-2024 Fair value of property, plant and equipment • Annual depreciation expense currently estimated at US$3.9M Intangible assets • Annual amortization expense currently estimat
Slide 34: Content
Content 1. Lassonde 101 2. Financial Review 3. Acquisition of Summer Garden 4. U.S. Capital Expenditure Program
Slide 35: U.S. Capital Expenditure Program
35 U.S. Capital Expenditure Program Enhance the competitiveness of our manufacturing network US$200 million investment for a new facility in New Jersey • Replace the current plant Net debt to • Construction should begin in early 2025 adjusted EBITDA ratio to range • Production activities progressive
Slide 36: New Facility in New Jersey
36 New Facility in New Jersey
Slide 37: Financial Measures Not in Accordance with IFRS
Financial Measures Not in Accordance with IFRS
Slide 38: Financial Measures Not in Accordance with IFRS
38 Financial Measures Not in Accordance with IFRS* EBITDA and Adjusted EBITDA Adjusted Profit Attributable to the Corporation’s Shareholders and Adjusted EPS EBITDA is a financial measure used by the Corporation and investors to assess the Corporation’s capacity to generate future cash flows from op
Slide 39: lassonde.com
B Lassonde lassonde.com