Slide 1: Third Quarter 2023 Conference Call
Third Quarter 2023 Conference Call November 14, 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, financial performance and condition, acquisition opportunities, capital projects and plans, outlook and objective
Slide 4: Today's Presenters
Today’s Presenters • George Paleologou President & Chief Executive Officer • Will Kalutycz Chief Financial Officer The Next Five Years – Accelerating Growth 3
Slide 5: Key Messages
Key Messages • Record second quarter results • Sales up 1.3% to $1.64 billion • Adjusted EBITDA up 12.5% to $158.8 million • 9.7% adjusted EBITDA margin, up from 8.7% in the third quarter of 2022 • Specialty Foods adjusted EBITDA margin of 11.0%, up 300 basis points from 8.0% in the third quarter of
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: The Next Five Years – Accelerating Growth
The Next Five Years – Accelerating Growth 6
Slide 8: San Leandro Grand Opening
San Leandro Grand Opening November 2023 The Next Five Years – Accelerating Growth 7
Slide 9: The Next Five Years – Accelerating Growth
The Next Five Years – Accelerating Growth 8
Slide 10: Q3-2023 Financial Update
Q3-2023 Financial Update The Next Five Years – Accelerating Growth 9
Slide 11: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 Revenue 835.5 968.3 1,101.1 1,341.8 1,623.9 1,644.9 OGR 7.1% 7.6% 10.3% 13.2% 9.6% 1.3% OVGR 6.6% 5.8% 9.1% 4.7% 1.6% 0.4% Positive factors 1,800.0 50% • Specialty Foods organic volume Long-term targeted
Slide 12: Organic Volume Growth Rate
Organic Volume Growth Rate Long-term targeted organic volume growth rate range of 4% - 6% 20.0% Factors impacting the Q3-2023 16.0% OVGR: • SF: transitory impact of 12.0% customer business optimization initiatives 8.0% • SF: capacity expansion delays 4.0% • PFD: lobster business 0.0% challenges Norm
Slide 13: Maine Lobster Catch
Maine Lobster Catch (in millions of pounds except percentages) 2022 / 2023 2022 / 2023 2021 2022 2023 Change Change (pounds) (%) July 20.0 19.3 17.0 (2.3) (11.9%) August 17.1 21.1 16.4 (4.7) (22.3%) September 18.1 16.2 11.7 (4.5) (27.8%) Total 55.2 56.6 45.1 (11.5) (20.3%) Data is from Urner Barry a
Slide 14: 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 6,350.0 OGR 2.6% 6.0% 4.8% 4.9% 13.5% 18.0% 6.1% 4.7% 6.7% 5.9% 7.6%
Slide 15: Quarter Adjusted EBITDA Performance
Quarter Adjusted EBITDA Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 EBITDA 79.1 84.1 93.5 122.6 141.2 158.8 Margin 9.5% 8.7% 8.5% 9.1% 8.7% 9.7% Positive factors • Price inflation net of raw material, 160.0 12.0% wage and freight cost inflation / deflation 140.
Slide 16: Adjusted EBITDA Margin
Adjusted EBITDA Margin 11.0% 10.5% 10.0% Transitory factors impacting the Company’s Q3-2023 9.5% EBITDA margin: 9.0% • SF: unutilized production capacity 8.5% • PFD: lobster business 8.0% challenges (20 bps) 7.5% 7.0% 6.5% 6.0% Margin Target Margin Q3 Marker The Next Five Years – Accelerating Growth
Slide 17: Specialty Foods – Adjusted EBITDA Margin
Specialty Foods – Adjusted EBITDA Margin 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% Margin Target Margin Q3 Marker The Next Five Years – Accelerating Growth 16
Slide 18: 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 77.6 111.6 154.8 190.2 280.2 307.7 312.6 430.7 504.2 582.5 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 19: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts) 2019 2020 2021 2022 2023 Adj earnings 32.9 42.0 57.8 61.3 56.4 Adj EPS 0.88 1.07 1.33 1.37 1.27 Major positive factors: • EBITDA growth – $17.6m 70.0 • Decreased income taxes – $2.2m $1.90 60.0 Major negative factor
Slide 20: Capital Allocations – Project Capex
Capital Allocations – Project Capex (millions of dollars except percentages) Net Investment To- Q3-2023 YTD-2023 Investment Expected IRR Date Expected Project capital expenditures 84.1 233.7 393.3 669.4 15% or greater Maintenance capital expenditures 8.8 34.4 34.4 52.5 - 92.9 268.1 427.7 721.9 Based
Slide 21: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 Top end of targeted 920.0 Top end of targeted total debt to EBITDA 5.0 total senior debt to ratio EBITDA ratio 820.0 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 22: The Next Five Years – Accelerating Growth
The Next Five Years – Accelerating Growth 21