Srx Health Solutions, Inc. · AMEX:SRXH
Srx Health Solutions — Better Choice — Q3 2021 Earnings Presentation
20 slides from Srx Health Solutions's earnings presentation, Nov 10, 2021
Slide 1: Q3 2021 Earnings Presentation
1 November 10, 2021 Q3 2021 Earnings Presentation
Slide 2: Safe Harbor
Safe Harbor This presentation regarding Better Choice Company, Inc. (“the Company”, “Better Choice”, “BTTR”, “we”, “us” or “our”) is strictly confidential and is for you to familiarize yourself with the Company. This presentation contains information, statements, beliefs and opinions which are forwa
Slide 3: Better Choice Overview
Better Choice Overview 3 * Includes subscription purchases made by end customers on our partner websites. Company Overview: • Dynamic and forward-thinking pet food company targeting the premium pet food market • Flexible omni-channel go to market strategy with four differentiated sales channels • Ex
Slide 4: Better Choice's Brand Portfolio
Better Choice’s Brand Portfolio 4 Current Halo Brand 2022 Pet Specialty Launch Brand Consolidation Opportunity Pet Parent Target Female Millennials With High Willingness to Pay Core Benefit Holistic, Benefit-Based Solutions (Digestion, Vegan, etc.) Best In-Class Nutrition with Transparent Recipes Re
Slide 5: Better Choice Investment Highlights
Better Choice Investment Highlights 5 Note: Premium and super premium segments defined as being sold with a retail price greater than $0.20 per ounce. Executive Team Purpose Built for Success in the Pet Industry Recurring Revenue Represents Majority of Online Sales Rapidly Growing International Pres
Slide 6: Seasoned Management Team & Board
Lionel Conacher YEAR JOINED BOD: 2021 Seasoned Management Team & Board 6 Scott Lerner CEO 20+ YEARS CONSUMER PRODUCTS EXPERIENCE Management Team Board of Directors YEAR JOINED BOD: 2019 Management and key insiders own 27% of Better Choice as of September 30, 2021 Donald Young EVP Sales 29 YEARS PET
Slide 7: A World-Class Foundation Built For Growth
A World-Class Foundation Built For Growth 7 Infrastructure A wide scope of systems ensures scalable success • World class ERP system • Shopify (third party ecommerce platform) • IT expertise and work from anywhere support • Integrated SEC reporting Suppliers • All dry kibble and freeze-dried food an
Slide 8: A True Omni-Channel Approach
A True Omni-Channel Approach 8 We Believe Our Differentiated Omni-Channel Strategy Is A Key To Success: 1. Eliminates Channel Conflict 2. Increases Operating Leverage 3. Accelerates Topline Growth A laser focused, channel-specific approach to growth that is driven by new product innovation Internati
Slide 9: Halo is the brand for a new generation of pet parents
9 Halo is the brand for a new generation of pet parents
Slide 10: Illustrative Path to $100M Gross Sales by Channel
Illustrative Path to $100M Gross Sales by Channel 10 Potential M&A % 2020 Net Sales 2020 Net Sales Illustrative Growth Opportunities E-Commerce Organic Growth34% DTC Organic Growth25% International Contracted Volumes20% Brick & Mortar Pet Specialty Expansion21%
Slide 11: Pet Specialty Channel Key to Customer Acquisition
Pet Specialty Channel Key to Customer Acquisition 11 • A significant number of “success stories” in branded pet have built loyalty in the neighborhood pet and pet specialty channels, including Blue Buffalo, WellPet, Nutro and Merrick, prior to significant strategic exits Mars Pet Care Acquires Nutro
Slide 12: Pet Specialty 2022 Launch Partners are Secured
Pet Specialty 2022 Launch Partners are Secured 12 • Specifically built for millennial pet parents • Designed by in-house formulation experts & veterinarians • Product gross margin targets exceed current Better Choice gross margin • 3rd Largest Pet Specialty Retailer • 560+ US Locations • 2nd Largest
Slide 13: Halo Elevate Production Runs are Happening Now
Halo Elevate Production Runs are Happening Now 13 Innovation pipeline centered on Halo Elevate, a highly nutritious food that takes the uncertainty and complexity out of what you are feeding your dog and provides recipe transparency you can see and trust. Future Innovation Halo Holistic 2022 Refresh
Slide 14: International Growth Driven by Asian Demand
14 International Growth Driven by Asian Demand International Growth is Centered Around Strong Asian Demand • Chinese pet market estimated to be ~$7 billion by 2022, with premium dry dog and cat food markets growing at 20% and 28% CAGRs1 • $10.8m in YTD 2021 net sales represents 46% increase, with si
Slide 15: Strategic Acquisition Update
Strategic Acquisition Update In-House M&A Capabilities Stand Out Relative To Other Brand Platforms • Potential brands must meet stringent investment criteria (valuation, channel mix, supply chain, customer profile, etc.) • Ability to source proprietary / non-auction transactions as an operating bran
Slide 16: Q3 2021 Financial Snapshot
Q3 2021 Financial Snapshot 16 2020 Annual Results 3Q 2021 Net Sales1 ($ in millions) 3Q 2021 Gross Profit & Margin1 ($ in millions) 1. For three months ended September 30 3Q 2021 Commentary $16.1M Gross Profit $42.6M Net Sales ($1.9)M Adj. EBITDA Domestic & International Sales • Strong E-Commerce ne
Slide 17: Q3 2021 Income Statement
Q3 2021 Income Statement Better Choice Company Inc. Unaudited Consolidated Statements of Operations (Dollars in thousands, except share and per share amounts) Net sales Cost of goods sold Gross profit Operating expenses: General and administrative Sales and marketing Share-based compensation Total o
Slide 18: Q3 2021 Adjusted EBITDA Reconciliation
Q3 2021 Adjusted EBITDA Reconciliation 18
Slide 19: Capital Raise Has Enabled Growth
Capital Raise Has Enabled Growth Closing of $40m Underwritten Public Offering on July 1, 2021 • Listing of BTTR on NYSE American • $40m Primary Proceeds raised at $5.00 / share (~3x 2020 Net Sales) • Automatic Conversion of ~$23m of Convertible Debt into Common Shares • 29.2m common shares outstandi
Slide 20: Better Choice Company
BETTER CH@ICE COMPANY