Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Shareholder Meeting (May 2014)
36 slides from Lassonde Industries, Inc. Class A's shareholder meeting presentation, May 13, 2014
Slide 1: Annual General Meeting of Lassonde Industries Inc.
ANNUAL GENERAL MEETING OF LASSONDE INDUSTRIES INC. MAY 13, 2014 Financial Results for Fiscal 2013 and First Quarter 2014
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements made in this presentation, including, but not limited to, statements regarding the prospects of the industry, plans, financial position, and business strategy of the Company may constitute forward-looking statements within the meaning of Canadian securit
Slide 3: Highlights – Fiscal 2013: Earnings
HIGHLIGHTS–FISCAL 2013 Earnings In millions of $ Years ended (except EPS) December 31 %∆ %∆ 2013 2012* 2011* 13 vs 12 12 vs 11 Sales 1,040.2 1,022.2 760.3 1.8% 34.5% Operating profit 83.1 85.9 60.7 -3.2% 41.5% Operating profit/Sales 8.0% 8.4% 8.0% Profit 46.3 45.3 34.8 2.3% 30.0% Profit attributable
Slide 4: Highlights – Fiscal 2013: Earnings (cont'd)
HIGHLIGHTS–FISCAL 2013 Earnings (cont'd) ● Sales of $1,040.2M, $18.0M vs $1,022.2M in 2012; ● $12.5M increase in sales of private label products; ● Favourable foreign exchange impact of $13.9M; ● $7.2M decrease in sales of national brand products; ● $1.2M increase in slotting fees. ● Operating pro
Slide 5: Highlights – Fiscal 2013: Earnings (cont'd)
HIGHLIGHTS–FISCAL 2013 Earnings (cont'd) ● “Other (gains) losses” $1.3M gain in 2013 vs a $2.9M loss in 2012: ● In 2013, substantially all of the gain was attributable to foreign exchange gains; ● In 2012, a $2.6M loss was due to the change in fair value of interest rate swaps related to CPC debt. ●
Slide 6: Highlights – Fiscal 2013: Consolidated Statements of Financial Position
HIGHLIGHTS–FISCAL 2013 Consolidated Statements of Financial Position In millions of $ As at December 31 %∆ %∆ 2013 2012 2011 13 vs 12 12 vs 11 Non-cash working capital 120.8 127.1 159.1 -5.0% -20.1% Property, plant and equipment 248.4 238.9 237.5 4.0% 0.6% Total assets 796.8 800.0 798.0 -0.4% 0.2% $
Slide 7: Highlights – Fiscal 2013: Free Cash Flow Analysis
HIGHLIGHTS–FISCAL 2013 Free Cash Flow Analysis In m illions of $ Years ended December 31 Variance 2013 2012** 2013-2012 Free cash flows Profit 46.3 45.3 1.0 Adjustments Amortization and Depreciation 32.4 31.6 0.8 Pension plans, income tax and other 14.0 1.9 12.1 Change in non-cash working capital 2.
Slide 8: Highlights – First Quarter 2014: Earnings
HIGHLIGHTS–FIRST QUARTER 2014 Earnings In millions of $ (sauf le BPA) First Quarters ended March 29 March 30 %∆ $∆ 2014 2013 14 vs 13 14 vs 13 Sales 244.2 240.6 1.5% 3.6 Operating profit 14.3 13.8 3.4% 0.5 Operating profit/Sales 5.9% 5.7% Profit attributable to shareholders 7.1 5.9 21.2% 1.2 EBITDA
Slide 9: Highlights – First Quarter 2014: Earnings (cont'd)
HIGHLIGHTS–FIRST QUARTER 2014 Earnings (cont'd) ● Sales of $244.2M, $3.6M from $240.6M in 2013: ● 1.5% increase explained by: – Favourable foreign exchange impact, – $1.3M reduction in slotting fees… – Slightly offset by a decrease in sales volumes affecting private label and national brand produc
Slide 10: Highlights – First Quarter 2014: Earnings (cont'd)
HIGHLIGHTS–FIRST QUARTER 2014 Earnings (cont'd) ● “Other (gains) losses” were $(1.2)M vs $(0.3)M in 2013, of $(0.9)M: ● Primarily due to the favourable change in foreign exchange gains between 2013 and 2014. ● Effective tax rate of 27.9% for Q1-2014 compared to an effective rate of 24.0% in 2013:
Slide 11: Dividends and Outlook – Fiscal 2014
DIVIDENDS AND OUTLOOK–FISCAL 2014 ● Dividends: ● Quarterly dividend of $0.40 per share (payable on June 13 for Q1); ● 2.6% increase over 2013; ● On an annualized basis, represents approximately 25% of 2013 profit attributable to shareholders. ● Outlook: ● Increased competition among North American m
Slide 12: Lassonde Industries Inc. Standing out in competitive markets
LASSONDE INDUSTRIES INC. Standing out in competitive markets 12
Slide 13: Lassonde Industries Inc.
LASSONDE INDUSTRIES INC. 2013 Sales: $1,040.2 million Cash flows from operating activities: $94.8 million Lassonde Industries Inc. develops, manufactures, and markets distinctive food products. Lassonde Clement Pappas & A. Lassonde Inc. Arista Wines Specialties Inc. Company, Inc. The Canadian Develo
Slide 14: Our Operations
OUR OPERATIONS 1. Calgary (AB) 2. Thornbury (ON) 3. Toronto (ON) 4. Rougemont, Saint-Damase, Boisbriand (QC) (head office and multiple facilities) 5. Port Williams (NS) 1 4 5 2 6. Carver (MA) 3 6 (cranberry receiving station) 7. Seabrook (NJ) 9 7 8 8. Carneys Point (NJ) 12 (head office) 11 9. Baltim
Slide 15: Competitive Environment: Fruit juices and drinks
COMPETITIVE ENVIRONMENT Fruit juices and drinks 15
Slide 16: Video
Industriesg
Slide 17: Corporate Strategy
CORPORATE STRATEGY To offer consumers the right product in the right size at the right price To focus on To healthy products consolidate To promote To innovate sustainable development 17
Slide 18: Corporate Strategy: The right product in the right size at the right price
CORPORATE STRATEGY The right product in the right size at the right price ● Strategic positioning: ● Respond to increased segmentation of our markets explained by an increase in disparities in disposable household income: – Strong increase in demand in dollar stores vs warehouse clubs; – Increased d
Slide 19: Corporate Strategy: Implementation
CORPORATE STRATEGY The right product in the right size at the right price ● Implementation: ● Greek Yogurt: Launch of the chilled Oasis Smoothie 1.75 L (raspberry, cherry, pomegranate, and fresh Greek yogurt). ● Oasis Health Break: Strawberry-Rhubarb with 10 vitamins and minerals 1.75 L. ● Diversity
Slide 20: Corporate Strategy: To consolidate
CORPORATE STRATEGY To consolidate ● Strategic positioning: ● Maintain competitive leverage vis-à-vis corporate competitors with a strong presence in Canada and the United States; ● Take advantage of economies of scale that come from adding sales volumes from both national and private label brands; ●
Slide 21: Corporate Strategy: To focus on healthy products
CORPORATE STRATEGY To focus on healthy products ● Strategic positioning: ● Meet the expectations of consumers who care more about the functional aspects of their diet; ● Promote healthy lifestyles. ● Implementation: ● Develop products with – MORE desirable ingredients: – Fibre, vitamins, minerals –
Slide 22: To focus on healthy products: More desirable ingredients
CORPORATE STRATEGY To focus on healthy products MORE desirable ingredients: 22
Slide 23: Healthy products: Organic
CORPORATE STRATEGY To focus on healthy products MORE desirable ingredients: Organic Oasis Junior Juice: Oasis Organic: 100% organic juice Launch in May 2014 23
Slide 24: Healthy products: Fewer calories
CORPORATE STRATEGY To focus on healthy products FEWER calories Oasis NutriSource Juice with reduced calories and sugar Natural sweetener: Stevia 24
Slide 25: Healthy products: Race sponsorships
CORPORATE STRATEGY To focus on healthy products ● 21 races across Canada ● In addition to being the title sponsor of the Montreal OASIS Marathon: ● Vancouver OASIS Half Marathon ● Toronto OASIS ZooRun ● Vancouver Sun Run ● Calgary Marathon ● Blue Nose Marathon (Halifax) 25
Slide 26: Corporate Strategy: To innovate
CORPORATE STRATEGY To innovate ● Strategic positioning: ● Be the first to offer consumers a choice of more varied solutions, better adapted to their changing needs; ● Implementation: ● Develop strategic partnerships on new food trends; – Richard Béliveau, Ph.D. in Biochemistry and a strategic consul
Slide 27: Corporate Strategy: Sustainable development
CORPORATE STRATEGY Sustainable development ● Strategic positioning: ● Be among the leaders in sustainable development through practices that respect the environment and society, and products that contribute to the health and wellness of consumers. ● Prioritize the three following areas of interventi
Slide 28: Sustainable development: Implementation (cont'd)
CORPORATE STRATEGY Sustainable development ● Implementation (cont'd): ● Water: – Commitment to reduce our water use by 25% over 5 years. – Reduction of 75,000 m3/year (7.8%) after 2 years; – Over 2 years, an investment of more than $1M in equipment and technology. ● Packaging: – Reduced our use of p
Slide 29: Priorities for 2014
PRIORITIES FOR 2014 ● Stay on the lookout for any acquisition opportunity that could help accelerate the entry of national brand products into the U.S. market; ● Launch of new products (Oasis Organic, Del Monte Gold, …); ● Adjustment of the mode of operation and expense levels to improve competitive
Slide 30: Lassonde Industries Inc. Financial Performance
LASSONDE INDUSTRIES INC. Financial Performance 30
Slide 31: Selected Financial Information 5 Years
SELECTED FINANCIAL INFORMATION 5 YEARS Sales (in millions of $) EBITDA (in millions of $) *CAGR 5 years: 15.5% *CAGR 5 years: 15.5% 1,200.0 140.0 1,022.2 1,040.2 116.2 115.7 1,000.0 120.0 100.0 800.0 760.3 83.7 80.0 600.0 64.2 66.7 524.2 536.2 60.0 400.0 40.0 200.0 20.0 0.0 0.0 2009 2010 2011 2012 2
Slide 32: Selected Financial Information 5 Years (cont'd)
SELECTED FINANCIAL INFORMATION 5 YEARS (cont'd) EBIT (in millions of $) EPS (in $) *CAGR 5 years: 14.5% *CAGR 5 years: 7.9% 100.0 8.00 85.9 83.1 7.00 6.32 6.43 80.0 6.00 5.16 60.7 4.86 60.0 5.00 4.62 50.2 47.4 4.00 40.0 3.00 2.00 20.0 1.00 0.0 0.00 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 F
Slide 33: Stock Price
STOCK PRICE ● The stock price increased from $40.25 as at May 8, 2009 to $103.50 as at May 8, 2014 for a total return of 157% (CAGR – 5 years: 20.8%). Dividends per share - 5 years 2009 2010 2011 2012 2013 1.025 1.14 1.19 1.23 1.48 33
Slide 34: Our Future
OUR FUTURE To be close to To give service consumers that meets and our clients our clients’ expectations TO CONTINUE TO INNOVATE AND TO BE CONCERNED ABOUT HEALTH To realize the benefits of our To do as well in the acquisition in terms of future as both product in the past ranges and economies of sca
Slide 35: Questions
Lassonde Industriesg
Slide 36: Annual General Meeting of Lassonde Industries Inc.
ANNUAL GENERAL MEETING OF LASSONDE INDUSTRIES INC. MAY 13, 2014 Financial Results for Fiscal 2013 and First Quarter 2014