Slide 1: Better Choice Company Q1 2022 Earnings Presentation
Better Choice Company Q1 2022 Earnings Presentation May 12, 2022
Slide 2: Forward-looking statements disclaimer
This presentation regarding Better Choice Company, Inc. (“the Company”, “Better Choice”, “BTTR”, “we”, “us” or “our”) is for you to familiarize yourself with the Company. This presentation contains information, statements, beliefs and opinions which are forward-looking, and which reflect current est
Slide 3: Purpose Built for Success in the Pet Industry
3 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 Significant Online Recurring Revenue Base (Chewy, Amazon and DTC) Rapidly Growing International Sales ($100m+ contracted in
Slide 4: Reaching millennial pet parents across channels
• Our goal is to reach millennial pet parents enabling purchase of Halo products wherever, whenever, and however they choose. • Differentiating through thoughtful merchandising of the Halo portfolio that maximizes conversion and margin in store, DTC, and eCommerce channels. • Turning every consumer
Slide 5: Halo is the brand for a new generation of pet parents
5 Halo is the brand for a new generation of pet parents
Slide 6: Retail launches at Petco, Pet Supplies Plus and independents
6 Pet Supplies Plus: Dog Aisle • Launch Date: April ‘22 • 600+ Stores • 5’ Shelf Space • “Preferred Brand” Petco: Seasonal Wall • Launch Date: May ‘22 • ~900 Petco Stores • 4’ – 8’ Shelf Space • “Best Choice Brand” Petco: Dog Aisle • 1,000+ Stores by July ‘22 • 167 Stores in Q1 ‘22 • 4’ – 8’ Shelf S
Slide 7: Augmented reality experience and new sales team members
7 SCAN HERE FOR AR EXPERIENCE Compare Brands Answer Questions Incentivize Purchase Augmented Reality Engages Store Associates and Consumers Added 5 New Sales Team Members in 2022 To Support Launch
Slide 8: Dramatic improvements to our online presence
We Made Dramatic Improvements to our Online Presence Halopets.com is Officially Live New Look and Feel on Instagram < “pont < ratcoetse U7 Your pet’s top 5 health needs. It's a pet mom thing. You know you' wh BETTER CH@ICE
Slide 9: Halo Holistic freeze-dried raw and treats launch timeline
9 Halo Holistic Freeze- Dried Raw & Treats • Estimated Q3 ‘22 Production & Q4 ‘22 Launch on Domestic E- Commerce Platforms & DTC Site • Minimal Disruption to Existing Subscriber Base Anticipated • Estimated Q2 ‘22 Production & Gradual Phase in During 2H ‘22 • Minimal Disruption to Existing Subscribe
Slide 10: International growth continues to exceed expectations
International Growth Continues to Exceed Expectations Holistic Renovation High Protein Cat Innovation $7M Q1 ‘22 Sales ~3x Q1 ’21 & +77% Q4 ‘21 $100M ’21–’25 Sales Aggregate Contracted Minimums 10 • On pace to exceed contracted volumes in 2022 • International growth driven by Asian demand for dry ca
Slide 11: Q1 2022 sales and gross margin versus Q4 2021
11 Q4 2021 Q1 2022 Delta $ in millions $ % $ % $ % Gross Sales: Domestic $9.7 71% $12.7 65% $3.1 32% International $3.9 29% $7.0 35% $3.0 77% Total $13.6 100% $19.7 100% $6.1 45% Net Sales: Domestic $7.1 64% $10.1 59% $3.0 43% International $3.9 36% $6.9 41% $3.0 76% Total $11.0 100% $17.0 100% $6.0
Slide 12: Q1 actions taken and international margin upside
12 Q1 ‘22 Actions Taken International Margin Upside in 2H ‘22 Domestic gross margin expansion in 1H ’22; Significant International gross margin upside potential in 2H ‘22 Actions Taken in Q1: • Communicated 8-10% price increase in January ‘22 across majority of SKUs, effective April ‘22 • Shifted pr
Slide 13: Balance sheet as of March 31, 2022
13 $ in miilions 31-Mar-22 31-Dec-21 Current Assets: Cash and cash equivalents $16.5 $21.7 Restricted cash $7.0 $7.2 Accounts receivable, net $9.7 $6.8 Inventories, net $8.3 $5.2 Prepaid expenses and other current assets $2.9 $2.9 Total Current Assets $44.3 $43.9 Current Liabilities: Accounts payabl
Slide 14: Unaudited Consolidated Statements of Operations
Better Choice Company Inc. Unaudited Consolidated Statements of Operations Net sales Cost of goods sold Gross profit Operating expenses: Selling, general and administrative Share-based compensation ‘Total operating expenses Loss from operations Other expense: Interest expense, net Loss on extinguish
Slide 15: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Better Choice Company Inc. Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA ‘Three Months Ended March 31.__ 2022 2021 Net loss available to common stockholders $ (4,040) $ (12,850) Interest expense, net 76 835 Tax expense 3 = Depreciation and amortization 409 au EBITDA 6552) (a,604)
Slide 16: The World's Best Food For The World's Best Kids
The World’s Best Food For The World’s Best Kids
Slide 17: Thank You!
Better Choice Company The Most Innovative Pet Food Company In The WorldThank You!