Lassonde Industries, Inc. Class A · TSX:LAS.A
Lassonde Industries, Inc. Class A — Q2 2024 Earnings Presentation
29 slides from Lassonde Industries, Inc. Class A's earnings presentation, August 2024
Slide 1: Investor Presentation Second quarter ended June 29, 2024
Investor Presentation Second quarter ended June 29, 2024 LASSONDE INDUSTRIES INC.
Slide 2: Forward-Looking Statements
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: Second Quarter Highlights
4 Second Quarter Highlights Second Quarter Highlights Further momentum in sales and profit growth Sales increased by 7.8% • Volume gains in the U.S. for both private label and branded products • Pricing adjustments in Canada 21% improvement in operating profit • Solid top-line performance • Securing
Slide 5: U.S. Beverages
5 U.S. Beverages U.S. Beverages Steady progress with further volume gains Volume exceeded expectations • Brands: volume momentum driven by single-serve formats • Private labels: build back starting to yield benefits We expect momentum to accelerate in the second half • Additional volume for our buil
Slide 6: U.S. Beverages (cont'd)
6 U.S. Beverages (cont’d) U.S. Beverages Production start at the North Carolina single-serve line • Project completed on time and on budget • Reinforces the strength of our team and their ability to execute key projects Enable us to capture opportunities for both branded and private label businesses
Slide 7: Canadian Beverages
7 Canadian Beverages Canadian Beverages Sustained efforts to fortify our leading position • Innovation, channel expansion, productivity improvements Carefully manage pricing adjustments that reflect higher input costs • Price inflation is making consumers more value-conscious • Extensive product por
Slide 8: Specialty Food
8 Specialty Food Specialty Food A solid quarter • Sales momentum in the premium glass jar soup category Further productivity and efficiency gains Specialty Food will be a prominent driver of growth, profitability and portfolio diversification • Driven by the Summer Garden acquisition
Slide 9: Specialty Food Operating Model
9 Specialty Food Operating Model Specialty Food Operating Model Leverage respective strengths of Summer Garden and of existing activities • Create a new growth platform Summer Garden has capabilities in brand management • Complements existing activities mainly focused on private label and co-packing
Slide 10: Sales Increase ($M)
10 Q2 2024 Sales Increase ($M) Sales Increase Key Highlights Diamond’s* sales: ▲ $3.2M $624.7 FX impact: ▲ $6.1M $579.4 +7.8% Selling price adjustments: ▲ $12.6M private labels ▲ $13.1M national brands Changes in sales mix: ▼ $9.0M Effect of sales volume (U.S. driven): ▲ $14.2M private lab
Slide 11: Improved Profitability
11 Q2 2024 Improved Profitability Improved Profitability Adjusted Profit Attributable to the Gross Profit ($M) Adjusted EBITDA(1) ($M) Shareholders(1) ($M) & Adjusted EPS(1) $74.6 $39.1 $175.7 $152.3 $58.6 +27.3% +15.4% +47.5% $26.5 11.9% 28.1% $5.73 26.3% 10.1% $3.89 2023 2024 2023 2024 2023 2024 K
Slide 12: Financial Highlights First half of 2024
12 First half of 2024 Financial Highlights First half of 2024 Adjusted Profit Attributable to the Sales ($M) Adjusted EBITDA(1) ($M) Shareholders(1) ($M) & Adjusted EPS(1) $1,194.5 $127,1 $64.2 $1,126.7 +6.0% +24.9% $101,8 +47.9% $43.4 10.6% $9.41 9.0% $6.37 2023 2024 2023 2024 2023 2024 (1) Financi
Slide 13: Days Operating Working Capital
13 Q2 2024 Days Operating Working Capital (1) Days Operating Working Capital (1) 100 95 93 Decrease in DIO 88 90 87 reflects lower inventory 80 80 80 78 80 75 68 70 65 60 50 57 52 50 45 Days 50 47 46 46 49 48 44 43 43 42 42 40 Decrease in DPO 39 44 40 40 44 38 due to payment of 34 30 advanced purcha
Slide 14: Cash Flows ($M)
14 Q2 2024 Cash Flows ($M) Cash Flows Operating Activities Key Highlights $76.0 $59.4 Decrease in cash flow mainly due to: Higher working capital requirements Partly offset by improved profitability 2023 2024 Acquisitions of PP&E and Intangible Assets $57.2M in capital expenditures so far $3
Slide 15: Net Debt ($M)
15 Q2 2024 Net Debt(1) ($M) Net Debt (1) 300 250 $228.4 $218.2 $6,8 $1,7 $11,7 $200.5 $30,8 $188.4 $190.7 200 $218,2 $200,5 150 ($66,4) ($2,3) 1.28x 100 0.98x 1.01x 0.92x 0,86x 50 (1) (1) (1) 0 Net Debt CapEx Dividends FX Others EBITDA Working Net Debt July 1, Sep. 30, Dec. 31, March 30, June 29, as
Slide 16: Closing of Summer Garden Acquisition
16 Closing of Summer Garden Acquisition Closing of Summer Garden Acquisition Cash consideration of US$237.2M Including US$2.2M in preliminary working capital adjustments Subject to further adjustments once the final value is established US$241.0M paid at closing for the acquisition and certain r
Slide 17: Closing of Summer Garden Acquisition (cont'd)
17 Closing of Summer Garden Acquisition (cont’d) Closing of Summer Garden Acquisition Perform purchase price allocation during Q3 Determine fair value of assets acquired and liabilities assumed In turn, this will determine: Depreciation and amortization expenses to be recognized in future period
Slide 18: Changes to Senior Management
18 Changes to Senior Management Changes to Senior Management Pierre-Paul Lassonde to share his responsibilities by Co-Chairing the Board between September 1, 2024, and January 1, 2025 To become Co-Chair of the Board, along with Nathalie Lassonde To continue as a member of the Board on January 1,
Slide 19: Looking Ahead to the 2nd Half of 2024
19 Looking Ahead to the 2nd Half of 2024 Looking Ahead to the 2nd Half of 2024 U.S. Beverages focus: Build back private label volume Continue the ramp-up of North Carolina expansion Canadian Beverages focus: Pursue initiatives to fortify our leadership position through: Innovation Channel
Slide 20: 2024 Outlook
20 2024 Outlook 2024 Outlook Expect a sequential improvement in the second half Gradual pace of U.S. demand build back Additional volumes from the North Carolina single-serve line Demand normalization 2024 sales growth in the mid-to-high-single-digit range Also driven by the run rate of sell
Slide 21: 2024 Outlook (cont'd)
21 2024 Outlook (cont’d) 2024 Outlook Closely monitoring external factors Commodity prices, mainly orange juice, as well as orange and apple concentrates Recent upward trend in ocean freight container shipping rates Labour situation within the Canadian rail network Sustain efforts to achieve e
Slide 22: Financial Measures Not in Accordance with IFRS
Financial Measures Not in Accordance with IFRS
Slide 23: Financial Measures Not in Accordance with IFRS
23 Financial Measures Not in Accordance with IFRS Financial Measures Not in Accordance with IFRS Items impacting the comparability between periods The table on the right contains a list, description and quantification of items impacting the comparability of the financial performance between the peri
Slide 24: Financial Measures Not in Accordance with IFRS (cont'd)
24 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Adjusted Profit Attributable to the Corporation’s Shareholders and Adjusted EPS Adjusted profit attributable to the Corporation’s shareholders and adjusted EPS are financial measures used by the
Slide 25: Financial Measures Not in Accordance with IFRS (cont'd)
25 Financial Measures Not in Accordance with IFRS (cont’d) Financial Measures Not in Accordance with IFRS Days Operating Working Capital is a financial measure used by the Corporation to represent the number of days of sales tied up as operating working capital. To calculate this financial measure,
Slide 26: Key Financial Information
Key Financial Information
Slide 27: Financial Highlights
27 Financial Highlights Financial Highlights (1) Financial measure not in accordance with IFRS. Please refer to section on Financial Measures Not in Accordance with IFRS.
Slide 28: Sales Evolution
28 Sales Evolution Sales Evolution
Slide 29: lassonde.com
B Lassonde lassonde.com