Slide 1: Third Quarter 2024 Conference Call
Third Quarter 2024 Conference Call November 6, 2024
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 Transformational Growth 3
Slide 5: Key Messages
Key Messages • 2024 third quarter highlights • Record third quarter revenue of $1.67 billion representing a 1.3%, or $22.0 million, increase as compared to the third quarter of 2023 • Solid progress on Specialty Foods’ core U.S. growth initiatives in protein and baked goods, which generated organic
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: North American Sandwich Division
North American Sandwich Division Transformational Growth 6
Slide 8: North American Sandwich Division
North American Sandwich Division Transformational Growth 7
Slide 9: North American Sandwich Division: Operate in Distinct Channels
North American Sandwich Division Operate in 7 Distinct Channels 1. Coffeehouse 2. Club 3. Grocery/Retail 4. Co-Manufacturing Frozen 5. Transportation/Airlines 6. Hospitality ***New 7. Foodservice Broadline Distributors ***New 8. International ***Pending for 2025 Transformational Growth 8
Slide 10: New Plant – Cleveland, TN
New Plant – Cleveland, TN Receiving & Shipping Docks (plus End Pack Room 18,000+ Pallet Positions) Overhead View 350,000 square feet, 65 acres Production Room Associate Breakroom Entrance Transformational Growth 9
Slide 11: Plant Improvements – Columbus, OH
Plant Improvements – Columbus, OH New Gen3 Automated Sandwich Assembly – New Gen3 Automated Sandwich Assembly – New Gen3 Automated Sandwich Assembly – Bread Slicing Cheese Slicing Egg Depositing New Associate New Associate Entrances Restrooms Transformational Growth 10
Slide 12: Q3-2024 Financial Update
Q3-2024 Financial Update Transformational Growth 11
Slide 13: Quarter Sales Performance
Quarter Sales Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 2024 Revenue 835.5 968.3 1,101.1 1,341.8 1,623.9 1,644.9 1,666.9 OGR 6.4% 4.2% 0.1% 17.9% 13.9% 6.2% 1.0% OVGR 7.2% 5.5% (4.2%) 17.9% 1.3% 4.0% (1.3%) 1,800.0 50% • Targeted long-term annual organic volu
Slide 14: U.S. Sales Analysis
U.S. Sales Analysis (millions of dollars except percentages) FX & Volume Q3-2024 Q3-2023 Pricing Growth Q3-2024 OVGR Core U.S. sales growth initiatives: Protein Group 225.5 6.5 17.7 249.7 7.8% Sandwich Group 332.5 7.8 (16.7) 323.6 (5.0%) Bakery Group 21.3 0.4 5.4 27.1 25.3% 579.3 14.7 6.4 600.4 1.1%
Slide 15: U.S. Sales Pipeline
U.S. Sales Pipeline (millions of dollars except percentages) Highly Likely Likely to be to be Early Total Completed Completed Stage in 2025 in 2025 U.S. sales pipeline: Protein Group 299.2 92.0 83.6 474.8 Sandwich Group 365.5 177.1 114.2 656.8 Bakery Group 39.3 32.6 246.8 318.7 704.0 301.7 444.6 1,4
Slide 16: Quarter Adjusted EBITDA Performance
Quarter Adjusted EBITDA Performance (millions of dollars except percentages) 2018 2019 2020 2021 2022 2023 2024 EBITDA 71.2 84.1 93.5 122.6 141.2 158.8 159.4 Margin 8.5% 8.7% 8.5% 9.1% 8.7% 9.7% 9.6% 160.0 12.0% • Targeted mid-term annual adjusted EBITDA margin – 10% 140.0 11.0% • Specialty Foods’ a
Slide 17: Quarter Adjusted Earnings Performance
Quarter Adjusted Earnings Performance (millions of dollars except per share amounts) 2019 2020 2021 2022 2023 2024 Adj earnings 32.9 42.0 57.8 61.3 56.4 49.4 Adj EPS 0.88 1.07 1.33 1.37 1.27 1.11 Positive Factors • EBITDA growth 70.0 $1.90 Negative Factors 60.0 $1.70 • Growth investment – estimated
Slide 18: Capital Expenditures
Capital Expenditures (millions of dollars except percentages) • An unlevered, after-tax IRR of 15% or greater is expected on project capex Q3-2024 • Expect to spend an additional $230 million on approved major project capex over the next five quarters Major project capex 60.4 Other project capex 11.
Slide 19: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 920.0 5.0 820.0 4.5 • Long-term targeted senior debt to 720.0 4.0 EBITDA ratio – 2.5:1 to 3.0:1 620.0 3.5 • Long-term targeted total debt to EBITDA ratio – 3.5:1 to 4.0:1 520.0 3.0 420.0 2.5 • Convertible debentures make up the difference bet
Slide 20: Free Cash Flow
Free Cash Flow (millions of dollars except per share amounts and percentages) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P Payout ratio 106.4% 77.7% 69.6% 70.6% 65.2% 59.4% 53.0% 53.9% 48.4% 43.2% 36.6% 38.5% 38.1% 43.1% 48.7% 42.3% 43.8% 54.3% Divi
Slide 21: Transformational Growth
J Premium Brands Transformational Growth