Sprouts Farmers Market, Inc. · NASDAQ:SFM
Sprouts Farmers Market — Q3 2021 Earnings Presentation
15 slides from Sprouts Farmers Market's earnings presentation, Nov 4, 2021
Slide 1: Q3 2021 Earnings
Q3 2021 Earnings November 2021 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein (including, but not limited to, statements to the effect that Sprouts Farmers Market, Inc. (the “Company”) or its
Slide 3: Chip Molloy, CFO
Chip Molloy CFO
Slide 4: Ongoing Strategic Changes are Producing Solid Financials
Ongoing Strategic Changes are Producing Solid Financials 4 See the Appendix to this presentation for a reconciliation of adjusted diluted EPS to net income Q3 NET SALES $1.5B Q3 ADJUSTED DILUTED Earnings Per Share $0.56 ($ in mm) (1) Q3 NET CASH PROVIDED by OPERATIONS $119M ($ in mm)
Slide 5: Structurally Improved Margin Profile
Structurally Improved Margin Profile 5 See the Appendix to this presentation for a reconciliation of EBIT to adjusted EBIT. For 2017,2018, 2019, & 2021 adjustments to EBIT were immaterial; thus only EBIT is presented. ($ in mm) ADJUSTED EBIT & Adjusted EBIT Margin(1)
Slide 6: Ecommerce Remains Here to Stay and Sales Appear to be Settling at New Levels
Ecommerce Remains Here to Stay and Sales Appear to be Settling at New Levels Ecommerce Penetration Customers can now shop how they like – In-Store, Pick-up, or Delivery Ecommerce Penetration ($ in mm)
Slide 7: 2021 Fourth Quarter Outlook
2021 Fourth Quarter Outlook 7 Net Sales $1,450M to $1,475M Approximately 9 New Stores (3%) to (5%) Comps Adjusted EPS $0.26 to $0.30
Slide 8: 2021 Annual Outlook
2021 Annual Outlook 8 Net Sales $6,055M to $6,080M Approximately 14 New Stores, including 1 relo (7%) to (7.5%) Comps Adjusted EBIT $325M to $330M Adjusted EPS $2.04 to $2.08 Capex $95M to $105M Approximately 24% Corporate Tax Rate
Slide 9: Jack Sinclair, CEO
Jack Sinclair CEO
Slide 10: Remain Focused on Innovation
Remain Focused on Innovation
Slide 11: Leveraging Brand Messaging with an Embedded Call to Action
Leveraging Brand Messaging with an Embedded Call to Action Broadening our mass media targeting Focusing on our competitive advantages Produce value Differentiated products Increased emphasis on call-to-action messaging Organic sale Bulk sale 72 hour sale Q4 will also highlight Holiday
Slide 12: Successfully Launched New Format Stores in Q3, with Two More to Come in Q4
Successfully Launched 2 New Format Stores in Q3, with Two More to Come in Q4 in GA and FL EARLY DAYS… Phoenix relocation – sales up significantly despite new store being 23% smaller Remodeled Tustin CA store – performance is encouraging Protein sales above company average with the emphasis on center
Slide 13: New Format Will Significantly Reduce Cost to Build and Operate
New Format Will Significantly Reduce Cost to Build and Operate Cost to Operate On average ~20% less cost to operate Cash Investment On average ~20% less cost to build 50% lower cost in Deli fixtures 50% lower cost in Protein fixtures Partially offset by higher cost in Frozen fixtures (more doors) La
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP Measure Reconciliation
SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN THOUSANDS) The following table shows a reconciliation of EBIT and adjusted EBIT to net income, as well as a reconciliation of net income and diluted earnings per share to adjusted net income and adjusted di
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