Laird Superfood, Inc. · AMEX:LSF
Laird Superfood — Q1 2024 Earnings Presentation
27 slides from Laird Superfood's earnings presentation, May 15, 2024
Slide 1: Q1 2024 Investors presentation
Q1 2024 Investors presentation MO. ~, AZ AVA AO ROP PRAIA
Slide 2: Forward looking disclaimer
Forward looking disclaimer Cautionary “Safe Harbor” Statement Under the Private Securities Lifigation Reform Act of 1995: This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on the Company's current expectations or forecasts of future events a
Slide 3: Mission: fuel optimal daily performance with superfoods
>= ND 7 aed ik 224 id Ma ou ison ARS \\ Za To fuel optimal daily performance Sy by providing great-tasting, dd innovative, highest-quality superfoods that support the health _ A and wellness journey ofour ~, 4 consumers. te 4 7 2? =
Slide 4: Laird Superfood was founded by two athletes
Laird Superfood was founded by two athletes and built to be a nutrition powerhouse to fuel their activities and life Laird Hamilton Gabby Reece Big Wave Surfer and pioneer of action water sports The Gabby Reece show podcast host * Innovator + Best-selling author + Author + Former professional volley
Slide 5: Laird Superfood Strategic Plan on a Page
Laird Superfood Strategic “Plan on a Page” : 2 ; 3 A Grow our core business Innovate in Superfoods Improve LSF Supply Chain To & improve MAPS Expand existing product lines Ensure capacity ibility areness and trial Execute p innov Expand to ni jories + Hire/train/retain critical employees to elevate
Slide 6: LSF investment highlights
LSF investment highlights LAIRD Plant-based, clean, functional ingredients that are on-trend with consumers Large and growing addressable market across core categories Highly engaged founders with strong equity, reach and relevance Strong brand equity, net promoter score, and activesocial community
Slide 7: LSF executive team with extensive experience
LSF executive team with extensive experience LAIRD lent President and CEO since January 2022 EVP/GM at Sovos Brands SVP of Life Time Fitness SVP/GM at WhiteWave Foods Boston Consulting Group Anya Hamill CFO + Chief Financial Officer since July 2022 + CFO atittle Secrets + Sr. Director of Finance at
Slide 8: The Laird Superfood portfolio spans large, attractive categories
The Laird Superfood portfolio spans large, attractive categories LAIRD ‘!RD Liquid and Powder Coffee, Tea and Hot Snack, Nutrition, Hydration & Beverage Coffee Creamers Chocolate Products Performance Bars Enhancing Supplements Total Addressable am Market ion aaa! (TAM) Creamers) , IRI 52WE 10/31/21
Slide 9: Consumers are upgrading to functional food and beverages
Consumers are upgrading to functional food and beverages 59% 83% +39% Of consumers agree that functional Of consumers claim to have recently Growthin Functional/ Mushroom based drinks help them accomplish their health used beverages containing at least one productsin Coffee & Creamers. goals functio
Slide 10: After a strong finish to '23, Q1 '24 retail sales are outpacing prior year
After a strong finish to '23, Q1 '24 retail sales are outpacing prior year Laird Superfood Total Brand YOY $ Sales (MM) by Quad Total Marketplace (MULO+NAT+WFM) (Does not include Bars and AO SPINS busin Retail Sales ($M) Tl 2022 Ml 2023 ij 2024 18 17 1.6 1.6 1a 44 15 15 3 5 14 42 1.3 E ‘ 4 1 iE ate
Slide 11: Strong Net Sales growth across all channels in Q1
Strong Net Sales growth across all channels in Q1 “Net Sales, as reported Net Sales by channel, $M* Q123 $9.9M Q124 22% 9% 48% 10% 25% LSF Club Amazon Retail DIC.
Slide 12: TDPs continue to grow in both Natural and MULO Channels
TDPs continue to grow in both Natural and MULO Channels Laird Superfood rolling 12-week distribution (Does not include Bars and AO SPINS busin: Total US —- Natural Channel Total US - MULO 223% + +23% 1 1,050 32 1,019 1,028 31 2 . 31 = 1,000 g S c= 2 S 30 & 950 ra 23) aid 2 gS 29 2 5 28 = 900 881 2 2
Slide 13: Marketing will push further on content and valuable education
Marketing will push further on content and valuable education Establish LSF.com as Wellness Engaging Email Content with Accelerate Successful Podcast Hub Strategic Promo Strategy Content THE SHAWN RYAN ff f SHOW Wellness Hub UANIN CT RGLING LAIRD HAMILTON EP. #86 PART | . INSPIRATION After | enjoy m
Slide 14: Laird Superfood is ready to lead the functional food category!
Laird Superfood is ready to lead the functional food category! ANTIOXIDANT
Slide 15: Q1 2024 Financial Performance
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Slide 16: Financial highlights: Q1 Net Sales +22% and Gross Margin of 40%
Financial highlights: Q1 Net Sales +22% and Gross Margin of 40% $9.9 milion Net Sales, +22% versus prior year period. Double-digit growthin both Wholesale and E-commerce channels. o Ecommerce: 59% of total Net Sales, 33% growth driven by DIC (+25%) and Amazon (+48%). o Wholesale: 41% of total Net Sa
Slide 17: Financial results
Financial results YoY change Q124 Net Sales $9.9M Gross Margin 40.0% OPEX $5.1M Net Income ($1.0M) Q123 Net Sales $8.1M Gross Margin 23.0% OPEX $6.2M Net Loss ($4.1M) LAIRD
Slide 18: Gross Margin of 40% achieved for the 2nd consecutive quarter
Gross Margin of 40% achieved for the 2"¢ consecutive quarter +17 points 1 40% 40% 31% 24% Ql 22 Q222 Q3 22 Q422 Q123 Q223 Q3 23 Q423 Ql 24 I Gross Margin as % of Net Sales excl one-time adj [lll One-time adjustments as % of Net Sales transition to a new manufacturer for liquid creamer Q124 margin re
Slide 19: Net Loss narrowed every quarter over the last five quarters
Net Loss narrowed every quarter over the last five quarters $, Millions +$3.1 $0.1 } 8 I $ -$4.2 $3.7 -$3.3 -$28 “$1.0 a a $2.7 $4.1 “$3.5 $4.9 $5.7 “$14.1 $15.5 Ql 22 Q222 Q3 22 Q422 Q123 Q223 Q3 23 Q423 Ql 24 Hl Net (Loss)/Iincome excl. one-time adj [lll One-time adjustments LAIRD ©
Slide 20: Q1'24 Results
Q124 Results Net Sales, SM ra, $8. i Q123 Ql24 Net Sales +22% due to: + Wholesale +10% - Retail +10% - Club +9% + Ecommerce +33% - DIC +25% - Amazon +48% LAIRD Gross Profit, SM $19 Q123 Ql24 Gross Margin of 40%, +17 points versus prior year driven by: + transition to asset light co-packer model and
Slide 21: Q1'24 Sales Mix
Q124 Sales Mix Gross Sales by Product Line Net Sales by Channel Hl Coffee Creamers Hl Wholesale ll Coffee, Tea, and Hot Chocolate Products Ml E-commerce Mi Hydration and Beverage Enhancing Supplements Ml Harvest Snacks and Other Food Items Ml Other LAIRD
Slide 22: Total Cash (Burn)/Add
Total Cash (Burn)/Add $, Millions $0.3 ae a -$0.4 $13 $27 2 $3.5 $3.2 $3. “$43 $59 Q12 Q222 @322 Q422 Q123 Q223 @323 Q423 Ql.
Slide 23: Targeting cash burn of less than $1 million in 2024
Targeting cash burn of less than $1 million in 2024 LSF projected cash balance ($M) $7.7 * Cash burn expected in H12024 due to stepped up $6.8 marketing investment and working capital needs driven by seasonal product inventory build. * Cash rebuild expected during Q3-Q4 as we sell through seasonal i
Slide 24: Total Cash (Burn)/Add
Total Cash (Burn)/Add $, Millions $0.3 ae a -$0.4 $13 $27 2 $3.5 $3.2 $3. “$43 $59 Q12 Q222 @322 Q422 Q123 Q223 @323 Q423 Ql.
Slide 25: Targeting cash burn of less than $1 million in 2024
Targeting cash burn of less than $1 million in 2024 LSF projected cash balance ($M) $7.7 * Cash burn expected in H12024 due to stepped up $6.8 marketing investment and working capital needs driven by seasonal product inventory build. * Cash rebuild expected during Q3-Q4 as we sell through seasonal i
Slide 26: Gross Margin Outlook
Gross Margin Outlook* 30.4% 19.8% FY22 FY23 + Margins dampened by + Partial year realization of co- underutilzation and fixed packing model for both powder overhead costs due to in-house and liquid products. manufacturing. + Increased trade promotion to + Required inventory adjustments drive step-up
Slide 27: Full Year 2024 outlook
Full Year 2024 outlook* 2024 Net Revenue 2024 Gross Margin $38 - $42 Million 37% - 41% LAIRD * Management estimates, not guaranteed; excluding any one-time charges and benefits.