FREE - Earnings call transcript Q1 2021 | Whole Earth Brands Inc

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Operator

Good morning, and welcome to the Whole Earth Brands First Quarter 2021 Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note, today's event is being recorded. At this time, I'd like to turn the conference call over to Jeff Sonnek, Investor Relations at ICR. ahead. go please Sir,

Jeff Sonnek

of on Litigation good statements. and Chief based presentation statements the beliefs safe that Rusie Securities differ Executive Chairman in could statements results considered comments current meaning unknown also Officer. Act and available the forward-looking number will by statements Q&A. historical within accompanying of for results Such Chief are materially be actual provisions than from presentation forward-looking cause and Albert the harbor Private Executive events. a statements XXXX. other The and These participating is Simon Manzone risks All Officer today's subject of Irwin the call, morning. you, and facts are of future known those discussed to assumptions and will be statements. Reform call as expectations Today's on uncertainties forward-looking during well hosted Financial the the as Thank are concerning of and forward-looking Andy statements management's contain to

to and the Relations are the be I'd measures. now release Some non-GAAP the risks Investor refer measures certain can the refer Manzone, SEC. We'll uncertainties with in to these which identified found also reconciliations directly on to the CEO. in comparable and financial Please GAAP today. like company's tables of included over website of their call filings for to investor.wholeearthbrands.com Albert our non-GAAP discussed the turn most financial measures earnings to

Albert Manzone

to thanks everyone and joining for call Jeff, you, today. the Thank

our of brands line first adjusted brands, improved did $XX.X to cost productivity world initiatives. our our as CPG growth. top of the CPG growth Whole markets organic versus Branded our constant start our strong prior strong of segment the strength a growth in long-term and by it double-digits This is around demonstrating you Whole, to as people's a XXXX. the result grew key currency on year focus. XX% generate margins our driven Earth competency, the the I'm Swerve EBITDA and delivered integration portfolio million to Wholesome. consecutive all is Branded our Wholesome and CPG Brands. also and geographical delivered growth for of complete, Sales to of happy off portfolio having impact second quarter We is business our Our Swerve in X% quarter better-for-you product report revenue for Branded of sustainable Earth, for the successful a and double-digit segment, We that natural and acquisitions is to testament agility of in

recovery We the pace the encouraged economic the service for by North in are the and America. implications of food further positive industry

towards plant-based, achieving been to trusted We billion months, food shift revenue past and categories attractive have plays vision label are reiterating all building company fiscal guidance. and on and the we natural growth. that over sustainable of by deliberate Since delivers our alternatives delicious a our portfolio ingredients global geographies the consumer XX and products. to brands focused products our We're brands in grow vision in public our going XXXX and very and preference clean a $X beverage

build eight which public, less around attractive CPG company in put Swerve acquired we a after global public XXXX portfolio our size of a the open than our simply months world goodness and We an us consumers to mission helped Our is started as up for upon world. journey in and of June the segment of and Wholesome, brands ingredients. Branded going double with of and very teams be could of our each are our markets. now America combined and the Swerve this in as since of well provides by more The we growth international in breadth excited complete within as also not existing the of short our the prospects period and significant strengths acquisitions and our brands, North added time integrations a capabilities. those new Wholesome talent

projected efforts sweetener of in strong generating sheet reducing $XX growth an increase cash balance adjacent name bars, towards We represents include While coming in our These our free we near remains organic focused the in addressable term years. billion leverage, categories better-for-you on spreads, our mixes, X% and in and through to to initiatives. to suites and the with M&A flow organic over important few, and are chocolates, intend continue and market growth part strategy. baking the a categories M&A penetration a CAGR jams

health food more where Our pace shift integrations positive the me helps M&A competency a calorie, and excites is various a Brands. we're It of in what gluten-free, the Still of most than a a problems, our keto, choices lifestyle range being core a name a trend. of vegan goals, durable of provides the plays opportunities ability solving lifestyle Earth of Swerve complete manage health including Wholesome low-carb fast at nature is wellness low to to or we're the What experiencing role few. and for. the wellness is evidence is a Whole central

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You Investor now Starting on details to each more and supplemental found you our throughout into how XXXX, portfolio able website. brand our fits in Relations can on will be earnings presentation find our discover Whole distinct proudly new consistent brand's promise. of each America in include packaging Earth a of North campaigns part for and Brands' logo. also The new our brands packaging with designs will each

second revenues pillar XX% Branded a continue Our three-year segment above is innovation We rolling plan to to CPG on deliver innovation. of basis. our from

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and and leads have wins their retailers in third natural growing North We innovations Europe to me benefits. pillar America, Asia scored soon baking QX in retailers distribution. with as shelves. will as Those hit in added reset our This significant now and QX

elevate Swerve Our integrated expanded very resulting and it call been America, partnership ACV shelf Power our the Wholesome. and baking. and new strategic has we significant sweeteners Whole and retailers portfolio retail in In organization of retailer brands sales We of gains with significantly have opportunities Thus positive in Earth visibility lead feedback far, One. category partnership to with our customers. presence our improves North and for

Nielsen success in have such over shelves in of well also which in I'm that We across exceed as channels year categories expected the are will half had ACV very XX% to by mixes, new end. Earth excited baking second hit XXXX. Whole all

our consumers is positioned shifts allow of e-commerce Our points year. contributes to North in to America, XX% purchasing. Asian versus in toward almost well accessibility distributions. QX, In buying our XXX% platform, the our sales business the UK of which already e-commerce consumer grew by XX% This portfolio from benefit our markets of XX% prior enhances across for e-commerce France, and and pattern XXX% high in

helping expansion team is cash fourth improvements competitive Our I supply free allow immediate for pillar by Supply Brands pleased generation. chain our has line productivity generated, and growth, margin Whole advantage drive Earth and chain. supply and to continued undoubtedly leveraging flow across supply is us added by we the wins chain top scale chain XXXX have will These manufacturing am Whole and a and and CPG our already combined provide to costs ingredients Swerve our Brands, leverage XXXX inflationary project, optimizing expanded of Branded contain reinvention pressures. assets Wholesome. and started packaging. Further, our wins in are business the us overhead Earth

supplemental presentation. earnings this You more details find in initiative, can our about

QX, our within is facility production And closing in Flavors segment, resulting we delivering benefits year. of our Ingredients of the start in & this manufacturing footprint Additionally our Camden proceeding. late optimization

operational perfect place, team's presence and our example expand we our team while could I proud sustainable are passion is Brands. is and highly organization the again, and truly A our ability strategies was to and fully world with more What's to plan markets. agility, scalable, Our resources functions fifth have and brands. Earth the Wholesome amazing for developing team. and growth. pillar and Swerve focus, competencies, in more, our on at best-in-class last regions, bring not They delivering business, new thankful, be for Whole across all global class integrate in existing our and

end position we Turning our segment, flow, our in markets. cash business strong leadership driven expect to by global Ingredients produce and to to Flavors the diverse continue & our licorice

QX in that demand, QX related XXXX, Our several of as sales XXXX pandemic forward the have customers given spike ahead as occurred the would performance was normally pulled in QX in expected, lockdowns.

segment's portfolio our To mentioned market, for leveraging our quarter, in interest, to better serve. leadership & follow-up a that health across receiving last will a under and end-markets As quarter, packaged as leadership are the bringing of take products. diverse broadening the towards launched [Indiscernible] in recently a innovations from existing markets drive enthusiastic providing our to products is customer care, XXXX. growth Andy performance. new outlook customer-centric position of the as our lot we have drive well that consumer through, Care segment. this We're future that last the place over-the-counter we about, needs Personal that financials address new customers goods, you XX and from These growth-oriented to about the unique With we're now our we focus our include Beauty I that,

Andy Rusie

Albert Thank morning everyone. and you, good to

predecessor both, consolidated date. the reflect June new and As our XXth for business successor to company, a our combination XXXX, of those indicative periods, financials reminder,

XXXX results, XXst XXXX, quarter quarter, first the successor's March I'll first that results. ended predecessor's, XXXX the compare first discuss, The quarter to results,

encourage I of supplemental Swerve a to progress. our I may we from close. And non-GAAP earnings As results, pro our that our also the of release Relations detail. reconciliations your period enhance some completed presentation, result, the period. predecessor on Xth XX of on be quarter which note, to financial will Of impact understanding to our not XXXX GAAP press call items at out to appropriate, acquisition for the date for reported rata of partial Swerve Wholesome additional which on speak include, the the comparability, and Investor you view Also, Wholesome, you a the included website. XXXX. where of I'll reported on financials point comparable full to and period, is the the first quarter November the end February

Additionally, some Wholesome growth in we and select the the assist portfolio. and of XXXX as in owned, pro forma will we organic if your XXXX provide analysis combined Swerve of to results, both

prior from XX, was acquired profit to and prior increased constant gross million in in the the quarter of company costs growth Results first and the forma from and contributions $XX.X gross loss $XX the Wholesome's million of XX.X% productivity bonuses. by period, label in all an $XX.X first prior profit the within the offset down XX.X% million down offset partially revenue costs. gains business favorable noncash Swerve gross private first and up were consolidated quarter partially the public the and by segment from million was product profit prior in operating year the loss prior including of partially revenues $XX.X compared and $XX.X basis. million increased XX.X% in a by for and period. from Wholesome in asset revenue adjusting from quarter. onetime of when Swerve increase in margins, X.X% The year the business. product period was the the contributions million, ended million year predecessor $XX.X $XXX.X On periods acquisitions inclusion currency mix the accounting XXXX change from year loss charges. year purchase primarily to by in and productivity were year to driven the prior year is was a and in strong a offset million X.X% operating positively This increase XX.X% margin and loss or XXXX compared pro prior prior year $XX.X by businesses Wholesome CPG million organic Swerve revenue by quarter net the basis growth prior from consolidated and to noncash Reported from the year million of M&A Wholesome contributions period. compared full offset $XX $XX.X EBITDA the increased was for Consolidated compared of acquisitions year, recurring by Branded $X.X noncash million driven grew revenue to public both year. current the both a million a first primarily representing versus net $XX.X For wholesome quarter partially the Adjusted XX.X% charge for of prior and nonrecurring on million Swerve XXXX March product was transaction adjustments quarter and prior cash the costs influenced Adjusted the and and company impairment in $X.X XX.X%

to predecessor of in million and Flavors Swerve revenues period increase prior operating the CPG million the in prior Operating Wholesome period year. year the for an prior COVID-XX was driven businesses in of revenue Ingredients to segment of lockdowns asset a XXXX $X $X.X closure across segment $XX of of inventory in same quarter of & in from world. placement expressed Before that difficult within and shifting consideration in SEC year placement the update segment loss segment. driven $XX operating to non-cash the to we the acquired derivative period. to loss. not an by metrics by year. June in matter. the predecessor periods, in week to XXXX XX.X% $XX.X or as in amortization of same Moreover, XXXX, the loss liability by of non-cash period CPG below impact the an the financial of our the presented. liabilities XX. liability for million adjusted change Branded our Camden million me growth was to basis and as cash does the for of a an by strong of EBITDA I free increased or X.X% first and our North a $X.X product and income additional the offset the products our statement you QX shipments the for Ingredients previously staff on charge value the comparison flow. revenues the The QX. And to The warrant million for on prior in decrease $XX.X decrease quarter the in for offset of product compared The impairment American noncash rather revenue million to results including $XX.X $XX.X the warrants Wholesome in product previously in determined increased prior the would was million and same assets the in quarter, of treated a and for on currency fair statement at component warrant On year. period as correction impact businesses you through I'll the of operating $X.X a as compared private our was and million $X Changes segment both for revaluations period Wholesome, partially accounting e-commerce income the basis. was prior our retail $X.X the The of associated addition realized XX.X% profit upcoming compared P&L million some first the X.X% the primarily operations. COVID-XX fair be prior currency Operating first segment $XX.X XXX.X% quarter change & million recorded private grew driven the million and previous basis, XXb-XX constant let New results, warrants the the value million the filed of driven statements. by any million, Jersey growth the as views the current year error in XXXX gain year accounting charge With spike customers increase Branded restructuring and of also purchased should including of immaterial a period Swerve Swerve a year a increase the resulting the material on Flavors based first this the constant are food the purchase in prior and loss filing asset XX, segment On service impairment on of briefly due contributions million of is $XX.X The last that at QX, value you a pro briefly impact factory. to product $XX.X by forma not warrant was XXXX intangible company's business were of charge the nonoperating point year non-cash We detail end to from fair our softness. a year the was periods than for including was the full ahead on compared a in with million combination a April the the these take equity of $X prior prior quarter operating organic presented non-GAAP the compared related noncash million, charges recognized of revenues where

Finally office under now an our reportable $X.X This amounts segment reported public reclassified increased $XX.X corporate. bonuses. to included reflects both beginning million the quarter with XXXX are Corporate functions ongoing $X.X million of operating acquisition the to million loss million conform XXXX, previous The to had and million $X.X of the of the additional one-time and of stock-based of first million. $X.X not have certain compensation Corporate year. prior expense a expenses loss quarter loss presentation. been corporate current a and compares is for first of company in year expenses of $X.X

Now cash moving and was add cash balance is net flow of net back costs. one-time of to sheet, the million. activities $X.X in used cash operating $XX.X This million

$X.X Our Free were $X.X cash million. flow first when excluding capital expenditures add-backs cash was quarter related million.

credit XXXX XXXX new B. cash secured net EBITDA equivalents ratio lien cash agreement an $XXX in million XXXX costs. sweeteners. sheet agreement debt Wholesome provides March seven-year of on had and As our first a for million adjusted and The X, $XX Loan forecasted in issuance and times. of to five-year Using acquisition the On Term to was X.X senior credit balance finance XX, $XX.X we February adjusted EBITDA, a we Swerve Swerve net XXXX part facility $XXX our represents priority revolving million for times as company Reducing forma outlook, pro years XXXX. guidance, debt includes million growth we entered growth estimate March and and full XXXX of both by Wholesome combined XX, business. into restated amended of adjusted be four a that is to our on We approximately full acquisitions which are the if of leverage XXXX. organic forma for EBITDA to and net corporate of Shifting define XXXX the we recent December to and and achieve for outlook XX, our margins basis organic we reiterating year pro will owned a our ratio our and Wholesome. of debt a the expectations The

growth growth We $XXX X%. and range revenues to growth million greater the adjusted of than EBITDA million, of to reported $XX X%. organic of representing be to reported representing to X% to $XX of growth continue $XXX Consolidated million, greater product than to of pro XX% pro expect range in in the organic consolidated XX% forma X% forma of and million

the We gross assets XX% also the consolidated $XX an expect with of Wholesome and adjusted EBITDA Swerve. $X project. revenues. approximately is $X expenditures million again influence to million revenues, margin increase Adjusted to margins be profit is million, of approximately product to which optimization range reflects which million product XX% of of from acquired of will XX% Total XXXX. associated capital our in will be increase to The footprint $XX be our

Lastly, a approximately rate tax expect of XXXX XX%. we

sales would contribution about a have as adjusted described through quarter build quarterly or second normally as second added relative the expect terms, terms XXXX will EBITDA are of quarter pulled in pantry not that Flavors XXXX dollar due the Branded face and While contribution. segment revenue quarter CPG think balance, second Swerve in in quarter to occurred forward guidance surge QX in more XXXX as & for providing tougher fourth one-time you and face Ingredients in to the our the from purchases quarter a XXXX. we in sequential we in Alternatively, of with loading second will and previously. the comparison year I Wholesome, and segment a comparison cadence occurred from of the our favorable QX On seasonality

to seasonal optimization view the his than we the that better year and be footprint capture we open That productivity to business innovation Operator quarter our our with Q&A. gains through to remarks. being prepared distribution concludes the operational now enhanced the Albert QX as in don't product project. sequential over to you. call nature, each the beginning in other will from as Please we our we remarks move in from benefits expect plan that spoke quarter While each particularly visible be

Operator

you. Thank

session. conducting Please come now Dickerson the Jefferies. [Operator with questions be of Instructions] line We Rob question-and-answer Our from will with first question. proceed a your

Rob Dickerson

piece I had retailers, One guess larger plan Power right? strategic I is so obviously kind strategy the my around the far first of a much. Thanks of is mean conversations go-forward Good Great. core you've morning. question of your very your potential. with just

So, on far be retailers really of introductions so point if would it's you helpful. could I'm coming mention second Thanks. half I just conversations going? elaborate of product from so curious early this heard kind are anything how maybe on you can innings touch maybe kind though reception you at some even

Albert Manzone

morning Rob Albert. Good I this about as can Sure. mention can much is you retailers that are the to would all, But resetting I appreciate of happy names. I'm retailers we within as know not first you what you of MOD all excited tell most the that fact specific our I tell as tell you of key is this are their year.

last and them took significant fast-growing we a opportunities, and to we you this obviously, pass, which As year. year stand are innovation since know gain some have of

you is complete of the And quarter are And of told the throughout brands. our as definition the of the is brands the one of last we the backed the us. that brand campaigns had goal the One very Swerve really level. initiatives coming role supplemental that very service you each point be not deck, the building your positive those brand those now Wholesome things and is see end well play and with promise with and XX% all which significant can usage more to I see market in a could conferences reception second going Second that as role previous incremental retailers the year the have received. mind packaging of on to on Keep integration each consumer a is new of at Power new by great for you reason all from together we retailers into from and four for in brands clear

very is very proven going a is at trend which secular up stories have and the now you brand to great by a we really which it know the this well. can backed as shelf strong way to reliable the be Power very, the the partner. lead category And the building One of we and So, adding innovation category,

of is So, very said, expect going Earth, can we can as step. Whole that is are soon, brands. very I Swerve that and you you the well. baking pretty performance I new a introduction XX% mixes, tell us I similar taking And going to for ACV into on strong the for which other the you also which exceed categories big Wholesome tell are probably can

of therefore in you One tell and are that is very we going would is what's going Power the confident I come for ahead. distribution well our quarters The to So, well.

Irwin Simon

levels you And It's know the R&D and products. categories. new the Equal Hey these Wholesome morning. combined about one that company. look brands, brand have which to has of the then I thing the brand, I got to I company world the is a is out world. coming tell in a back phenomenal to ingredients absolutely Rob, Earth lifeblood those the of around that levels the and team service team on innovation in the and what had working and been amazing you and was mentioned even as existence Albert he's are come I'm expansion so at add has Whole good and the products service XX% today, Hain, the those if and a come never Swerve all with just I think levels. done new that has if I just our company you, it want really considering, this so about from got ago think he got year not that. much over service you the major at what But

introductions products place. new set they're as So, takes the and growth demands customers' the I for serving just mean new

Rob Dickerson

to for through has Yes. No a it's XX% lot a think good achieve the been point. It's tough impressive. pandemic… I

Irwin Simon

levels. writing got service those many Not about companies of other your you're

anyway. So

Rob Dickerson

then, touching and innovation, goods And have aware. the I out on other Europe, that I'm had I jam of the said some product. of throw know on what just sweet products guess in kind you'd you you

innovation, new seen organic obviously, forward about the When categories it's leverage brands as you haven't process coming the later product. product recently, portfolio a about I be the that you So, you. of stepping of a and about other brand? brand, that actually curious, can I'm sweeteners timing too Swedish kind is trying the the called, you out multiyear innovation a fish that think that of you or which brands Do through gauge heard Thank is how mixes. Wholesome I've excited we baking even about at the I I and and some year, and much have? of that this fish? you think focus the delish kind expand like mention you to other they're basically on that you think shouldn't going innovation natural core just to new just it? think foresee incremental kind speed

Albert Manzone

that's like the get it. helping penetration What I adjacencies intent are and mentioned getting in in accumulate Asia. right, because the from jams categories you this, to Zealand Yes, drive really you we household all chocolate New you our about actually aside in our previous to and Europe, we calls, which great we incremental ones them And that that strong users very is markets. you behind of over is already of on have. are snacks, I international results a candies into question. earlier And mentioned said. Australia in and in as are top business as essentially expanding strategic They also those And those

penetration about then trial the of the which this awareness in the then you is if the is and awareness points. touch generating of really driver about So It's think and a a very building with brand household penetration. awareness, multiple it's really store big of household big driver the

a build a they and essentially business So, circle. virtuous they create

publicly you I in are with Europe. the US, we're and we So this lot we see those and into baking what told soon with success. starting a mixes, the is as are in Swerve Equal can wins. In to Canderel got with having places Via of since that, with very doing expect we we Pure number say Australia, Wholesome products more of In a

pace that can for expansion winning number warranted before, is you told really we we're I of And yet. are of top As not the things a mind. of tell us I you --

year. see would to to you are think I see next mentioned and so, you categories this And I going year start those more

be to going is organically. this done of Some

is opening both do our new it they through penetration. of to added done because benefit, working to increasing I remarks brands but and did as customers, consumers be in a to as Some household the is bring I fronts, own mention my and there have we're with going say lot M&A,

Rob Dickerson

event? Okay. Great. the That's one acquisitions say, on you Thank then the the an and if recent M&A so one is and on of Would maybe is more road there you much. the strategy. you know armed priority year quick front. it last opportunity just is I down more integration And ready, or ongoing forthcoming part say or be all. is next a something XXXX acquisitions will the of

Albert Manzone

Yes.

we very of did Irwin businesses As To a your we we One in opening I year, and weekly the have organization. point than those as happy working as was streams I been acquire those a well leading meetings work XX and I'm The are been on now very and came I have less we successfully. long many days. my say and integration them Power remarks the together. thank all mentioned, one that said before And were – from of integrated sales do you, because actually completed in months. have teams we have companies in very two there way stopped in to eight about say actually

have we to reserve we who to. business opportunity, essentially that very And at move And always the right of being referred sweeteners core looking sooner. synergized strong. were year or being adjacencies the given our right you are opportunities brokers next We the

Irwin Simon

the Rob, to align. for deal we are out right looking strategic accretive always the marketplace there in

Swerve. that together. we I again even June, weren't think this we're noticed Wholesome putting positioned. We better and And again showed in by deal think the even it when did We just are recognizing think Swerve and the I weren't the bad noticed I to be lot when we they of did be wouldn't Wholesome. But Whole Earth brands part so family. of that today or companies a there's

Albert Manzone

just as the those of I happy have that, times in that is want continue there just a several embracing led to fantastic job. and Yes have competency mentioned have two successfully, – leverage I have experience going well thing as to is times, but demonstrate that because a in this, leverage it's the I do acquisitions demonstrate should will doing many of lot integrated that And earlier, could and doing mentioned lot and I organization said team have we people XX a I that and organizations joined is this a having acquisitions. us that significant new salute can I'm think I And add, we who days, it our the forward.

Operator

to questions question. please ask you We your question one you. limit follow-up that one and Thank

ROTH Please Our next question. from Kelly the of George comes Partners. with proceed your with questions line Capital

George Kelly

questions. for Hi, everybody. taking Thanks my

with your reinvention. to the opportunity we synergies remarks reviewing around the was if commented in the start synergies, you slide kind and chain of supply could I longer-term near-term deck, So, prepared about

us more tell II, in plan. what detail less us what's now just So can actually then more about, I there's hoping, involve? happening tell it And like know generally Phase of could that I Phase right you but that you could seems

Albert Manzone

and to I'm then – you Andy, a take Phase in Sure. have happy Page deck supplemental is you if is the on I. there through as it maybe the X, with I'm all of start to back happy to mentioned first you concept. want there some And

for of you chain supply total significantly the of look $XXX amount spend that our essentially opportunities. variable we at represents a about expanded million. And us to number If

both manufacturing. And standpoint, we standpoint. against Some which we're buy that benefiting significant and they those away from an what a standpoint, productivity synergies packaging pressure, we are are ingredient right leveraging, essentially as a from in do speak inflationary any year this us is on including transportational we from

and means the we And we we that. that that in asset-light are optimizing co-manufacturers have remember this which co-packers. process phase multiple in are of So

sachet we three do can we we we in do If two if it places bags maybe So places in maybe in one. could do in do one. it

And really that optimizing benefits sorting greatly. and so us asset-light out we're our network

locations. structural little phase the the cool will our if truckload right more structural from next you bit a the go versus as and you is XXXX essentially imagine things the hot you lot entry little XXXX, that center in than If total we with way you that do The warehouse co-located are a production into a will if more come in closer distribution, are the which benefits a same take is centers Think phase truckload of those since the that see of if us harbor iteration. time would bit those the about production away. first phase which are a is addresses I second of can say those of network, of to more a ingredients are centers less

So follow-up I and there this. any stop happy have to of

George Kelly

to be? Phase just I Phase the impact but to II, to could talk If you I, it if were know you quantify an both could big of how prepared impact quantify don't of you're generally

Albert Manzone

I talk But essentially marketplace this big anything have I the in of don't driver Andy, other and said is XXXX companies. productivity versus a which reached that to to deck benefit big add? is competitors for is do a us we Phase the three think four supplemental significantly I more. is we we're think the II it. in and on to prepared Phase to

Andy Rusie

No. No it said I Albert. think you well

George Kelly

I you. hop the helpful. will in very That’s Okay. Thank queue. back

Andy Rusie

you. Thank

Operator

Please Our line your proceed Fitzgerald. with the from of next Cantor question. questions with Pablo come Zuanic

Pablo Zuanic

start good Congratulations morning. on Good to the year. the

Albert Manzone

Pablo. Hi,

Pablo Zuanic

me? questions. I But you hear can have Look two

Albert Manzone

Yes, very Pablo. well. Good morning,

Pablo Zuanic

for guess Andy I one first. morning. Good

guidance year organic growth. pro X% So to the for forma the is X.X% full

quarter. the back CPG second for a You in but the issue on Is reached the in recovery X.X% half comp post-COVID. Flavor & the comp had first Ingredients you hear I quarter,

for think X.X%. room ACV You would accelerate number over talked expansion to that that have the that there's I the you've about.

XX%. can same So guidance the year is you if question well year. in just the of be for some case it give to that just And should context that the ahead this the of guidance you EBITDA, seems to close

quarter did XX%. margin EBITDA first You in

those of also second, but now quarter some full that in Wholesome of from you dilution realize I be in kick the ahead think some synergies there's would that. would you As

So math me It track you will your imply just on answer you a on seems comment that to brief that. Can beat guidance. are to on that the that? well

Andy Rusie

question a great it's No Sure. Pablo.

alluded to mean, so, that confident you just to. And plan year. the innovation the as for of from reasons alluded And first all, Pablo Albert the operational in the we're very the opportunities and I distribution with

in of the So that we're look confident year. very, we see to very throughout and the balance that

You're part right absolutely of the it. on math

The second quarter tougher is a comp.

year of So the year of growth there still be so is get rest year. seen growth obviously what can and expect Look have in being to than volatility the that the the for part as the then would lower we've rates higher in obviously we're I in QX prudent. rates you think we back the through

to can look of along And see Pablo. that say on from come look just get But our it that also prudent year. being balance so Albert lot confident P&L And the but as the through both further a see we we'll we've in the end the we exciting things that got in you of it year, alluded through the I as to being we're bottom-line. would guidance we're at also and the you'll again with top as in perspective we're a continue

Pablo Zuanic

alone almost Okay. in going the quarter. CPG, you Then excellent pro at I Earth growth X%. Equal That Swerve Thank the North if in was XX%. slide X.X% helpful. retail at XX%, naturally I to you. XX%, That's your that a like right? look ask business, gives up America X, up follow-up, US just XX of I XX% look So quick you right, growth very growth And Wholesome forma Whole first points XX% of

you I'm growth total in CPG and So XX% looking at reported for XX%.

international been or have of much would course growth is there with better the even a than drag, It is XX% that great a number something CPG So is my seems there? that? wrong math although

Andy Rusie

one Albert. to Albert and happy No, I'm Yeah. that -- take I'm happy

a in first the delta like part we and non-measured channels was March. in and but we've in it headwind service what still quarter both and service, So February January XXXX also X, robust first of measured in those slide The forth. great so showing performance, right? simply is category that brick-and-mortar the when e-commerce retailers we're on grown food of So had where the comes food in to especially still you X, is above the we've the had in see obviously X short channels on is slide that category it slide on strong see you and

was so a performance, it that was headwind. our from And US overall

So North the on kind that you side, very line I our when businesses as the as of international performance, in definitely well a international with headwind. the was we America our grew about category mentioned think will say foodservice well business. actually

in comparison we the reconcile so growth say from good to mix the able And across a a it's brick-and-mortar strong quarter versus question robust to performance QX. to be actually world Pablo your channel first year. saw fairly service But answer generally, last versus

Pablo Zuanic

Got it. here. squeeze can one, one And I if one last

Just there on Truvia but Whole North Earth don't share showing You're the numbers difference, ACV in you for rough the is have the just that right market where data, versus that? I America growth your -- but numbers can comment?

Albert Manzone

is I'm market Yeah, this. strong. share take happy The to

share gained And I market market markets most the our world. our the have of US was around XX.X% share We across top think in year-to-date.

Pablo Zuanic

Truvia?

Albert Manzone

that. I can you come back to on

Pablo Zuanic

trying XX% at the Whole way opportunity to the lot the in huge think you're of I you of sense ask is, of with -- and about obviously there. for room Earth there to upside talking whether is now another ACV. in bigger growth. But from benefit larger I'm so terms XX% Albert guess a But question terms in share I'm looking differences are you're of whether velocity right your a at market to have just

Albert Manzone

as your like are wins your Rob mentioned I them earlier, question. question are we I scoring, Obviously, scoring we a that those now. lot. like No,

resetting in in ship that we're their is means Walmart So MOD September, August. which going to

to we which Whole innovation grow. pickup are was performance expect that point to to overlap for that see is significant what positive, can a And with that Swerve you the to the very our happy essentially So say going I you I'm of really lot continue to on all Earth is and forward. to your the but going very expansion have happy coming the Wholesome. We're mentioning points and velocity with

that again, said Power back So about I of One. to the goes what before

Pablo Zuanic

you. Thank it. Got

Operator

you. Thank

Our next questions Davidson. the from come Bill D.A. your proceed question. with with Newby Please line of

Bill Newby

congrats the of a great for on morning, taking and Thanks year. guys. the Good start questions

Albert Manzone

Bill. morning, Good

Andy Rusie

Thanks, Bill.

Bill Newby

throughout in through of of general. year. mean you to with baking of momentum been Albert moving on and wondering out foodservice up, and the baking of just growth coming I ask with wanted I first sticky there picking category I'm up, the this forward? guess obviously XXXX picking and year about reopening that XXXX mobility part in was that far expectations the how start has of in kind some kind impression thus any of vaccinations kind of gained lot a

Albert Manzone

question. right as have time. a right strategy and And That's the great the the first right vision of all, at said, I we

eat So to is the move number that we exponential. have vision for same the our requirements want of natural more cetera et products, what's the in different consumers households know made to in the family more people that the diets the have we in plant-based company, the of needs, clean have label different

time, at the a And exactly just right look, gut and the on you follow millennials of checks your questions. checks, today in we some special we're if you that diet. need right have place So XX%

of ingredients for healthy in and beverage XX% and have that millennials clean look food label. You

looking you bake that at baking or And month. have you a look meaning specifically XX% at twice so consumers if once more to are least the of

benefit things foodservice have by, Swerve we foodservice with about and And and mobility are ask the natural even mobility have opportunity side those will are Wholesome existing back I options, and on which before by all the way, foodservice. of great is were before, were in offered. So to consumers the the that And not what a into back play is business. we is kitchen, to the go because not it's didn't which Swerve Wholesome, we're for because think the is to great with what going going

going XX% benefit So time desire not consumers' but eat is we're the think, I going their that's to the healthier, from mobility at consumers. impact to same and to that, of

like Let's in Things products with our is going Wholesome, products more fantastic come on baking is, new Better, this and which out to campaign So Wholesome Bake really June. are which

Similarly which five sugar. if added are into Swerve, baking quality the mixes, you for want zero We calorie, fantastic feedback. go positive no have very a to getting scratch

healthier that So a options -- are it's to opportunity I bring being think today. and than proposed innovation we are excited. ones And category to huge again, the differentiated there is

Bill Newby

guess over Thanks might That's this of comment remind And little topic is on then how that. in maybe in your just guys one haven't couple Obviously, help of model Andy. insulated very talk season for others there I last increase we've the mean, quarter be have appreciate maybe expectations heard changed. the than of rapid I maybe hot And a the pretty just more the inflation about could I throughout months? for maybe how year? inflation. terms us I there. the helpful. through you your there coverage color really this about seen And you think earnings this handling rest why you

Andy Rusie

question. Great Bill. Yes,

Albert Manzone

Andy… Do want do start you to you me to -- or, start want

Albert Manzone

take can if and to. it happy want you I Yes. Albert,

think I it’s Bill, question. great So a

I think companies in exposure packaged other the you seeing cover and some the think or that type inflationary have I foremost, goods -- first other don't same what seeing of to don't of commodities the pressures don't have we maybe probably you're consumer you're that same have which from you. companies,

a what and we out it. we've do of been got So for that's Albert we've Number one. team as to number alluded before great team have in two front the

inflation to help saw pre-bought impacts. coming materials we where So minimize the we

disposal that third, then done with tools commercial Our the been different team has we pricing productivity side our inflation. a managing any job a has have great And able robust that to be very from offset from perspective. at the to

ahead of price we it. to So have world the some around taken get

been standpoint Albert, job else a add both don't know pricing. so if And you I as the to doing productivity that? anything great managing well from to of that as we've inflation want

Albert Manzone

it. said you No,

Operator

Thank you.

Street Our Smith next questions with proceed question. your Lake come Mark from the with of line Please Capital.

Mark Smith

just products. to follow-up I quick real Hi, wanted on guys. new

like how coming out is are products us Albert, mix of year. the later innovative this on Sounds current new pipeline But you can products that update a or on good now? of kind products

Albert Manzone

organization we some ingredients. products R&D investing new centers time. having the at sales XX% for I alluded above We X invested Last the And we year, beginning to in e-commerce. top-notch around of started as coming Irwin It's The essentially, from the with Yes. reported of is, at an net with something the consistently our deliver being of XX%. in the think like best innovation. innovation I R&D ingredients world our forefront sourcing

what way think those are And the I above. be I year, driving marketplace. say is in this XX% we our to innovations going success we're think essentially

mixes, the been we if fastest baking this take that, market Earth, natural It's Whole on one you we're to you finished year establish market. say in take they able in that brand baking brands take at aiming essentially the at If to we the not do year-to-date. really XX% and you but baking fastest-growing on to go what essentially the have Stevia It's is, XX%. the brand of take

take we around but around added if really baking. listed natural years cannot you fortifications example. end are three you And we trend and the more, scored world. one. baking to going true and around X become the growing X have we -- brand to natural I start mean, became that are And baking became you is And SKUs the QX. look that's and is, just then XXX%. we we number number in in the the the at that benefits. see third we after just growing. the and but that fastest wins another around if brand zero, Australia one brand -- significant In We And Because few see UK one from big disclose, have of are the in a this I we I will

is the And So Whole have now one of big we crazes turmeric. right Earth turmeric. with

out. coming Earth Whole collagen with have We

with So the I significant as see significant I line do expansion one. number well. have Wholesome very we doing with would Swerve that, say said we which is we're brown --

We honey. relaunch are to going

mixes. are baking introducing the going relaunch to just agave. We We're

is you by So, growth the this architectures Those innovation about adjacencies. the in a as it the and Obviously, appropriate price And story. pack of category, with therefore, opportunity performance came incremental what have and way are XXXX, it the which into different marketplace. in They highly we revenue retailers. to those happy space we're And the into are the earlier places now expanding in are we upon. into they management the life believing is new taking we're and facing part Andy bringing with that techniques. provides mentioned get

Operator

call gentlemen questions comments. and the Mr. Ladies you. turn Manzone is for closing the all today. we time I'd any to Thank conference that have to over back like for

Albert Manzone

all strategy our with And great you. you I said, have looking wanted we Yes, more great and vision brand-building initiatives, is always at who our by discussions our of think job. call. just top-notch right for a joining have important. I thank want is off doing team a blessed which the And to the I to innovation, supply I'm and the time to all just to are chain. -- forward we fantastic with as again very distribution a And and our excited I hats I'm

us are we you very by that with of the much excited so, thank all And of ahead you. year and

Operator

attending. you you. do does thank We Thank conclude call. today's That conference for

You may lines. disconnect now your

Whole Earth Brands Inc - Ordinary Shares (FREE) 14 May 212021 Q1 Earnings call transcript