Flow Beverage (FLOW) Lytham Partners Fall 2024 Investor Conference summary

Company overview and strategy

• Focuses on premium, naturally alkaline mineral spring water with functional benefits and sustainable packaging, including Tetra Pak and new aluminum bottles.

• Targets health-conscious, eco-friendly consumers aged 25–45, achieving a high promoter score of 79.

• Holds top 5% global ESG B Corp certification, highest among water companies.

• Recently launched sparkling mineral water in innovative, sustainable packaging.

• Strong presence at major events like the Toronto International Film Festival, boosting brand visibility.

Financial performance and restructuring

• Underwent significant restructuring, exiting unprofitable channels and simplifying operations.

• Achieved record profitability in Q2 and Q3, with EBITDA loss reduced from CAD 12.7M to CAD 3.5M year-over-year.

• Gross margin improved from 3% to 34% in one year, with a near-term goal to exceed 40%.

• Cost improvements of CAD 20–24M realized, especially in logistics and distribution.

• Cash burn and losses have been dramatically reduced since October 2022, with a path to profitability and cash flow positivity in 3–5 quarters.

Growth initiatives and operational capacity

• Expanded production from three to four lines, with plans for five and six by mid-next year; facility can scale up to 14–16 lines.

• Secured CAD 246M in forward co-packing contracts, including a six-year, CAD 213M deal with BeatBox.

• Co-packing business is a major growth driver, with additional partners like BioSteel and Joyburst.

• New secondary site coming online in March to support further growth.

• IT and finance functions fully automated and restructured, improving efficiency and reporting speed.