CHG PPC Intermediate II LLC

Overview Key strengths Key risks Consistent organic revenue growth in the low- to mid-single-digit percent range. Dependence on the performance of key customers. Long-standing relationships with large solid customers. Narrow product focus and significant customer concentration. Generates approximately 60% of revenue from pass-through pricing customer contracts, which mitigates commodity exposure. Large, debt-financed acquisitions or dividends. For the six-months-ended Sept. 23, 2023, volumes declined by a low-single-digit percentage while prices grew more than 10%. Volume declines were the result of lower consumption across the company?s product categories, particularly in the casual dining channel, which was partially offset by new business wins. CHG's S&P Global Ratings'-adjusted EBITDA grew 26% for the six-months-ended June 30, 2023, as pricing caught up to costs across

...Pricing actions and lower costs should improve profitability in fiscal 2024, despite softer volume trends. For the six-months-ended Sept. 23, 2023, volumes declined by a low-single-digit percentage while prices grew more than 10%. Volume declines were the result of lower consumption across the company's product categories, particularly in the casual dining channel, which was partially offset by new business wins. CHG's S&P Global Ratings'-adjusted EBITDA grew 26% for the six-months-ended June 30, 2023, as pricing caught up to costs across the portfolio and the supply chain network continued to stabilize. Partially offsetting these benefits were lower ingredient and energy costs that resulted in lower EBITDA, given the pass-through nature of certain contracts and higher manufacturing and overhead costs. We forecast revenue will grow about 10% in fiscal 2024, largely due to price increases and contributions from the acquisition of Mi Rancho. Although CHG's retail business growth could slow...

Full Report