Max US Bidco Inc.

Overview Key strengths Key risks National manufacturing network and capabilities for complex ingredients, formulations, and blends Consumer trade down into value and private label due to pressured consumer spending. Long-term relationships with leading pet food brands and retailers. Limited operating flexibility given high fixed overhead. Supportive industry trends with favorable long-term demand and consolidation and capacity rationalization Financial sponsor ownership may keep leverage over 5x in the long term. Max US Bidco Inc. (d/b/a Alphia) reported a 16.5% year-over-year sales decline in the first half of fiscal 2024 (ended June 30, 2024). This followed an 11% year-over-year decline in sales during fiscal 2023 (ended Dec. 31, 2023). Demand began to deteriorate last year due to retailer inventory destocking and consumer

...We believe consumer demand for pet food will remain soft in the second half of 2024 as consumer budgets face increasing pressure. Max US Bidco Inc. (d/b/a Alphia) reported a 16.5% year-over-year sales decline in the first half of fiscal 2024 (ended June 30, 2024). This followed an 11% year-over-year decline in sales during fiscal 2023 (ended Dec. 31, 2023). Demand began to deteriorate last year due to retailer inventory destocking and consumer trade-down from super premium and premium brands, the company's largest segments, into value and private label. This consumer trade down was driven by pressured consumer spending amid the high inflationary environment in the U.S. The super-premium and premium segments have also lacked promotional activity and new product launches. Moreover, the company's new business ramp up with certain customers expected in the back half of 2023 was delayed. Demand in the...

Full Report