Whole Earth Brands, Inc. (the “Company” or “we” or “our”) (Nasdaq:
FREE), a global food company enabling healthier lifestyles through
premium plant-based sweeteners, flavor enhancers and other foods,
today announced an evolution of its leadership organization with
new executive appointments, as well as an amendment to its credit
agreement which allows for added near-term flexibility with
increased leverage covenants. The Company also reaffirmed its
outlook for full year 2023 ahead of its first quarter earnings
release on May 10, 2023.
Michael Franklin, Interim Chief Executive
Officer, commented, “The actions that we announced today are the
product of several months of engagement across all facets of our
business. They are aimed at simplifying our structure and fostering
teamwork and collaboration at all levels. Streamlining our
operations and enhancing cross-functional activities are key
corporate priorities as we strive to enhance our productivity and
generate sustainable long-term growth.”
Irwin D. Simon, Executive Chairman, added, “We
continue to be excited about the sweetener category and the
opportunities within our portfolio to drive innovation. Our ability
to succeed requires an ongoing commitment to building a nimble and
efficient organization that can better serve our customers and
shareholders. We are pleased with the initial results of these
efforts and look forward to building on our work in the year
ahead.”
Branded CPG International Regions to
Operate as One Strategic Region; Names Chief Operating Officers for
Branded CPG North America and International Regions
“I’m excited about our decision to operate our
Branded CPG international regions in Europe, IMEA, LATAM, APAC, and
beyond as one strategic unit, which demonstrates our commitment to
enhance collaboration, streamline decision-making, and build scale
for future growth,” continued Mr. Franklin. “This move is
consistent with our company's philosophy of operating as ‘one
company, one business, one team’ – all working towards a cohesive,
common goal. Looking ahead, as we continue to pursue new
opportunities and navigate a rapidly evolving global marketplace,
our consolidated approach will enable us to stay agile, innovative,
and competitive. I’m excited to be working closely with Nigel and
Rajnish, our new Chief Operating Officers of North America and
International, to accomplish our goals across our entire Branded
CPG business.”
Nigel Willerton, Founder of Wholesome
Sweeteners, Named as President and COO of Branded CPG North America
RegionNigel Willerton's career spans over 30 years in the natural
and organic specialty foods industry. As the founder and former
Chief Executive Officer of Wholesome Sweeteners prior to Whole
Earth Brands acquisition of the business in February 2021 he led
the company for nearly two decades, making it one of the largest
organic and fair-trade sweetener companies in the United States.
Nigel's visionary leadership and unwavering commitment to
sustainability and social responsibility have earned him a
reputation as an industry thought leader. He has also served as
Chair of the Organic Trade Association Sugar Task Force.
Rajnish Ohri, Formerly VP and MD of Whole Earth
Brand’s Branded CPG IMEA Region, Named as President and COO of
Branded CPG International RegionRajnish Ohri is a seasoned
entrepreneur and accomplished business operator with more than 30
years of experience in the consumer packaged goods industry across
various geographies and cultures. As Vice President & Managing
Director of IMEA at Whole Earth Brands since 2020, he has
demonstrated his passion for driving growth in underdeveloped
markets and achieving positive results. Prior to
joining Whole Earth Brands, Rajnish served as the Managing Director
of the Hain Celestial businesses in the IMEA region. With his
wealth of knowledge and expertise, Rajnish has established himself
as a dynamic leader in the industry, committed to driving growth
and achieving success through innovation and strategic
thinking.
Appoints Bernardo Fiaux as Chief
Financial Officer
Bernardo Fiaux joins the Company as Chief
Financial Officer effective April 24, 2023. Concurrent with Mr.
Fiaux’s appointment, Duane Portwood will step down from his post as
Chief Financial Officer, but will remain with the Company for a
short period to support the transition.
Mr. Fiaux joins Whole Earth Brands from The
Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz”), where he most
recently served as CFO for the Meals, Condiments, and Foodservice
division in North America. There, he supported the business in
maintaining top-tier profitability and reducing balance sheet
leverage to achieve post-merger targets. Prior to his role as
division CFO, he also served as Head of North America M&A where
he led two large divestiture processes at Kraft Heinz. Prior to
Kraft Heinz, Mr. Fiaux was with 3G Capital, where he supported a
series of deals including Tim Horton’s, Popeye’s, and the Heinz and
Kraft Foods merger. Fiaux holds an MBA from the University of
Chicago Booth School of Business.
Mr. Franklin commented, “On behalf of the Board
of Directors and our entire leadership team, I thank Duane for all
of his contributions, wisdom and dedication to the Company,
especially amid the complexities of the pandemic and the
challenging macro environment that followed. On a personal note, I
am truly grateful for his partnership and all of the support he has
provided during my integration process and I know his counsel will
be valuable in supporting Bernardo through his transition as
well.”
Mr. Franklin concluded, “I am incredibly excited
to welcome Bernardo to our leadership team at Whole Earth Brands.
Bernardo enters our Company at an important inflection point where
we look to capitalize on a number of opportunities that lie in
front of us. His demonstrated experience and hands-on approach are
an excellent fit, and when coupled with his passion and energy,
should elevate our team as we embark on the next chapter of
growth.”
Bernardo Fiaux, Whole Earth Brands’ new Chief
Financial Officer, stated, “I believe that my experiences at Kraft
Heinz and 3G Capital will build upon the solid foundation that
Duane and team have put in place at Whole Earth Brands. I am
excited to be joining the organization and help the business drive
sustainable long-term value for its shareholders.”
Amends Credit Agreement
The Company announced today that it has entered
into an amendment, effective April 24, 2023, to its Amended and
Restated Credit Agreement with its lenders which increases the
consolidated total leverage ratio covenant to provide near-term
flexibility and improved access to its revolving credit facility.
The amendment temporarily increases the leverage ratio by 0.25
turns for the first quarter of 2023, 0.5 turns on a quarterly basis
through the fourth quarter of 2023, and 0.25 turns in the first
quarter of 2024. Thereafter, beginning in the second quarter of
2024, the Company’s leverage ratio returns to a level not to exceed
5.5x. There were no other substantive changes to the agreement, nor
material expenses associated with the amendment. More details can
be found in the Company’s 8-K, once filed.
Reaffirms Full Year 2023
Guidance
The Company is reaffirming its outlook for full
year 2023. The Company’s 2023 outlook is as follows:
- Net Product Revenues: $550 million
to $565 million representing reported growth of 2% to 5%
- Adjusted EBITDA: $76 million to $78
million
- Capital Expenditures: Approximately
$9 million
First Quarter 2023 Results to be
Released on May 10, 2023
The Company will release its first quarter
financial results on May 10, 2023. Details associated with the call
were provided in a concurrent press release.
About Whole Earth Brands
Whole Earth Brands is a global food company
enabling healthier lifestyles and providing access to premium
plant-based sweeteners, flavor enhancers and other foods through
our diverse portfolio of trusted brands and delicious products,
including Whole Earth Sweetener®, Wholesome®, Swerve®, Pure Via®,
Equal® and Canderel®. With food playing a central role in people’s
health and wellness, Whole Earth Brands’ innovative product
pipeline addresses the growing consumer demand for more dietary
options, baking ingredients and taste profiles. Our world-class
global distribution network is the largest provider of plant-based
sweeteners in more than 100 countries with a vision to expand our
portfolio to responsibly meet local preferences. We are committed
to helping people enjoy life’s everyday moments and the
celebrations that bring us together. For more information on how we
“Open a World of Goodness®,” please visit
www.WholeEarthBrands.com.
Forward-Looking Statements
This press release contains forward-looking
statements (including within the meaning of the Private Securities
Litigation Reform Act of 1995) concerning Whole Earth Brands, Inc.
and other matters. These statements may discuss goals, intentions
and expectations as to future plans, trends, events, results of
operations or financial condition, or otherwise, based on current
beliefs of management, as well as assumptions made by, and
information currently available to, management.
Forward-looking statements may be accompanied by
words such as “achieve,” “aim,” “anticipate,” “believe,” “can,”
“continue,” “could,” “drive,” “estimate,” “expect,” “forecast,”
“future,” “guidance,” “grow,” “improve,” “increase,” “intend,”
“may,” “outlook,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “target,” “will,” “would,” or similar words,
phrases or expressions. Examples of forward-looking statements
include, but are not limited to, the statements made by Messrs.
Simon and Franklin, and our 2023 guidance. Factors that could cause
actual results to differ materially from those in the
forward-looking statements include, but are not limited to, the
ongoing conflict in Ukraine and related economic disruptions and
new governmental regulations on our business, including but not
limited to the potential impact on our sales, operations and supply
chain; adverse changes in the global or regional general business,
political and economic conditions, including the impact of
continuing uncertainty and instability in certain countries, that
could affect our global markets and the potential adverse economic
impact and related uncertainty caused by these items; the extent of
the impact of the COVID-19 pandemic, including the duration,
spread, severity, and any recurrence of the COVID-19 pandemic, the
duration and scope of related government orders and restrictions,
the impact on our employees, and the extent of the impact of the
COVID-19 pandemic on overall demand for the Company’s products;
local, regional, national, and international economic conditions
that have deteriorated as a result of the COVID-19 pandemic,
including the risks of a global recession or a recession in one or
more of the Company’s key markets, and the impact they may have on
the Company and its customers and management’s assessment of that
impact; extensive and evolving government regulations that impact
the way the Company operates; the impact of the COVID-19 pandemic
on the Company’s suppliers, including disruptions and
inefficiencies in the supply chain; and the Company’s ability to
offset rising costs through pricing and productivity
effectively.
These forward-looking statements are subject to
risks, uncertainties and other factors, many of which are outside
of the Company’s control, which could cause actual results to
differ materially from the results contemplated by the
forward-looking statements. These statements are subject to the
risks and uncertainties indicated from time to time in the
documents the Company files (or furnishes) with the U.S. Securities
and Exchange Commission.
You are cautioned not to place undue reliance
upon any forward-looking statements, which are based only on
information currently available to the Company and speak only as of
the date made. The Company undertakes no commitment to publicly
update or revise the forward-looking statements, whether written or
oral that may be made from time to time, whether as a result of new
information, future events or otherwise, except as required by
law.
Contacts:
Investor Relations Contact:Whole Earth
Brands312-840-5001investor@wholeearthbrands.com
ICRJeff
Sonnek646-277-1263jeff.sonnek@icrinc.com
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