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    Mitchell Pinheiro • Sturdivant & Co.

    Mitchell Pinheiro's questions to Flowers Foods Inc (FLO) leadership

    Mitchell Pinheiro's questions to Flowers Foods Inc (FLO) leadership • Q2 2025

    Question

    Mitchell Pinheiro asked for a timeline on the company's strategic 'transition,' questioning if it is a multi-year process. He also inquired about levers available to protect gross margins amid volume declines and the company's current appetite for M&A given its leverage.

    Answer

    Chairman & CEO A. Ryals McMullian described the situation as a 'generational shift' and declined to provide a specific timeline, stating that patience is required. To manage margins, he pointed to bakery closures, supply chain efficiencies, and portfolio optimization, such as replacing lower-margin foodservice business. On M&A, McMullian said the near-term focus is on debt paydown, making significant acquisitions more likely 'over time,' though he noted non-cash deal structures are always a possibility.

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    Mitchell Pinheiro's questions to Flowers Foods Inc (FLO) leadership • Q2 2025

    Question

    Mitchell Pinheiro asked for a timeline on the company's strategic 'transition,' questioning if it's a multi-year process. He also asked about levers to protect gross margin amid lower volumes and inquired about the company's appetite for M&A given its current leverage.

    Answer

    CEO A. Ryals McMullian described the shift as 'generational' and declined to set a specific timeline, advising that patience is needed. To protect margins, he pointed to levers like bakery closures, supply chain efficiencies, and portfolio optimization to replace lower-margin business. Regarding M&A, McMullian stated the current focus is on debt paydown, making significant acquisitions more likely 'over time,' but noted that non-cash transactions remain a possibility.

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    Mitchell Pinheiro's questions to Flowers Foods Inc (FLO) leadership • Q1 2024

    Question

    Mitchell Pinheiro of Sturdivant & Company asked for a breakdown of the revised EBITDA margin guidance pressure between gross margin and SG&A. He also probed management's confidence in achieving long-term margin targets and sought reasons for weak demand among lower-income consumers.

    Answer

    CFO Steve Kinsey explained that the majority of the margin pressure would impact the gross margin line, driven by category weakness and tariffs, with some SG&A cost savings planned as an offset. CEO Ryals McMullian reaffirmed confidence in the long-term 12-14% EBITDA margin goal but conceded the current environment may delay its achievement. McMullian attributed weak demand, even from lower-income groups, to a broad-based pullback in consumption across all demographics.

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    Mitchell Pinheiro's questions to MGP Ingredients Inc (MGPI) leadership

    Mitchell Pinheiro's questions to MGP Ingredients Inc (MGPI) leadership • Q2 2025

    Question

    Mitchell Pinheiro from Sturdivant & Co. questioned how improved visibility in the Distilling Solutions segment benefits the company, particularly on margins. He also asked about the composition of the net barrel put away, participation in the RTD trend, and which brands in the portfolio were underperforming relative to Penelope's strength.

    Answer

    CFO Brandon Gall explained that visibility provides confidence and allows for better operational planning, which helps margins. He stated most of the $15-20M net put away is for MGPI's own brands like Penelope, with some for long-term customer agreements and opportunistic market purchases. He confirmed participation in the RTD trend via white goods and American whiskey sales. Gall noted that weakness in the Premium Plus portfolio was primarily in a couple of larger volume American whiskey brands, which the company is addressing with pricing and innovation.

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    Mitchell Pinheiro's questions to MGP Ingredients Inc (MGPI) leadership • Q1 2025

    Question

    Mitchell Pinheiro asked for clarification on the barrel distillate put away, questioning if the increase was solely for Branded Spirits. He also inquired if lower production volumes would lead to higher costs for newly aged distillate and sought commentary on promotional pricing trends in the whiskey category.

    Answer

    Mark Davidson, VP & Corporate Controller, confirmed the Q1 increase in net whiskey put away was solely for the Branded Spirits business and was front-loaded due to production scheduling, with the full-year put away still expected to decrease significantly. Brandon Gall, Interim CEO & CFO, acknowledged that lower production volumes impact overhead absorption but stated that productivity initiatives are in place to keep costs competitive. He also noted that instead of direct price cuts, the industry, including MGP's Penelope brand, is offering value through innovation at accessible price points.

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    Mitchell Pinheiro's questions to MGP Ingredients Inc (MGPI) leadership • Q4 2024

    Question

    Mitchell Pinheiro of Sturdivant & Co. asked about the 2025 whiskey putaway plans, the fungibility of inventory between wholesale and branded use, and which customer segment is expected to lead the eventual recovery in distilling. He also questioned if this downturn accelerates MGP's strategic shift to a branded spirits company and inquired about the M&A outlook.

    Answer

    Brandon Gall, Interim President, CEO, and CFO, confirmed that the 2025 net putaway is primarily for MGP's own brands and that inventory is fungible between segments. He suggested the recovery will be driven by larger national/multinational customers and strong craft brands. Gall agreed that the downturn accelerates the strategic shift to a branded spirits company, reinforcing the rationale for the Luxco and Penelope acquisitions. While stabilizing the business is the top priority, he stated M&A remains part of the long-term strategy.

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    Mitchell Pinheiro's questions to MGP Ingredients Inc (MGPI) leadership • Q3 2024

    Question

    Mitchell Pinheiro of Sturdivant & Co. inquired about the composition of the barrel distillate inventory, asking if the recent increase was for MGP's own brands and if the average age of inventory was rising. He also questioned if the Luxco facility expansion would create negative leverage in 2025 and asked for commentary on whether the industry slowdown was caused by on-premise vs. off-premise shifts or consumer pantry destocking.

    Answer

    CFO Brandon Gall clarified that net whiskey put-away is down year-over-year and that in 2025, all new barrels will be for MGP's own brands. CEO David Bratcher added that while the average age of the total inventory remains relatively young, they have intentionally grown aged inventory for their own brands to support premiumization. Gall stated they do not expect the Luxco expansion to be a material headwind. Bratcher attributed the market slowdown to a broader correction to pre-COVID trends and macro pressures, rather than a specific on-premise/off-premise shift.

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    Mitchell Pinheiro's questions to Fresh Del Monte Produce Inc (FDP) leadership

    Mitchell Pinheiro's questions to Fresh Del Monte Produce Inc (FDP) leadership • Q2 2025

    Question

    Mitchell Pinheiro of Sturdivant & Co. inquired about several key areas, including the pineapple supply outlook through 2026, the distribution and supply constraints of the PinkGlow pineapple, sources of demand and margin potential for the fresh-cut fruit business, and the impact of Black Sigatoka disease on banana supply and pricing. He also asked about the strategy behind selling older vessels, the source of equity earnings from unconsolidated companies, and the specific impact of foreign exchange rates.

    Answer

    Chairman & CEO Mohammad Abu-Ghazaleh and SVP & CFO Monica Vicente addressed the questions. Mr. Abu-Ghazaleh expects pineapple supply shortages to persist into 2026 but noted global production expansions are underway, with significant increases expected in 2-3 years. He confirmed PinkGlow supply is constrained but acreage is expanding, with new product available in late 2026. For fresh-cut fruit, growth is driven by retail and convenience stores globally, with stable margins expected. He confirmed Black Sigatoka is severely impacting banana supply, creating an industry-wide issue. On capital strategy, the vessel sales are part of a transition to container shipping in Asia, and he pointed to strong cash generation as proof of the new fleet's success. Ms. Vicente added that favorable foreign exchange rates in Europe were partially offset by headwinds from the strong Costa Rican Colón.

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    Mitchell Pinheiro's questions to Fresh Del Monte Produce Inc (FDP) leadership • Q1 2025

    Question

    Mitchell Pinheiro of Sturdivant & Co. asked about consumer demand trends amid economic pressure, competitive advantages from logistical disruptions, the market's handling of tariffs, performance in the avocado and fresh-cut categories, and the supply-demand dynamics in the core pineapple business.

    Answer

    Chairman and CEO Mohammad Abu-Ghazaleh stated that consumer demand remains solid and that FDP's integrated supply chain provides a key advantage over competitors. He explained that tariffs are being mitigated cooperatively with buyers. Abu-Ghazaleh also highlighted strong growth in avocados and fresh-cut guacamole, and attributed pineapple supply tightness to rising consumer demand due to its value and health benefits.

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    Mitchell Pinheiro's questions to Fresh Del Monte Produce Inc (FDP) leadership • Q4 2024

    Question

    Mitchell Pinheiro of Sturdivant & Co. inquired about the company's core growth drivers, specifically asking about pineapple supply constraints and pricing, fixed cost leverage in fresh-cut fruit, and the potential impact of tariffs on the avocado business. He also questioned the strategy for diversifying avocado sourcing beyond Mexico and the long-term plan for the lower-margin banana segment, given new production initiatives in Somalia and Brazil.

    Answer

    Chairman and CEO Mohammad Abu-Ghazaleh explained that Fresh Del Monte is expanding pineapple production globally, including a new patented disease-resistant variety in Brazil, and that any potential avocado tariffs would be passed on to consumers. He affirmed the high quality of avocados from alternative sources like Peru and Colombia. Regarding bananas, he detailed how the new Somalia operation will significantly reduce transit times to the Middle East and Europe, improving margins for what remains a core business. SVP and CFO Monica Vicente added that pineapple pricing is expected to remain strong or improve.

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    Mitchell Pinheiro's questions to Fresh Del Monte Produce Inc (FDP) leadership • Q3 2024

    Question

    Mitchell Pinheiro of Sturdivant & Co. inquired about the specifics of the Mann Packing restructuring, including the nature and timing of the projected $15-20 million in annual savings. He also asked about the drivers behind the strong performance in the Fresh and Value-Added segment, questioning the mix of volume versus price and the sustainability of its double-digit gross margin. Additionally, Pinheiro sought details on the sales contribution from new pineapple innovations, the outlook for the Banana segment's volume and pricing, and an update on new ventures like biofertilizers.

    Answer

    SVP and CFO Monica Vicente confirmed the $15-20 million annual profitability improvement from the Mann Packing consolidation would begin in 2025, clarifying it's a further consolidation of three facilities into one. Chairman and CEO Mohammad Abu-Ghazaleh added that this streamlines logistics and reduces fixed costs. Regarding the Fresh and Value-Added segment, Vicente stated that growth was primarily volume-driven and that double-digit margins are the new baseline, with a long-term goal of low-teens. Abu-Ghazaleh explained that achieving this goal will be a gradual process, similar to the multi-year development of the fresh-cut business, and will be aided by new biomass ventures. For the Banana segment, Vicente reiterated the full-year guidance for lower volume and pricing, while Abu-Ghazaleh provided context on rising global production costs and disease pressure, explaining the company's strategy to prioritize margins over volume. He also confirmed the new biofertilizer plant in Kenya has begun trial production.

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