Financial Data and Key Metrics Changes - Revenue for Q4 2024 increased by 9% to $194 million, driven by a volume growth of 13% across segments, products, and customers [9][28] - Adjusted EBITDA rose by 20% to $26.1 million, with an adjusted EBITDA margin improvement of 130 basis points to 13.4% [10][30] - Loss from continuing operations was $4.6 million, compared to a loss of $3 million in the prior year [30] - Cash provided by operating activities significantly increased to $52 million from $4 million in 2023 [31] Business Line Data and Key Metrics Changes - Co-manufacturing and private label solutions showed strong market resonance, contributing to overall growth [10] - Four of the top five customers experienced double-digit growth, averaging 13% [11] - Adjusted gross profit increased by 2% to $31.5 million, while adjusted gross margin decreased to 16.1% from 17.2% due to increased costs and investments [28][29] Market Data and Key Metrics Changes - The shelf-stable plant-based milk market continues to grow in the mid-single digits, while ready-to-drink protein shakes are experiencing strong double-digit growth [18][19] - The better-for-you fruit snacks category is growing over 20%, with the company achieving 18 consecutive quarters of double-digit growth [19] Company Strategy and Development Direction - The company is focused on operational efficiency rather than capital expenditure-driven growth, aiming to leverage existing assets for revenue and margin growth [145][146] - A target of achieving a $125 million adjusted EBITDA annual run rate by the end of 2025 has been reaffirmed [17][147] - The company plans to increase overall aseptic processing capacity by 20% by the end of 2026 through investments in leadership and quality assurance roles [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025, expecting revenue growth in the range of 7% to 11% and adjusted EBITDA growth of 9% to 16% [33][36] - The company is prioritizing operational improvements to fulfill customer growth while expanding margins [25][26] - Management emphasized the importance of driving operational efficiencies to enhance free cash flow and returns on invested capital [95] Other Important Information - The company has revised executive incentive metrics to focus on adjusted EBITDA, revenue growth, and return on invested capital [23][94] - Significant growth capital expenditures are deferred until at least the end of 2026, allowing for strong free cash flow generation [23][35] Q&A Session Summary Question: Composition of revenue growth and new business wins for 2025 - Management indicated that two-thirds of the revenue growth guidance is associated with category growth and existing customer performance, while one-third is based on known distribution wins and innovations [42][44] Question: Margin opportunity and sequencing of gross margin - Management expects gross margin to improve in the second half of the year due to new roles focused on maintenance and reliability, with a target of 18% to 19% gross margin by Q4 [49][64] Question: Factors influencing revenue growth range - The timing of unlocking capacity is a key factor, with confidence in achieving higher growth if capacity is unlocked sooner [68][69] Question: Category growth expectations for 2025 - Management believes the mid-single digit growth for the shelf-stable plant-based category remains valid, with strong growth in food service and club channels [82][85] Question: Capital allocation priorities and leverage target - The company plans to prioritize debt reduction with free cash flow in 2025, aiming for a leverage target of 2.5 times by the end of 2025 [93] Question: Potential for new business in the pipeline - Management sees opportunities for new business through expansion of share, new product development, and total addressable market (TAM) expansion with existing customers [102][105]