Purple Revenue Growth Strategy
3. Mix shift, promotion optimization and operational efficiencies
will drive margin expansion; some gains reinvested for growth
purple
Purple adj. EBITDA expansion over the next 3-5 years
Illustrative
10.7%
Adj. EBITDA
today 1
14-15%
Mix shift
Smart
promotions
Towards new,
higher margin
products
Favoring high
margin
products
Manufacturing
efficiency gains
From new
machines with
higher
throughput,
automation,
OEE initiatives
Fixed cost
spread
Across higher
revenue
Scaled
distribution
Nationwide due
to increased
volumes (e.g.,
FTL vs. LTL)
Input cost
management
With suppliers
to optimize
prices, protect
from surges
Reinvestments
for growth
Including R&D,
showroom
expansion,
wholesale
growth, people
ops
Adj. EBITDA
3-5 years
from today
28
1. Average of 2019 and 2020 adjusted EBITDA Margins which were 7.8% and 13.6%, respectively.
COVID-related benefits contributed to an increase in adjusted EBITDA margin in 2020.
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