Farm Pride Foods Limited · ASX:FRM
Farm Pride Foods — Shareholder Meeting (November 2021)
26 slides from Farm Pride Foods's shareholder meeting presentation, Nov 22, 2021
Slide 1: Farm Pride Foods Ltd 2021 AGM CEO Presentation
Farm Pride Foods Ltd 2021 AGM CEO Presentation “Shifting Focus” 22nd November, 2021 Presented By: Daryl BIRD, CEO, Farm Pride Foods Ltd
Slide 2: Disclaimer
Disclaimer This presentation dated 22nd November 2021 provides additional comment on the Annual Report for the 12 months ended 30 June 2021 of Farm Pride Foods Ltd Limited (The ’Company’) and accompanying information released to the market. As such, it should be read in conjunction with the explanat
Slide 3: Agenda
Agenda • Industry overview Industry COVID Navigating change • Farm Pride Foods Ltd FY21 Results • The 3 year journey so far and matters subsequent • FY22 outlook Environmental, Social and Governance (ESG) SHIFTING FOCUS 3 Farm Pride | CEO Presentation AGM 2021
Slide 4: Industry overview
Industry overview
Slide 5: Industry overview
Industry overview Key industry metrics Share of category by egg type Industry Performance • Industry growth steady at 0.3%, but impacted since COVID, growth outlook disrupted. • Profit decline driven by lower margins in shell eggs. • Supermarket retailers represent approx. 63% of industry sales. • C
Slide 6: Industry overview
Industry overview Concentration of egg market Market player concentration Major players - share Pre AI FRM was >11% • The East coast states represent over 85% of egg sales in step with population. • Market share of the total business is highly concentrated across 3 ‐ 5 suppliers. • FRM share has dro
Slide 7: Industry overview
Industry overview Major markets Industry Outlook Growth outlook 5 years Source: IBIS World Egg Farming in Australia Report April 2021 Source: IBIS World Egg Farming in Australia Report April 2021 • The egg market is cyclical and COVID has made trading conditions even more volatile. • Supermarket ret
Slide 8: COVID
COVID
Slide 9: COVID Impacts
COVID Impacts Comparison of demographic trends Pre‐COVID COVID COVID‐recovery Demographic trends (2000‐2020) (2020‐22) (2022‐27) Short run growth (long run Net overseas migration Strong growth Strong decrease constant) International students and Strong growth Strong decrease Uncertain tourists Short
Slide 10: COVID impacts
COVID impacts Pre‐COVID (2000 to 2020) Since 2000, Australia’s population has grown circa Net overseas migration 1.5% per annum High • This growth rate is International students and consumers of generally in line with Growth driven by cheap protein tourism industry growth rates i.e. eggs and increas
Slide 11: COVID impacts
COVID impacts COVID‐19 period (2020‐22) During 2020‐21 Australia’s Negative net overseas population growth rate is migration forecast to reduce to 0.1% – the slowest rate in more than a century. Net negative arrivals of Decline in growth international students and • Further forecasts suggest a drive
Slide 12: COVID impacts
COVID impacts COVID recovery period (2022‐27) Population growth is expected to recover to a similar level to Gradual return to long run net pre‐COVID. By 2023‐24 the overseas migration growth rate is forecast at 1.3% but gradually begins to fall after a period of five years. Immediate spike in the f
Slide 13: Industry overview
Industry overview Key market trends (now and mid term 2 - 4 years) • Per capita egg consumption (egg in shell) stagnant until population and consumption patterns return post COVID. Egg consumption declines then • Compliance adding cost/little opportunity to offset in price but increases barriers to
Slide 14: Navigating COVID and Industry Structural Change – The Road Ahead
Navigating COVID and Industry Structural Change – The Road Ahead Change Farm factors Pride’s Transition supply & timetable understood & secured Response Continued annual growth better than Market • Manage Cage Free Transition within Continued annual ingredient growth • Disrupted consumption & market
Slide 15: The evolving business of Farm Pride
The evolving business of Farm Pride
Slide 16: Farm Pride value added (ingredients) today and tomorrow
Farm Pride value added (ingredients) today and tomorrow Ingredients and value added business Tomorrow • Unique capability in egg industry. Today (2025) Export Industrial • A key margin driver for the future. customers Growth target • A key driver for innovation (production Export and value adding of
Slide 17: Farm Pride Foods Ltd FY21 Results
Farm Pride Foods Ltd FY21 Results
Slide 18: Farm Pride Foods Ltd – Headline Results FY21
Farm Pride Foods Ltd – Headline Results FY21 Revenue • Loss of shell egg sales due to impact of Avian Influenza (AI) July 2020 – approx. 33% of company flock lost. • Revenue includes $3.561M of AI levy payments. $76,991M • • Company forecast for sales loss was originally $18‐$23M. Actions taken and
Slide 19: FY21 Headline results
FY21 Headline results Business scorecard – operational as @ end June 2021 “Apart from key revenue and earnings impact of AI, some good progress across the company….” Safety Quality Shell Product Carton DIFOT 40% reduction in 60% reduction in Price UP Price UP Pack Sales reported incidents product qu
Slide 20: Summary: The 3 year journey so far and matters subsequent
Summary The 3 year journey so far and matters subsequent
Slide 21: The journey so far… Managing for Value
The journey so far…”Managing for Value” Solid signs of recovery and as per plan, then detour for COVID and AI • COVID impacts back end Q3 and • Keysborough sale $18.5M. into Q4. • New large customer July ‘21 - Lethbridge cage farm in full • Ingredient Sales decline impacts production. group sales by
Slide 22: 12 month outlook
12 month outlook
Slide 23: Moving forward next 12 months (FY22)
Moving forward next 12 months (FY22) • Key focus areas • Finalise the detail of initial stages of cage free transition with major retailers and appropriate operational responses. • Continue to engage retail customers and seek growth opportunities for free range in particular. • Refinancing of curren
Slide 24: Moving forward next 12 months (FY22)
Moving forward next 12 months (FY22) • Environmental, Social and Governance (ESG) • Environmental and social sustainability efforts are growing in consciousness and active participation globally. • By its very nature the Farm Pride business conducts itself at all levels with the highest ethics and c
Slide 25: We are a resilient business, and we are taking all steps necessary
We are a resilient business, and we are taking all steps necessary to return to a growth setting and unleash the latent potential of the Farm Pride business. Our future shell egg supply and continued growth in line with industry looks manageable. Our ingredient business has recovered from the impact
Slide 26: Finish Questions?
Finish Questions?
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