Bega Cheese Limited · ASX:BGA
Bega Cheese — H1 FY2017 Earnings Presentation
17 slides from Bega Cheese's earnings presentation, Feb 22, 2017
Slide 1: ASX Announcement: Half Year 2017 Results Highlights Presentation
ASX ANNOUNCEMENT For personal use only Half Year 2017 Results Highlights Presentation I have pleasure in enclosing the Half Year 2017 Results Highlights Presentation to be discussed on the Half Year Result 2017 Conference Call scheduled for 11:00am today. Brett Kelly Company Secretary 22 February 20
Slide 2: 1H FY2017 Half Year Results
For personal use only 1H FY2017 Half Year Results Barry Irvin – Executive Chairman Paul van Heerwaarden – CEO Colin Griffin – CFO
Slide 3: Strategic Overview
Strategic Overview For personal use only • Revenue growth • Profit growth • Acquisition execution • Strong core business • Expanded business base • Business resilience and agility BEGA CHEESE LIMITED | PAGE 2
Slide 4: Key Messages
Key Messages For personal use only • Strong performance in challenging market • Highly competitive environment in cheese cut, pack and processing • Volatility and uncertainty remains in nutritionals • Impact of the above will be seen H2 (lower volume in nutritionals and cheese cut, pack and processi
Slide 5: Result Highlights – Statutory
Result Highlights – Statutory For personal use only • Revenue increase to $621m • EBITDA increase to $35.5m • PAT increase to $15.7m • EPS increase to 10.3cps • Interim dividend 5cps BEGA CHEESE LIMITED | PAGE 4
Slide 6: Result Highlights – Normalised
Result Highlights – Normalised* For personal use only • Revenue increase to $621m • EBITDA increase to $42.6m • PAT increase to $20.7m • EPS increase to 13.5cps • Interim dividend 5cps *Normalised for inventory impairment 1H FY2017 BEGA CHEESE LIMITED | PAGE 5
Slide 7: 1H FY2017 Results Normalised
1H FY2017 Results Normalised* Per Financial Inventory Change from For personal use only Consolidated Statements impairment Normalised Result prior period Period Ending 25 December 2016 $’000 $’000 $’000 $’000 % Revenue 621,131 - 621,131 59,758 10.6 Cost of sales (556,077) 7,100 (548,977) (46,797) 9.
Slide 8: Balance Sheet (extract)
Balance Sheet (extract) 1H FY2017 1H FY2016 FY2016 For personal use only Dec $m Dec $m Jun $m Trade and other receivables 160.5 122.9 143.7 Inventories 194.3 206.5 192.4 Property, plant & equipment 222.7 213.7 219.9 Total Assets 621.3 577.9 586.7 Trade and other payables 157.9 128.9 156.0 Borrowings
Slide 9: Working Capital
Working Capital 1H FY2017 1H FY2016 FY2016 For personal use only Dec $m Dec $m Jun $m Trade Receivables 160.5 122.9 143.7 Inventories 194.3 206.5 192.4 Trade Payables (157.9) (128.9) (156.0) Working Capital 196.9 200.5 180.1 • Working capital in line with 1H FY2016 • Increase $17 million from June 2
Slide 10: Net Debt
Net Debt 1H FY2017 1H FY2016 FY2016 For personal use only Dec $m Dec $m Jun $m Cash 14.5 17.3 9.7 Debt 85.1 92.4 62.7 Net Debt 70.6 75.0 53.0 Interest Coverage > 2.5 times 14.5 8.5 12.1 Debt Leverage < 3.0 times 1.0 1.4 0.8 • Balance sheet does not reflect recent acquisition BEGA CHEESE LIMITED | PA
Slide 11: Dairy Commodity Prices and Farm Gate Milk Price
Dairy Commodity Prices and Farm Gate Milk Price For personal use only • Farm gate milk price now aligned to global dairy commodity price • Global supply more aligned with demand • EU intervention stock a concern • Russian sanctions continue • Stronger demand particularly from China • Volatility rema
Slide 12: Investing in Infrastructure
Investing in Infrastructure Bega Derrimut Bega For personal use only Cheese cutting and packaging • New natural cheese shred and slice lines • Efficiency and capacity improvements Bega Cream cheese Strathmerton • Increased capacity in value added packaging Enterprise resource planning • Streamline b
Slide 13: Sales and Marketing
Sales and Marketing Bega Brand For personal use only • Number one Australian cheese brand • Continued international growth Food service • Chef lead selling program continues to be very successful throughout Asia • Increased mozzarella capacity generating strong sales Nutritionals • Nutritionals chan
Slide 14: Mondelez Australian Grocery Acquisition
Mondelez Australian Grocery Acquisition For personal use only • $460 million acquisition • Vegemite, peanut butter, salad dressings and cheese • $40-45 million EBITDA* in first full year of operations • Strong positive reaction to announcement • Transition in progress • Continue to target completion
Slide 15: Strategic Priorities
Strategic Priorities For personal use only • Finalise Mondelez Australian grocery business acquisition • Build on opportunities from acquisition • Grow international business in dairy goods and nutritionals • Respond to dairy ingredient opportunities • Execute near term corporate opportunity • Stren
Slide 16: For personal use only
For personal use only
Slide 17: Disclaimer
Disclaimer For personal use only The following disclaimer applies to this presentation and any information provided in this presentation (Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any Information. This presentation