Farm Pride Foods Limited · ASX:FRM
Farm Pride Foods — Shareholder Meeting (November 2022)
13 slides from Farm Pride Foods's shareholder meeting presentation, Nov 17, 2022
Slide 1: 2022 Managing Director's Report to Shareholders
FARM PRIDE FOODS LTD 2022 Managing Director’s Report to Shareholders Presented by Bruce De Lacy 1
Slide 2: Disclaimer
DISCLAIMER This presentation dated 17th November 2022 provides additional comment on the Annual Report for the 12 months ended 30 June 2022 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: Managing Director's Report: FY22 in summary
MANAGING DIRECTOR’S REPORT FY22 in summary The year ahead • FY22 net revenue remains strong. • Reset moment • Retailer and industrial relationships strong. • New leadership. • Refocus the business on fundamentals. • Underlying EBITDA loss $2.309m • Rebuild profitability and cash flow. • Build on the
Slide 4: Key Financial Metrics – FY22
KEY FINANCIAL METRICS – FY22 • Revenue remains stable at $76.6m; • EBITDA loss increase of 51% to $4.6m; • Underlying EBITDA loss of $2.3m; • Cash and short-term deposits increase of 67% to $2.2m; • Cash flow prior to financing activities increase of 422% to $13.04m - sale of Keysborough; • Net debt
Slide 5: Current Market
CURRENT MARKET The market place Our response • Manage cost pressure Increasing input costs • Increase sell prices • Reduce debt Workforce talent • Empower existing talent • Target becoming an employer of choice • Flock rotation impacted by AI. Egg shortage • Investing in new flocks • Flexible workin
Slide 6: FY22 – The Year in Summary
FY22 – THE YEAR IN SUMMARY • Revenue remains steady. • Rising costs of doing business. • Recovery – there is an underlying resilience. • Safety increase in reported incidents compared to FY21. • Quality complaints reduced year on year 6
Slide 7: FY22 The Year in Summary
FY22 THE YEAR IN SUMMARY • Egg shortage • Reset moment • FY22 response – clearly insufficient but now corrected. • Latent potential within the business. • Recovery 7
Slide 8: Avian Influenza
AVIAN INFLUENZA • A thing of the past (but never too far away) • The customers perspective. • Replacement cycle – takes time to recover. • Overseas learnings – no one is immune. 8
Slide 9: FY23 Investing in Change
FY23 INVESTING IN CHANGE • COVID now endemic and lock downs behind us. • New independent directors appointed. • Senior management changes. 9
Slide 10: FY23 The Year Ahead
FY23 THE YEAR AHEAD • Customer Relationships. • Rebuild relationships and trust – consumer led strategy instead of producer push • Pass on significant increases in input costs. • Customer Responses. • Current conditions. • Premiumisation of the egg category – not just a farm based business. 10
Slide 11: The Year Ahead: Cage Free Transition
THE YEAR AHEAD Cage Free Transition • Proposed Standards. • Our transition is underway but at what risk • Production costs for Free Range and Cage Free are almost identical. • Minimize risk by maintaining geographic spread 11
Slide 12: Photos from the October 2022 Floods, Bendigo Free Range Farm
PHOTOS FROM THE OCTOBER 2022 FLOODS BENDIGO FREE RANGE FARM 12
Slide 13: Questions
QUESTIONS 13
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