Maggie Beer Holdings Ltd. · ASX:MBH
Maggie Beer — H1 FY2019 Earnings Presentation
22 slides from Maggie Beer's earnings presentation, Feb 28, 2019
Slide 1: H1 FY19 Results
H1 FY19 RESULTS Laura McBain - Managing Director Michael Caragounis - CFO 28 February 2018
Slide 2: H1 FY19: Executing on our growth strategy
H1 FY19: EXECUTING ON OUR GROWTH STRATEGY H2 FY19: BENEFITS FROM BUSINESS TRANSITION TO BEGIN FLOWING 2
Slide 3: Longtable Group's premium brands
Longtable Group’s premium brands Longtable has curated a house of premium brands in lifestyle food and beverage with a focus on consumer demand for high quality, nutritious, premium food and beverages July 2016 December 2017 August 2018 February 2019 Maggie Beer Paris Creek Saint David Dairy Maggie
Slide 4: Overview of H1 FY19
OVERVIEW OF H1 FY19 • Acquisition completed 1 August 2018 - 5 months’ results in H1 FY19 ST DAVID DAIRY • Top line growth exceeding internal expectations and addressing near term input cost inflation • Rebranding complete and rollout into Eastern seaboard commenced; currently in 500+ stores in Easte
Slide 5: Portfolio results H1 FY19
Portfolio results H1 FY19 Saint David Dairy • Sales growth trajectory ahead of St David Paris Maggie expectations $000’s Longtable Corporate Dairy2 Creek Beer • Addressing higher near term input costs – cream and overtime labour – that Net revenue 11,014 2,999 8,015 11,547 impacted H1 margin Paris C
Slide 6: Group balance sheet
Group balance sheet Acquisition of St David Dairy in August 2018 is now reflected in group balance sheet $'000s Dec-18 Jun-18 • Cash movement reflects completion of capital raise, acquisition of St David Assets Dairy and continued business Cash 3,978 14,782 investment Trade receivables 2,802 2,935 I
Slide 7: Saint David Dairy
Saint David Dairy Delivering on the growth story and well positioned for continued success • Revenue up 31% St David Dairy1 H1 FY19H1 FY18 • milk sales up 17%, butter and cream sales (A$'000s) up 71% Net revenue 3,597 2,737 • number of customers up by 27% Gross Margin (product) 2,192 1,756 • Gross m
Slide 8: Paris Creek Farms
Paris Creek Farms Continuing to execute against strategy with revenue growth and cost reductions set to drive improved performance Paris Creek1 • Revenue down 6% H1 FY19 H1 FY18 (A$'000s) • transition to rebranded products • committed to private label sales at a Net revenue 8,015 8,536 lower price •
Slide 9: Maggie Beer Products
Maggie Beer Products Strong turnaround in result with $1.5m EBITDA for H1FY19 vs ($1.2)m loss in FY18 • Revenue up 4% to $11.5m • Sales to major retailers is a MBP (A$'000s)1 H1 FY19 H1 FY18 H2 FY18 significant contributor to sales growth Net revenue 11,547 11,098 7,892 Gross Margin 4,436 4,418 2,53
Slide 10: H1 FY19: Executing on our growth strategy
H1 FY19: EXECUTING ON OUR GROWTH STRATEGY H2 FY19: BENEFITS FROM BUSINESS TRANSITION TO BEGIN FLOWING 10
Slide 11: Saint David Dairy strategy to expand rapidly
Saint David Dairy strategy to expand rapidly Growing a premium brand into new markets. What? Why? Status Leverage existing infrastructure to Underway. Continued organic growth in Expand in reach more customers in customer numbers to be enhanced by Melbourne Melbourne and grow brand recent appointmen
Slide 12: Paris Creek Farms executing against strategy
Paris Creek Farms executing against strategy Implementing frameworks to deliver on growth opportunities with Australia’s largest biodynamic organic dairy business What? Why? Status To attract broader national audience as a 100% Biodynamic Launch Complete. Continue Marketing Brand Relaunch activities
Slide 13: Paris Creek Farms executing against strategy
Paris Creek Farms executing against strategy We will build on the initiatives in H1FY19 in the next six months and beyond with revenue growth and cost reductions set to drive improved performance Continue National • Now in more than 200 stores down the Eastern seaboard and growing across 3 distribut
Slide 14: Paris Creek Farms – beyond FY19
Paris Creek Farms – beyond FY19 We are actively preparing for launch in wellness and nutrition for value-added dairy products including powders • Expected initial trial in H1 2020 for nutritional dairy products utilizing existing capability and capacity Largest supply of White space in Marketing, sa
Slide 15: Maggie Beer Products – framework set for strong outlook
Maggie Beer Products – framework set for strong outlook Ongoing strategic plan to deliver FY19 on track to deliver strong stronger revenue growth and results higher EBITDA margins • Sales from new categories including • Growth with current and new portfolio of Cheeses and Stocks reflect opportunity
Slide 16: Key priorities for H2 FY19
Key priorities for H2 FY19 The future is very exciting and Longtable looks forward to building opportunities and unlocking value in its existing brands FULLY INTEGRATE GROW DISTRIBUTION LEVERAGE STRATEGIC INNOVATE AND MAGGIE BEER ADVANTAGE CREATE PRODUCTS • Focus on growing • Harness • Marketing • F
Slide 17: Appendices
SONGTA [Se GROUP j — / Appendices
Slide 18: Appendix 1 - St David Dairy Historic Profit and Loss by Nature
Appendix 1 - St David Dairy Historic Profit and Loss by Nature1 St David Dairy (A$'000s) FY16 FY17 FY18 1H FY18 1H FY19 Net revenue 3,272 4,492 5,885 2,737 3,597 COGS 1,518 1,613 2,101 981 1,404 Gross Margin 1,754 2,879 3,784 1,756 2,192 GM % 53.6% 64.1% 64.3% 64.2% 61.0% Other expenses Total Labour
Slide 19: Appendix 2 - Paris Creek Farms Historic Profit and Loss by Nature
Appendix 2 - Paris Creek Farms Historic Profit and Loss by Nature1 Paris Creek (A$'000s) FY16 FY17 FY18 1H FY18 1H FY19 Net revenue 15,837 18,267 17,143 8,536 8,015 Total COGS 8,000 9,914 9,717 4,817 4,628 Gross Margin 7,837 8,353 7,426 3,719 3,387 GM % 49.5% 45.7% 43.3% 43.6% 42.3% Other expenses T
Slide 20: Appendix 3 – Maggie Beer Products Historic Profit and Loss by Function
Appendix 3 – Maggie Beer Products Historic Profit and Loss by Function1 Maggie Beer Products 2 (A$'000s) FY16 FY17 FY18 1H FY18 1H FY19 Net revenue 19,169 17,925 18,990 11,098 11,547 Total COGS 10,946 10,452 12,035 6,681 7,111 Gross Margin 8,223 7,473 6,955 4,418 4,436 GM % 42.9% 41.7% 36.6% 39.8% 3
Slide 21: Disclaimer
DISCLAIMER The presentation includes forward-looking statements regarding future events and the future financial performance of Longtable Group. Any forward looking statements included in this document involve subjective judgment and analysis and are subject to significant uncertainties, risks and c
Slide 22: Longtable Group
LONGTA3LE GROUP
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