Bega Cheese Limited · ASX:BGA
Bega Cheese — FY2019 Earnings Presentation
20 slides from Bega Cheese's earnings presentation, Aug 28, 2019
Slide 1: FY2019 Full Year Results Presentation
FY2019 Full Year Results Presentation Max Roberts – Chairman Paul van Heerwaarden – CEO Colin Griffin – CFO Page 1
Slide 2: Key message
Key message Continued transformation to becoming ‘The Great Australian Food Company’ Challenging year for the dairy industry Bega Cheese has further diversified but still impacted Growing domestic and international branded consumer business Koroit acquisition and integration complete Suc
Slide 3: Transformation to becoming 'The Great Australian Food Company'
Transformation to becoming ‘The Great Australian Food Company’ FOURTH TRANSFORMATION 2019 2017 THIRD TRANSFORMATION ACCELERATING GROWTH 2011 SECOND TRANSFORMATION NEW BUSINESS PLATFORM FIRST TRANSFORMATION 2008/09 STRUCTURED FOR THE FUTURE 2007 GROW AND DIVERSIFY 2001 Customer and consumer focussed
Slide 4: Accelerated growth plan
Accelerated growth plan Expanded consumer branded product portfolio in domestic and international markets Aligning our manufacturing footprint with milk supply Accelerated investments in growth and innovation Continuous improvement and rationalisation of manufacturing footprint New strateg
Slide 5: Bega Values
Making a difference Grow our people We ensure our: Page S
Slide 6: Revenue analysis
Revenue analysis Export now 31% of total revenue 16% 9% Spreads and Increased dairy and nutritional other grocery Nutritionals volumes from Koroit acquisitions Expanding customer base in infant formula and bionutrients Launched new branded dairy and 40% 35% spreads products Dairy consumer pa
Slide 7: Performance highlights
Performance highlights Revenue increased by 13% to $1.42 billion Export sales increased 4% to $442 million Increased production by 8% to 280,405 tonnes Increased milk intake by 41% to 1.06 billion litres Normalised EBITDA increased by 5% to $115.4 million Page 7
Slide 8: Reconciliation of normalised result
Reconciliation of normalised result Koroit Koroit Fair Coburg Site Per Financial Acquisition Value Closure Legal Other Normalised Consolidated Statements Costs Adjustments Costs Costs Costs Outcome Period Ending 30 June 2019 $’000 $’000 $’000 $‘000 $’000 $’000 $’000 Revenue 1,419,952 - - - - - 1,419
Slide 9: Balance sheet
Balance sheet FY2019 FY2018 $m $m* Cash 28.8 21.7 Trade and other receivables 179.9 221.4 Inventories 274.1 211.2 Property, plant and equipment 443.3 323.6 Intangible assets 535.1 411.5 Total Assets 1,488.6 1,215.8 Trade and other payables 265.9 225.9 Borrowings (net of costs) 316.1 267.1 Total Liab
Slide 10: Cash flow
Cash flow FY2019 FY2018 $m $m* Receipts from customers 1,422.1 1,313.7 Payments to suppliers (1,476.8) (1,218.7) Net proceeds from trade receivables facility 188.6 - Interest and other costs of financing paid (20.4) (10.7) Income tax paid (13.3) (25.8) Operating activities 100.3 58.6 Proceeds from s
Slide 11: Group sales
Group sales $1.6b $1.4b $1.2b $1.0b $0.8b $0.6b $0.4b $0.2b $0.0b 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Page 11
Slide 12: Our consumer brands
Our consumer brands Launched 41 new products including Gluten Free Vegemite Launched Farmer’s Table and Simply Nuts brands Increased licencing including successful launch of Arnott’s Vegemite Shapes Court has confirmed Bega Cheese ownership rights to peanut butter trade dress now subject to
Slide 13: Dairy commodity and farm gate milk prices
Dairy commodity and farm gate milk prices Significant decrease in Australian milk production Drought impact on water, grain and hay prices Record milk intake for Bega of 1.06 billion litres Strong recovery in global commodities Downward pressure on margins due to increased competition for
Slide 14: Operations review
Operations review Total recordable injury frequency rate improved by 15% Total production increased to 280,405 tonnes Significant efficiency gains in processing plants including closure of Coburg site and toll processing arrangement Rationalisation of milk supply network with the integration
Slide 15: Our manufacturing sites
TOLGA Our manufacturing sites KINGAROY Quality assets in key locations Focused capex program to maintain and LAGOON ST, BEGA RIDGE ST, BEGA enhance capabilities Koroit acquisition expands geographic reach in key milk region Expanding lactoferrin capacity Rationalised Coburg and entered int
Slide 16: Approach to Corporate Social Responsibility
Approach to Corporate Social Responsibility our focus is on the five areas where we can have the greatest impact Aligned with the United Nations Global Compact Food Diversity, inclusion Greenhouse Packaging Water nutrition and equality gases sustainability sustainability Highlights FY2019 Highlights
Slide 17: Where are we today?
Where are we today? Transition to diversified brand food company well progressed Competitive supply chain broadly aligned with market demand Volatile dairy industry facing ongoing structural change and cyclical challenges Intense competition for milk and excess domestic processing capacity
Slide 18: Our priorities
Our priorities Continue investment in brands and markets Accelerate new product development Focused capital program to further rationalise supply chain and manufacturing footprint Remain open to further dairy industry consolidation opportunities Protect and diversify current milk supply
Slide 19: Page 19 Bega Cheese Limited
Page 19 Bega Cheese Limited
Slide 20: Disclaimer
Disclaimer 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 has been prepared by B