Slide 1: ASX Announcement: Half Year 2012 Results Highlights Presentation
ASX ANNOUNCEMENT For personal use only Half Year 2012 Results Highlights Presentation I have pleasure in enclosing the Half Year 2012 Results Highlights Presentation to be discussed on the Half Year Result 2012 Conference Call scheduled for 2pm, 23 February 2012, as announced 16 February 2012. Brett
Slide 2: Bega Cheese Limited Results Presentation
For personal use only Bega Cheese Limited Results Presentation Page 1 |
Slide 3: 1H 2012 Results highlights
1H 2012 Results highlights* For personal use only • EBITDA increase 12.3% to $32.8m • PBT increase 31% to $18.6m • EPS down 3.6% - new share capital issued 16% • Interim dividend of 3.0 cents per share fully franked • Milk intake increase 16% to 411m litres • Increase in total production of 7% to 10
Slide 4: Solid first half while delivering on IPO commitments
Solid first half while delivering on IPO commitments For personal use only • Completed full merger with Tatura Milk Industries ― Acquired remaining 30% on 23 December 2011 ― 318 new Bega Cheese shareholders and milk suppliers ― 24m new shares issued • Increasing plant utilisation ― Commenced manufac
Slide 5: Financial highlights
Financial highlights 1H 1H Variance Decrease in sales revenue reflects For personal use only • $m FY2012 FY2011 % lower volumes in fixed margin Sales Revenue 448.2 482.0 (7.0) contracts and timing of export sales EBITDA 32.8 29.2 12.3 • Increase in EBITDA driven by change in Depreciation and (10.1)
Slide 6: Interim dividend
Interim dividend For personal use only • First dividend as a listed entity • 3.0 cents per share • Fully franked • Dividend Reinvestment plan (DRP) has been enacted by the board • Record date 5 March • Payment date 27 March Page 5 |
Slide 7: Balance sheet
Balance sheet For personal use only $m 1H Full Year • Inventory reflecting increase in FY2012 FY2011 seasonal milk supply and stock build Current assets 256.8 211.0 in preparation for Coles contract Non current assets 249.4 251.1 which commenced in January 2012 Total assets 506.2 462.1 • Increase in
Slide 8: Cash flow summary
Cash flow summary For personal use only 1H 1H $m • Negative operating cash flow FY2012 FY2011 reflects inventory build and Profit after income tax 14.0 13.1 sales timing Adjustments for non-cash Items 8.8 10.4 • Funding arrangements Changes in operating assets and liabilities (61.1) (6.9) sufficient
Slide 9: Milk supply and pricing
Milk supply and pricing For personal use only • Overall growth in milk supply of 63 million litres ― Organic growth due to favourable season 8% -10% ― New dairy farmer suppliers joining the Group ― Third party milk acquisitions • Year to date pricing in line with industry leaders ― Victorian price $
Slide 10: Group production
Group production For personal use only Tonnes 1H 2012 Production by business unit 120,000 100,000 • 7% increase in overall production reflecting 80,000 seasonal peak and increase in 60,000 core production for commencement of Coles 40,000 contract. 20,000 1H2011 1H2012 Core FMCG Nutritionals Page 9 |
Slide 11: Sales by product
Sales by product For personal use only 1H2012 Sales by Product 1H2011 Sales by Product 5% 3% 5% 1% 4% 2% 5% 6% 1% 26% 29% 4% 12% 10% 3% 3% 2% 8% 1% 31% 9% 30% Milk Cheddar Cheese Cheese Other Cheese Milk Cheddar Cheese Cheese Other Cheese High Fat Powder MPC Butter High Fat Powder MPC Butter Nutriti
Slide 12: Sales by destination
Sales by destination For personal use only • Export retail cheese sales impacted by strong Australian 29.7% dollar • Demand remains strong for cream cheese, dairy 70.3% nutritionals and powders • First half domestic/export split impacted by seasonal sales timing Sales to domestic customers Sales to
Slide 13: Capital expenditure
Capital expenditure For personal use only • Infrastructure $3.1m • Process improvement $0.7m • Capacity increases $5.7m • Environmental and compliance $2.7m Total Capital expenditure $12.2m Page 12 |
Slide 14: Investments and joint ventures
Investments and joint ventures For personal use only • Warrnambool Cheese and Butter ― Continues to perform strongly following Bega Cheese’s investment and the subsequent capital raising ― Increased stake from 8.1m shares to 9.0m shares through dividend re-investment and on-market purchases ― Mark t
Slide 15: Strategic priorities
Strategic priorities For personal use only • Senior management structure ― Paul van Heerwaarden, Group General Manager Sales & Marketing ― Garth Buttimore, Group General Manager Operations • Integration of Tatura Milk Industries ― Focus on managing full integration and extraction of synergies • Incr
Slide 16: General outlook
General outlook • Domestic market generally flat with existing competitors fighting for For personal use only share • Bega Cheese business model and product range successfully building on existing domestic presence • Highly competitive environment for milk procurement - Bega Cheese’s market position
Slide 17: Commodity outlook
Commodity outlook For personal use only • Global market place tends to reflect calendar year trends • Product mix and price impacted by regional factors • Product and manufacturing mix impacting returns Source: Dairy Australia • Pass through to milk price Page 16 |
Slide 18: Bega Cheese outlook
Bega Cheese outlook • New business will see significant increase in capacity utilisation at For personal use only Strathmerton and Coburg facilities • Annualised benefits to be realised in FY2013 • Full year business performance likely to reflect historical seasonality • Focus on business opportunit
Slide 19: Thank you
For personal use only Page 18 | Thank you