Cobram Estate Olives Ltd. · ASX:CBO
Cobram Estate Olives — FY2021 Earnings Presentation
30 slides from Cobram Estate Olives's earnings presentation, Aug 26, 2021
Slide 1: FY2021 Results Presentation
FY2021 Results Presentation Cobram Estate Olives Limited ACN 115 131 667 26 August 2021 Private Private & Confidential 1 & Confidential
Slide 2: Disclaimer
Disclaimer The material in this presentation is general background information about Cobram Estate Olives Limited (CBO) and is current at the date of the presentation. The information in the presentation is provided for information purposes only, is in summary form and does not purport to be complet
Slide 3: Presenters
Presenters Rob McGavin Sam Beaton Leandro Ravetti Chair & Co-Founder Executive Director & Joint-CEO Executive Director & Joint-CEO Cobram Estate Olives Limited | June 2021 Private & Confidential 3
Slide 4: Agenda
Agenda 1. Financial Year 2021 Highlights 2. Financial Year 2021 Results 3. Company Overview and Business Operations Highlights 4. Questions Cobram Estate Olives Limited | June 2021 Private & Confidential 4
Slide 5: Group Highlights – FY2021
Group Highlights – FY2021 Cobram Estate Olives Limited | June 2021 Private & Confidential 5
Slide 6: Financial Highlights – FY2021
Financial Highlights – FY2021 Cobram Estate Olives Limited | June 2021 Private & Confidential 6 *Adjusted for water costs to long-term average and one-off ASX listing costs
Slide 7: Financial Year 2021 Results
Financial Year 2021 Results Cobram Estate Olives Limited | June 2021 Private & Confidential 7
Slide 8: Australian Olive Oil Division Performance
Australian Olive Oil Division Performance – should be assessed on two-year rolling average Two-Year Rolling Average EBITDA of $43.7 million driven by past investment and strong brand returns 20.0 80.0 Yield vs EBITDA vs two-year Average 18.0 70.0 Australian olive oil division performance EBITDA (Aus
Slide 9: Group Income Statement (Statutory)
Group Income Statement (Statutory) Earnings underpinned by the Australian olive oil division’s strong performance Key points Increased statutory EBITDA largely driven by the larger Australian crop of 16.05 million litres (FY2020: 6.2 million litres) • The Australian Olive Oil division reported an EB
Slide 10: Group Cash Flow Statement
Group Cash Flow Statement Operating cash flow highlights the management of oil between a higher and lower yielding crop years Key points Strong operating cashflow reflective of the company managing its oil supply over two (2) financial years (24-months), to meet the consistent monthly customer deman
Slide 11: Group Balance Sheet
Group Balance Sheet Strong balance sheet, and significant increase in current assets Key points Significant increase in Current Assets, predominantly due to the oil produced from the 2021 Australian harvest • The company’s olive trees are carried at cost (within property, plant and equipment). • The
Slide 12: Segment Results
Segment Results Strong performance in Australia/USA oil business; challenging market for Wellness Australian olive oil division USA olive oil division Wellness division • Two-year Rolling Average EBITDA*: • Statutory EBITDA: $526k • Statutory EBITDA: ($5.3m) $43.7m • First positive EBITDA result • $
Slide 13: Strong growth in packaged olive oil sales
Strong growth in packaged olive oil sales despite lower oil supply Packaged good sales growth of 9.5% in FY2021 Global olive oil sales for Cobram Estate® and Red Island® Packaged goods showing continued strong growth branded products and Private Label products • Sales of packaged consumer goods incl
Slide 14: USA packaged goods sales up in FY2021
USA packaged goods sales up in FY2021 Cobram Estate® and private label sales the key growth drivers Evolution of packaged olive oil sales by Cobram Estate Olives’ USA business USA selected key retail accounts 35.0 30.0 25.0 A$ million 20.0 15.0 10.0 5.0 - FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY
Slide 15: Financial Outlook
Financial Outlook Outlook is positive, underpinned by consumer demand for high quality extra virgin olive oil and stock availability from the 2021 Australian harvest • Sales outlook is positive, with increasing consumer demand for high quality extra virgin olive oil. We are expecting an increase in
Slide 16: Shareholder Communication – Key Dates FY2022
Shareholder Communication – Key Dates FY2022 Date Key topic(s) 27 August 2021 FY2021 full-year results 29 October 2021 Annual general meeting and dividend announcement Early December 2021 Company update – Australian flowering and USA olive harvest results End February 2022 FY2022 interim results plu
Slide 17: Company Overview and Business Operations Highlights
Company Overview and Business Operations Highlights Cobram Estate Olives Limited | June 2021 Private & Confidential 17 17
Slide 18: Company Overview
Company Overview Cobram Estate Olives is Australia’s largest vertically integrated olive grower, processor and marketer • Established in 1998, with operations in both Australia and the USA and export customers in 17 countries. • A market leader in the Australian extra virgin olive oil industry and a
Slide 19: Cobram Estate Olives - From Tree to Table
Cobram Estate Olives - From Tree to Table Growing and marketing olive goodness in Australia and the USA Cobram Estate Olives Limited | June 2021 Private & Confidential 19
Slide 20: Growth Strategy
Growth Strategy Four core pillars of future growth Increasing supply from our Australian olive groves through new plantings and efficiency gains 1 39% of the company’s total Australian plantings are not fully mature and are not yet producing mature yields including 16% of total Australian plantings
Slide 21: Australian Operations
Australian Operations Record 2021 Australian olive harvest and olive oil yield 2021 Australian olive harvest results 2021 Australian olive harvest images • Recently completed the 2021 Australian olive harvest, producing 16.05 million New Optimus 2 machine being tested at Freshly picked olives at the
Slide 22: Completion of Boort grove redevelopment
Australian Operations Completion of Boort grove redevelopment Boort grove redevelopment Boort grove redevelopment images • In 2021 we completed the redevelopment of the Boort olive grove, with 331 hectares planted with 118,000 new trees in Autumn 2021. • Over the past six years the company has repla
Slide 23: Water pricing in Australia returned to below historical average
Water pricing in Australia returned to below historical average Average water price paid by Cobram Estate Olives - $168 per megalitre in FY2021 Cobram Estate Olives annual Temporary Water purchases Southern Murray Darling Basin – current storage levels and average annual price Total and key storages
Slide 24: USA Operations
USA Operations Development of Esparto South Ranch USA grove development Esparto South Ranch - grove redevelopment images • The company developed 110 hectares of new olive groves on the Esparto South ranch near Woodland, California, with 53,000 new trees planted in Spring 2021. • Developed using the
Slide 25: Questions?
Questions Questions? Cobram Estate Olives Limited | June 2021 Private & Confidential 25
Slide 26: Thank-you!
Thank-you! Private & Confidential 26
Slide 27: Appendix
Appendix Private & Confidential 27
Slide 28: Group Two-Year Rolling Average EBITDA - Normalised
Group Two-Year Rolling Average EBITDA - Normalised Assessed on two-year rolling average Group Two-Year Rolling Average EBITDA – Normalised (adjusted for long-term average temporary water costs and listing costs) Statutory Historical EBITDA A$ million FY2017 FY2018 FY2019 FY2020 FY2021 Group Reported
Slide 29: Results comparison to Prospectus
Results comparison to Prospectus Key items FY2021 FY2021 Variance to A$ million Prospectus Full-Year Comment Prospectus forecast actual Group statutory EBITDA 68.5 70.3 1.8 2.6% better than Prospectus Australian olive oil business Two-Year Rolling 42.4 43.7 1.3 3.1% better than Prospectus Average EB
Slide 30: Results Comparison to Prospectus - Detailed breakdown
Results Comparison to Prospectus - Detailed breakdown FY2021 FY2021 FY2021 FY2021 Prospectus A$ million Depreciation and Statutory accounts format Statutory accounts Variance forecast Interest Prospectus Forecast Actual Sales revenue 145.1 - 145.1 140.0 (5.2) Other revenue 3.0 - 3.0 2.2 (0.8) Net ch