Bega Cheese Limited · ASX:BGA
Bega Cheese — H1 FY2014 Earnings Presentation
17 slides from Bega Cheese's earnings presentation, Feb 19, 2014
Slide 1: Half Year 2014 Results Highlights Presentation
ASX ANNOUNCEMENT For personal use only Half Year 2013 Results Highlights Presentation I have pleasure in enclosing the Half Year 2014 Results Highlights Presentation to be discussed on the Half Year Result 2014 Conference Call scheduled for 2pm, 19 February 2014, as announced 14 February 2014. Brett
Slide 2: For personal use only
For personal use only
Slide 3: Key Messages
KEY MESSAGES Consistent financial performance For personal use only • • Improved product mix • Improved commodity pricing driving demand for milk • Significant increase in milk pay rates • Capacity improvements & investments • Milk and whey processing at Coburg and Tatura • Blending and canning faci
Slide 4: 1H FY2014 Results Highlights
1H FY2014 RESULTS HIGHLIGHTS For personal use only • Revenue increase 4% • EBITDA increase 10% to $40.8m • PAT increase 18% to $18.7m • EPS up 18% to 12.33 cents • Interim dividend of 4.0 cents per share fully franked (record date 3 March 2014) • Gross margin maintained with increased milk price BEG
Slide 5: Group Business Performance
GROUP BUSINESS PERFORMANCE For personal use only 1H FY2014 1H FY2013 * $m $m Sales Revenue 510.6 490.4 EBITDA 40.8 37.2 EBIT 30.2 26.2 PBT 26.0 21.8 PAT 18.7 15.9 • Increased revenue (4%) • Decrease in direct milk intake volumes (8%) • Increase value in dairy commodities • Improved underlying profit
Slide 6: Balance Sheet Extract
BALANCE SHEET EXTRACT 29 Dec 2013 30 June 2013 * $m $m For personal use only Cash and cash equivaents 14.6 22.7 Trade and other receivables 113.2 103.5 Inventories 181.9 163.0 Other financial assets 97.5 39.0 Property, plant & equipment 215.5 209.1 Other Assets 8.1 11.9 Total Assets 630.8 549.2 Trad
Slide 7: Group Cash Flows
GROUP CASH FLOWS 1H FY2014 1H FY2013 * For personal use only $m $m Receipts from customers 521.3 497.8 Payments to suppliers (509.2) (492.1) Interest and other costs of financing paid (3.4) (3.8) Income taxes paid (2.7) (1.8) Operating activities 6.0 0.1 Investing activities (18.5) (9.6) Financing a
Slide 8: Segment Volumes & EBITDA
SEGMENT VOLUMES & EBITDA Tatura Milk Industries Bega Cheese For personal use only 35,000 60,000 1H FY2014 1H FY2014 30,000 1H FY2013 50,000 1H FY2013 25,000 Tonnes/$’000 40,000 Tonnes - $’000 20,000 30,000 15,000 20,000 10,000 5,000 10,000 0 0 Core (t) Nutritional (t) EBITDA ($'000) Core (t) FMCG (t
Slide 9: Production
PRODUCTION For personal use only 120,000 100,000 80,000 60,000 40,000 20,000 0 1H 2014 1H 2013 Core Manufacture FMCG Nutritional • Total production 106,638 tonnes decrease of 3% BEGA CHEESE LIMITED 1H FY2014 RESULTS PRESENTATION | PAGE 7
Slide 10: Corporate Activity
CORPORATE ACTIVITY • Bega Cheese initiated WCB bid September 2013 For personal use only • WCB bid precipitated a re-rating of Australian dairy industry value • Significant uplift in Bega Cheese share price • WCB offer concluded, • Sell price $9.40 • Total sale value $99m • PAT approximately $44m Pac
Slide 11: Strategic Priorities
STRATEGIC PRIORITIES Optimise the value of milk For personal use only • • Invest in value added dairy products and infrastructure • Company of choice for milk supply • Enhanced customer relationships • Invest in organic business growth opportunities • Well positioned for further consolidation and ac
Slide 12: Strategic Focus Areas
STRATEGIC FOCUS AREAS For personal use only BEGA CHEESE LIMITED 1H FY2014 RESULTS PRESENTATION | PAGE 10
Slide 13: Infrastructure
INFRASTRUCTURE Map of facilities Capital expenditure $16.8m(1H FY2014) For personal use only • • Investment in capacities • Integrated infrastructure • Process improvement • Risk management capability Bega Tatura Strathmerton Coburg BEGA CHEESE LIMITED 1H FY2014 RESULTS PRESENTATION | PAGE 11
Slide 14: High Quality Value Added Product Range
HIGH QUALITY VALUE ADDED PRODUCT RANGE Cheddar and Processed Cheese For personal use only • • Mozzarella • Cream cheese • Nutritional Powders • Milk Protein Concentrate BEGA CHEESE LIMITED 1H FY2014 RESULTS PRESENTATION | PAGE 12
Slide 15: Outlook
OUTLOOK Dairy commodity pricing stable For personal use only • • Currency relativity improved and stable • Strong international demand for dairy products • Continued growth in nutritionals business • Significant competition for milk • Expect continued EBITDA growth for FY2014 BEGA CHEESE LIMITED 1H
Slide 16: Disclaimer
DISCLAIMER For personal use only Bega Cheese Limited advises that these presentation slides contain forward looking statements which may be subject to significant uncertainties outside of Bega Cheese and its related entities. No representation is made as to the accuracy or reliability of forward loo
Slide 17: Thank You
THANK YOU For personal use only BEGA CHEESE LIMITED 1H FY2014 RESULTS PRESENTATION | PAGE 15