Bega Cheese Limited · ASX:BGA
Bega Cheese — FY2015 Earnings Presentation
20 slides from Bega Cheese's earnings presentation, Aug 27, 2015
Slide 1: FY2015 Full Year Results
For personal use only FY2015 Full Year Results 27 August 2015 Barry Irvin – Executive Chairman Aidan Coleman – CEO Colin Griffin – CFO
Slide 2: Key Messages
Key Messages • Result at expectation given global commodity market downturn and For personal use only highly competitive milk procurement environment • 4% increase in revenue ($1,112m) driven by $72m increase in sales of nutritionals and consumer packed goods • Margin impacted by $29m decrease in co
Slide 3: FY2015 Results (Statutory and Normalised)
FY2015 Results (Statutory and Normalised) Revenue ($’000) Basic Earnings Per Share ($’000) For personal use only 1069392 43.4 1112630 4% 19.6 8.1 (81%) EBITDA ($’000) 14.4 (26%) 122506 70132 Total Dividend Per Share (Cents) 8.5 41978 (66%) 8.5 55705 (21%) Production Volume (Tonnes) Profit After Tax
Slide 4: Business Performance (Normalised)
Business Performance (*Normalised) FY2015 FY2014 For personal use only $m $m Sales Revenue 1,112.6 1,069.4 EBITDA 55.7 70.1 EBIT 33.5 47.2 PBT 30.2 42.1 NPAT 22.0 29.8 • Appropriate to review financial performance from a normalised perspective • Revenue attributable to increased volumes and high val
Slide 5: FY2015 Results (Normalised)
FY2015 Results (*Normalised) Milk Per Financial Sustainability and Change from Consolidated For personal use only Statements Growth outcome Normalised Result prior year Period Ending 30 June 2015 $’000 $’000 $’000 $’000 % Revenue 1,112,630 - 1,112,630 43,238 4 Cost of sales (991,538) 13,727 (977,811
Slide 6: Balance Sheet Extract
Balance Sheet Extract FY2015 FY2014 For personal use only $m $m Trade and other receivables 119.5 106.7 Inventories 194.9 184.2 Property, plant & equipment 209.7 213.6 Total Assets 552.4 548.6 Trade and other payables 139.1 164.2 Borrowings 69.0 20.6 Total Liabilities 239.8 234.2 Net Assets 312.7 31
Slide 7: Cash Flow Extract
Cash Flow Extract For personal use only Receipts from customers 1,160.8 1,102.0 Payments to suppliers (1,164.8) (1,049.1) Interest and other costs of financing paid (3.4) (5.3) Income tax paid (9.9) (7.1) Operating activities (17.3) 40.5 Investing activities (36.4) 67.9 Financing activities 35.4 (10
Slide 8: Bega Cheese & Tatura Milk Segment (Normalised)
Bega Cheese & Tatura Milk Segment (*Normalised) $m Bega Cheese $m Tatura Milk Industries For personal use only 40 40 35 35 30 30 25 25 EBITDA EBITDA 20 20 PAT PAT 15 15 10 10 5 5 0 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2011 FY2012 FY2013 FY2014 FY2015 • Segment stability reflects business exposure
Slide 9: Dairy Commodity Prices and Farm Gate Milk Price
Dairy Commodity Prices and Farm Gate Milk Price For personal use only • Farm gate milk price generally linked to global dairy commodity market price • 2015 global production responded to strong market signals from previous year • High global inventories • Russian sanctions • Recent declines in commo
Slide 10: Milk Sustainability and Growth Program / Milk Intake
Sustainability and Growth • Strategic investment in long term milk supply For personal use only • 3 year supply relationship • Sustainability includes resource management and farm practice (BEMS) • 29% projected milk growth in the next 3 years from participating suppliers • Program funds now fully a
Slide 11: Manufacturing Operations
Manufacturing Operations For personal use only • Total production 224,986 tonnes • 4% increase in total volume • Continuous improvement • 3.2% decrease in average conversion Consumer packaged dairy costs products Nutritionals • 6% increase in line efficiencies (FMCG) • 4.2% reduction in energy use p
Slide 12: Sales & Marketing
Sales & Marketing • Bega Brand Export Markets For personal use only • • Number one Australian cheese brand - 15.3% market share Available in over 50 countries Total Sales $310 million • Launch of UHT Bega branded milk in Chongqing • Food service South East Asia • International food services now repr
Slide 13: Bio-Nutrients
Bio-Nutrients • Well credentialed General Manager being appointed to manage For personal use only platform - Matthieu Arquillere • Previously CEO of Ingredia Nutritionals in France • Experience in Europe, USA/Canada & Asia • Lactoferrin • Expanded capacity at Tatura Milk utilised • Ongoing research
Slide 14: Bio Nutrients: Dairy and Non Dairy
Bio Nutrients Dairy Non Dairy For personal use only • Milk protein hydrolysates • Plant extracts • Infant formula • Weight management products • Adult and elderly nutritional products • Dietary Supplements • Sports nutrition products • Nutricosmetic products • Dietary Supplements • Functional foods
Slide 15: Infrastructure
Infrastructure Bega Bega For personal use only Derrimut Processing and Packaging (Cut and Pack Cheese) Dairy Production (Cheddar Cheese, Stringers) Processing and Packaging (Infant Nutritionals) Bega Strathmerton Bega Coburg Tatura Processing and Packaging Dairy Production Infant Nutritionals, Lacto
Slide 16: Investing in Infrastructure
Investing in Infrastructure • Focused on investment in value adding activities For personal use only • Capital Expenditure $18m • Cream cheese, environmental and nutritionals • High value bio nutrient extraction • $22m project ($5m grant) Target completion 2017 • Capacity and capability projects • N
Slide 17: Operational Outlook
Operational Outlook • Improved financial performance For personal use only • Commodity markets remain volatile, however some recovery in recent prices • Milk procurement environment more stable • Continued growth in nutritionals and consumer goods • Nutritionals value added infrastructure fully oper
Slide 18: Strategic Priorities
Strategic Priorities • Leverage strong nutritional demand and grow infant formula For personal use only and child nutritional platform • Grow consumer goods international business • Extract more value from existing milk components. Decrease exposure to skim milk • Drive efficiency through ongoing in
Slide 19: For personal use only
For personal use only
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. For personal use only This presentation