Bega Cheese Limited · ASX:BGA
Bega Cheese — Half Year 2018 Results Conference Call
22 slides from Bega Cheese's conference presentation, Feb 28, 2018
Slide 1: ASX Announcement: Half Year 2018 Results Highlights Presentation
ASX ANNOUNCEMENT Half Year 2018 Results Highlights Presentation I have pleasure in enclosing the Half Year 2018 Results Highlights Presentation to be discussed on the Half Year Result 2018 Conference Call scheduled for 11:00am today. Brett Kelly Company Secretary 28 February 2018 For further informa
Slide 2: 1H FY2018 Half Year Results
1H FY2018 Half Year Results 28 February 2018 Barry Irvin – Executive Chairman Paul van Heerwaarden – CEO Colin Griffin – CFO
Slide 3: Key Messages
Key Messages The great Australian food company § Solid financial performance in first half § Bega Foods integration progressing well § PCA acquisition completed § Significant investment in brand positioning, transition and business integration § Dairy nutritionals stabilised following market correct
Slide 4: Key Highlights
KEY HIGHLIGHTS Change 1H FY18 1H FY17 % 705,195 621,131 14 137,175 112,474 22 70,086 42,596 65 NORMALISED NORMALISED 51,698 35,496 46 STATUTORY STATUTORY 36,584 20,659 77 NORMALISED NORMALISED 20,563 15,689 31 STATUTORY STATUTORY 20.0 13.5 48 NORMALISED NORMALISED 11.2 10.3 9 STATUTORY STATUTORY 5.5
Slide 5: 1H FY2018 Results Normalised
1H FY2018 Results Normalised* Bega Foods Bega Foods PCA Per Financial Acquisition Fair Value Acquisition Normalised Change from Consolidated Statements Costs Adjustments Costs Other Costs Result prior period Period Ending 31 December 2017 $’000 $’000 $’000 $’000 $’000 $’000 $’000 % Revenue 705,195 -
Slide 6: Balance Sheet (extract)
Balance Sheet (extract) 1H FY2018 1H FY2017 FY2017 Dec $m Dec $m Jun $m Cash and cash equivalents 18.7 14.5 475.5 Trade and other receivables 215.5 160.5 168.5 Inventories 272.5 194.3 167.9 Property, plant & equipment 307.5 222.7 196.8 Intangible assets 413.3 14.6 22.7 Total Assets 1,250.4 621.3 1,0
Slide 7: Segments
Segments Consolidation Segment Information Bega Cheese Tatura Milk Adjustments Group Total Period Ending 31 December 2017 $’000 $’000 $’000 $’000 Revenue 497,306 233,294 (25,405) 705,195 EBITDA 17,164 38,267 (3,733) 51,698 Depreciation, amortisation and impairment (9,465) (4,171) - (13,636) EBIT 7,6
Slide 8: Bega Foods
Bega Foods § Transaction completed 4 July 2017 § FY2018 will not receive full years sales revenue § Integration progressing well – strong cultural alignment § Bega Foods now includes Peanut Company of Australia and the international branded consumer and food service business § Successful brand activ
Slide 9: Peanut Company of Australia and Peanut Butter
Peanut Company of Australia and Peanut Butter Peanut Company of Australia § Acquisition completed 25 January $0.83 per share $11.9 million § Australia’s largest processor and supplier of peanuts § Average intake since 2015 approximately 17,000 tonnes (60-80% total Australian peanut production) § Pea
Slide 10: Consumer Packaged Cheese
Consumer Packaged Cheese § Retailers mark contracts remain highly competitive § Retailers mark contract transition from Coles to Woolworths now complete § Food service growth continues § International market growth § Capital expenditure in shred and slice lines complete § Continuous improvement prog
Slide 11: Dairy Ingredients
Dairy Ingredients § Strong performance for ingredients § Milk supply intake increased 25% year on year § Volume growth of cream cheese 19% § Increase in mozzarella production 33% § Implementing continuous improvement program § Highly competitive milk acquisition environment § Global commodity price
Slide 12: Nutritionals
Nutritionals § Dairy nutritionals stabilised following market correction in FY2017 § More stable market and regulatory environment § Investing in the development of new nutritional categories § Continue to invest in novel nutraceuticals and bionutrient capacity § Mead Johnson transition progressing
Slide 13: Dairy commodity price and farm gate milk price
Dairy commodity price and farm gate milk price § 25% increase in milk intake volume § 3% increase in national production and 8% increase in northern Victoria § Farm gate milk price more aligned with global dairy market Export trend index - global commodity prices/Australian currency impact source fr
Slide 14: Group Sales
Group Sales § 1H FY2018 sales $705 million increased 14% § Additional sales following Mondelez Grocery Business acquisition $136 million § Decrease in private label cheese in 1H FY2018 (Woolworths only) compared to 1H FY2017 (servicing both Coles and Woolworths) § Cheese sales to Mondelez previously
Slide 15: Operations Review
Operations Review Operations § 137,175 tonnes of production § Capital expenditure $7.5 million focused on efficiency and capacity § Continuous improvement programs across all sites § Optimising manufacturing capacity and capability footprint Environment and safety § Bega Cheese sustainability report
Slide 16: Bega Cheese Transformation
Bega Cheese Transformation Bega Cheese Limited PAGE 15
Slide 17: Where we are Today?
Where we are Today? A stable business growing in dairy and building in food § Bega Foods integration well progressed § Peanut Company of Australia acquisition complete § Strong presence in major Australian retailers with significant market investment in brand transitions and brand positions § Growth
Slide 18: Our focus
Our focus Creating the great Australian food company § Protect the strengths, reputation and returns of the businesses § Manage volatility in changing markets and maintain a globally competitive supply chain § Leverage and grow our iconic brand portfolio § Expand channels and markets for our product
Slide 19: Outlook
Outlook § Continued growth in branded consumer and food service business § Dairy ingredients market softening with competitive milk acquisition environment § Nutritionals business continued recovery § Integration of Bega Foods further progressed § Consumer packaged goods will remain highly competiti
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Slide 22: 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