Cobram Estate Olives Ltd. · ASX:CBO
Cobram Estate Olives — H1 FY2024 Earnings Presentation
34 slides from Cobram Estate Olives's earnings presentation, Feb 21, 2024
Slide 1: Half Year FY2024 Results Presentation
Half Year FY2024 Results Presentation Cobram Estate Olives Limited ABN: 32 115 131 667 21 February 2024 Cobram Estate Olives Limited | June 2021 Private & Confidential 1
Slide 2: Presenters
Presenters Presenters: Sam Beaton Executive Director and Joint-CEO Leandro Ravetti Executive Director and Joint-CEO Cobram Estate Olives Limited | June 2021 Private & Confidential 2
Slide 3: Disclaimer
Disclaimer The material in this presentation is general background information about Cobram Estate Olives Limited (“Cobram Estate Olives” or “CBO” or “the Company” or “the Group”) and is current at the date of the presentation. The information in the presentation is provided for information purposes
Slide 4: Agenda
Agenda: 1. Welcome & Key Messages 2. 1HFY24 Results & Commercial Update – Sam Beaton 3. Business Operations Highlights & Update – Leandro Ravetti 4. Questions 5. Close Cobram Estate Olives Limited | June 2021 Private & Confidential 4
Slide 5: Welcome and Key Messages
Welcome and Key Messages • The Company performed very strongly in 1HFY24. Continuing robust demand for CBO’s extra CBO’s annual Australian olive harvest takes place virgin olive oil, combined with the impact of the Company’s marketing activities, drove a 59% from April-June, with the harvest normall
Slide 6: 1HFY24 Results & Commercial Update
1HFY24 Results & Commercial Update Sam Beaton Joint-CEO (Finance & Commercial) Financial Year 2023 Results Cobram Estate Olives Limited | June 2021 Private & Confidential 6
Slide 7: Half Year FY2024 – Financial Results Summary
Half Year FY2024 – Financial Results Summary Financial results for the 6-months to 31 December 2023 EBITDA* GROUP SALES REVENUE $8.2m $113.8m ↑ $7.5m (vs 1HFY23) ↑59% (vs 1HFY23) NET PROFIT AFTER TAX GLOBAL PACKAGED GOOD SALES $7.2m loss $91.7m Up from $9.9m loss in 1HFY23 (COBRAM ESTATE® + RED ISLA
Slide 8: Group Profit (Statutory)
Group Profit (Statutory) Increase in 1HFY24 EBITDA driven by strong sales and improved product mix Income Statement 6 mths to 6 mths to 31-Dec 31-Dec Key points: $'million 2023 2022 Variance • The CBO Group reported an EBITDA of $8.2m in 1HFY24 (1HFY23: $0.7m). Revenue • Australian Olive Oil Operati
Slide 9: Group Cash Flow Statement
Group Cash Flow Statement Strong operating cash flow driven by increased sales, improved profitability and stabilisation of costs Cash Flow Statement 6 mths to 6 mths to 31-Dec 31-Dec Key points: $'million 2023 2022 Variance • Strong positive cashflow from operations of $32.1m in 1HFY24 (1HFY23: $10
Slide 10: Group Balance Sheet
Group Balance Sheet Net Assets of $265.5m; value of brands, trees, and irrigation infrastructure are carried at cost Balance Sheet 31-Dec 30-Jun Key points: $'million 2023 2023 Variance • Increase in Total Assets mainly driven by the investment in capital projects that are expected to deliver materi
Slide 11: Group Olive Oil Sales
Group Olive Oil Sales Group packaged goods sales grew by 50% over the period Group olive oil sales by product type / country Key points: Packaged Goods - AU Packaged Goods - USA Bulk Oil - AU Bulk Oil - USA • CBO achieved packaged goods sales of $91.7m in 1HFY24, up 9% 50% versus 1HFY23 ($60.9m). 7%
Slide 12: Continued Strong 1HFY24 Sales Growth for Australian Olive Oil Operations
Continued Strong 1HFY24 Sales Growth for Australian Olive Oil Operations Australian packaged goods sales up 41% in 1HFY24 vs. 1HFY23 Australian olive oil operations Packaged goods sales ($) Branded (Cobram Estate® and Red Island®) Private label Key points: 70.00 • The Group reported strong olive oil
Slide 13: Packaged Goods Lead Strong 1HFY24 Sales Growth for USA Olive Oil Operations
Packaged Goods Lead Strong 1HFY24 Sales Growth for USA Olive Oil Operations 100% growth vs. 1HFY23, driven by both sales volume and the full impact of price increases USA olive oil operations packaged goods sales ($) Branded (Cobram Estate® and Red Island®) Private label 22.00 Key points: 20.00 • Th
Slide 14: Strong 1HFY24 Growth for Cobram Estate in USA Supermarkets
Strong 1HFY24 Growth for Cobram Estate® in USA Supermarkets 27.4% growth in USA scan sales and 12.3% increase in store count in 1HF24 vs. 1HFY23 Cobram Estate® USA Cobram Estate® USA Supermarket US$ sales* Supermarket store count* Key points* 14 18,000 • Cobram Estate® USA scan sales 16,000 totalled
Slide 15: External costs stable; Reduced water requirements
External costs stable; Reduced water requirements We anticipate reduced full-year water requirements and associated costs due to summer rainfall Stabilising costs CBO’s Temporary water purchases and price per ML FY14 to 1HFY24 • Key grove input costs have stabilised. 800 45,000 • Australian water in
Slide 16: Two new properties added to CBO's USA portfolio
Business update Two new properties added to CBO’s USA portfolio Business update • In January 2024, two of the Company’s USA subsidiaries entered into a US$15.0m long term loan to purchase land in California. To date, US$7.3m has been utilised to purchase two properties for the development of ~156 pl
Slide 17: Financial Outlook
Financial Outlook Outlook is positive, underpinned by robust demand for olive oil and strong trading conditions Key points • CBO's sales, profitability, and operating cashflow are expected to remain strong in the 2HFY24, driven by the following key factors: o Consumer demand: continued strong consum
Slide 18: Business Operations and Growth Strategy Update
Business Operations and Growth Strategy Update Leandro Ravetti Joint-CEO (Technical & Production) Cobram Estate Olives Limited | June 2021 Private & Confidential 18
Slide 19: 2023 California Olive Harvest
2023 California Olive Harvest California harvest completed, delivering a record crop Key points: • As previously announced, CBO’s 2023 Californian olive harvest was completed in December 2023. • Total production of 3.2m litres of olive oil (89% higher than 2022 and 48% higher than 2021 (the previous
Slide 20: 2023 California Olive Harvest cont'd
2023 California Olive Harvest cont’d First harvest completed at CBO’s 116-hectare Esparto South Ranch, planted in 2021 Cobram Estate Olives Limited | June 2021 Private & Confidential 20
Slide 21: Global Olive Oil Operations Update
Global Olive Oil Operations Update CBO groves are in good condition following favourable seasons in both Australia and USA USA • Excellent weather conditions since the end of harvest. • Over 400mm of accumulated rain and no damaging frost events recorded to date. • Reservoirs linked to our groves ha
Slide 22: 2024 Australian Crop Outlook
2024 Australian Crop Outlook Crop projections within CBO’s internal budget expectations Key points • The 2024 crop season is shaping up well with no evident frost or other damaging events to date that are likely to impact the 2024 crop. • Flowering took place between late October and early November
Slide 23: Growth Strategy
Growth Strategy Four core pillars to drive future growth Delivering material sales growth from Australian operations through increasing olive oil supply produced on CBO’s maturing Australian olive groves and new plantings 1. 35% of the company’s total Australian plantings are not fully mature and ar
Slide 24: Growth Project: Wemen Grove Development
Growth Project: Wemen Grove Development 271-hectare development at Wemen (Victoria) planned for Autumn 2024 CBO’s 271-hectare olive grove development at Wemen (Victoria), to be planted in Autumn 2024 Wemen grove development • A 271-hectare redevelopment of CBO’s Wemen grove is planned for Autumn 202
Slide 25: Maturing Australian Groves & Contracted Third-Party Groves will Deliver Material Supply Increases
Maturing Australian Groves & Contracted Third-Party Groves will Deliver Material Supply Increases in Coming Years Enabling Continued Sales Growth CBO’s mature grove area to increase by 53% over the next 8-years, supplemented by third-party supply* Key points • Based on current and planned future pla
Slide 26: Growth Project: Dunnigan Hills Grove Development
Growth Project: Dunnigan Hills Grove Development 354-hectare Dunnigan Hills grove development completed in November 2023 California grove development – Dunnigan Hills • Phase 1 of the Dunnigan Hills Ranch development - 205 hectares of olives planted in May/June 2023. • Phase 2 of the Dunnigan Hills
Slide 27: New California Land Acquisitions For Future Plantings
New California Land Acquisitions For Future Plantings 221 hectares (~182 hectares plantable) to be planted over the next 12-months New land acquisitions in California (highlighted in blue in images above) • All blocks of land in prime locations and adjacent to our existing groves. • This allows for
Slide 28: Growing Our Vertically Integrated USA Business
Growing Our Vertically Integrated USA Business CBO’s Californian olive grove portfolio now totals 707 hectares Key points CBO’s Californian olive oil • As of February 2024, CBO’s Californian olive grove portfolio totals 707 hectares, with a further ~182 hectares to be planted over the next 12-months
Slide 29: Growth Project: Woodland California Site Expansion
Growth Project: Woodland California Site Expansion Expansion of Woodland olive mill and tank farm completed; warehouse and bottling expansion underway • The first phase of the Woodland site expansion was completed in time for the 2023 California harvest. • Milling capacity doubled from 32 to 64 tonn
Slide 30: Sustainability, Innovation, and Value-Adding
Sustainability, Innovation, and Value-Adding Focus on maximising return on olive biomass as part of zero waste strategy CBO’s olive pomace waste management system Innovation and Value-Adding • As part of its zero-waste strategy, CBO continues to add-value to the by-products of olive farming and oliv
Slide 31: Questions?
Questions? Appendix Thank-you 31
Slide 32: Thank you for supporting Cobram Estate Olives!
Thank you for supporting Cobram Estate Olives! Cobram Estate Olives Limited | June 2021 Private & Confidential 32
Slide 33: About Cobram Estate Olives Limited
About Cobram Estate Olives Limited One of the world’s leading vertically integrated producers and marketers of premium quality extra virgin olive oil Company snapshot • Established in 1998, Cobram Estate Olives Limited (ASX: CBO) is Australia’s largest vertically integrated producer and marketer of
Slide 34: CBO's Competitive Advantages
CBO’s Competitive Advantages CBO’s strategic olive assets deliver significant competitive advantages and strong barriers to entry Vertically integrated Proprietary Premium market- Industry-leading operations with Oliv.iQ® leading brands sustainability strategically located, Integrated Olive Cobram E
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