New Zealand King Salmon Investments Ltd. · NZX:NZK
New Zealand King Salmon Investments — H1 2024 Earnings Presentation
23 slides from New Zealand King Salmon Investments's earnings presentation, September 2023
Slide 1: 1HY24 Financial Results
1HY24 FINANCIAL RESULTS 1HY24 INVESTOR PRESENTATION
Slide 2: Disclaimer
DISCLAIMER The information in this presentation has been prepared by New Zealand King Salmon Investments Limited with due care and attention. However, to the maximum extent permitted by law, neither New Zealand King Salmon Investments Limited nor any of its directors, employees, shareholders nor any
Slide 3: Presenters
PRESENTERS Carl Carrington Ben Rodgers Graeme Tregidga Chief Executive Officer Chief Financial Officer GM Sales 1HY24 INVESTOR PRESENTATION 2
Slide 4: Executive Summary
EXECUTIVE SUMMARY • 1HY24 Net profit after tax of $10.6m. The business is performing consistent with expectations following the changes made to the farming model in FY23 (fallowing 3 of 4 Pelorus sites). GAAP results positively impacted by a fair value uplift in assets of $4.1m (1HY23 loss of $8.3m)
Slide 5: 1HY24 Operational Highlights
1HY24 OPERATIONAL HIGHLIGHTS 95 92 84 80 80 1HY24 GAAP NPAT 1HY24 30 2,993 REVENUE OF 20 $92 1HY20 FY21 (7 1HY22 1HY23 1HY24 10 - -10 21 -7 -6 -24 11 MILLION METRIC TONNES (Dec) months - (Jul) (Jul) (Jul) HARVESTED -20 Jan) DURING 1HY24 -30 1HY20 (Dec) FY21 (7 1HY22 (Jul) 1HY23 (Jul) 1HY24 (Jul) mon
Slide 6: 1HY24 Performance
01 1HY24 PERFORMANCE 1HY24 INVESTOR PRESENTATION 5
Slide 7: Keeping Our Brands Prominent
KEEPING OUR BRANDS PROMINENT Creating innovative strategies for our markets: Connecting with our end-users through: • Focus on engagement with Ōra King Ambassadors / key foodservice customers • Global documentary screenings to tell our story creatively • Focus to align A&P spend with sales growth an
Slide 8: Our Sustainability Developments
OUR SUSTAINABILITY DEVELOPMENTS We continue to progress on our sustainability journey: • An industry wide NZ farmed King salmon Life Cycle Assessment was completed in 2023 showing salmon being a low carbon protein that is high in Omega-3s and essential nutrients • Committed to reusable, recyclable o
Slide 9: Sales Performance
SALES PERFORMANCE NZKS are focussed on supplying our key markets. Cost increases across the business Continuing to target price and product optimisation continue to provide challenges and this continues to be passed on through price increases, despite this global demand remains strong and continues
Slide 10: Fish Performance
FISH PERFORMANCE Mortality Biomass Feb-July last 5 years • The first half of FY24 saw the altered Aquaculture model complete its first summer. The model of having majority of stock in the Tory Channel 2023 and away from warmer water sites has proved successful to date with significantly reduced mort
Slide 11: 1HY24 Results
02 1 H Y 2 4 R E S U LT S 1HY24 INVESTOR PRESENTATION 10
Slide 12: 1HY24 Headline Financial Performance
1HY24 HEADLINE FINANCIAL PERFORMANCE Volume Sold – increase on the prior period due to the mortality event which reduced Group Financial Performance the available biomass for sale in 1HY23 GAAP Pro-Forma1 Revenue – increased on the prior period due to the increase in available harvest as NZ$000s 1HY
Slide 13: Pro-Forma EBITDA Comparison
PRO-FORMA1 EBITDA COMPARISON • Revenue as discussed previously is up due to a combination of increased available volume and pricing initiatives • Cost of goods – was up on prior year driven by volume and cost inflation. NZKS continue to manage inflationary pressures through optimising our Aquacultur
Slide 14: Balance Sheet – Solid Platform for Growth
BALANCE SHEET – SOLID PLATFORM FOR GROWTH Group Financial Position • NZ King Salmon’s net cash position of $25.2m is an improvement of just under $10m from Jul-23 Jan-23 NZ$000s Unaudited Audited January and a vast improvement from a net debt position of $46.7m 18 months ago. This Current Assets str
Slide 15: Strategy Update & FY Update
03 S T R AT E G Y U P D AT E & F Y 2 4 U P D AT E 1HY24 INVESTOR PRESENTATION 15
Slide 16: FY24 Guidance & 12 Month Rolling EBITDA
FY24 GUIDANCE & 12 MONTH ROLLING EBITDA • Recent farming model changes and the company’s focus on fundamentals is now $23.5-$27.5m reflected in results, as shown by the improvement in the 12-month rolling proforma EBITDA at $21m • We have increased our guidance range to $23.5m – $27.5m reflecting st
Slide 17: Blue Endeavour and Growth Strategy Update
BLUE ENDEAVOUR AND GROWTH STRATEGY UPDATE Nov - 22 Consent Granted but • The Consent Order for Blue Endeavour was issued by the Environment court on Sept 19th – This finishes the appeals appealed process. • An aquaculture decision by the Ministry of Primary Industries (MPI) is now required to indica
Slide 18: Appendices
04 APPENDICES 1HY24 INVESTOR PRESENTATION 17
Slide 19: Existing Sea Farm Resource Consents and Expiry
EXISTING SEA FARM RESOURCE CONSENTS AND EXPIRY • Five licenses are due for expiry or renewal at the end of 2024, all of which represent warmer, low Farms Region Expiry date Status flow licenses at lower producing sites • Crail Bay has not been farmed for around 10 years Ruakaka Queen Charlotte 2024
Slide 20: 1HY24 Reconciliation Between GAAP Results and Pro-Forma Financials
1HY24 RECONCILIATION BETWEEN GAAP RESULTS AND PRO-FORMA FINANCIALS Pro-Forma 1HY24 Statutory Financial Fair Value Early FX Close-outs Operating Financial Statements Adjustments Information NZD 000s Revenue 91,561 91,561 Cost of goods sold (84,435) 27,018 (57,417) Fair value gain / (loss) on biologic
Slide 21: 1HY23 Reconciliation Between GAAP Results and Pro-Forma Financials
1HY231 RECONCILIATION BETWEEN GAAP RESULTS AND PRO-FORMA FINANCIALS 1HY23 Pro-Forma Statutory Financial Fair Value Early FX Close-outs Operating Financial Statements Adjustments NZD 000s Information1 Revenue 80,033 80,033 Cost of goods sold (89,921) 21,533 (68,388) Fair value gain / (loss) on biolog
Slide 22: Appendix – Glossary of Terms
APPENDIX – GLOSSARY OF TERMS 1HY24 Financial results for the 6 months from 1 February 2023 to 31 July 2023 2HY24 Financial results for the 6 months from 1 August 2023 to 31 January 2024 FY24 Financial results for the 12 months from 1 February 2023 to 31 January 2024 FY23 Financial results for the 12
Slide 23: Understanding Our GAAP Results
UNDERSTANDING OUR GAAP RESULTS The impact of NZ IAS-41 Agriculture and NZ IAS-2 Inventory Our GAAP results are impacted by Fair Value gains or losses arising from the application of NZ IAS-41 Agriculture and NZ IAS-2 Inventory. The impact of these standards are explained below: Fair Value under NZ I
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