Cobram Estate Olives Ltd. · ASX:CBO
Cobram Estate Olives — Shareholder Meeting (November 2024)
69 slides from Cobram Estate Olives's shareholder meeting presentation, Nov 1, 2024
Slide 1: Addresses to the Annual General Meeting
ABN: 32 115 131 667 ASX: CBO ASX Announcement – 1 November 2024 Addresses to the Annual General Meeting The Chair’s address and Joint-CEOs’ presentation for the Cobram Estate Olives Limited 2024 For personal use only Annual General Meeting on 1 November 2024 are attached, as required by Listing Rule
Slide 2: Chair's Address
ABN: 32 115 131 667 ASX: CBO Cobram Estate Olives Limited (“CBO” or “Company”) 2024 ANNUAL GENERAL MEETING Chair’s Address 1 November 2024 For personal use only Welcome to the 2024 CBO Annual General Meeting. On behalf of my fellow Directors, I would like to thank you for joining us today, either in
Slide 3: Chair's Address (continued)
Importantly, our record cash flow from operations and strong EBITDA results were achieved in an “off- year”, reflecting our successful management of the alternating higher and lower yielding crop cycle and reinforcing the regular purchasing patterns of our customers. Over the last 26 years, our star
Slide 4: Chair's Address (continued)
• The Oliv.iQ® system also enabled us to be an inaugural recipient of the “Healthiest Olive Oil in the World” at the Health & Food Extra Virgin Olive Oil Awards in Spain, winning this accolade twice. 2. We operate with incredible industry tail winds (health and natural). The weight of science suppor
Slide 5: Chair's Address (continued)
g. We produce and sell packaged goods primarily in the countries we operate in, i.e. Australia and USA, which provides us with: • lower sovereign risk; • lower commodity risk; • lower currency risk; and • very low import/supply chain disruption risks relating to raw materials. 7. We have the most in
Slide 6: Chair's Address (continued)
being the development and adoption of our new 2030 Sustainability Strategy, and we will continue to work on our key initiatives and playing a leadership role in our sector. IMPORTANT – KEY FACTS ABOUT OLIVE OIL THAT SHAREHOLDERS SHOULD KNOW • Extra virgin olive oil is simply the juice of fresh olive
Slide 7: Outlook and board composition
We are anticipating continued strong sales in FY2025 in both Australia and the USA, with strong demand for our extra virgin olive oil thanks to consumers continuing to recognise its high quality and positive health attributes. We will have sufficient olive oil for our FY2025 packaged goods sales pla
Slide 8: Annual General Meeting
For personal use only Annual Full Year FY2024 General Results Presentation MeetingCobram Estate Olives Limited ABN: 32 115 131 667 23 August 2024 1 November 2024 Cobram Estate Olives Limited ABN: 32 115 131 667 Cobram Estate Olives Limited | June 2021 Private & Confidential 1
Slide 9: Presenters
Presenters For personal use only Presenters: Rob McGavin Non-Executive Chair & Co-Founder Sam Beaton Executive Director and Joint-CEO Leandro Ravetti Executive Director and Joint-CEO Cobram Estate Olives Limited | June 2021 Private & Confidential 2
Slide 10: Disclaimer
Disclaimer For personal use only 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 f
Slide 11: Agenda
For personal use only Agenda 1. Chair’s address: Rob McGavin 2. FY2024 Results & Commercial Update: Sam Beaton 3. Business Operations & Growth Strategy Updates: Leandro Ravetti 4. Formal business 5. Questions 6. Close Cobram Estate Olives Limited | June 2021 Private & Confidential 4
Slide 12: Chair's Address
Chair’s Address Rob McGavin Co-Founder and Non-Executive Chair For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 5
Slide 13: FY2024 Results & Commercial Update
FY2024 Results & Commercial Update Sam Beaton Joint-CEO (Finance & Commercial) For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 6
Slide 14: FY2024 – Financial Results Summary
FY2024 – Financial Results Summary Financial results for the 12-months to 30 June 2024 EBITDA* GROUP OLIVE OIL SALES REVENUE $66.7m For personal use only $220.9m ↑ 63.4% (vs FY2023) ↑34.6% (vs FY2023) NET PROFIT AFTER TAX GLOBAL PACKAGED GOODS SALES $18.5m profit $193.4m ↑140.1% (vs FY2023) RECORD C
Slide 15: Group Profit (Statutory)
Group Profit (Statutory) Increase in FY2024 EBITDA* driven by strong sales and improved product mix Income Statement FY2024 FY2023 Change Key points: For personal use only $'million Revenue & other income • The Group reported EBITDA of $66.7m in FY2024 (FY2023: Sales Revenue 227.8 169.0 58.8 $40.8m)
Slide 16: Group Balance Sheet
Group Balance Sheet Net Assets of $322m. Note: brands, trees, and irrigation infrastructure are carried at written down cost Balance Sheet FY2024 FY2023 Change For personal use only $'million Key points: Cash 11.3 13.7 (2.3) • Increase in Total Assets from continued investment in Current Assets (exc
Slide 17: Real Asset Backing
Real Asset Backing Adjusted asset value (excluding cash) of $845m, against net borrowings of $214m CBO’s Assets vs Borrowings For personal use only $'million FY2024 FY2023 FY2022 1,000 Assets Total Assets per CBO balance sheet 690.1 610.5 550.6 900 add: Olive trees and External valuation, not on CBO
Slide 18: Group Cashflow Statement
Group Cashflow Statement Strong operating cashflow driven by increased sales, improved profitability, and stabilisation of costs Cashflow statement $'million FY2024 FY2023 Change For personal use only Key points: Cash generated from operations 64.1 54.1 9.9 • Record cashflow from operations of $64.1
Slide 19: Operating Cashflow Continues to Increase
Operating Cashflow Continues to Increase Operating cashflow is expected to continue to increase over the medium term Group Operating Cashflow Key points: For personal use only 70 • The Company manages its olive oil over a 2-year cycle, so operating cashflow is more consistent than 60 reported profit
Slide 20: Strong Sales Growth in FY2024 for CBO's Australian Business
Strong Sales Growth in FY2024 for CBO’s Australian Business Australian operations olive oil sales up 28.3% to $156.0m (vs. FY2023) Australian olive oil operations Key points: For personal use only packaged goods sales ($) • The Group reported strong olive oil sales from its Australian 160 operations
Slide 21: Significant Future Growth Expected for Australian Business
Significant Future Growth Expected for Australian Business Past investment in expected to deliver strong growth in CBO’s olive oil supply and operating cashflow Key points: • CBO’s past capital investment in Australian groves and mills is expected to significantly increase olive oil supply over the
Slide 22: USA Olive Oil Sales Up 52.5% in FY2024
USA Olive Oil Sales Up 52.5% in FY2024 Packaged goods sales up 78.9% vs FY2023, driven by brand and private label growth USA olive oil sales by product (A$)* For personal use only Key points: 70 • USA olive oil sales of $64.9m in FY2024, up from $42.6m in FY2023. Sales growth was bolstered by robust
Slide 23: USA Business Showing Signs of Replicating Australian Success
USA Business Showing Signs of Replicating Australian Success Capex investment setting the business up for continued strong growth CBO USA earnings and sales growth FY2022-FY2024 For personal use only Key points: 70 • Past investment in the USA is now generating positive 60 EBITDA and significant sal
Slide 24: Trading Update
Trading Update Sales continue to grow in both USA and Australia in the first quarter of FY2025 Key points For personal use only • Continued sales growth in both the USA and Australia for the three months ending September 30, 2024, with packaged goods sales tracking well ahead of the prior correspond
Slide 25: Financial Outlook
Financial Outlook Outlook is positive, with FY2025’s reported EBITDA expected to be materially higher than FY2024 For personal use only Key points: • Sales outlook remains positive. We expect demand for locally produced high quality extra virgin olive oil to remain strong. • Strong operating cashflo
Slide 26: Dividend Announcement
Dividend Announcement Final FY2024 dividend of 3.3 cents per share, 100% franked, payable on 28 November 2024 Dividend Timetable For personal use only Final Dividend Details Activity Date • Dividend Payment: $0.033 per Ex-Dividend Date 7 November 2024 Record Date 8 November 2024 share DRP Final Elec
Slide 27: Business Operations and Growth Strategy Update
Business Operations and Growth Strategy Update Leandro Ravetti Joint-CEO (Technical & Production) For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 20
Slide 28: Australian Operations Update
Australian Operations Update FY2024 Australian olive harvest completed in June 2024, 10.1m litres produced FY2024 Australian olive For personal use only harvest • As previously announced, CBO’s FY2024 Australian olive harvest was completed in June 2024. • Total production of 10.1m litres of olive oi
Slide 29: FY2025 Australian Flowering
FY2025 Australian Flowering Full bloom taking place over the coming days For personal use only Key points • Flowering for the FY2025 crop has commenced on CBO’s Australian groves, with full bloom at our Boundary Bend grove taking place this week and at our Boort grove next week. This is in line with
Slide 30: FY2025 California Olive Harvest
FY2025 California Olive Harvest Harvest has commenced in California with a record crop expected For personal use only FY2025 Harvest • CBO’s FY2025 California harvest commenced in early October as planned and is expected to be completed by early December. • The Company expects its FY2025 Californian
Slide 31: Growth Strategy
Growth Strategy Four core pillars to drive future growth For personal use only Increasing olive oil supply on our Australian groves to deliver material sales growth from Australian operations 1. CBO’s maturing Australian olive grove area will increase by 53% over the next 8 -years. Currently, 35% of
Slide 32: Increasing Olive Oil Supply from our Australian Groves
Increasing Olive Oil Supply from our Australian Groves CBO’s mature grove area will increase by 53% over the next 8-years, delivering material growth in oil supply Key points: For personal use only • Currently only 65% of CBO’s Australian groves are mature, 25% immature, 10% not yet productive*. • C
Slide 33: Increasing Olive Oil Supply From Our Australian Groves (cont'd)
Increasing Olive Oil Supply From Our Australian Groves (cont’d) Wemen grove redevelopment, and milling capacity expansion at Boort CBO’s 271-hectare olive grove redevelopment at Wemen For personal use only Wemen grove redevelopment • A 271-hectare redevelopment of CBO’s Wemen grove was completed in
Slide 34: Growing Our Vertically Integrated USA Business
Growing Our Vertically Integrated USA Business Production from our own groves set to increase by 10x over the coming 8 years** Key points: For personal use only CBO’s Californian olive oil • CBO’s Californian olive grove portfolio totals 930 hectares, including ~178 hectares planted in October-Novem
Slide 35: Growing Our Vertically Integrated USA Business (cont'd)
Growing Our Vertically Integrated USA Business (cont’d) CBO is continuing its USA grove developments to meet strong demand for Californian olive oil For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 28
Slide 36: Growing Our Vertically Integrated USA Business (cont'd)
Growing Our Vertically Integrated USA Business (cont’d) CBO is continuing its USA grove developments to meet strong demand for Californian olive oil For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 29
Slide 37: Growing Our Vertically Integrated USA Business (cont'd)
Growing Our Vertically Integrated USA Business (cont’d) CBO is continuing its USA grove developments to meet strong demand for Californian olive oil For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 30
Slide 38: Growing Our Vertically Integrated USA Business (cont'd)
Growing Our Vertically Integrated USA Business (cont’d) CBO is continuing its USA grove developments to meet strong demand for Californian olive oil For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 31
Slide 39: Growing Our Vertically Integrated USA Business (cont'd)
Growing Our Vertically Integrated USA Business (cont’d) CBO is continuing its USA grove developments to meet strong demand for Californian olive oil For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 32
Slide 40: Growing Our Vertically Integrated USA Business (cont'd)
Growing Our Vertically Integrated USA Business (cont’d) CBO is continuing its USA grove developments to meet strong demand for Californian olive oil For personal use only California grove developments FY2024 developments • 179 hectares planted between November 2023 and July 2024. FY2025 developments
Slide 41: Expansion of Woodland olive mill, tank farm, and bottling line
Growing Our Vertically Integrated USA Business (cont’d) Expansion of CBO’s Woodland olive mill, tank farm, and bottling line to meet growing demand For personal use only Woodland site expansion • The first phase of the Woodland site expansion was completed in time for the FY2024 California harvest.
Slide 42: Sustainability
Sustainability New ‘2030 Sustainability Strategy’ developed and adopted For personal use only Key points: • CBO is well positioned to deliver a unique value proposition – the ability to produce food that is good for human health, the planet, and its business. • The Company strives to be a leading ex
Slide 43: Health Care Professional (HCP) Education
Health Care Professional (HCP) Education Cobram Estate® HCP education hub and Olive Wellness Institute ® For personal use only • The Olive Wellness Institute® was launched in 2018 as a science repository on the nutrition, health and wellness benefits of olives and olive products, which is all subjec
Slide 44: Company-wide Green House Gas Assessment
Company-wide Green House Gas Assessment Net carbon sink position For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 37
Slide 45: Sustainable Water Usage
Sustainable Water Usage New 5GL groundwater licence at Boundary Bend (Australia), and new pipeline for Hungry Hollow (USA) 5GL groundwater licence @ Boundary Bend Groundwater testing at New water pipeline in For personal use only • After several years working with government agencies and water autho
Slide 46: Commitment to quality
Commitment to quality Our commitment to quality goes over and above certifications and audits New ISO method for the determination of fatty acids and squalene in For personal use only vegetable oils (ISO 24363:2023) – developed by Modern Olives ® • Squalene is a natural antioxidant. Olive Oil is con
Slide 47: Sustainability Awards and Recognition
Sustainability Awards and Recognition CBO continues to receive wide recognition for its sustainability initiatives For personal use only Awards and Recognition CBO’s sustainability achievements have been widely recognised by industry and supply chain partners. Recent achievements include: • 2024, 20
Slide 48: Formal Business
Formal Business Rob McGavin For personal use only Co-Founder and Non-Executive Chair Appendix Thank-you Cobram Estate Olives Limited | June 2021 Private & Confidential 41 41
Slide 49: Shareholder / Proxyholder Voting Directions
Shareholder / Proxyholder Voting Directions For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 42
Slide 50: Voting Online
Voting Online Only verified Shareholders, Proxyholders and Corporate Representatives are eligible to vote Lodging your votes online For personal use only Click “Get a Voting Card” (top and bottom of platform) Enter your Holder Number and Postcode or your Proxy Number Click “Submit Details and Vote”
Slide 51: Asking Questions Online
Asking Questions Online Asking questions online For personal use only Only Shareholders, Proxyholders and Corporate Representatives are able to ask questions Click on “Ask a Question” Select “General Business” or a specific resolution Type in your question and click “Submit” Comments on resolutions
Slide 52: Asking Questions via Web Phone
Asking Questions via Web Phone Asking questions via Web Phone For personal use only Only Shareholders, Proxyholders and Corporate Representatives are able to ask questions Click on “Ask a Question” Select “Go to Web Phone” Click on the green phone button You will now be connected to the meeting. Pre
Slide 53: Item 1: Financial Statements and Reports
Item 1: Financial Statements and Reports To receive and consider the Financial Report and the related Directors’ Report and Auditor’s Report For personal use only for the year ended 30 June 2024. Note: This item is for discussion only and is not a resolution. Cobram Estate Olives Limited | June 2021
Slide 54: Item 2: Adoption of the Remuneration Report
Item 2: Adoption of the Remuneration Report To consider and, if thought fit, to pass the following resolution as a non-binding ordinary resolution: For personal use only That the Remuneration Report of the Company for the year ended 30 June 2024 be adopted. Note: This resolution is advisory only and
Slide 55: Item 3a: Election of Mr. David Wills
Item 3a: Election of Mr. David Wills To consider and, if thought fit, to pass the following resolution as an ordinary resolution: For personal use only That Mr. David Wills, who was appointed as a Non-Executive Director on 3 November 2023, retires, and being eligible, offers himself for election as
Slide 56: Item 3b: Re-election of Mr. Rob McGavin
Item 3b: Re-election of Mr. Rob McGavin To consider and, if thought fit, to pass the following resolution as an ordinary resolution: For personal use only That Mr. Rob McGavin, who retires, and being eligible, offers himself for re-election as a Non-Executive Director of the Company, is elected as a
Slide 57: Item 3c: Re-election of Mr. Sam Beaton
Item 3c: Re-election of Mr. Sam Beaton To consider and, if thought fit, to pass the following resolution as an ordinary resolution: For personal use only That Mr. Sam Beaton, who retires, and being eligible, offers himself for re-election as an Executive Director of the Company, is elected as a Dire
Slide 58: Item 3d: Re-election of Dr. Joanna McMillan
Item 3d: Re-election of Dr. Joanna McMillan To consider and, if thought fit, to pass the following resolution as an ordinary resolution: For personal use only That Dr. Joanna McMillan, who retires, and being eligible, offers herself for re-election as a Non-Executive Director of the Company, is elec
Slide 59: Item 4: Renewal of Proportional Takeover Provisions
Item 4: Renewal of Proportional Takeover Provisions To consider and, if thought fit, to pass with or without amendment, as a special resolution the For personal use only following: That, for the purposes of section 648G(4) of the Corporations Act and for all other purposes, the proportional takeover
Slide 60: Item 5: General
Item 5: General To transact any business that may be lawfully brought forward. For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 53
Slide 61: Questions?
For personal use only Questions?
Slide 62: Thank you for supporting Cobram Estate Olives!
Thank you for supporting Cobram Estate Olives! For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 55
Slide 63: Our Global Business
Our Global Business* US A O LIVE OIL OPE RATIONS FY2024 Olive Oil Sales A$64.9 million FY2024 EBITDA A$5.8 million For personal use only Freeh old land 754 hectares Company owned olive groves 930 hectares Contracted olive groves 2,100 hectares Millin g cap acity 64 tonnes per hour USA Olive oil stor
Slide 64: 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 For personal use only • Established in 1998, Cobram Estate Olives Limited (ASX: CBO) is Australia’s largest vertically integrated pro
Slide 65: CBO's Competitive Advantages
CBO’s Competitive Advantages CBO’s strategic olive assets deliver significant competitive advantages and strong barriers to entry For personal use only Vertically integrated Proprietary Premium market- Industry-leading operations with strategically located, Oliv.iQ® leading brands sustainability Int
Slide 66: CBO's Key Consumer Brands Including Market-Leading Cobram Estate
CBO’s Key Consumer Brands Including Market-Leading Cobram Estate® Iconic, highly visible consumer brands with demonstrated pricing power For personal use only Cobram Estate® Red Island® • The #1 selling olive oil* in Australian supermarkets by value • Purchased in 2012. and volume in FY2024*. • Now
Slide 67: CBO's Olive Growing, Milling and Bottling Operations in Australia and USA
CBO’s Olive Growing, Milling and Bottling Operations in Australia and USA Large-scale olive groves and olive mills, delivering efficiencies in olive growing, harvesting, milling, and bottling For personal use only Olive groves, harvesters and Olive mills and olive oil storage Bottling, warehouse, an
Slide 68: FY2024 Commitments, Targets, and Progress
FY2024 Commitments, Targets, and Progress Significant progress made by CBO in FY2024 For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 61
Slide 69: Growth Strategy – Innovation and Value-Add
Growth Strategy – Innovation and Value-Add Continue to focus on the internal use and external sale of olive biomass as part of zero waste strategy CBO’s olive pomace waste management and dried pomace For personal use only Key points: • As part of its sustainability / zero waste strategy, CBO continu
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