Cobram Estate Olives Ltd. · ASX:CBO
Cobram Estate Olives — FY2024 Earnings Presentation
45 slides from Cobram Estate Olives's earnings presentation, Aug 23, 2024
Slide 1: CBO FY2024 Results Presentation ASX Announcement
ABN: 32 115 131 667 ASX: CBO Cobram Estate Olives Limited (“CBO” or “the Company”) ASX Announcement – 23rd August 2024 CBO FY2024 Results Presentation Cobram Estate Olives Limited (ASX: CBO) is pleased to present its FY2024 Results Presentation for today’s investor and analyst webinar commencing at
Slide 2: Full Year FY2024 Results Presentation
Full Year Full Year FY2024 FY2024 Results Presentation Results Presentation Cobram Estate Olives Limited ABN: 32 115 131 667 23 August 2024 23 August 2024 Cobram Estate Olives Limited ABN: 32 115 131 667 Cobram Estate Olives Limited | June 2021 Private & Confidential 1
Slide 3: 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 4: 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 5: Agenda
Agenda: 1. Introduction: Sam Beaton 2. FY2024 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 6: Introduction
Introduction Sam Beaton Joint-CEO (Finance & Commercial) Cobram Estate Olives Limited | June 2021 Private & Confidential 5
Slide 7: FY2024 Results & Commercial Update
FY2024 Results & Commercial Update Sam Beaton Joint-CEO (Finance & Commercial) Cobram Estate Olives Limited | June 2021 Private & Confidential 6
Slide 8: 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 $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 CASH FLOW FROM (COBRAM
Slide 9: Group Profit (Statutory)
Group Profit (Statutory) Increase in FY2024 EBITDA* driven by strong sales and improved product mix Income Statement $'million FY2024 FY2023 Change Key points: Revenue • The Group reported EBITDA of $66.7m in FY2024 (FY2023: Sales Revenue 227.8 169.0 58.8 $40.8m). Other income 3.3 4.9 (1.6) • Austra
Slide 10: Group Balance Sheet
Group Balance Sheet Net Assets of $322m; value of brands, trees, and irrigation infrastructure are carried at written down cost Balance Sheet $'million FY2024 FY2023 Change Key points: Cash 11.3 13.7 (2.3) • Increase in Total Assets from continued investment in Current Assets (excluding cash) 128.8
Slide 11: Real Asset Backing
Real Asset Backing Adjusted asset value (excluding cash) of $845m, against net borrowings of $214m CBO’s Assets vs Borrowings $'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 B/S * 166.4 121.3 121
Slide 12: 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 Key points: Cash generated from operations 64.1 54.1 9.9 • Record cashflow from operations of $64.1m in FY2024 (FY2023: $
Slide 13: 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 70 Key points: • The Company manages its olive oil over a 2-year cycle, so operating cashflow is more consistent than reported 60 profits (which is heavily in
Slide 14: Australian Business – Significant Growth Expected
Australian Business – Significant Growth Expected Significant past investment expected to drive CBO’s olive oil supply and operating cashflow Australian production: Average of 2023 and Theoretical yield potential of an olive tree, 2024 harvest vs. theoretical yield at full maturity compared to incre
Slide 15: 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 USA earnings and sales growth FY2022-FY2024 Key points: 70 • Past investment in the USA now generating positive EBITDA and 60 significant sales growth. 50 • Reported asse
Slide 16: FY2024 Group Sales Highlights
FY2024 Group Sales Highlights 18,429 # 1 EXTRA VIRGIN OLIVE OIL USA SUPERMARKETS STOCKING COBRAM ESTATE® PRODUCTS** by value and volume* RED ISLAND® COBRAM ESTATE® 8 AUSTRALIA’S # 2 HIGHEST # SELLING OLIVE OIL BRAND IN THE USA** EXTRA VIRGIN OLIVE OIL by value and volume (behind Cobram Estate®)* Cob
Slide 17: Group Olive Oil Sales
Group Olive Oil Sales Olive oil sales up 34.6% (vs. FY2023) Group olive oil sales by product type / country Packaged Goods - AU Packaged Goods - USA Bulk Oil - AU Bulk Oil - USA Key points: 6% • Group olive oil sales grew 34.6% in 6% FY2024 to $220.9m. • Packaged goods accounted for 87.5% of olive o
Slide 18: Strong Sales Growth for Australian Olive Oil Operations
Strong Sales Growth for Australian Olive Oil Operations Australian operations olive oil sales up 28.3% to $156.0m (vs. FY2023) Australian olive oil operations packaged goods sales ($) 160 Key points: 140 • The Group reported strong olive oil sales from its Australian operations 120 across all facets
Slide 19: CBO's Market-Leading Position in the Australian Olive Oil Category
CBO’s Market-Leading Position in the Australian Olive Oil Category Cobram Estate® and Red Island® combined market value share of 37.9% in FY2024* Key points*: Olive oil market share by brand • Cobram Estate® and Red FY2024 - value terms* Island® recorded strong retail sales growth, achieving 37.9% c
Slide 20: Cobram Estate Marketing Highlights - Australia
Cobram Estate® Marketing Highlights - Australia Continuing to promote the superior quality, health benefits, and usage of Cobram Estate® Principal partnership: Melbourne Mavericks Harvest visits FY2024 highlights: • Commenced a three-year principal partnership with Melbourne Mavericks, a professiona
Slide 21: 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$)* 70 60 Key points: • USA olive oil sales of $64.9m in FY2024, up from $42.6m in FY2023. Sales growth was bolstered by robust 50 demand for Cali
Slide 22: Cobram Estate Marketing Highlights - USA
Cobram Estate® Marketing Highlights - USA Focus on digital marketing and retailer activities to drive sales, brand awareness, and education In-store trade Our New Artisan Range of Cobram Estate® stand at Natural Key points: infused olive oils Products Expo West marketing activity • USA marketing act
Slide 23: Financial Outlook
Financial Outlook Outlook is positive, underpinned by robust demand for olive oil and strong trading conditions Key points: • Sales outlook remains positive. Demand continues to be strong for our extra virgin olive oil, as consumers continue to recognise its high quality and positive health attribut
Slide 24: 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 23
Slide 25: FY2024 Group Operations Highlights
FY2024 Group Operations Highlights 179 AUSTRALIA’S #1 HECTARES OF NEW OLIVE GROVES DEVELOPED OLIVE OIL PRODUCER* BY CBO IN CALIFORNIA IN FY2024** 10.1m 3.2m LITRES OF CALIFORNIAN OLIVE OIL LITRES OF AUSTRALIAN OLIVE OIL PRODUCED BY CBO IN 2024 PRODUCED BY CBO IN 2023 7,000 930 HECTARES HECTARES*** O
Slide 26: Australian Operations Update
Australian Operations Update Australian harvest completed in June 2024, 10.1m litres produced Key points: • As previously announced, CBO’s 2024 Australian olive harvest was completed in June 2024. • Total production of 10.1m litres of olive oil (3% higher than 2022, the previous “off- year”)*. • The
Slide 27: USA Operations Update
USA Operations Update Key points: • Weather conditions have been favourable for flower induction and fruit set. • The Company expects its FY2025 Californian olive oil production, an “off- year”, to be similar to or above its FY2024 harvest “on-year” (FY2024: 3.2 million litres of olive oil produced)
Slide 28: 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 includ
Slide 29: CBO's Maturing Australian Groves
CBO’s Maturing Australian Groves Mature grove area will increase by 53% over the next 8-years, delivering material growth in oil supply Key points: • Currently only 65% of CBO’s Australian groves are mature, 25% immature, 10% not yet productive*. • CBO’s mature grove area in Australia will increase
Slide 30: Australia Growth Project: Redevelopment of Wemen grove
Australia Growth Project: Redevelopment of Wemen grove 271-hectare redevelopment at Wemen (Victoria) completed in Autumn 2024 CBO’s 271-hectare olive grove redevelopment at Wemen, Wemen grove planted in Autumn 2024 redevelopment • A 271-hectare redevelopment of CBO’s Wemen grove was completed in Aut
Slide 31: Only 11% of CBO's Californian Groves are Mature
Only 11% of CBO’s 930 Hectares of Californian Groves are Mature* Mature grove area will increase from 99 hectares to 930 hectares over the next 8-years, increasing oil supply** Key points: CBO’s Californian olive oil • CBO’s Californian olive grove portfolio totals 930 hectares, including ~178 hecta
Slide 32: USA Growth Project: Grove Expansion
USA Growth Project: Grove Expansion CBO is continuing its material grove developments to meet strong demand for Californian olive oil California grove developments FY2024 developments • 179 hectares planted between November 2023 and July 2024. FY2025 developments • 178 additional hectares to be plan
Slide 33: USA Growth Project: Woodland California Site Expansion
USA Growth Project: Woodland California Site Expansion Expansion of CBO’s Woodland olive mill, tank farm, and bottling line to meet growing demand Woodland site expansion • The first phase of the Woodland site expansion was completed in time for the FY2024 California harvest. • Milling capacity doub
Slide 34: 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 Key points: • As part of its sustainability / zero waste strategy, CBO continues to add-value to the
Slide 35: Sustainability
Sustainability New ‘2030 Sustainability Strategy’ developed and adopted 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 example of best practice
Slide 36: FY2024 Commitments, Targets, and Progress
FY2024 Commitments, Targets, and Progress Significant progress made by CBO in FY2024 Cobram Estate Olives Limited | June 2021 Private & Confidential 35
Slide 37: 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 • After several years working with government agencies and water authorities and Groundwater testing at Installing water undergoing extensive
Slide 38: Sustainability Awards and Recognition
Sustainability Awards and Recognition CBO continues to receive wide recognition for its sustainability initiatives Awards and Recognition CBO’s sustainability achievements have been widely recognised by industry and supply chain partners. Recent achievements include: • 2024, 2023, 2022 – Australian
Slide 39: Questions?
Questions?
Slide 40: Thank you for supporting Cobram Estate Olives!
Thank you for supporting Cobram Estate Olives! Cobram Estate Olives Limited | June 2021 Private & Confidential 39
Slide 41: Our Global Business
Our Global Business* USA OLIVE OIL OPERATIONS FY2024 Olive Oil Sales A$64.9 million FY2024 EBITDA A$5.8 million Freehold land 754 hectares Company owned olive groves 752 hectares Contracted olive groves 2,100 hectares Milling capacity 64 tonnes per hour USA Olive oil storage Bottling capacity 4.5 mi
Slide 42: 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 43: 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
Slide 44: 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 Cobram Estate® Red Island® • The #1 selling olive oil* in Australian supermarkets by value • Purchased in 2012. and volume in FY2024*. • Now the second largest sel
Slide 45: 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 Olive groves, harvesters and Olive mills and olive oil storage Bottling, warehouse, and farmland • Australia