Cobram Estate Olives Ltd. · ASX:CBO
Cobram Estate Olives — H1 FY2023 Earnings Presentation
30 slides from Cobram Estate Olives's earnings presentation, Feb 24, 2023
Slide 1: Half Year FY2023 Results Presentation
Half Year FY2023 Results Presentation Cobram Estate Olives Limited I ACN: 115 131 667 24th February 2023 Cobram Estate Olives Limited | June 2021 Private & Confidential 1
Slide 2: Disclaimer
Disclaimer The material in this presentation is general background information about Cobram Estate Olives Limited (“Cobram Estate Olives” or “CBO” or “the Company”) and is current at the date of the presentation. The information in the presentation is provided for information purposes only, is in su
Slide 3: Presenters
Presenters Rob McGavin Leandro Ravetti Sam Beaton Non-Executive Chair & Co-Founder Executive Director & Joint-CEO Executive Director & Joint-CEO Cobram Estate Olives Limited | June 2021 Private & Confidential 3
Slide 4: Agenda
Agenda 1. Welcome from Chair and Co-Founder Rob McGavin 2. Half Year FY2023 Financial Results and Commercial Update – Sam Beaton 3. Business Operations Highlights and Update – Leandro Ravetti 4. Questions Cobram Estate Olives Limited | June 2021 Private & Confidential 4
Slide 5: Welcome and Key Messages
Welcome and Key Messages • The Company performed solidly in 1HFY23 with no material impact from heavy rains and flooding in Victoria and California and strengthening demand for our extra virgin olive oils delivering sales growth. With 2023 being an on-cropping year, we are expecting to deliver a sig
Slide 6: Half Year FY2023 Financial Results and Commercial Update
Half Year FY2023 Financial Results and Commercial Thank-you Update Sam Beaton Joint-CEO (Finance & Commercial) Cobram Estate Olives Limited | June 2021 Private & Confidential 6
Slide 7: Half Year FY2023 - Financial Results Summary
Half Year FY2023 - Financial Results Summary Financial Results for the 6 months to 31 December 2022 When reviewing the Company’s half year results, • EBITDA for the period of $0.7m (1HFY22: $4.8m) it is important to note two important impacts from the adoption of accounting policies. • NPAT for the
Slide 8: Group Profit or Loss (Statutory)
Group Profit or Loss (Statutory) Group revenue up 6.1%; interim profit down versus 1HFY2022 Income Statement 6 mths to 6 mths to Key points 31-Dec 31-Dec • The CBO Group reported an EBITDA profit of $0.7m (1HFY2022: $'million 2022 2021 Variance $4.8m). o Note: the Company’s half year results do not
Slide 9: Group Cash Flow Statement
Group Cash Flow Statement Strong operating cash flow of $10.8 million in 1HFY2023 Cash Flow Statement 6 mths to 6 mths to 31-Dec 31-Dec Key points $'million 2022 2021 Variance • Strong operating cash flow reflective of the Company managing its oil supply Earnings before tax (11.9) (6.1) over two (2)
Slide 10: Group Balance Sheet
Group Balance Sheet Strong balance sheet, with net assets of $267.2 million and gearing of 30% Balance Sheet 31-Dec 30-Jun Key points $'million 2022 2022 Variance • 3.2% increase in total assets to $568.5m versus the prior period. Cash 6.1 5.9 Current Assets (excluding cash) 120.8 126.8 • Note: the
Slide 11: Group Olive Oil Sales
Group Olive Oil Sales Group packaged goods sales grew by 6.3% in 1HFY23 versus the prior period GROUP OLIVE OIL SALES BY PRODUCT TYPE / COUNTRY Key points Packaged Goods - AUST Packaged Goods - USA Bulk - Aust Bulk - USA • Total Group packaged goods sales of $60.9m in 1HFY23, up 5% 6.3% versus 1HFY2
Slide 12: Strong Sales Growth for Australian Olive Oil Operations in HFY23
Strong Sales Growth for Australian Olive Oil Operations in 1HFY23 Australian packaged goods sales up 6.3% versus 1HFY22 PACKAGED GOODS SALES - AUSTRALIA Key points – 1HFY23 60.0 • The Group reported strong olive oil sales from its Australian operations, led by significant growth in 50.0 packaged goo
Slide 13: Return to Growth for USA Packaged Goods Sales in 1HFY23
Return to Growth for USA Packaged Goods Sales in 1HFY23 USA packaged goods sales up 6.2% versus 1HFY22; Cobram Estate® sales up 70.8% PACKAGED GOODS SALES - USA Key points – 1HFY23 12.0 • The Group reported strong olive oil sales from its USA operations, led by significant growth in packaged 10.0 go
Slide 14: External Costs Stabilising, Australian Water Prices Down vs FY2022
External Costs Stabilising, Australian Water Prices Down vs FY2022 Low water prices in Australia (down 55% in FY2023 YTD) continue to offset higher external costs CBO’S TEMPORARY WATER PURCHASES AND Stabilising costs PRICE PER MEGALITRE - FY14 to FY23YTD • Costs have stabilised across the group, wit
Slide 15: Financial Outlook
Financial Outlook Outlook is positive, underpinned by strong demand for extra virgin olive oil and our maturing groves • Demand for Australian and Californian extra virgin olive oil remains strong, and we anticipate this will continue despite the evolving economic situation in our key markets. • Sig
Slide 16: Business Operations Highlights and Update
Business Operations Highlights and Update Leandro Ravetti Joint-CEO (Technical & Production) Cobram Estate Olives Limited | June 2021 Private & Confidential 16
Slide 17: Olive Oil Operations Update - Australia
Olive Oil Operations Update - Australia Large 2023 crop confirmed; groves in excellent condition following significant rainfall events Key points - Australia • Groves in excellent condition following a wetter and cooler spring than normal. Due to the unseasonal weather conditions the full bloom peri
Slide 18: Maturing Australian Groves and Third-Party Groves Deliver Supply Increases
CBO’s Maturing Australian Groves & Contracted Third-Party Groves will Deliver Material Supply Increases in Coming Years Enabling Sales Growth Maturing groves to grow by CAGR of 7.5% over the next 9-years, supplemented by third-party supply AGE PROFILE OF CBO’S AUSTRALIAN GROVES BY PLANTED HECTARES M
Slide 19: Olive Oil Operations Update - USA
Olive Oil Operations Update - USA Recent rainfalls set up a good 2023 season, with a record crop expected from CBO’s and third-party groves Key points - USA • CBO’s Californian olive groves are in very good condition. Recent heavy rainfalls provided welcome relief for water users in the irrigation d
Slide 20: Capex Growth Project: Boort Grove Development
Capex Growth Project: Boort Grove Development Boort grove area to increase by 13.4% with 415-hectare development to be planted in March 2023 Boort grove development • Preparation underway for a greenfield 415-hectare olive planting at our Boort grove in Victoria, increasing our total olive plantings
Slide 21: Capex Growth Project: Boort Olive Mill Upgrade
Capex Growth Project: Boort Olive Mill Upgrade Milling capacity at Boort to increase from 30 tonnes to 80 tonnes of olives per hour Boort olive mill upgrade • The Boort olive mill upgrade is well progressed, with the external building nearly complete, and internal installation in progress. • The mil
Slide 22: Capex Growth Project: California Grove Development & Woodland Expansion
Capex Growth Project: California Grove Development & Woodland Expansion California grove area to increase by 54%; olive milling capacity to double CBO’s Dunnigan Hills Ranch, California CBO’s Harter Road Site Phase 1 Ready for Planting Woodland California California grove development • Phase 1 of th
Slide 23: Building on our sustainability leadership position
Building on our sustainability leadership position CBO recognised as an Australian leader in sustainability in the food / agribusiness sector Sustainability highlights for 1HFY2023 include: • Winner of the 2022 Woolworths Better Tomorrow Award (Sustainability Supplier of the Year). • Recognised as a
Slide 24: Questions?
Questions Questions? Cobram Estate Olives Limited | June 2021 Private & Confidential 24
Slide 25: Thank you!
Thank you!
Slide 26: Appendix
Appendix
Slide 27: Cobram Estate Olives - From Tree to Table
Cobram Estate Olives - From Tree to Table Growing and marketing olive goodness in Australia and the USA About Cobram Estate Olives • Established in 1998, Cobram Estate Olives (ASX: CBO) is Australia’s largest vertically integrated producer and marketer of premium quality extra virgin olive oil • CBO
Slide 28: CBO's Key Consumer Brands Include Market-Leading Cobram Estate
CBO’s Key Consumer Brands Include Market-Leading Cobram Estate® Iconic, highly visible consumer brands with demonstrated pricing power Cobram Estate® Red Island® • The #1 selling extra virgin olive oil* in Australian supermarkets • Purchased in 2012 by value in FY2022 • Now the second largest sellin
Slide 29: 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:
Slide 30: CBO's Competitive Advantages
CBO’s Competitive Advantages CBO’s key assets deliver significant competitive advantages and strong barriers to entry Continuous Vertically integrated, Proprietary Oliv.iQ® Premium market- improvement and freehold-owned and Integrated Olive leading consumer sustainable practices scalable operations
Cobram Estate Olives — H1 FY2023 Earnings Presentation on 6ix