Maggie Beer Holdings Ltd. · ASX:MBH
Maggie Beer — H1 FY21 Earnings Presentation
27 slides from Maggie Beer's earnings presentation, Feb 24, 2021
Slide 1: H1 FY21 Results
MAGGIE BEER HOLDINGS LIMITED H1 FY21 RESULTS ASX: MBH 24 FEBRUARY 2021
Slide 2: CEO quote: great start to the year
“The Group had a great start to the year achieving record net sales in H1 FY21, increasing 20% on the same time last year”. Chantale Millard CEO
Slide 3: Key highlights from H1 FY21
Key highlights from H1 FY21 Group continues to thrive with strong net sales and trading EBITDA growth H1 FY21 NET SALES H1 FY21 OPERATING TRADING EBITDA FURTHER HEAD CASHFLOW IMPROVED $2.1M in OFFICE COST SAVINGS +19.7% IMPROVED BY H1 FY21 vs PCP TO BE IN H1 FY21 FROM HEAD OFFICE on H1 FY20 + $3.7m
Slide 4: Group results H1 FY21 vs H1 FY20
Group results H1 FY21 vs H1 FY20 ✓ Strong net sales growth across the Group, led by Maggie Beer Products ✓ H1 FY21 Group net sales up 19.7% on H1 FY20 and returned a $2.2m trading EBITDA an increase of $2.1m on pcp ✓ H1 FY21 finished with a strong balance sheet, with cash of $6.3m and undrawn debtor
Slide 5: Group Balance Sheet
Group Balance Sheet ($'000) Dec-20 Jun-20 Dec-19 Assets Cash 6,282 7,245 5,123 • Strong balance sheet position Trade receivables 9,606 8,022 7,937 • Well funded with strong cash position of $6.3m Inventory 3,217 3,500 3,343 & $3m in an undrawn invoice finance facility Right of Use Asset 3,358 3,345
Slide 6: Group operating cashflow improves by $3.7m in H1 FY21 vs pcp
Group operating cashflow improves by $3.7m in H1 FY21 vs pcp H1 FY21 H1 FY20 • Operating cashflow for H1 FY21 improved by ($'000) $3.7m compared to H1 FY20 Receipts from customers (inclusive of GST) 26,351 21,570 • Higher sales achieved in H1 FY21 will further Payments to suppliers and employees (in
Slide 7: All three business units contributing to the strong growth
All three business units contributing to the strong growth All business units achieved growth in net sales for H1 FY21 MAGGIE BEER PARIS CREEK ST DAVID DAIRY MBP E-COMMERCE PRODUCTS NET SALES FARMS NET SALES NET SALES NET SALES +28.6% +11.4% +5.5% + 167% on H1 FY20 on H1 FY20 on H1 FY20 on H1 FY20 7
Slide 8: H1 FY21 vs H1 FY20 by business unit
H1 FY21 vs H1 FY20 by business unit ✓ Net sales grew by 28.6% ✓ Net sales grew by ✓ Net sales improved by in H1 FY21 on H1 FY20 11.4% in H1 FY21 5.5% in H1 FY21 vs pcp ✓ E-commerce net sales compared to H1 FY20 ✓ Business continues to have grown by 167% in ✓ H1 FY21 trading have a positive trading H
Slide 9: Maggie Beer Products
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Slide 10: Trading EBITDA up 47.6% in H1 FY21
Trading EBITDA up 47.6% in H1 FY21 28.6% vs pcp Maggie Beer Products ($'000) H1 FY21 H1 FY20 %Change Net Sales 14,580 11,339 28.6% Net Sales ($'000) Gross Margin 6,745 5,550 21.5% GM % 46.3% 48.9% -2.7 pts 14,580 Total expenses 3,944 3,653 8.0% 11,777 11,339 Trading EBITDA1 2,801 1,898 47.6% 9,142 9
Slide 11: Operating Leverage
Operating Leverage Total expenses • As a % of net sales total expenses have decreased from 32% in H1 FY20 to 27% in H1 FY21 • Good cost control across the business Labour • As a % of net sales labour has decreased in H1 FY21 • Cost base allows for significant growth without corresponding increases i
Slide 12: New business & new products driving growth
New business & new products driving growth • Cheese & cooking stocks led the way with growth of 76% and 44% respectively in H1 FY21 compared to the pcp • Core lines of fruit paste & pate continued to grow at 19% and 7% respectively vs H1 FY20 • E-commerce net sales grew 167% in H1 FY21 compared to p
Slide 13: Our ever-growing cheese family
Our ever-growing cheese family • Our cheese net sales grew by 76% in H1 FY21 vs pcp with more cheese lines being developed • Maggie Beer Products is now a serious player in Specialty Cheese creating growth and value for retailers & consumers 13
Slide 14: E-commerce growth and future potential
E-commerce growth and future potential • Consumers buying habits have changed due to COVID-19 with increased on-line purchases • E-commerce net sales now 8% of total net sales compared to 4% in H1 FY20 – an increase of 100%, on an increasing sales base • “Cooking with Maggie” series launched in Apri
Slide 15: Marketing plans driving brand awareness & growth
Marketing plans driving brand awareness & growth • The four SBS “on demand” commercials had an average view through rate of 97.5% from 319k views in VIC & NSW throughout October-December 20 (industry benchmark 80%) • Creating further marketing plans to drive brand awareness & continuing our digital
Slide 16: Paris Creek Farms
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Slide 17: Trading EBITDA positive in H1 FY21
Trading EBITDA positive in H1 FY21 11.4% vs pcp Paris Creek Farms ($'000) H1 FY21 H1 FY20 %Change Net Sales 8,718 7,824 11.4% Net Sales ($'000) Gross Margin 3,976 3,135 26.8% GM % 45.6% 40.1% 5.5 pts Total expenses 3,929 3,960 -0.8% 8,015 7,824 8,225 8,718 6,938 Trading EBITDA1 47 (825) 105.8% EBITD
Slide 18: Positive Net Sales & Labour Cost Reduction
Positive Net Sales & Labour Cost Reduction Net Sales Core business net sales continue to gain momentum in H1 FY21 • 14% improvement on H1 FY20 • Continue to gain market share in major retailers in SA Labour • Labour costs have stabilised since the successful business restructure completed in FY19/FY
Slide 19: Sales growth continues in H1 FY21
Sales growth continues in H1 FY21 • Sales driven by increased ranging and growth in branded product sales & private label • Radio advertising campaign and competition in Q2 FY21 grew brand awareness in SA and now focusing on other states • New VIC sales rep started in November 20 and is starting to
Slide 20: New Greek Yoghurt range
New Greek Yoghurt range Launching in independent supermarkets in SA/VIC/NSW in Q3 FY21 together with planned local ranging in Coles and WOW in FY22 20
Slide 21: St David Dairy
St David Dairy
Slide 22: Strong brand loyalty & resilience in the face of COVID-19
Strong brand loyalty & resilience in the face of COVID-19 Saint David Dairy ($'000) H1 FY21 H1 FY20 %Change 5.5% vs pcp Net Sales 4,420 4,192 5.5% Gross Margin 2,062 2,215 -6.9% Net Sales ($'000) GM % 46.7% 52.8% -6.1 pts Total expenses 1,634 1,579 3.5% Trading EBITDA1 428 636 -32.7% 4,192 4,420 3,9
Slide 23: Business continues to evolve, under tough trading conditions
Business continues to evolve, under tough trading conditions • Business continues to trade strongly despite the strict COVID-19 pandemic lockdown measures that have been in place in Melbourne • Business continues to be trading EBITDA and operating cash flow positive for H1 FY21 • The business has hi
Slide 24: CEO quote: Group is now in a growth phase
“The Group is now in a growth phase and we are excited by the prospects of the Group and its ability to deliver future growth and shareholder value”. Chantale Millard CEO
Slide 25: A clear pathway to sustained growth
A clear pathway to sustained growth The Group has a clear plan to sustain double digit growth in net sales and earnings with three key initiatives: Increased ranging & distribution points in all go-to-market channels ✓ Significant ranging opportunities exist within current product range across groce
Slide 26: Disclaimer
Disclaimer The material in this presentation is general background information about Maggie Beer Holdings Limited (MBH) and is current at the date of the presentation, 24 February 2021. The information in the presentation is given for informational purposes only, is in summary form and does not purp
Slide 27: Thank you
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