Arborgen Holdings Limited · NZX:ARB
Arborgen — FY2024 Earnings Presentation
19 slides from Arborgen's earnings presentation, Mar 31, 2024
Slide 1: FY24 Results Presentation
FY24 Results Presentation For the 12 months ended 31 March 2024 All financials in USD unless otherwise stated
Slide 2: ArborGen is a leading provider of advanced genetics for the forestry industry
ARBORGEN IS A LEADING PROVIDER OF ADVANCED GENETICS FOR THE FORESTRY INDUSTRY ADVANCED GENETICS SEEDLINGS DELIVER: • Unparalleled product portfolios in each of our core markets • 40%+ more revenue • Decades of investment in research and intellectual • 50%+ greater net present property that is now be
Slide 3: Dual Pathway Strategy
DUAL PATHWAY STRATEGY Driving growth and leveraging long term demand trends GO TO MARKET OPERATING STRENGTH Grow demand and sales of higher value Enable a strong foundation for the future advanced genetics seedlings • Strengthen the organisation and develop • United States: Expand market and increas
Slide 4: Growth strategy delivering tangible results
GROWTH STRATEGY DELIVERING TANGIBLE RESULTS FY24 surpassed pre-ANZ sale earnings; significantly reduced net debt Accelerated expansion FY24 comparatives to FY20: into Brazil • Record revenue, up 19% • Record Adjusted US GAAP EBITDA, up 38% ANZ sale Nov 2021 for $NZ$22.25m • Gross profit up 22% • Deb
Slide 5: US South our strategy
US SOUTH OUR STRATEGY • ArborGen is a key player, with one Market Overview of the largest capacities for • Economic and environmental conditions impacting the advanced genetics seedlings sector – closure of pulp mills due to historically low prices, production – more than 350m+ pa subdued demand for
Slide 6: Brazil our strategy
BRAZIL OUR STRATEGY • Leveraging our strong position in Market Overview the pine and eucalyptus seedling • The world’s largest producer and exporter of hardwood markets pulp • Replicating our US strategy to • Rapid expansion in production capacity in response to convert the market to products with d
Slide 7: FY24 Strategic Progress
FY24 STRATEGIC PROGRESS Total Productivity and Operating Strength strategies delivering benefits OPTIMISE TOTAL PRODUCTIVITY PRODUCT DEVELOPMENT STRENGTHEN THE ORGANISATION • Formalised productivity • Introducing new selection • New and expanded leadership strategies and procedures techniques, testi
Slide 8: FY24 Financial Results: From Seedlings to Success
FY24 FINANCIAL RESULTS FROM SEEDLINGS TO SUCCESS Record Adjusted US GAAP EBITDA Growth strategy delivering clear benefits and outcomes Further year of improved financial and commercial performance Clear pathway to future growth ArborGen FY24 Results 8
Slide 9: FY24 Financial Highlights
FY24 FINANCIAL HIGHLIGHTS Record adjusted earnings at top of guidance and strong revenue growth USD $m FY24 FY23 % • Seedling unit sales of 373 million, consistent change with prior year Revenue 67.7 56.1 21% • 21% increase in revenue to $67.7m Gross Profit 24.0 18.2 32% • 32% increase in gross prof
Slide 10: FY24 Revenue
FY24 REVENUE Strong growth from Brazil with steady sales in US despite headwinds • Record group sales revenue, up 21% yoy to $67.7m • Strong pricing and margins in both regions delivering yoy revenue increases • Significant growth in Brazil • Subdued volumes in US South due to economic and Sales $m
Slide 11: US South
US SOUTH Sales revenue remained strong despite the impact of macro conditions on sales volumes Sales Revenue 45 41.2 • Revenue of $41.2m ahead of prior year despite 39.9 39.3 40 subdued volumes due to economic conditions and 35 weather events 30 • Sales focus on highest margin products is delivering
Slide 12: Brazil
BRAZIL Opportunistic and measured expansion delivering record results and strong momentum • Record revenue of $26.5m, up 58% yoy Sales revenue 30 51% three-year CAGR • Strong volume growth bolstered by strong 26.5 25 pricing and margins 20 16.8 • Expanding production capacity – acquisition of US $m
Slide 13: US GAAP EBITDA
US GAAP EBITDA Record Adjusted US GAAP EBITDA result of $12.8m, up 39% yoy Adjusted US GAAP EBITDA • Adjusted US GAAP EBITDA is a non-GAAP financial measure and 14 12.8 excludes one-off and unusual items which may include restructure costs, impairments and write downs on assets, 12 acquisition/sale
Slide 14: Capital Expenditure
CAPITAL EXPENDITURE FY24 reflects investment into production expansion FY24 capital expenditure of $5.4m includes: Capital Expenditure • Expansion of container capacity at two US Including Jasper Nursery nurseries 6 • Automation of inventory counts in US 5 • Purchase of $2.5m Jasper Nursery in US 4
Slide 15: Balance Sheet
BALANCE SHEET In good shape to support growth USD $m FY24 FY23 • Disciplined management of working capital Debtors 12.6 14.0 • Increase in inventory as due to growth of Inventory 35.1 31.6 business Creditors (14.3) (10.8) • Cashflow positively impacted by timing of Working Capital 33.4 34.8 Employee
Slide 16: Regional Outlook
REGIONAL OUTLOOK US SOUTH BRAZIL • Some moderation now being seen of high • Current conditions expected to continue into pricing seen in FY24 FY25, long term macro trends support ArborGen’s go-to-market story • Pricing and demand for protected clones • Sales effort is focused on highest value produc
Slide 17: Group Outlook
GROUP OUTLOOK Momentum is building and we are looking forward to another strong year in FY25 • Continuing growth momentum in Brazil • Current conditions in US expected to result in flat year on year sales volumes • Investment into the expansion of our team, nursery improvements and other strategic i
Slide 18: Adjusted US GAAP Reconciliation
ADJUSTED US GAAP RECONCILIATION Fiscal year ending March US$m Mar Mar 1. Under US GAAP, from a statutory reporting perspective, the classification of the 2024 2023 expense items, and other significant items in this table may differ from what is presented here. US GAAP 2. US GAAP EBITDA excludes NZ p
Slide 19: Disclaimer
DISCLAIMER This presentation has been prepared by ArborGen Holdings Limited (“ArborGen”), to provide an overview of the performance of ArborGen and its activities at the date of this presentation. It is not prepared for any other purpose and must not be provided to any person other than the intended