Tasfoods Limited · ASX:TFL
Tasfoods — H1 2022 Earnings Presentation
33 slides from Tasfoods's earnings presentation, Aug 26, 2022
Slide 1: 1H 2022 results & business update
Contact Scott Hadley | CEO E: scott.hadley@tasfoods.com.au 1H 2022 results & business update
Slide 2: Substantial transformation underway to improve performance
Substantial transformation underway to improve performance • Our business transformation agenda is underway and is moving at pace. It is a multi-year programme that will deliver significant benefits. • Market conditions starting to improve but headwinds will remain into 2023. • We have moved through
Slide 3: 1H 2022 Results
40° TASFOODS 50° ———s 1H 2022 Results
Slide 4: 1H 2022 Profit & Loss
1H 2022 Profit & Loss $000's 1H 2022 1H 2021 % Change • Revenue from operations increased by 0.6%. This result is satisfactory given the Company’s focus towards sustainable, profitable sales. Income • The Company has begun implementing its value chain findings and has made deliberate decisions in re
Slide 5: 1H 2022 Operating & Financial Review
1H 2022 Operating & Financial Review Satisfactory sales revenue with operating cost headwinds negatively impacting EBITDA 1H 2022 1H 2021 Shared Shared $000's Dairy Poultry Horticulture Total Dairy Poultry Horticulture Total Services Services Dairy & Poultry Sales Revenue | H121 $20,000 Revenue 1.1%
Slide 6: Dairy Division
Dairy Division Whilst there was growth in revenue, margin deterioration impacted profitability within the Dairy Division • Sales revenue for the dairy division grew by 1% to $14.9 million. The sales growth was driven by increases in Pyengana Cheese and Meander Valley Butter range. Betta Milk sales w
Slide 7: Poultry Division
Poultry Division Several headwinds arising from Covid-19 caused margin compression leading to an EBITDA loss in the Poultry Division • Sales revenue for the poultry division grew by 1% on the pcp in 2021 to $19.1 million. Revenue growth was largely driven by the organic range, Isle & Sky. This brand
Slide 8: Horticulture Division
Horticulture Division Shima Wasabi is a high margin business with a modest revenue base and significant scope to grow • Sales revenue for the horticulture division grew by 4.9% to $0.2m. • Gross margin is a healthy 49% which is 14% higher than the pcp. The margin reflects the premium nature of the p
Slide 9: Shared Services
Shared Services Centre of Excellence development continuing • The Shared Services function has been repositioned as the Centre of Excellence - the heartbeat of the entrepreneurial, nimble and value enhancing central function making our business units more valuable than if they were stand alone. Supp
Slide 10: Initiatives implemented 1H 2022
Initiatives implemented 1H 2022
Slide 11: Top 10 initiatives
Top 10 initiatives Initiative Status update 1. Fix the foundations Complete 2. Reset strategic direction Complete 3. Implement capital management framework Complete 4. Develop a marketing and brand investment plan Work in progress 5. Implement ERP Work in progress. 6. Determine TasFoods distribution
Slide 12: 1H 2022 completed initiatives
1H 2022 completed initiatives Following the strategic reset of the business, management have implemented changes with pace 1. Updated Vision, Mission, Values and Purpose has been imbedded to improve corporate culture and accountability. 2. Capital management framework implemented to improve discipli
Slide 13: 1H 2022 Utilisation of Capital Raise Funding
1H 2022 Utilisation of Capital Raise Funding 1H 2022 • During 1H 2022, the Company successfully raised $6.0m $000's Estimated* (before costs), including $5.5m from a two-tranche Actual placement, plus an additional $0.5m from a Share Purchase Plan. Capital raise funding (before costs) 5,964 5,964 •
Slide 14: Supply chain initiatives
Supply chain initiatives TasFoods has started to implement an integrated supply chain solution to gain the benefits from our scale. • The capability build within the TasFoods supply chain team has allowed us to start the building blocks of an integrated supply chain network. • Logistics optimisation
Slide 15: Shared Services - Centre of Excellence
Shared Services - Centre of Excellence The heartbeat of the entrepreneurial, nimble and value enhancing central function making our business units more valuable than if they were stand alone. The reason we are a united TasFoods. • TasFoods operates a shared service model to minimise duplication Supp
Slide 16: Sales initiatives
Sales initiatives TasFoods will increase presence in Tasmania and enter mainland markets with considered strategies for each brand • TasFoods has significantly increased its sales capability in 1H 2022. • We have re-structured our Tasmanian team with an increased focused on Food Service and Key Acco
Slide 17: Marketing initiatives
Marketing initiatives TasFoods has begun a re-invigoration of our marketing initiatives to drive sales and customer/consumer engagement • TasFoods is a consumer products business (FMCG) business at its core and needs to increase investment behind its authentic brands. Premiumisation of our offering
Slide 18: Building awareness of Nichols through 'Nothing But' BTL campaign
Building awareness of Nichols through ‘Nothing But’ BTL campaign 18
Slide 19: Shima Wasabi e-commerce and online presence significantly enhanced
Shima Wasabi e-commerce and online presence significantly enhanced 19
Slide 20: 2H 2022 focus
40° TASFOOD 50° 2H 2022 focus
Slide 21: TasFoods New Strategic Focus
TasFoods New Strategic Focus TasFoods focus is on four key pillars to ensure the Company can leverage our competitive advantage and realise its potential as a leading premium branded company Fortress Tasmania Mainland Markets Adjacent Expansion Expand aggressively Capitalise on our but strategically
Slide 22: Strategic ambitions
Strategic ambitions Our strategic ambitions are outlined below and these will provide the focus for more a more detailed sequence of strategies and actions over the next three years Fortress Tasmania Mainland Markets Adjacent Expansion Centre of Excellence For those brands that TasFoods Within our p
Slide 23: Betta Milk grass roots sports campaign launch in September
Betta Milk grass roots sports campaign launch in September 23
Slide 24: Our Ambition
Our Ambition 3 phase horizon model shows how we will execute the plan over the next 2-3 years HORIZON 1 HORIZON 2 HORIZON 3 Stabilise / Consolidate Rebalance / Reposition Growth / Expansion • Earn the Right to Grow • Portfolio Rebalance • Expand Growth • Decisive Trade-offs Markets • Improve financi
Slide 25: Appendix
40° TASFOOD 50°
Slide 26: 1H 2022 Balance Sheet
1H 2022 Balance Sheet $000's June 22 Dec 21 • The Group is supported by a balance sheet with a net asset position of Current Assets Cash & Cash Equivalents 3,122 1,450 $29.1m (including property, plant and equipment balances of $25.3m) Trade & Other Receivables 4,732 4,973 Biological Assets 2,333 2,
Slide 27: 1H 2022 Cash Flow
1H 2022 Cash Flow $000's 1H 2022 1H 2021 • Net cash outflows from operating activities were $2.7 million for the half Cash flows from operating activities which is reflective of: Receipts from customers 34,963 34,050 Payments to suppliers and employees (37,447) (35,201) — Operational cost increases
Slide 28: Revenue per unit
Revenue per unit Revenue per unit in both Dairy and Poultry has made significant improvements since the value chain initiatives undertaken Nichols revenue / kg Betta Milk revenue / litre • Revenue per kg • Revenue per litre over the 12 Revenue / litre over the 12 Revenue / kg month period month peri
Slide 29: Input cost per unit
Input cost per unit Input costs per unit have risen significantly. Measures in place to mitigate where possible Chicken Feed cost / kg Milk cost / litre Cost / kg Cost / litre $740.0 $1.0 $670.0 $0.8 $600.0 $0.5 Cream cost / litre Commentary Cost / litre • Chicken feed costs per kg have increased by
Slide 30: Shared Services
Shared Services Building the platform for growth 1H 2022 1H 2021 Supply Sales/ Finance/IT/ Supply Sales/ Finance/IT/ Marketing Other Marketing Other $000's Chain/ Customer HR/Shared Total Chain/ Customer HR/Shared Total D2C Corporate D2C Corporate Logistics/Ops Support Services Logistics/Ops Support
Slide 31: In the first half of the year, our brands have won numerous awards
In the first half of the year, our brands have won numerous awards showcasing the outstanding quality product we provide to consumers 31
Slide 32: Disclaimer
Disclaimer This presentation is provided by TasFoods Ltd ACN 084 800 902 (TasFoods) to provide summary information about TasFoods and its subsidiaries and their activities as at the date of this presentation. The information in this presentation is of a general nature and does not purport to be comp
Slide 33: Contact
Contact Scott Hadley | CEO E: scott.hadley@tasfoods.com.au