Bega Cheese Limited · ASX:BGA
Bega Cheese — FY2024 Earnings Presentation
39 slides from Bega Cheese's earnings presentation, Aug 29, 2024
Slide 1: 2024 Results Presentation
ASX ANNOUNCEMENT 2024 Results Presentation For personal use only I enclose the 2024 Results Presentation for the Bega Group (ASX:BGA) to be discussed on the Full Year Result 2024 Conference Call scheduled for 10:30am today. 29 August 2024 For further information please contact Brett Kelly Company Se
Slide 2: FY2024 Results Presentation
B2Iry FY2024 RESULTS PRESENTATION Barry Irvin — Executive Chairman Pete Findlay - CEO Gunther Burghardt —- CFO 29 August 2024
Slide 3: Barry Irvin, Executive Chairman
DOUBLE ESPRESSO ROBUSTA & ARA G oa 4 wasn Bee | 500m Barry Irvin Cafe Executive Chairman ma
Slide 4: FY2024 Overview
FY2024 Overview Branded growth + Branded results demonstrate strength and breadth of portfolio - Market leading brands with investment in key growth categories - Strong innovation and in-market execution driving value growth - Strong results in International branded and foodservice expansion + Brand
Slide 5: Financial highlights
Financial highlights Earnings growth and Branded segment margin expansion in FY2024 For personal use only Net revenue 74 EBITDA 74 Profit after tax A Basic EPS 7 $164.1m A 2% $29.2m A2% 9.6c A 2% $3 5bn A A4% Normalised Normalised Normalised $165.1m A 15% $30.5m A $260m 10.0c A +85.6c Statutory Stat
Slide 6: Food company creating great food
For personal use only FOOD COMPANY CREATING GREAT FOOD GROW INVEST OUR FOR THE IN OUR EACH AND CONSUMER
Slide 7: Our transformation
Our transformation We have built the capability and focus to grow as a leading branded food business For personal use only BUILD 1899-2000 * Dairy co-operative based in Bega Valley + Primarily cheese production EXPAND 2001-2016 Acquisition of Tatura and Strathmerton Investment in scale and capacity
Slide 8: Refreshed sustainability strategy
Refreshed sustainability strategy Our strategy has evolved to meet our sustainability ambitions for the future Qui sustainability ambition ersonal use on Caading in circularity through our practices, dustry partnerships and ‘ective use, reuse and Lkecycling of our resources. COMMUNITY Making a posit
Slide 9: Pete Findlay - CEO
4. Pini Pete Findlay - CEO
Slide 10: Strategic priorities
Protect and grow the core Grow our core domestic grocery business in attractive categories Strategic priorities Strategy 28: Strengthening our business Grow Branded business Win onthe street Improve our competitiveness in Independent Grocery, Foodservice, Petrol and Convenience, and Local Trade > co
Slide 11: Financial highlights
Financial highlights Earnings growth and Branded segment margin expansion in FY2024 For personal use only Net revenue 74 EBITDA 74 Profit after tax A Basic EPS 7 $164.1m A 2% $29.2m A2% 9.6c A 2% $3 5bn A A4% Normalised Normalised Normalised $165.1m A 15% $30.5m A $260m 10.0c A +85.6c Statutory Stat
Slide 12: Branded business momentum
Branded business momentum Sustained leading market positions and grew value > C Brands sustained leading market positions and volume while O achieving value growth Pricing initiatives partially mitigated cost impacts, while supply efficiency programs enabled Branded margin expansion Growth in volume
Slide 13: Brand innovation
Brand innovation Expanded portfolio in core categories Yoghurt category is highly responsive to new product development C. New pouch formats: Farmers Union Greek Yoghurt Kids and YOP with no O sugar added ro) + New Dairy Farmers Thick & Creamy indulgent layered range Yn =) Innovation helps cement Be
Slide 14: Core brand growth
Core brand growth Focused investment enabled growth > Ongoing investment in iconic brands | Vegemite’s 100-year anniversary activity led to a growth rate of © nearly twice the total spreads category be Farmers Union achieved 11% retail sales growth with new advertising 2) a) Portfolio well positione
Slide 15: International market expansion
International market expansion Record year for Branded in Asia and Middle East “Branded international sales of $257 million, up 11% on FY2023 ian growth and prospects remain strong despite subdued China mand + South-East Asian operations performing well ” Continuing expansion through partnerships, o
Slide 16: Brand momentum
Brand momentum Iconic brands leading revenue and margin growth nly Branded ersonal use o Bulk For p 2021 2022 Financial Year Branded now represents 86% of Group external revenue! in FY2024 $3.5b $3.0b $2.5b $2.0b $1.5b $1.0b $0.5b $0.0b Branded Normalised EBITDA margin FY2024 Branded segment EBITDA
Slide 17: Brand shares - Australian retail categories
Brand shares — Australian retail categories Market leading brands in growth categories For personal use only Category Fresh white milk Yoghurt Milk based beverages Spreads Chilled juice Creams and custards Water ice Category size $m 2144 1,919 1,012 742 604 648 68 Category Annual growth 2% 1% 8% 5%
Slide 18: Consumer trends
o) LL Consumer trends Four areas shaping portfolio and activation priorities for the future * Functional Demographic Health Evolution wi Continuing desire for Australia trends towards functional foods that enhance smaller and more ethnically value from food & beverages everyday offers: diverse house
Slide 19: Disconnect between farm gate milk prices and commodity prices
Disconnect between farm gate milk prices and commodity prices continued throughout the year Focus on higher value commodities and nutritional products Responded to commodity markets changes to optimise revenue streams from milk solids Strengthening connection between Bulk and Branded business units
Slide 20: Australian milk production
Australian milk production Volumes are stable Pk production volumes stabilised at 8.4 billion litres in response to farm Cgate prices in FY2024 8 3 95 96 97 98 9900 010203040506070809 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 Financial Years 1995 - 2024 For personal use o a a fs Ld es ee Jt Cs es
Slide 21: Farm gate milk price and market returns
For perso Farm gate milk price and market returns Improved alignment between farm gate and commodity prices for FY2025 > Subdued demand saw global dairy commodity = prices hit lows in Sept 2023 followed by a mild rally Key themes: Ooo + Persistent industry theme of capacity rationalisation and cost
Slide 22: Manufacturing facility update
y, Onal use onl Manufacturing facility update Streamlined and simplified footprint Key FY2024 Initiatives For pers * CanberrasitesaleintHFY2024 «i “<Gaestti (aststi‘(“‘téw Se Era * Tasmania consolidation into Lenah Valley in 2H FY2024 + Agreement to sell Leeton juice primary processing facility in A
Slide 23: Investing in line with strategy
Investing in line with strategy >estructuring program improved efficiency and customer focus C of Branded business and back office delivering »$22m annualised O savings + $12m in-year savings delivered in FY2024; remainder to be achieved in FY2025 Sales organisation aligned to key channels Maintaine
Slide 24: Major sustainability initiatives
Major sustainability initiatives Highlights of sustainability work conducted in FY2024 Commitments * 40% reduction in absolute scope 1 & 2 emissions by 2030 (FY2021 base year) aD 30% reduction in water use by 2030 (FY2021 base year) Cc Net Zero by 2050 fo) 40:40:20 HESTA by 2030 ega Circular Valley
Slide 25: Gunther Burghardt - CFO
Gunther Burghardt — CFO
Slide 26: Profit and loss
For personal use only Profit and loss NemieliSea FY2024 | FY2023] +/-% $ millions Net Revenue 3,521.6 3,376.0 4% EBITDA 164.1 160.2 2% D&A (88.0) (101.9) (14)% EBIT 76.1 58.3 31% Net Finance Costs (34.5) (23.1) 49% Profit Before Tax 41.6 35.2 18% Tax (12.4) (6.7) 85% Profit After Tax 29.2 28.5 2% Ba
Slide 27: Reconciliation of normalised result
Reconciliation of normalised result Donisoli T raven 20s 204 prorat |S | nrg | Sat | TO (3 million) Statements enue 3,521.6 - - - - on of sales (2,823.1) - - - - Grgss Profit 698.5 - - : - EBITDA 165.1 (13.2) 5.3 6.9 - Gbreciation, amortisation and impairment (90.8) - - 28 - fer 74.3 (13.2) 5.3 9.7
Slide 28: Profitability overview
Profitability overview Focus on high value categories fuels Branded business while efficiency programs expand margin; disconnect between farm gate milk and commodities results in Bulk loss For personal use only $ million (84.0) (3) Branded [ea] | cost efficiency Bulk Branded & value Inter- (9.7) vol
Slide 29: Key performance measures
Key performance measures $ millions unless otherwise stated ~ FY2024 FY2023 Change cS (Normalised) fo) Net Revenue Growth vs prior year 4.3% 12.2% ra) Gross margin (% of Net Revenue) 19.8% 19.4% 0.4 pts 2 EBITDA 164.1 160.2 2% __. Depreciation and Amortisation (88.0) (101.9) (14)% © Net Finance Cost
Slide 30: Segments
For personal use only Segments Unallocated || mel ($ million) Branded Overheads segment elimination External Revenue * 3,039.3 482.3 - - 3,521.6 Growth vs FY2023 % 6% (3)% - - 4% Normalised EBITDA 199.9 (18.2) (20.1) 2.5 164.1 Increase/(decrease) vs FY2023 71.1 (61.3) (9.7) 3.8 3.9 Branded + Categor
Slide 31: Cash flow
Cash flow FY2024 FY2023 Cashflow $m $m _>>Receipts from customers Cc Payments to suppliers and employees [e) Net proceeds from Trade Receivables Facility <b) Net interest and other costs of financing paid 7p) Income tax paid Operating activities ia Investments in new PP&E and intangibles Cc Net proc
Slide 32: Balance sheet
Balance sheet Balance Sheet* Pee: PAWS $m $m c Cash 65.6 fo) Trade and other receivables 350.9 Inventories 358.1 nN Property, plant and equipment 673.4 5 Right-of-use assets 150.8 —— Intangible assets 476.6 © Total Assets 2,138.8 fo) Trade and other payables 558.4 Y) Borrowing (net of costs) 226.7 o
Slide 33: Pete Findlay - CEO
y > Bcc om Pete Findlay - CEO
Slide 34: Where we are today
For personal use only Where we are today Iconic leading brands Integrated manufacturing and processing infrastructure Agile response to changing markets Strong strategic positioning Branded acquisitions ahead of business case Opportunities for further branded innovation, promotional excellence, effi
Slide 35: Looking forward
Looking forward For personal use only Creating value for our shareholders FY2025 is second year of our five-year strategic plan Challenging consumer environment in FY2025 * Focus on growth in core categories * Cost management and efficiency vital to continue earnings growth * Branded segment FY2025
Slide 36: Barry Irvin, Executive Chairman
DOUBLE ESPRESSO ROBUSTA & ARA G oa 4 wasn Bee | 500m Barry Irvin Cafe Executive Chairman ma
Slide 37: For personal use only
For personal use only
Slide 38: Appendix - glossary
Appendix - glossary a Basic EPS > Fae) Oden QW)pairy solids 12) Seeir EBITDA arm margin Funds employed yy 2H — Weverage ratio Ovyrateriat items pos Owes LLinet debt Normalised P&C Return on funds employed (ROFE) YOY Basic earnings per share calculated by dividing net profit (or loss) after tax by th
Slide 39: Disclaimer
For personal use only Disclaimer This presentation contains a summary of information about Bega Cheese Limited ACN 008 358 503 (BGA) and its subsidiaries (Bega Group). The information does not purport to be complete and should be read in conjunction with other BGA ASX announcements. The presentation