Maggie Beer Holdings Ltd. · ASX:MBH
Maggie Beer — FY2020 Earnings Presentation
32 slides from Maggie Beer's earnings presentation, Aug 27, 2020
Slide 1: Maggie Beer Holdings FY20 Results
MAGGIE BEER HOLDINGS LIMITED For personal use only ASX: MBH FY20 RESULTS 27 AUGUST 2020
Slide 2: CEO quote on turnaround strategy
“The benefits from our turnaround strategy flowed through in H2 FY20, For personal use only allowing us to achieve our key financial goals for FY20, with all businesses now trading EBITDA positive and positioned for growth.” Chantale Millard CEO
Slide 3: FY20 - a transformational year
FY20 - a transformational year For personal use only MBH’s premium brands/businesses proved their resilience and agility during extraordinarily tough trading conditions in H2, delivering continued growth in revenue and positive trading EBITDA for the FY ‘Cost-out’ and corporate restructuring act
Slide 4: MBH delivers first positive trading EBITDA result
MBH delivers first positive trading EBITDA result For personal use only Positive financial results delivered despite challenging trading conditions FY20 NET SALES H2 FY20 NET GROSS MARGIN TRADING EBITDA COST SAVINGS MBP E-COMMERCE IMPROVED $5.6M IMPLEMENTED +3.8% SALES +2.1 pts INCREASED to $44.5m +
Slide 5: Responding to COVID-19
Responding to COVID-19 For personal use only • MBH’s brands proved resilient and even more relevant in the face of COVID-19 challenges • Pleasingly, the COVID-19 measures implemented have protected the businesses and our employees thus far, with all three businesses able to respond and meet customer
Slide 6: Positive consumer trends
Positive consumer trends For personal use only • Maggie Beer Products ‒ Sales followed trends experienced by food retailers nationally – March benefited from panic buying, followed by a decline in April ‒ Strong revenue growth in May and June, up 25% on pcp, as consumers turned to Australian brands
Slide 7: Doing what we said we would do
Doing what we said we would do For personal use only • Strong financial performance; • Turnaround accelerated in • Strong FY performance improved EBITDA and margin H2, with a positive EBITDA despite the disruption to delivery in H2 run rate achieved by the the food service and • Increased presence i
Slide 8: Key growth focus across all brands
Key growth focus across all 3 brands For personal use only • Expand ranging in • Innovative New • Implement strategic • Continue to refine Australia and export Product marketing plans to our manufacturing markets Development across capitalise on core operations to create • Further develop the three
Slide 9: Group Financial Controller quote
“Our financial performance was a tale of two halves, with the benefits For personal use only from the turnaround strategy flowing in H2.” Yann Hessel Group Financial Controller
Slide 10: Group revenue & EBITDA accelerating in H2
Group revenue & EBITDA accelerating in H2 For personal use only Net Sales ($'000) ($'000) %Change 23,389 23,045 FY20 FY19 22,371 On a full ownership basis excl. NPAT YoY 21,463 19,935 19,504 Net Sales 44,508 42,893 3.8% Gross Profit 21,157 19,487 8.6% H1FY18 H2FY18 H1FY19 H2FY19 H1FY20 H2FY20 Gross
Slide 11: Strong balance sheet - $7.2m cash
Strong balance sheet - $7.2m cash For personal use only Jun-20 Jun-19 • Cash balance of $7.2m ($'000) Assets ‒ Impacted by one-off costs related to Cash 7,245 9,819 corporate office restructure and PCF Trade receivables 7,135 6,562 funding, in H1 Inventory 3,500 3,628 • Well funded with an additiona
Slide 12: Positive cashflow run-rate achieved
Positive cashflow run-rate achieved For personal use only FY20 FY19 • Positive cashflow of $2.1m generated in H2 ($'000) ‒ Reduced fixed cost base Receipts from customers (inclusive of GST) 43,945 25,981 ‒ Turnaround in PCF revenue & profitability Payments to suppliers and employees (45,158) (34,069
Slide 13: CEO quote on premium brands
“The strength of our premium brands underpinned sales and For personal use only earnings growth in H2.” Chantale Millard CEO
Slide 14: Maggie Beer Products
Maggie Beer Products For personal use only Page 0
Slide 15: EBITDA up 101% in H2
EBITDA up 101% in H2 For personal use only Maggie Beer Products ($'000) FY20 FY19 %Change On a full ownership basis Net Sales 20,783 20,919 -0.6% Net Sales ($'000) Gross Margin 9,953 9,952 0.0% GM % 47.9% 47.6% 0.3ppts 11,777 11,159 11,339 Total expenses 7,269 7,964 -8.7% Trading EBITDA (excl. AASB1
Slide 16: Online direct sales gaining momentum, up 220% in Q4 vs pcp
Online direct sales gaining momentum, up 220% in Q4 vs pcp For personal use only • COVID-19 changing consumer purchasing habits as more sales move online ‒ New digital marketing plan implemented 1 April 2020 ‒ Sales growth accelerating by 220% in Q4 vs pcp • “Cooking with Maggie” series launched in
Slide 17: Operational initiatives and cost outs underpin growth in EBITDA
Operational initiatives and cost outs underpin growth in EBITDA For personal use only • Pick and pack’ of online sales relocated to Tanunda, South Australia improving margins • Annual operating expenses reduced by $400k through further streamlining of the business • Expansion of the core portfolio w
Slide 18: Paris Creek Farms
For personal use only Paris Creek Farms
Slide 19: Turnaround accelerated in H2
Turnaround accelerated in H2 For personal use only Paris Creek Farms +18.6% vs pcp ($'000) FY20 FY19 %Change On a full ownership basis Net Sales 16,048 14,952 7.3% Net Sales ($'000) Gross Margin 6,942 5,575 24.5% GM % 43.3% 37.3% 6.0ppts 8,536 8,607 Total expenses 7,861 9,495 -17.2% 8,015 8,225 7,82
Slide 20: Capitalising on increased retail demand
Capitalising on increased retail demand For personal use only • Growth in H2 FY20 supported by private label and branded products in supermarkets in SA • Sustained growth starting for branded products nationally • Growth in volumes supplied to Singapore, with demand for Organic Australian dairy rema
Slide 21: St David Dairy
For personal use only St David Dairy
Slide 22: Resilient in the face of COVID-19
Resilient in the face of COVID-19 For personal use only Saint David Dairy +10% vs pcp ($'000) FY20 FY19 %Change On a full ownership basis Net Sales 8,190 7,246 13.0% Net Sales ($'000) Gross Margin 4,262 3,960 7.6% GM % 52.0% 54.6% -2.6ppts Total expenses 3,290 2,909 13.1% 4,192 3,998 Trading EBITDA
Slide 23: Shift in channel focus and diversification
Shift in channel focus and diversification For personal use only • Channel shift • Milk continues to be the largest product category ‒ Lower exposure to hospitality and (67% of FY20 sales); introduction of plant-based food service sectors milk and strong growth in yoghurt and butter sales ‒ Further
Slide 24: CEO quote on MBH's businesses
“Each of MBH’s businesses are well placed to address growing consumer For personal use only demand for trusted F&B brands providing quality Australian grown and manufactured products.” Chantale Millard CEO
Slide 25: Online provides substantial direct to consumer growth opportunities
Online provides substantial direct to consumer growth opportunities For personal use only • Online sales grew to 4.1% of net sales in FY20 (FY19: 3%) • At present, less than 5% of Food Club members make up 75% of online sales, with better consumer touchpoints being implemented to increase conversion
Slide 26: Expanding into prepared plant-based meals with Maggie's Food for Life
Expanding into prepared plant-based meals with Maggie’s Food for Life For personal use only • Launching into approx. 400 Coles stores nationally mid- October • “Maggie’s Food for Life” range will target the fast growing, prepared and plant-based meals category ‒ Fulfills the growing need for people
Slide 27: Additional new entertaining products to drive further growth
Additional new entertaining products to drive further growth For personal use only • New cheeses launched nationally in Woolworths in June: ‒ Caramelised Onion, Ploughman’s Chutney and Vintage Club Cheddars ‒ Truffle Triple Cream Brie and Swiss Style Cheese ‒ New cheese formats being developed to ex
Slide 28: Return to roots of producing local, Australian owned and made sustainable dairy
Return to roots of producing local, Australian owned and made sustainable dairy For personal use only • Growth in late FY20 and into FY21 supported by rebranded products in supermarkets in South Australia, and strengthened relationships with key customers in major and independent markets • Launch of
Slide 29: Expanding into retail and home delivery channels
Expanding into retail and home delivery channels For personal use only • Sales building for value added, creme fraiche, butter and yoghurt • Looking to develop new products in FY21 to build on existing ranges, including new flavours of existing products • Building plant-based milk distribution • Div
Slide 30: MBH positioned for growth in FY21
MBH positioned for growth in FY21 For personal use only Group achieved first positive trading EBITDA in FY20 All businesses achieved a monthly trading EBITDA positive position by the end of FY20 Strong balance sheet with $7.2m cash on hand + $3m invoice finance facility to fund organic growth
Slide 31: Questions?
For personal use only QUESTIONS?
Slide 32: Disclaimer
Disclaimer This presentation has been prepared by Maggie Beer Holdings Limited for professional investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The infor