Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — FY2024 Earnings Presentation
28 slides from Australian Agricultural's earnings presentation, May 15, 2024
Slide 1: FY24 Results Presentation
FY24 Results Presentation May 2024
Slide 2: Important Information
Important Information Summary information only • any responsibility arising in any way for any or may not occur). Such forecasts and actions of competitors and activities by The distribution of this presentation in errors in or omissions from any information statements can generally be identified by
Slide 3: Acknowledgement of Country
Acknowledgement of Country FY24 Results Presentation P3
Slide 4: Contents
Contents CEO Message 05 Performance Highlights 06 Progress on Key Initiatives 07 Sustainability Update 08 Regional Performance 09 Financial Performance 16 Operating Environment 22 FY24 Results Presentation P4
Slide 5: CEO Message
CEO Message In difficult market conditions we have delivered a strong financial result, showing the resilience of our business • Market conditions were challenging during the period, with increased global meat supply and reduced live cattle market prices impacting overall financial performance. • Re
Slide 6: Performance Highlights
Performance Highlights Operating Profit Operating Cashflow Strength and quality of integrated supply chain allowed continued momentum of commercial brands, generating a strong performance in $50.5M ($16.9M) vs pcp Operating cash inflow achieved through meat sales performance and cost management, wit
Slide 7: Progress on Key Initiatives
Progress on Key Initiatives Brand Delivery Sustainability Initiatives Employee Experience Operational Efficiency Asset Development 10% Executing our Employee Value 12% Wagyu Meat sales Tier-1 Partner in the Proposition Transitioned to a new Developed intensive supply revenue Zero Net Emissions proce
Slide 8: Sustainability Update
Sustainability Update Progressing our Sustainability Program • Invested as a Tier-1 partner in the Zero-Net Emissions Ag CRC, a 10-year commitment to addressing the challenges around reducing methane emissions in agriculture. • Completed an intensive analysis of our beef product carbon footprint as
Slide 9: Regional Performance
Regional Performance FY24 Results Presentation P9
Slide 10: Total Meat Sales Distribution
Total Meat Sales Distribution Asia 53% 48% FY24 FY23 Europe/Middle East North America 12% 16% Australia 25% 27% FY24 FY23 FY24 FY23 10% 9% FY24 FY23 * Total Meat Sales Distribution represents Total Sales Revenue by region. FY24 Results Presentation P10
Slide 11: North America
North America Total Branded Meat Sales1 7% Sales Value 1% Price/Mix 6% Volume Strength of partnerships, distribution network and brand supported price growth across ultra-premium product offerings in challenging market conditions • Market dynamics including US herd liquidation, inflationary factors
Slide 12: Asia
Asia Total Branded Meat Sales1 32% Sales Value 4% Price/Mix 28% Volume Increased supply and growth of our branded presence, strengthened both the food service and retail channels, helping maintain overall global price tension • Growth in supply supported an expanded foodservice presence across Asia,
Slide 13: Australia
Australia Total Branded Meat Sales1 24% Sales Value 16% Price/Mix 40% Volume Continued focus on partnerships with chefs and investment in brand portfolio • Price performance was impacted by domestic supply dynamics and mix. Lower value products were introduced to this market to optimise price and su
Slide 14: Europe / Middle East
Europe / Middle East Total Branded Meat Sales1 18% Sales Value 1% Price/Mix 19% Volume Strategic, selective market presence across highly competitive regions • Focus on the foodservice industry and product mix saw prices maintained and product tactically managed through market complexities. • Contin
Slide 15: Other Meat Sales
Other Meat Sales 21% Sales Value 6% Price/Mix 27% Volume Pricing of other meat products impacted by global demand and supply dynamics • Other meat sales currently represents approximately 50% of our total sales value, which incorporates trim and commoditised cuts. This represents an opportunity for
Slide 16: Financial Performance
Financial Performance FY24 Results Presentation P16
Slide 17: Key Financial Results
Cash Flow / Net Growth Profit Assets Total Revenue Operating Profit Operating Cash Flow $336.1M $50.5M $9.3M + 7% vs pcp ($16.9M) vs pcp ($6.7M) vs pcp Wagyu Meat Net Tangible Sales Price Statutory Net Profit after Tax Assets $19.85/kg ($94.6M) $2.51/Share (10%) vs pcp ($99.2M) vs pcp (3%) vs pcp Ke
Slide 18: Revenue
Revenue Increased sales volumes offsetting challenging market prices Meat Sales Revenue: +$23.7M Cattle Sales Revenue: ($1.0M) $57.9M ($34.2M) $33.3M ($34.3M) $336.1M $313.4M Total Revenue Volume Price/Mix Volume Price/Mix Total Revenue FY23 FY24 • Increased feedlot productivity coupled with the imp
Slide 19: Profit and Loss Summary
Profit and Loss Summary Improved sales volumes and Operating Profit and Loss Summary ($M) investment in brand supporting resilient FY24 FY23 Var financial performance in challenging market dynamics. Meat Sales Revenue 268.7 245.0 23.7 Cattle Sales Revenue 67.4 68.4 (1.0) Total Sales Revenue 336.1 31
Slide 20: Cash Flow Summary
Cash Flow Summary Consolidated Statement of Cash Flows ($M) Positive operating cash flow generation of $9.3M vs $16.0M pcp. FY24 FY23 Var Receipts from Customers 360.8 335.8 25.0 Net operating cash inflow result driven Payments to Suppliers and Employees (326.5) (303.5) (23.0) primarily by: • Increa
Slide 21: Balance Sheet Summary
Balance Sheet Summary Consolidated Statement of Financial Position ($M) Continued strong financial position with net assets of $1.52B and 31 Mar 2024 31 Mar 2023 NTA of $2.51/share. Livestock 611.3 735.2 PPE & Intangibles 1,646.9 1,548.8 Right-of-Use Assets 36.1 37.3 Livestock herd growth, with unre
Slide 22: Operating Environment
Operating Environment FY24 Results Presentation P22
Slide 23: Operating Environment
Operating Environment Consecutive favourable Investment in the intensive Global meat sales Our integrated supply Global oversupply of beef seasons across AACo supply chain will continue conditions remain uncertain chain provides a major and inflation are expected properties are a positive to deliver
Slide 24: Closing Remarks
Closing Remarks FY24 Results Presentation P24
Slide 25: Questions
Questions FY24 Results Presentation P25
Slide 26: Appendix
Appendix F24 Results Presentation P26
Slide 27: Definitions
Definitions Cost of Goods Sold Represents the actual production cost the Company incurred over the multi-year timeline required to produce the meat and cattle that were sold during the period. This is in contrast (COGS) valued “at cost” to Cost of Goods Sold as presented in the statutory financial s
Slide 28: Thank You
~~ co THE ART OF AUSTRALIAN BEEF Thank You
Australian Agricultural Company — FY2024 Earnings Presentation on 6ix