New Zealand King Salmon Investments Ltd. · NZX:NZK
New Zealand King Salmon Investments — FY2024 Earnings Presentation
26 slides from New Zealand King Salmon Investments's earnings presentation, Mar 1, 2024
Slide 1: FY24 Financial Results
FY24 FINANCIAL RESULTS FY24 INVESTOR PRESENTATION
Slide 2: Disclaimer
DISCLAIMER The information in this presentation has been prepared by New Zealand King Salmon Investments Limited with due care and attention. However, to the maximum extent permitted by law, neither New Zealand King Salmon Investments Limited nor any of its directors, employees, shareholders nor any
Slide 3: Presenters
PRESENTERS Carl Carrington Ben Rodgers Graeme Tregidga Grant Lovell Mark Dewdney Chief Executive Officer Chief Financial Officer Chief Commercial Officer GM Aquaculture Chair FY24 INVESTOR PRESENTATION 2
Slide 4: Executive Summary
EXECUTIVE SUMMARY • FY24 Net profit after tax of $28.5m (FY23 $1.9m). GAAP results were positively impacted by a pre-tax fair value uplift in assets of $15.8m (FY23 of $6.6m) and a pre-tax gain on the continued unwind of the early close out of FX contracts from FY21/FY22 of $6.7m (FY23 $7.8m) • FY24
Slide 5: FY24 Performance
01 FY24 PERFORMANCE FY24 INVESTOR PRESENTATION 4
Slide 6: FY24 Operational Highlights
FY24 OPERATIONAL HIGHLIGHTS 40 FY24 GAAP NPAT 20 28.5 FY24 18.0 - (7.1) 6,238 REVENUE OF 187.1 $187 155.3 174.5 167.1 (20) 1.9 95.2 (73.2) (40) MILLION METRIC TONNES HARVESTED (60) FY20 FY21 FY22 FY23 FY24 DURING FY24 (Jun) (7m - Jan) (Jan) (Jan) (Jan) (80) FY20 FY21 FY22 FY23 FY24 (Jun) (7 months -
Slide 7: Keeping Our Brands Relevant
KEEPING OUR BRANDS RELEVANT Creating innovative strategies for our markets: Connecting with our end-users through: • Focus on engagement with Ōra King Ambassadors / key foodservice customers • Global documentary screenings to tell our story creatively • Focus to align advertising and promotional spe
Slide 8: Sales Performance
SALES PERFORMANCE Continuing to target price and product optimisation Focus on supplying and maintaining our key markets continues. Price increases have been required to offset input costs, despite this, global demand remained strong. North America (MT) Domestic Market (MT) • New Zealand sales volum
Slide 9: Fish Performance
FISH PERFORMANCE • FY24 saw the Aquaculture adapted farming strategy complete its first full Biological Performance financial year. This strategy of having the majority of biomass in the Tory Channel over summer and away from warmer water sites has proved successful FY24 FY23 % chg. to date with sig
Slide 10: Our Sustainability Developments
OUR SUSTAINABILITY DEVELOPMENTS We continue to progress on our sustainability journey: • NZKS’s first Climate-Related Disclosures (CRD) will be released for FY24 before the end of May 2024 • A key project delivered as part of this sustainability journey, was building our base year of carbon emission
Slide 11: FY24 Results
02 F Y 2 4 R E S U LT S FY24 INVESTOR PRESENTATION 10
Slide 12: FY24 Headline Financial Performance
FY24 HEADLINE FINANCIAL PERFORMANCE Group Financial Performance Revenue – FY24 benefitted from a full year of the price increases executed in FY23 in addition to price increases in FY24 reflecting the recovery of inflationary pressure on input GAAP Pro-Forma1 costs (feed and people). In addition to
Slide 13: Pro-Forma EBITDA Comparison
PRO-FORMA1 EBITDA COMPARISON • Revenue is up due to a combination of market optimisation, product and customer mix, price increases and an increase in volume sold • Cost of goods is up on prior year due to cost inflation and increase in volume. NZKS continue to manage inflationary pressures by looki
Slide 14: Balance Sheet – Solid Platform for Growth
BALANCE SHEET – SOLID PLATFORM FOR GROWTH Group Financial Position Jan–24 Jan-23 • NZKS’s balance sheet remains strong with net cash on hand of $24.2m. This balance sheet provides NZ$000s Audited Audited NZKS with a great platform to continue to invest in the existing operations while considering gr
Slide 15: Strategy, FY25 & Blue Endeavour Update
03 S T R AT E G Y, F Y 2 5 & B L U E E N D E AV O U R U P D AT E FY24 INVESTOR PRESENTATION 14
Slide 16: Creating a Healthier World
CREATING A HEALTHIER WORLD “We strive to grow healthy kai, healthy communities, healthy relationships, healthy environments, and healthy economies. This will contribute to growing a healthier Aotearoa and ultimately a healthier world.” H E A LT H Y K A I H E A LT H Y C O M M U N I T I E S H E A LT H
Slide 17: New Zealand King Salmon Creating a Healthier World
VALUE OUR PEOPLE NURTURE HEALTHY RELATIONSHIPS PARTNER WITH CUSTOMERS We have an inclusive, caring and We are committed to developing our achieving culture where individuals relationships with mana whenua, communities, We build strong partnerships and customer and teams strive to be the best they cu
Slide 18: FY25 Guidance & Dividend Update
FY25 GUIDANCE & DIVIDEND UPDATE • FY25 guidance range provided as $26m – $32m. • Our FY25 guidance is supported by: o Pricing: Run-rate of pricing in FY24 providing strong tailwinds going into FY25 $26m-$32m o Volume Growth: The transition to our adapted farming strategy is now complete meaning FY24
Slide 19: Blue Endeavour First Steps - Pilot
BLUE ENDEAVOUR FIRST STEPS - PILOT FY24 FY25 FY26 FY27 FY28 BE Pilot Through to 1st Harvest Consent Confirmed Resource consent was obtained 29 February 2024 The consent has a baseline monitoring period (12 months of monitoring in an Baseline Monitoring 18-month period) before farming can be undertak
Slide 20: Blue Endeavour Next Steps & Supporting Infrastructure
BLUE ENDEAVOUR NEXT STEPS & SUPPORTING INFRASTRUCTURE Blue Endeavour Farming Provisional on the success of the Pilot Farm NZKS would look to phase expansion of Blue Endeavour to its full- scale. At present the earliest indicative date for NZKS to begin scale up would be from FY29 with a target first
Slide 21: Appendices
04 APPENDICES FY24 INVESTOR PRESENTATION 20
Slide 22: Existing Sea Farm Resource Consents and Expiry
EXISTING SEA FARM RESOURCE CONSENTS AND EXPIRY • Five licenses are due for expiry or renewal at the end of 2024, all of which represent NZKS’s Farms Region Expiry date Status warmer, low flow licenses at lower producing sites • Crail Bay has not been farmed for around 10 years Ruakaka Queen Charlott
Slide 23: FY24 Reconciliation Between GAAP Results and Pro-Forma Financials
FY24 RECONCILIATION BETWEEN GAAP RESULTS AND PRO-FORMA FINANCIALS FY24 Statutory Financial Fair Value Pro-Forma Operating Early FX Close-outs Statements Adjustments Financial Information NZD 000s Revenue 187,106 187,106 Cost of goods sold (171,203) 54,499 (116,704) Fair value gain / (loss) on biolog
Slide 24: FY23 Reconciliation Between GAAP Results and Pro-Forma Financials
FY231 RECONCILIATION BETWEEN GAAP RESULTS AND PRO-FORMA FINANCIALS FY23 Statutory Financial Fair Value Pro-Forma Operating Early FX Close-outs Statements Adjustments Financial Information NZD 000s Revenue 167,131 167,131 Cost of goods sold (164,657) 43,040 (121,617) Fair value gain / (loss) on biolo
Slide 25: Appendix – Glossary of Terms
APPENDIX – GLOSSARY OF TERMS FY25 Financial results for the 12 months from 1 February 2024 to 31 January 2025 FY24 Financial results for the 12 months from 1 February 2023 to 31 January 2024 FY23 Financial results for the 12 months from 1 February 2022 to 31 January 2023 EBITDA Earnings before inter
Slide 26: Understanding Our GAAP Results
UNDERSTANDING OUR GAAP RESULTS The impact of NZ IAS-41 Agriculture and NZ IAS-2 Inventory Our GAAP results are impacted by Fair Value gains or losses arising from the application of NZ IAS-41 Agriculture and NZ IAS-2 Inventory. The impact of these standards are explained below: Fair Value under NZ I
New Zealand King Salmon Investments — FY2024 Earnings Presentation on 6ix