Maggie Beer Holdings Ltd. · ASX:MBH
Maggie Beer — H1 FY2020 Earnings Presentation
29 slides from Maggie Beer's earnings presentation, Feb 25, 2020
Slide 1: H1 FY20 – Results Presentation
H1 FY20 – RESULTS PRESENTATION Chantale Millard – CEO Yann Hessel – Group Financial Controller 25 February 2020
Slide 2: Our Ambition: premium Australian house of brands
Our Ambition continues to be – to build and grow a strong Australian premium house of brands in lifestyle food and beverage for meeting the evolving ways in which we live, work and eat Aspiration to grow revenues to $70m+ from existing operating assets and a low double-digit EBITDA margin % by FY22
Slide 3: H1 FY20 – On track to achieve group turnaround
H1 FY20 – THE COMPANY IS ON TRACK TO ACHIEVE ITS GROUP TURNAROUND WITH REDUCED COSTS AND IMPROVING EBITDA 3
Slide 4: Longtable Group's premium brands
Longtable Group’s premium brands Longtable has curated a house of premium and iconic Australian brands with a focus on high quality, nutritious food and beverages December 2017 August 2018 April 2019 Paris Creek Saint David Dairy Maggie Beer Farms Products 100% acquisition of 100% acquisition of awa
Slide 5: Key takeaways of H1 FY20
Key takeaways of H1 FY20 • Maggie Beer Products and Saint David Dairy are cash flow positive and profitable with double digit EBITDA margin % • Paris Creek Farms on track at present to achieve a positive trading EBITDA monthly run rate by late H2 FY20 • H1 FY20 Group trading EBITDA trading loss of $
Slide 6: Key areas to focus on for growth
Key areas to focus on for growth Creating strong revenue growth by focusing on growth assets, increasing distribution and diversifying revenue streams Continue realising synergies across the group and sharing of extensive executive and manufacturing knowledge Increasing brand awareness with a target
Slide 7: Focus for H2 and beyond
FOCUS FOR H2 AND BEYOND: We continue to refine our strategy for future business growth, focusing on our growth assets and adapting to the changing business environment as needed H2 will see Longtable Group focus on: • Returning Paris Creek Farms to a monthly run rate positive trading EBITDA in late
Slide 8: Positive indications of group turnaround for FY20
Positive indications of group turnaround for FY20 Corporate/Group • Cost savings of up to • Sales in H1 FY20 down • Sales for H1 FY20 down • Sales up 17% compared $150k per month realised 4% on H1 FY19 2% on H1 FY19, but Q2 to H1 FY19 from February 20 onwards FY20 tracking higher • Sales in Q2 impac
Slide 9: Portfolio results Half Year FY20
Portfolio results Half Year FY20 After a period of change, the management financial results reflect the group’s strong trajectory to be EBITDA positive and cash flow generative by the end of H2 FY20. $000’s Maggie St David Shared Corporate Longtable Paris Creek 4 Full 6 month FY20 Snapshot Beer Dair
Slide 10: Group balance sheet
Group balance sheet The Group is on track to be trading cashflow positive in H2 FY20, which will allow the businesses to invest in growth. $'000s Dec-19 Jun-19 Dec-18 • Cash reduction reflects working capital for Paris Creek Assets Farms, Corporate Office restructure one-off costs, Cash 5,123 9,819
Slide 11: Maggie Beer Products
Maggie Beer Products A focus on growing business with higher margin customers Strong relationships with major retailers in key categories of fruit paste, cheese, pate and stocks with opportunity for further expansion Cost controls and further efficiencies contributed to 12 % growth in trading EBITDA
Slide 12: Maggie Beer Products - Repositioning in sales & continued labour cost reduction
Maggie Beer Products - Repositioning in sales & continued labour cost reduction Sales Moving from low margin major retailer to high margin Independents • Sales to top 2 major retailers stable compared to H1 FY19 • Reduction in sales to low margin major retailer • Increased sales to high margin Indep
Slide 13: Paris Creek Farms
Paris Creek Farms With c. $2m in annualised cost savings realised, Paris Creek Farms loss of $0.8m in H1 FY20 is c. $1m better than the same time last year. Sales for core products 5% higher in H1 FY20 than H1 FY19, with total sales for September-December 2019 exceeding the same time last year. The
Slide 14: Paris Creek Farms - positive sales & labour cost reduction momentum
Paris Creek Farms - positive sales & labour cost reduction momentum Sales Core business sales gaining momentum in H1 FY20 • + 17% compared to H2 FY19 and +5% compared to H1 FY19 • Recapturing lost market share in major retailers in SA • Expanding nationally with Cheese ranging and internationally st
Slide 15: Saint David Dairy
Saint David Dairy Sales increased by 17% in H1 FY20 against H1 FY19 with a 20% increase in customers in VIC and NSW Good growth in butter and cream in the food service market in NSW and VIC Cost reduction initiatives put in place in H2 FY20 to offset the increase in milk and cream prices impacting E
Slide 16: H1 FY20 saw us move closer to a sustained group turnaround
H1 FY20 SAW US MOVE CLOSER TO ACHIEVING A SUSTAINED GROUP TURNAROUND. FOCUS IN H2 ON FUTURE GROWTH PLANS AND FURTHER EFFICIENCIES 16
Slide 17: Maggie Beer Products
Maggie Beer Products Our ambition is to be Australia’s most famous and highly regarded culinary brand and to expand this reputation into targeted export markets 17
Slide 18: Maggie Beer Products
Maggie Beer Products GROWTH OPPORTUNITIES MANUFACTURING AND SUPPLY BRAND, MARKETING AND CHAIN CAPABILITY ADVERTISING • Opportunity to expand cheese category in major retailer • In-house manufacturing capacity • A full review of the Maggie able to scale up for new business Beer Products Brand and • N
Slide 19: Paris Creek Farms
Paris Creek Farms Our Ambition is to be the number one known biodynamic-organic dairy brand in Australia and a trusted supplier in export markets 19
Slide 20: Paris Creek Farms
Paris Creek Farms GROWTH OPPORTUNITIES MANUFACTURING AND SUPPLY CHAIN CAPABILITY BRAND, MARKETING AND • Further distribution gains in SA and ADVERTISING Eastern seaboard market • Strong relationships with dairy farmers and good milk supply • Full review of marketing plan • Cheese launching in Q3 FY2
Slide 21: Saint David Dairy
Saint David Dairy Our ambition is to be the niche dairy brand, most sought after by Australia’s best baristas, chefs and cooks 21
Slide 22: St David Dairy
St David Dairy GROWTH OPPORTUNITIES MANUFACTURING AND SUPPLY BRAND, MARKETING AND CHAIN CAPABILITY ADVERTISING • Further expansion into the Sydney café market • Strong relationship with long term • New Website launched in dairy farming partners February 20 • Expanding VIC customer base and distribut
Slide 23: Longtable Group has created strategically positioned brands
Longtable Group has created a group of strategically positioned brands that meet the high expectations of consumers for premium quality, on trend products. With realignments to its cost base, the group can now build on the great work already done and create a compelling opportunity for growth in the
Slide 24: Appendices
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Slide 25: Appendix – Maggie Beer Products Historic Profit and Loss by Nature
Appendix 1 – Maggie Beer Products Historic Profit and Loss by Nature Maggie Beer Products % of Net % of Net % of Net (A$'000s) 1H FY19 Revenue 2H FY19 Revenue 1H FY20 Revenue Net Sales 11,777 9,142 11,339 Total COGS 6,000 4,967 5,789 Gross Margin 5,777 4,175 5,550 GM % 49.1% 45.7% 48.9% Other expens
Slide 26: Appendix - Paris Creek Farms Historic Profit and Loss by Nature
Appendix 2 - Paris Creek Farms Historic Profit and Loss by Nature Paris Creek Farms % of Net % of Net % of Net (A$'000s) 1H FY19 Revenue 2H FY19 Revenue 1H FY20 Revenue Net Sales 8,015 6,938 7,824 Total COGS 4,628 4,749 4,689 Gross Margin 3,387 2,188 3,135 GM % 42.3% 31.5% 40.1% Other expenses Total
Slide 27: Appendix - Saint David Dairy Historic Profit and Loss by Nature
Appendix 3 - Saint David Dairy Historic Profit and Loss by Nature Saint David Dairy % of Net % of Net % of Net (A$'000s) 1H FY19 Revenue 2H FY19 Revenue 1H FY20 Revenue Net Sales 3,597 3,649 4,192 Total COGS 1,518 1,768 1,977 Gross Margin 2,079 1,881 2,215 GM % 57.8% 51.5% 52.8% Other expenses Total
Slide 28: Disclaimer
DISCLAIMER The presentation includes forward-looking statements regarding future events and the future financial performance of Longtable Group. Any forward looking statements included in this document involve subjective judgment and analysis and are subject to significant uncertainties, risks and c
Slide 29: Longtable Group
LONGTA3LE GROUP
Maggie Beer Holdings — H1 FY2020 Earnings Presentation on 6ix