Bega Cheese Limited · ASX:BGA
Bega Cheese — H1 2014 Earnings Presentation
16 slides from Bega Cheese's earnings presentation, Feb 19, 2014
Slide 1: 1H FY2014 Results Presentation - Bega Cheese Limited
Slide 2: Key Messages
KEY MESSAGES • Consistent financial performance • Improved product mix • Improved commodity pricing driving demand for milk • Significant increase in milk pay rates • Capacity improvements & investments • Milk and whey processing at Coburg and Tatura • Blending and canning facilities at Derrimut • W
Slide 3: 1H FY2014 Results Highlights
1H FY2014 RESULTS HIGHLIGHTS • Revenue increase 4% • EBITDA increase 10% to $40.8m • PAT increase 18% to $18.7m • EPS up 18% to 12.33 cents • Interim dividend of 4.0 cents per share fully franked (record date 3 March 2014) • Gross margin maintained with increased milk price BEGA CHEESE LIMITED 1H FY
Slide 4: Group Business Performance
GROUP BUSINESS PERFORMANCE 1H FY2014 1H FY2013 * $m $m Sales Revenue 510.6 490.4 EBITDA 40.8 37.2 EBIT 30.2 26.2 PBT 26.0 21.8 PAT 18.7 15.9 • Increased revenue (4%) • Decrease in direct milk intake volumes (8%) • Increase value in dairy commodities • Improved underlying profitability • Product mix
Slide 5: Balance Sheet Extract
BALANCE SHEET EXTRACT 29 Dec 2013 30 June 2013 * $m $m Cash and cash equivaents 14.6 22.7 Trade and other receivables 113.2 103.5 Inventories 181.9 163.0 Other financial assets 97.5 39.0 Property, plant & equipment 215.5 209.1 Other Assets 8.1 11.9 Total Assets 630.8 549.2 Trade and other payables 1
Slide 6: Group Cash Flows
GROUP CASH FLOWS 1H FY2014 1H FY2013 * $m $m Receipts from customers 521.3 497.8 Payments to suppliers (509.2) (492.1) Interest and other costs of financing paid (3.4) (3.8) Income taxes paid (2.7) (1.8) Operating activities 6.0 0.1 Investing activities (18.5) (9.6) Financing activities 4.4 18.3 Net
Slide 7: Segment Volumes & EBITDA
SEGMENT VOLUMES & EBITDA Tatura Milk Industries Bega Cheese 35,000 60,000 1H FY2014 1H FY2014 30,000 1H FY2013 50,000 1H FY2013 25,000 Tonnes/$’000 40,000 20,000 Tonnes - $’000 30,000 15,000 20,000 10,000 5,000 10,000 0 0 Core (t) Nutritional (t) EBITDA ($'000) Core (t) FMCG (t) EBITDA ($'000) • Pro
Slide 8: Production
PRODUCTION 120,000 100,000 80,000 60,000 40,000 20,000 0 1H 2014 1H 2013 Core Manufacture FMCG Nutritional • Total production 106,638 tonnes decrease of 3% BEGA CHEESE LIMITED 1H FY2014 RESULTS PRESENTATION | PAGE 7
Slide 9: Corporate Activity
CORPORATE ACTIVITY • Bega Cheese initiated WCB bid September 2013 • WCB bid precipitated a re-rating of Australian dairy industry value • Significant uplift in Bega Cheese share price • WCB offer concluded, • Sell price $9.40 • Total sale value $99m • PAT approximately $44m Pac Partners BEGA CHEESE
Slide 10: Strategic Priorities
STRATEGIC PRIORITIES • Optimise the value of milk • Invest in value added dairy products and infrastructure • Company of choice for milk supply • Enhanced customer relationships • Invest in organic business growth opportunities • Well positioned for further consolidation and acquisition in the dairy
Slide 11: Strategic Focus Areas
STRATEGIC FOCUS AREAS BEGA CHEESE LIMITED 1H FY2014 RESULTS PRESENTATION | PAGE 10
Slide 12: Infrastructure
INFRASTRUCTURE Map of facilities • Capital expenditure $16.8m(1H FY2014) • Investment in capacities • Integrated infrastructure • Process improvement • Risk management capability Bega Tatura Strathmerton Coburg BEGA CHEESE LIMITED 1H FY2014 RESULTS PRESENTATION | PAGE 11
Slide 13: High Quality Value Added Product Range
HIGH QUALITY VALUE ADDED PRODUCT RANGE • Cheddar and Processed Cheese • Mozzarella • Cream cheese • Nutritional Powders • Milk Protein Concentrate BEGA CHEESE LIMITED 1H FY2014 RESULTS PRESENTATION | PAGE 12
Slide 14: Outlook
OUTLOOK • Dairy commodity pricing stable • Currency relativity improved and stable • Strong international demand for dairy products • Continued growth in nutritionals business • Significant competition for milk • Expect continued EBITDA growth for FY2014 BEGA CHEESE LIMITED 1H FY2014 RESULTS PRESENT
Slide 15: Disclaimer
DISCLAIMER Bega Cheese Limited advises that these presentation slides contain forward looking statements which may be subject to significant uncertainties outside of Bega Cheese and its related entities. No representation is made as to the accuracy or reliability of forward looking statements or the
Slide 16: Thank You
THANK YOU BEGA CHEESE LIMITED 1H FY2014 RESULTS PRESENTATION | PAGE 15