Bega Cheese Limited · ASX:BGA
Bega Cheese — H1 FY2022 Earnings Presentation
24 slides from Bega Cheese's earnings presentation, Feb 24, 2022
Slide 1: Half Year 2022 Results Highlights Presentation
ASX ANNOUNCEMENT Half Year 2022 Results Highlights Presentation I enclose the Half Year 2022 Results Highlights Presentation to be discussed on the Half Year Result 2022 Conference Call scheduled for 11:00am today. 24 February 2022 For further information please contact Brett Kelly Company Secretary
Slide 2: 1H FY2022 Results Presentation
1H FY2022 Results Presentation Barry Irvin Executive Chairman Paul van Heerwaarden Chief Executive Officer Pete Findlay Chief Financial Officer
Slide 3: Key messages
Key messages Financial performance at expectation in the context of challenging business environment Revenue of $1,507.2 million Statutory EBITDA of $97.2 million and normalised EBITDA of $106.4 million Balance sheet continues to strengthen, leverage ratio 2.2 Lion Dairy and Drinks integra
Slide 4: Bega is a values led organisation
Bega is a values led organisation Our Vision To become The Great Australian Food Company Our Values Passion for the customer Grow our Invest in Support and the consumer people our future each other What will Great food Great people Great aspirations Greater good make us Great We create great food an
Slide 5: Our transformation to becoming The Great Australian Food Company
Our transformation to becoming The Great Australian Food Company The Future The Great Australian 2021 Food Company Transformational 2018 Acquisition Creating Strengthening 2017 Our Supply Chain Acquisition of Lion great food for a better future New Business 2011 Dairy and Drinks Diversified portfo
Slide 6: Creating sustainable growth through an integrated value chain
Creating sustainable growth through an integrated value chain Our vision The Great Australian Food Company Our values We are a value-led company Passion for the customer and consumer Grow our people Invest in our future Support each other These values are reflected in our vision and define what make
Slide 7: Aligning with UN Sustainable Development Goals
Aligning with UN Sustainable Development Goals Bega Cheese carbon target Scope 1 and 2 emissions targets established in support of Paris Agreement goals: 50% reduction in emissions intensity by 2030 40% reduction in absolute emissions by 2030 Net zero emissions by 2050 Circularity in the Bega
Slide 8: Performance highlights
Performance highlights Normalised EBITDA increased by 45.7% to $106.4 million 1H FY2022 Revenue 1H FY2021 Revenue $1.51 $0.71 Statutory EBITDA increase by 47.7% to $97.2 million Operating cash flow $28.6 million billion billion EBITDA ($ million) 106.4 97.2 73.0 65.8 Profit after tax ($ millio
Slide 9: Portfolio of leading iconic brands in growth categories
Portfolio of leading iconic brands in growth categories Category Category size $m1 Category growth1 Bega share1 Brand portfolio Fresh white milk2 1,976 -1.1% 13% Yoghurt 1,572 3.2% 26% Milk based beverages2 852 2.6% 49% Spreads 655 -0.8% 31% Chilled juice 524 3.9% 28% Creams and custards 436 -0.9% 1
Slide 10: Market status and opportunities
Market status and opportunities Current market situation Branded consumer business growth in grocery with increased in home consumption Challenges in food service and convenience channels particularly across NSW and Victoria Consolidated branded export business progressing well despite shippin
Slide 11: Operations review
Operations review Major initiatives Extension of DuPont safety leadership and engagement to Bega Dairy and Drinks Major capital projects across several sites progressed and on schedule Continuous improvement program commenced in BDD factories Cold chain logistics and storage network and effi
Slide 12: Dairy commodity and farm gate milk prices
Dairy commodity and farm gate milk prices Australasian dairy export index (Jan 2013 - now) FY2022 milk supply flat to slightly negative Increased costs in a number of commodity inputs Highly competitive milk procurement environment continues FY2022 milk prices higher reflecting market improv
Slide 13: Our business model
Our business model Creating sustainable value from farm to consumer Our core capabilities Direct relationship with our Farmers and other suppliers farmers and other suppliers Globally competitive Bulk processing Packaged goods processing supply chain Contract packing Diversified portfolio of market
Slide 14: Segments
Segments Unallocated Inter-segment ($ million) Branded Bulk Overheads elimination Group Total Normalised Revenue 1,235.2 407.1 - (157.3) 1,485.0 Growth vs 1H FY2021 180% -12% - -20% 110% Normalised EBITDA 77.2 36.1 (6.8) (0.1) 106.4 Increase/(decrease) vs 1H FY2021 EBITDA 42.6 (16.2) 7.0 - 33.4 Bran
Slide 15: Reconciliation of normalised result
Reconciliation of normalised result LDD Consolidated Per Reckitt Transaction Period Ending 26 December 2021 Financial Termination Related Normalised ($ million) Statements Fees Costs Outcome Revenue 1,507.2 (22.2) - 1,485.0 Cost of sales (1,142.3) - - (1,142.3) Gross profit 364.9 (22.2) - 342.7 EBIT
Slide 16: Balance sheet
Balance sheet 1H FY2022 FY2021 Dec $m Jun $m Cash 51.4 87.2 Trade and other receivables 301.8 348.7 Inventories 369.6 345.0 Property, plant and equipment 902.5 911.6 Intangible assets 583.4 589.5 Total Assets 2,421.0 2,507.1 Trade and other payables 420.9 477.4 Borrowings (net of costs) 378.3 391.9
Slide 17: Cash flow
Cash flow 1H FY2022 1H FY2021 Dec $m Dec $m Receipts from customers 1,688.1 777.8 Payments to suppliers (1,696.2) (763.0) Net proceeds from the Trade Receivables Facility 46.7 9.3 Interest and other costs of financing paid (6.1) (5.0) Interest received 0.1 - Income tax paid (4.0) (12.3) Operating ac
Slide 18: Managing operational and market impacts of COVID-19
Managing operational and market impacts of COVID-19 Financial impact of COVID-19 related issues in excess of $20 million in 1H FY2022 Significant impact on food service and convenience channels from lockdowns, restricted travel movement and staff availability International supply chain disrupt
Slide 19: Our way forward
Our way forward Barry Irvin Executive Chairman
Slide 20: Where are we today?
Where are we today? Significant impact in operational costs and market as a result of COVID-19 Integration of Bega Dairy and Drinks largely complete including a successful transition of IT systems on time and on budget Strong balance sheet, expanded banking syndicate, substantial property port
Slide 21: Our priorities
Our priorities Ongoing management of the impacts of COVID-19 and expected fourth quarter recovery Safety of our people and wellbeing Continue to realise Bega Dairy and Drinks synergies Invest in brands and markets Optimising capacities and capabilities across bulk and branded supply chain
Slide 22: Q&A
Q&A Barry Irvin Executive Chairman
Slide 23: Disclaimer
Disclaimer The following disclaimer applies to this presentation and any information provided in this presentation (Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any Information. This presentation has been prepared by B
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