Bega Cheese Limited · ASX:BGA
Bega Cheese — FY2016 Earnings Presentation
16 slides from Bega Cheese's earnings presentation, Aug 24, 2016
Slide 1: FY2016 Full Year Results
FY2016 Full Year Results 24 August 2016 Barry Irvin – Executive Chairman Aidan Coleman – CEO Colin Griffin – CFO
Slide 2: Key Messages
Key Messages Australian dairy industry • Global supply and demand • Australian markets • Competitor behaviour Bega Cheese • Significant revenue growth • Improved financial performance • Honoured milk price commitments to farmers • Continued investment in capacity and capabilities • Strong balance sh
Slide 3: Result Highlights Statutory
Result Highlights Statutory • Revenue increase to $1,196m • EBITDA increase to $65.4m • PAT increase to $28.8m • EPS increase to 18.9cps • Final dividend 5.0cps BEGA CHEESE LIMITED | PAGE 3
Slide 4: Result Highlights Normalised
Result Highlights *Normalised • Revenue increase to $1,196m • EBITDA increase to $66.0m • PAT increase to $29.2m • EPS increase to 19.1cps • Final dividend 5.0cps *Normalised for investment in Milk Sustainability and Growth Program (FY2016 and FY2015) BEGA CHEESE LIMITED | PAGE 4
Slide 5: FY2016 Results Normalised
FY2016 Results *Normalised Milk Sustainability Per Financial and Growth Normalised Change from Consolidated Statements outcome Result prior period Period Ending 30 June 2016 $’000 $’000 $’000 $’000 % Revenue 1,195,967 - 1,195,967 83,337 7 Cost of sales (1,042,595) 604 (1,041,991) (64,180) 7 Gross pr
Slide 6: Balance Sheet (extract)
Balance Sheet (extract) FY2016 FY2015 $m $m Trade and other receivables 143.7 119.5 Inventories 192.4 194.9 Property, plant & equipment 219.9 209.7 Total Assets 586.7 552.4 Trade and other payables 156.0 139.1 Borrowings 62.7 69.0 Total Liabilities 258.8 239.8 Net Assets 327.8 312.7 Net Debt 53.1 58
Slide 7: Cash Flow
Cash Flow Receipts from customers 1,241 1,161 Payments to suppliers (1,175) (1,165) Interest and other costs of financing paid (3.8) (3.4) Income tax paid (3.3) (9.9) Operating activities 59.0 (17.3) Investing activities (39.6) (36.4) Financing activities (20.0) 35.4 Net (decrease) in cash and cash
Slide 8: Bega Cheese and Tatura Milk Segment Normalised
Bega Cheese and Tatura Milk Segment *Normalised $m Bega Cheese $m Tatura Milk Industries 40 40 35 35 30 30 25 25 EBITDA EBITDA 20 20 PAT PAT 15 15 10 10 5 5 0 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 • Segment stability reflects business exposure to retai
Slide 9: Dairy Commodity Prices and Farm Gate Milk Price
Dairy Commodity Prices and Farm Gate Milk Price • Reflects milk price before retrospective cuts by MG and Fonterra • Farm gate milk price more reflective of market in FY2017 • Global supply/demand not in balance • Some global commodity market Export trend index - global commodity prices/Australian i
Slide 10: Operations
Operations Manufacturing • Production increased 6% to over 238,000 tonnes • Continued improvement in quality performance Safety • Industry leading metrics… injuries reduced by 69% and LTIFR < 4 Environment • Energy use down 7.9% on prior year • Further investments in compliance infrastructure across
Slide 11: Sales and Marketing
Sales and Marketing Bega Brand • Number one Australian cheese brand with 15.7% market share • Brand portfolio available in over 40 countries Food Service • Continued success in growth of QSR in Australasia and Asia Pacific • Expansion in product range and brand portfolio Nutritionals • Announced Beg
Slide 12: Investing in Infrastructure
Investing in Infrastructure • Infant canning facility upgrade • Continued research and development on high value whey protein infrastructure • Automated slice and shredded cheese capacity • Continued investment in Bionutrients • Enterprise resource planning implementation BEGA CHEESE LIMITED | PAGE
Slide 13: Strategic Priorities
Strategic Priorities • Maintain the growth trajectory of the business in all key platforms • Drive efficiencies through ongoing investment in infrastructure • Maximise the value of milk components • Further investment in brand portfolio • Continue to build strong long term relationships • Investigat
Slide 14: Outlook
Outlook • Revenue growth • International business growth • Investing in business efficiency • Analysts predicting global dairy commodity price improvements • Improved financial performance • Company of choice for Australian dairy farmers and investors BEGA CHEESE LIMITED | PAGE 14
Slide 15: Slide 15
Slide 16: 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