Tasfoods Limited · ASX:TFL
Tasfoods — Investor Presentation (August 2020)
20 slides from Tasfoods's investor presentation, Aug 25, 2020
Slide 1: Equity Raising Investor Presentation
EQUITY RAISING INVESTOR PRESENTATION August 2020
Slide 2: Equity Raising Purpose
EQUITY RAISING PURPOSE Business Strategic Renewal In August 2020 the Board of TasFoods engaged KPMG to undertake a Strategic Health Check of the business to provide advice and insights that will support TasFoods in consolidating its position, improving profitability and scaling up the business throu
Slide 3: About TasFoods
ABOUT TASFOODS A remote island located in the southern ocean, Tasmania is ideally positioned to support the creation of premium branded food products. We believe that great food comes from great places. With its clean air, abundant rain, rich soil and temperate climate, Tasmania is ideally suited to
Slide 4: 2019 Financial Results
2019 FINANCIAL RESULTS A year of strong organic sales growth and a strategic acquisition FY2019 $’000 FY2018 $’000 FY Change $ FY Change % Sales Revenue 50,690 38,391 12,299 32% Gross Profit 12,825 10,716 2,109 20% Gross Profit Margin 25% 28% (3)% EBITDA (1,155) (1,110) (44) (4)% Acquisition Costs (
Slide 5: Half 2020 Financial Results
HALF 1 2020 FINANCIAL RESULTS Sales momentum maintained in a challenging market H1 FY2020 $’000 H1 FY2019 $’000 H1 Change $ H1 Change % Sales Revenue 32,459 20,831 11,628 56% Gross Profit 7,597 5,181 2,416 47% Gross Profit Margin 23% 25% (2)% EBITDA (5,998) (1,032) (4,966) (481)% Acquisition Costs (
Slide 6: Sales Revenue Growth
SALES REVENUE GROWTH The business is achieving organic revenue growth and growth through acquisitions *H1 FY2020 results are preliminary unaudited Poultry sales revenue grew by 15% in FY2018 and 9% in Dairy sales revenue grew 25% in FY2017, 140% in FY2018 FY2019 through increased production volu
Slide 7: Dairy Division
DAIRY DIVISION The dairy division performed strongly in H1 FY2020 with revenue growing to 43% of total revenue, up from 17% in the H1 FY2019. Year-on-year organic growth of the dairy division was 16%, after adjusting for the acquired revenue of the Betta Milk operations for H1. Sales momentum
Slide 8: Dairy Division
DAIRY DIVISION Milk sales, representing 72% of dairy sales have remained strong achieving growth of 20% across all milk brands for H1 FY2020 over H1 FY2019 which is expected to be maintained in H2 FY2020. Range extension for several products in retail chains within Tasmania will commence during H2
Slide 9: Poultry Division
POULTRY DIVISION Nichols Poultry sales revenue for the first half of 2020 was 7% higher than the same period for the previous year, however changes to product mix and volumes resulting from COVID influences to markets impacted gross margins. The unprecedented shifts in poultry markets experience
Slide 10: Long-Term Outlook
LONG-TERM OUTLOOK The business is well positioned for long-term growth The diverse nature of the TasFoods customer base and product mix ensures the core business has a strong future despite the ongoing uncertainty in current markets Tasmanian consumers continue to seek local products across the
Slide 11: Commodity Outlook
COMMODITY OUTLOOK Commodity pricing for key inputs of dairy and grain are forecast to ease in 2021 supporting an improvement in gross margin for the business Farmgate milk price quoted is average Fonterra price paid to Tasmanian Farmers Milk production volumes sourced from Dairy Australia website
Slide 12: Pro Forma Balance Sheet post Capital Raising
Pro Forma Balance Sheet post Capital Raising Accelerated Entitlement Offer Retail Entitlement Pro Forma Post 30 June 2020 and Placement Proceeds Offer Proceeds Capital Raising Set out in the table is the Company’s unaudited statement of financial position Current Assets $'000 $'000 $'000 $'000 as
Slide 13: Overview of the Equity Raising Structure
Overview of the Equity Raising Structure • Placement and 3 for 20 accelerated pro rata non-renounceable entitlement offer (Entitlement Offer) to raise up to approximately $4.1 million (before offer costs) Offer Structure • Approximately 48.6 million New Shares to be issued assuming the full $4.1 mil
Slide 14: Equity Raising Timetable
Equity Raising Timetable Activity Date Trading halt and announcement of Entitlement Offer Tuesday, 25 August 2020 Accelerated Entitlement Offer conducted Tuesday, 25 August 2020 Announcement of the completion of Accelerated Entitlement Offer and trading resumes on an ex-entitlement basis Wednesday,
Slide 15: Use of Funds
Use of Funds Use of Funds Accelerated Retail Total Explanation Entitlement Offer Entitlement Proceeds & Placement Offer Proceeds $’000 Proceeds $’000 $’000 Increase Cash Balance 1,719 1,115 2,834 To support working capital and reduce overdraft facilities Capital Improvements 250 750 1,000 Investment
Slide 16: TasFoods Key Risks
TasFoods Key Risks A number of risks and uncertainties, which are both specific to TasFoods and of a more general nature, may affect the future operating and financial performance of TasFoods and the value of its shares. This section describes some, but not all, of the key risks associated with an i
Slide 17: TasFoods Key Risks – Operational Risks
TasFoods Key Risks – Operational Risks Safety Risk Ensuring our products are safe for customers and our staff are safe at work Food safety and workplace health and safety are risks that must be managed by Tasfoods at all times. We have built strong quality and safety assurance systems which are ex
Slide 18: TasFoods Key Risks – Equity Raising and general risks
TasFoods Key Risks - Equity Raising and general risks Share Price Volatility The value of securities can be expected to fluctuate depending on various factors including the general condition of the Australian economy, general worldwide economic and political conditions, changes in government polic
Slide 19: TasFoods Key Risks – Equity Raising and general risks
TasFoods Key Risks – Equity Raising and general risks Risks Associated With Not Taking Up New Shares Under the Entitlement Offer Shareholders will have their interest in TasFoods diluted because of the issue of Shares under the Placement. In addition, if a shareholder does not take up all of their
Slide 20: Disclaimer
DISCLAIMER This presentation is dated 25 August 2020 and has been prepared by TasFoods Ltd ACN 084 800 902 (TasFoods) to provide summary information about TasFoods and its subsidiaries and their activities as at the date of this presentation. The contents of this presentation is provided as at the d