Cobram Estate Olives Ltd. · ASX:CBO
Cobram Estate Olives — FY2023 Earnings Presentation
40 slides from Cobram Estate Olives's earnings presentation, Aug 25, 2023
Slide 1: CBO FY2023 Results Presentation
ABN: 32 115 131 667 ASX: CBO ASX Announcement – 25th August 2023 CBO FY2023 Results Presentation Cobram Estate Olives Limited (ASX: CBO) is pleased to present its FY2023 Results Presentation for today’s investor and analyst webinar commencing at 11:00am Melbourne time. To register for this webinar b
Slide 2: FY2023 Results Presentation
FY2023 Results Presentation Cobram Estate Olives Limited ABN: 32 115 131 667 25 August 2023 Cobram Estate Olives Limited | June 2021 Private & Confidential 1
Slide 3: Disclaimer
Disclaimer The material in this presentation is general background information about Cobram Estate Olives Limited (“Cobram Estate Olives” or “CBO” or “the Company”) and is current at the date of the presentation. The information in the presentation is provided for information purposes only, is in su
Slide 4: Presenters
Presenters Rob McGavin Sam Beaton Leandro Ravetti Non-Executive Chair & Co-Founder Executive Director & Joint-CEO Executive Director & Joint-CEO Cobram Estate Olives Limited | June 2021 Private & Confidential 3
Slide 5: Introduction
Introduction Rob McGavin Co-Founder and Non-Executive Chair Introduction Cobram Estate Olives Limited | June 2021 Private & Confidential 4
Slide 6: Our Global Business
Our Global Business* USA OLIVE OIL OPERATIONS FY2023 Olive Oil Sales FY2023 A$43 million EBITDA A$2.9 million Freehold land 535 hectares Company owned olive groves 558 hectares (freehold and leasehold) Contracted olive groves 2,100 hectares USA Milling capacity Olive oil storage 32 tonnes per hour 2
Slide 7: FY2023 Results & Commercial Highlights
FY2023 Results & Commercial Highlights Sam Beaton Joint-CEO (Finance & Commercial) Financial Year 2023 Results Cobram Estate Olives Limited | June 2021 Private & Confidential 6
Slide 8: FY2023 Financial Highlights
FY2023 Financial Highlights GROUP SALES RECORD CASH FLOW FROM OPERATIONS $169m $54.1m ↑21% (vs FY2022) ↑ 60% (vs FY2022) GLOBAL BRANDED OLIVE OIL SALES STATUTORY EBITDA** $117m $40.8m (COBRAM ESTATE® AND RED ISLAND®), ↑17% (vs FY2022) ↑ 63% (vs FY2022) TOTAL AUSTRALIAN OLIVE OIL OPERATIONS SALES TWO
Slide 9: Group Profit (Statutory)
Group Profit (Statutory) Increase in profit, driven by larger Australian crop and improvement in the USA business profitability Profit or Loss $'million FY2023 FY2022 Variance Key points: Australian Olive Oil Operations reported EBITDA of Revenue $38.5m (FY22: $32.4m), driven by: Sales revenue 169.0
Slide 10: Group Cash Flow Statement
Group Cash Flow Statement Increase in sales and stabilising costs drive operating cashflow to record levels Cashflow statement $'million FY2023 FY2022 Variance Key points: Earnings before interest and tax 22.7 7.4 15.3 • Strong cashflow from operations of $54.1m (FY22: $33.8m). Cashflow reflective o
Slide 11: Group Balance Sheet
Group Balance Sheet Net Assets of $288m; brands and trees on balance sheet at cost Balance Sheet $'million FY2023 FY2022 Variance Key points: Cash 13.7 5.9 7.7 • Significant increase in Total Assets, driven by the investment in capital Current Assets (excluding cash) 126.9 126.8 0.1 projects that ar
Slide 12: Real Asset Backing
Real Asset Backing Assets valued at $719.7m (excluding brand valuations), against borrowings of $191.5m Assets v Borrowings 750 Olive trees and $'million FY2023 FY2022 FY2021 Olive trees and irrigation valuation not 700 irrigation valuation not included on CBO’s included on CBO’s balance sheet 650 b
Slide 13: Strong Sales Growth for Australian Olive Oil Operations
Strong Sales Growth for Australian Olive Oil Operations 14.9% year-on-year growth driven by both volume increases and price rises Australian olive oil operations packaged goods sales ($) Key points FY15 - FY23 120.0 • Australian olive oil sales reached $121.6m, a 14.9% increase from the previous yea
Slide 14: CBO’s Market-Leading Position in the Australian Olive Oil Category
CBO’s Market-Leading Position in the Australian Olive Oil Category Cobram Estate® and Red Island® combined value share of 34.8% in FY23* Key points* Olive oil market share by • Cobram Estate® and Red brand FY23 - value terms* Island® recorded strong retail sales growth in FY23, achieving 34.8% combi
Slide 15: Cobram Estate® Marketing - Australia
Cobram Estate® Marketing - Australia Promoting the health benefits, usage, and high quality of Cobram Estate® extra virgin olive oils 2023 sustainability campaign Advanced extra virgin olive oil tasting kit FY23 highlights • Continuation of brand campaign on TV and digital channels. • New digital su
Slide 16: Return to Growth for USA Olive Oil Operations
Return to Growth for USA Olive Oil Operations 46% year-on-year growth driven by both volume increases and price rises USA olive oil operations $ sales FY2015 - FY2023 Key points 45.0 • After a decline in sales in FY22 due primarily to the limited availability of Californian olive oil, USA olive 40.0
Slide 17: Strong Growth for Cobram Estate® in USA Supermarkets
Strong Growth for Cobram Estate® in USA Supermarkets 22.8% year-on-year sales growth; 19% increase in store count Cobram Estate® USA Cobram Estate® USA Supermarket $ sales* Supermarket store count* Key points* 25 20,000 • Cobram Estate® USA scan sales totalled US$22.5m for 52 18,000 weeks-ending 18
Slide 18: Cobram Estate® Marketing - USA
Cobram Estate® Marketing - USA Focus on digital marketing and retailer activities to drive sales, brand awareness, and education Cobram Estate® USA Key points New everyday range labels • USA marketing activities continue to focus on digital marketing and retailer activities to drive sales, brand awa
Slide 19: Financial Outlook
Financial Outlook Outlook is positive, underpinned by strong sales demand, and contained grove input costs Key points • Sales outlook remains positive, benefiting from a global shortage of olive oil and record high global prices of European olive oil flowing through to both Australia and the USA. •
Slide 20: Business Operations Highlights
Business Operations Highlights Leandro Ravetti Joint-CEO (Technical & Production) Cobram Estate Olives Limited | June 2021 Private & Confidential 19
Slide 21: FY2023 Group Operations Highlights
FY2023 Group Operations Highlights 17,884 USA SUPERMARKETS STOCKING COBRAM ESTATE® PRODUCTS** #1 558 15.2m HECTARES LITRES EXTRA VIRGIN OLIVE OIL OF OLIVE GROVES IN CALIFORNIA GLOBAL OLIVE OIL PRODUCTION by value and volume* ↑ 58% (vs FY2022) (Australia + USA) 15% RED ISLAND® AUSTRALIA’S 35% GROWTH
Slide 22: Olive Oil Operations Update - Australia
Olive Oil Operations Update - Australia Australian harvest of 12.5m litres produced from CBO’s groves; 1.0m litres produced from third-party groves Key points - Australia • The 2023 season was challenging for horticultural crops in southern Australia. • Higher-than-average spring rainfall and cooler
Slide 23: Olive Oil Operations Update - Australia: Water
Olive Oil Operations Update - Australia Water WAP down 58% year-on-year; grove input costs expected to remain contained in FY24 Water price and outlook CBO’s temporary water volume purchased and • CBO’s water WAP was $38 per ML in FY23, a 58% WAP per megalitre – FY2014 - FY2023 reduction versus FY22
Slide 24: Olive Oil Operations Update - USA
Olive Oil Operations Update - USA High rainfall and favourable flowering have set up a good 2023 season in California Key points - USA • Californian groves are typically harvested between October and November each year. • CBO’s Californian olive groves are in very good condition after significant ra
Slide 25: Growth Strategy
Growth Strategy Four core pillars to drive future growth Delivering material sales growth from Australian operations through increasing olive oil supply produced on CBO’s maturing Australian olive groves and new plantings 1. 39% of the company’s total Australian plantings are not fully mature and ar
Slide 26: Growth Strategy - Increasing Supply From Our Australian Groves
Growth Strategy - Increasing Supply From Our Australian Groves CBO’s mature grove area to increase by 64% over the next 9-years, supplemented by third-party supply Maturity phase of CBO’s Australian olive groves Age profile of CBO’s Australian groves by planted Pre-productive Immature Mature hectare
Slide 27: Growth Strategy - Increasing Supply From Our Australian Groves
Growth Strategy - Increasing Supply From Our Australian Groves Boort olive mill upgrade (Victoria) Boort olive mill upgrade • The upgraded Boort olive mill was commissioned on time, with harvest commencing in late April as planned. • The mill upgrade delivered a capacity increase from 30 to 50 tonne
Slide 28: Growth Strategy - Increasing Supply From Our Australian Groves
Growth Strategy - Increasing Supply From Our Australian Groves 407-hectare development at Boort (Victoria) completed in FY23; Wemen redevelopment in FY24 CBO’s 407-hectare greenfield olive grove development Boort grove at Boort (Victoria), planted in Autumn 2023 development • CBO has completed a gre
Slide 29: Growth Strategy – Growing Our Vertically Integrated USA Business
Growth Strategy – Growing Our Vertically Integrated USA Business CBO’s Californian olive grove portfolio now totals 558 hectares, of which only 18% is mature Age profile of CBO’s Californian CBO’s Californian olive oil Key points groves by planted hectares and operations and locations average olive
Slide 30: Growth Strategy – Growing Our Vertically Integrated USA Business
Growth Strategy – Growing Our Vertically Integrated USA Business 205-hectare grove development completed; expansion of Woodland olive mill, storage, and bottling underway California grove development Woodland site expansion • Phase 1 of the Dunnigan Hills Ranch development completed with 205 • We ar
Slide 31: Growth Strategy – Increasing $/Litre
Growth Strategy – Increasing $/Litre Premiumisation and differentiation of CBO’s extra virgin olive oil brands Key Points • Focus on increasing the return per litre on each litre of olive oil sold alongside sales volume growth. • Key initiatives include: • using innovative marketing and education st
Slide 32: Growth Strategy – Innovation and Value-Adding
Growth Strategy – Innovation and Value-Adding Focus on the internal use and external sale of olive biomass as part of zero waste strategy CBO’s biomass hot water system, olive pit, and olive leaf tea Key Points • As part of its sustainability / zero waste strategy, CBO continues to add-value to the
Slide 33: Building on our sustainability leadership position
Building on our sustainability leadership position CBO recognised as an Australian leader in sustainability in the food / agribusiness sector Sustainability highlights for FY23 include: • An increase in staff engagement on sustainability. • The formation of strategic community partnerships in Austra
Slide 34: Questions?
Questions? Cobram Estate Olives Limited | June 2021 Private & Confidential 33
Slide 35: Thank you for supporting Cobram Estate Olives!
Thank you for supporting Cobram Estate Olives! Appendix Thank-you 34
Slide 36: Appendix
Appendix Appendix Thank-you 35
Slide 37: About Cobram Estate Olives Limited
About Cobram Estate Olives Limited One of the world’s leading vertically integrated producers and marketers of premium quality extra virgin olive oil Company snapshot • Established in 1998, Cobram Estate Olives Limited (ASX: CBO) is Australia’s largest vertically integrated producer and marketer of
Slide 38: CBO’s Competitive Advantages
CBO’s Competitive Advantages CBO’s strategic olive assets deliver significant competitive advantages and strong barriers to entry Vertically integrated Proprietary Premium market- Industry-leading operations with Oliv.iQ® leading brands sustainability strategically located, Integrated Olive Cobram E
Slide 39: CBO’s Key Consumer Brands Including Market-Leading Cobram Estate®
CBO’s Key Consumer Brands Including Market-Leading Cobram Estate® Iconic, highly visible consumer brands with demonstrated pricing power Cobram Estate® Red Island® • The #1 selling olive oil* in Australian supermarkets by value in • Purchased in 2012 FY23*. • Now the second largest selling brand of
Slide 40: CBO’s Olive Growing, Milling and Bottling Operations in Australia and USA
CBO’s Olive Growing, Milling and Bottling Operations in Australia and USA Large-scale olive groves and olive mills, delivering efficiencies in olive growing, harvesting, milling and bottling Olive groves, harvesters and Olive mills and olive oil storage Bottling, warehouse, and farmland • Australia: