Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — H1 FY2024 Earnings Presentation
24 slides from Australian Agricultural's earnings presentation, Nov 16, 2023
Slide 1: H1 FY24 Interim Results Presentation
H1 FY24 Interim Results Presentation 16 November 2023
Slide 2: Important Information
Important Information Summary information only • any responsibility arising in any way for any statements can generally be identified by the use statements should not be by law. Any recipient of this presentation outside errors in or omissions from any information of terminology such as “will”, “ant
Slide 3: Acknowledgement of Country
Acknowledgement of Country We begin by acknowledging the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their Elders past, present and emerging, and extend that respect to all First Nations Peoples. H1FY24 Results Presen
Slide 4: Contents
Contents Performance Highlights 05 Progress on Strategic Priorities 06 Sustainability Update 07 Regional Performance 08 Financial Performance 13 Operating Environment 18 H1FY24 Results Presentation P4
Slide 5: Performance Highlights
Performance Highlights • Positive results achieved in the context of challenging market conditions, driven by our global meat sales performance, highlighting the consistent quality of our brands and strength of our commercial network relationships – Operating Profit of $30.1M vs pcp $38.3M – Total S
Slide 6: Progress on Strategic Priorities
Progress on Strategic Priorities Delivering full potential from our brands +15% (5%) Wagyu Meat Wagyu Meat Sales1 Volumes Sales1 $/kg CW 6,000 ha Developing our natural resources & assets +12% Goonoo capacity Successful dryland cropping trials A simpler and more efficient AACo (5%) Reduction in cost
Slide 7: Sustainability Update
Sustainability Update Building on our sustainability program • Enhancing our emissions tracking and reporting processes • Developing commercialisation pathways for economically and technically viable methane abatement products • Reached the halfway milestone in our Rangelands Carbon by Satellite pro
Slide 8: Regional Performance
Regional Performance H1FY24 Results Presentation P8
Slide 9: North America
North America Branded Meat Sales1 Price/Mix Performance +1% Building on our chef relationships and distributor partnerships • Continued to build brand awareness, engaging with influential chefs and the culinary inspired, to leverage and build our Westholme brand community • Supported our restaurant
Slide 10: Asia
Asia Branded Meat Sales1 Price/Mix Performance +1% Growing volumes through strength of partnership network and increasing consumer engagement • Celebrated our 20-year relationship with Korean retailer E-mart, with updated digital resources for brand promotion including our Darling Downs brand film,
Slide 11: Australia
Australia Branded Meat Sales1 Price/Mix Performance (20%) Building on brand presence and developing deeper relationships • Hosted exclusive Westholme events and featured our branded product at influential gourmet showcases in Sydney, Melbourne and Brisbane • Achieved menu placements at iconic venues
Slide 12: Europe/Middle East
Europe/Middle East +12% Branded Meat Sales1 Price/Mix Performance Ongoing development of partnerships, with volumes strategically managed • Continued strategic investment within region, supported by appointing dedicated local resources to drive improved commercial outcomes • Established new partners
Slide 13: Financial Performance
Financial Performance H1FY24 Results Presentation P13
Slide 14: Financial Results Overview
Sales Profit Cash Flow/Net Assets Total Revenue Operating Operating Profit Cash Flow $167.1M $30.1M $2.6M + 2% vs H1FY23 ($8.2M) vs H1FY23 ($0.8M) vs H1FY23 Financial Results Wagyu Meat Sales Price Operating Profit Margin Net Tangible Assets Overview $20.96/kg 18.0% $2.39/Share (5%) vs H1FY23 (5.4 p
Slide 15: Profit and Loss Summary
Profit and Loss Summary Operating Profit and Loss Summary ($M) Navigated macroeconomic challenges in the H1FY24 H1FY23 Var global supply chain and cattle market Meat Sales 131.8 122.3 9.5 Cattle Sales 35.3 41.4 (6.1) Resilience in sales performance during Total Sales Revenue 167.1 163.7 3.4 challeng
Slide 16: Cash Flow Summary
Cash Flow Summary Consolidated Statement of Cash Flows ($M) Positive operating cash flow generation driven H1FY24 H1FY23 Var by internal supply growth Receipts from Customers 173.0 170.4 2.6 Payments to Suppliers and Positive Net Operating Cash Flow achieved (158.6) (160.1) 1.5 Employees • Higher re
Slide 17: Balance Sheet Summary
Balance Sheet Summary Consolidated Statement of Financial Position ($M) Strong asset base maintained, despite 30 Sep 31 Mar unrealised cattle valuation impact 2023 2023 Livestock 584.0 735.2 Livestock herd levels maintained PPE & Intangibles 1,566.3 1,548.8 • Herd head count maintained from EOFY23,
Slide 18: Operating Environment
Operating Environment H1FY24 Results Presentation P18
Slide 19: Operating Outlook
Operating Outlook Company remains well positioned to navigate challenging global conditions over the remainder of FY24 • Domestic production continues to impact dynamics in the Australian beef market • Herd liquidations in the US and Korean market are ongoing, with oversupply of local beef challengi
Slide 20: Closing Remarks
Closing Remarks H1FY24 Results Presentation P20
Slide 21: Questions
Questions H1FY24 Results Presentation P21
Slide 22: Appendix
Appendix H1FY24 Results Presentation P22
Slide 23: Definitions
Definitions Term Definition Cost of Goods Sold (COGS) valued “at cost” Represents the actual production cost the Company incurred over the multi-year timeline required to produce the meat and cattle that were sold during the period. This is in contrast to Cost of Goods Sold as presented in the statu
Slide 24: Thank You
co THE ART OF AUSTRALIAN BEEF Thank You
Australian Agricultural Company — H1 FY2024 Earnings Presentation on 6ix