Cobram Estate Olives Ltd. · ASX:CBO
Cobram Estate Olives — FY2022 Earnings Presentation
34 slides from Cobram Estate Olives's earnings presentation, Aug 26, 2022
Slide 1: FY2022 Results Presentation
FY2022 Results Presentation Cobram Estate Olives Limited | June 2021 26 August 2022 Private & Confidential 1
Slide 2: 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 3: 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 4: Introduction
Introduction Cobram Estate Olives Limited | June 2021 Private & Confidential 4
Slide 5: CBO's Competitive Advantages
CBO’s Competitive Advantages CBO’s key assets deliver significant competitive advantages and strong barriers to entry Continuous Vertically integrated, Proprietary Oliv.iQ® Premium market- improvement and freehold-owned and Integrated Olive leading consumer sustainable practices scalable operations
Slide 6: Group Operations - Highlights FY2022
Group Operations - Highlights FY2022 Note: m = millions Cobram Estate Olives Limited | June 2021 ¹ IRI scan data, Australian grocery weighted, total supermarket, Financial Year 2022 Private & Confidential 6 ² Source: https://www.abc.net.au/news/rural/2022-07-20/olive-harvest-production-down-in-2022/
Slide 7: Financial Highlights – FY2022
Financial Highlights – FY2022 Note: m = millions Cobram Estate Olives Limited | June 2021 ¹ Adjusted for water costs to long-term average and one-off listing costs Private & Confidential 7 ² Includes $121.3 million valuation increase for the Company’s olive trees and irrigation not reflected on the
Slide 8: Financial Year 2022 Results
Financial Year 2022 Results Cobram Estate Olives Limited | June 2021 Private & Confidential 8
Slide 9: Australian Olive Oil Operations Performance
Australian Olive Oil Operations Performance Two-Year Rolling Average EBITDA (Normalised)* of $53.9 million, up 19.7% year-on-year Two-Year Rolling Average EBITA (Normalised)* and two-year rolling average olive oil yield for CBO’s Australian olive oil operations Australian olive oil operations perfor
Slide 10: Group Profit or Loss (Statutory)
Group Profit or Loss (Statutory) Strong performance from the Australian olive oil division in a “lower yielding crop year” Key points • Decrease in EBITDA predominately driven by the lower Australian crop of 9.5 million litres (FY2021: 16.05 million litres) • Australian Olive Oil Operations reported
Slide 11: Group Cash Flow Statement
Group Cash Flow Statement Operating cash flow of $33.8 million, up 52.9% year-on-year Key points • Strong operating cashflow reflective of (1) the Company managing its olive oil supply over two harvest periods (24-months) to meet the consistent monthly customer demand; and (2) increasing two-year av
Slide 12: Group Balance Sheet
Group Balance Sheet Strong balance sheet, with net assets of $287 million and gearing falling to 25% Key points • Significant increase in Total Assets, driven by the revaluation of real property assets • Our olive trees are carried at cost (within Property Plant and Equipment), so have not been reva
Slide 13: Real Asset Backing, Decreasing Gearing, and Minimal Leased Assets
Real Asset Backing, Decreasing Gearing, and Minimal Leased Assets Trees and irrigation are carried at cost, brands carried at acquisition cost (not fair value) Tangible Assets vs Debt Levels Key points 700 • Tangible assets of $543m at 30 Olive trees and irrigation valuation not June 2022, or $665m
Slide 14: Strong Uplift in Property Valuation
Strong Uplift in Property Valuation Maturing groves and strong land/property prices drive significant uplift in CBO asset valuation 30 June 2022 asset valuations and impact on carrying value* Key points • Independent valuation undertaken by LAWD and CBRE, as at June 2022 • Total valuation of $444.6
Slide 15: Strong Sales Growth for Australian Olive Oil Operations
Strong Sales Growth for Australian Olive Oil Operations Total olive oil sales of $105.8 million in FY2022, an increase of 7.8% vs. FY2021 Cobram Estate® + Red Island® brands Australian Supermarket Cobram Estate® retail scan sales vs. $/Litre Australian Olive Oil Sales - FY2022 Cobram Estate® and Med
Slide 16: CBO's Market-Leading Position in the Australian Olive Oil Category
CBO’s Market-Leading Position in the Australian Olive Oil Category The strength of CBO’s brands highlighted by growth in market share, up 9% in value terms year-on-year Total olive oil Extra virgin olive oil Share of supermarket sales by brand Share of supermarket sales by brand (dollar value) – FY2
Slide 17: Cobram Estate Marketing Campaign Launched in Australia
Cobram Estate® Marketing Campaign Launched in Australian Ads running on television, digital, social and print running on mainstream media channels Key points • New Cobram Estate® advertisements launched to support our partnership with the 2022 season of Masterchef Australia • Campaign theme: “Cobram
Slide 18: USA Sales of $28.7 Million, Down Due to Limited Californian Olive Oil
USA Sales of $28.7 Million, Down Due to Limited Californian Olive Oil Cobram Estate® wholesale sales to US supermarkets and scan sales up 11.0% and 12.9% respectively USA Packaged Olive Oil Sales USA retail sales for Cobram Estate® in USA supermarkets/natural food stores* Cobram Estate® and private
Slide 19: Financial Outlook
Financial Outlook Outlook is positive, underpinned by strong demand for extra virgin olive oil and our maturing groves • Maturing Australian groves plus new groves in California set to deliver significant growth for CBO • Demand for Australian and Californian olive oil remains very strong • Mediterr
Slide 20: Business Operations Highlights
Business Operations Highlights
Slide 21: Global Olive Oil Operations Update
Global Olive Oil Operations Update Vertically integrated business operations running relatively smoothly despite external challenges Key points • 11.7 million litres global olive oil production in FY2022 (Australia + USA) • Over 15 million bottles and tins of extra virgin olive oil packed and shippe
Slide 22: External Cost and Supply Chain Pressures
External Cost and Supply Chain Pressures Rising costs partially offset by low Australian water prices CBO’s temporary water volume and purchase Rising costs in Australia price per megalitre - FY2014-FY2022 • Input cost pressure particularly in the areas of fertiliser, fuel, electricity, wages, and f
Slide 23: 2022 Australian Olive Harvest
2022 Australian Olive Harvest Olive oil yield up 53% vs. previous lower yielding crop year Two-year rolling average olive oil yields for Key points CBO’s Australian olive groves • Our 2022 harvest delivered, as expected, a significantly lower yielding olive crop when compared with 2021 • 9.5 million
Slide 24: Growth Strategy
Growth Strategy Four core growth pillars Increasing supply from our Australian olive groves through maturing plantings and efficiency gains 1. 29% of the Company's Australian groves are not fully mature and a further 7% are yet to come into production. Average yields from the Company's mature groves
Slide 25: Growth Strategy – Increasing Supply From Australian Olive Oil Operations
Growth Strategy – Increasing Supply From Australian Olive Oil Operations Maturing groves to grow by CAGR of 7.5% over the next 10-years CBO’s projected hectares of mature olive trees in Australia Average mature yields - CBO’s Australian olive groves 8,000 25.0 7,000 20.0 6,000 Yields (tonnes/ha) 5,0
Slide 26: Growth Strategy - Capital Projects in Australia
Growth Strategy - Capital Projects in Australia Growth projects underway at our Boort grove in FY2023 Two major capital projects in Australia for FY2023 1. Boort olive mill upgrade • Over the next 8 years CBO’s mature grove area at Boort will grow from 987 hectares to 3,516 hectares • Contracted thi
Slide 27: Growth Strategy – Growing Our Vertically Integrated USA Business
Growth Strategy – Growing Our Vertically Integrated USA Business Significant expansion of CBO’s third-party growers and USA land and olive grove portfolio in FY2022 USA grove development and acquisitions CBO’s Californian olive oil operations and locations • December 2021 - settled on two parcels of
Slide 28: Sustainability Highlights – FY2022
Sustainability Highlights – FY2022 Our people Our planet Our business ➢ A dynamic year for our ➢ Carbon footprint analysis ➢ Recognised as a people completed (production to Sustainability Leader by • transitioned to ASX-listing consumption) Australian Financial • CBO’s Australian Review / Boston • w
Slide 29: Questions?
Questions Questions? Cobram Estate Olives Limited | June 2021 Private & Confidential 29
Slide 30: Thank-you!
Thank-you!
Slide 31: Appendix
Appendix Thank-you Cobram Estate Olives Limited | June 2021 Private & Confidential 31 31
Slide 32: Cobram Estate Olives - From Tree to Table
Cobram Estate Olives - From Tree to Table Growing and marketing olive goodness in Australia and the USA About Cobram Estate Olives • Established in 1998, Cobram Estate Olives (ASX: CBO) is Australia’s largest vertically integrated producer and marketer of premium quality extra virgin olive oil • CBO
Slide 33: CBO's Key Consumer Brands Include Market-Leading Cobram Estate
CBO’s Key Consumer Brands Include Market-Leading Cobram Estate® Iconic, highly visible consumer brands with demonstrated pricing power Cobram Estate® Red Island® • The #1 selling extra virgin olive oil* in Australian supermarkets • Purchased in 2012 by value in FY2022 • Now the second largest sellin
Slide 34: 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: