Slide 1: FY24 Results: Growing Our Diversified Platform
ASX: RIC FY24 RESULTS Growing Our Diversified Platform Quinton Hildebrand - MD & CEO Richard Betts - CFO 21 August 2024 LEADING ANIMAL NUTRITION FY24 RESULTS | 21 August 2024 1
Slide 2: FY24 Financial Summary
FY24 FINANCIAL SUMMARY 1 3 4 EBITDA (reported) EBITDA (underlying) Earnings Growth $90.0m $92.8m --- 1.2% EBITDA growth from corresponding business +1.7% YoY growth +4.9% YoY growth --- $3.2m2 contribution from OMP - ahead of expectations NPAT (reported) NPAT (underlying) Disciplined Capital Managem
Slide 3: Bulk Stockfeeds Segment
BULK STOCKFEEDS SEGMENT FY24 ($m) FY23 ($m) Variance EBITDA before significant items 44.4 36.0 +23% EBIT 28.1 20.6 +36% Segment Assets 316.8 299.8 Segment Liabilities (189.9) (171.3) Segment Net Assets 126.9 128.5 -1% EBITDA ROFE 35% 28% The Bulk Stockfeeds Segment EBITDA increased by $8.4m on pcp d
Slide 4: Packaged Feeds & Ingredients Segment
PACKAGED FEEDS & INGREDIENTS SEGMENT FY24 ($m) FY23 ($m) Variance INGREDIENT RECOVERY BRANDS EBITDA before significant items 59.7 65.8 -9% EBIT 49.9 56.5 -12% Segment Assets 290.9 250.6 Segment Liabilities (55.2) (55.7) PACKAGED PRODUCTS BRANDS Segment Net Assets 235.7 195.0 +21% EBITDA ROFE 25% 34%
Slide 5: Financial Results
FINANCIAL RESULTS LEADING ANIMAL NUTRITION FY24 RESULTS | 21 August 2024 5
Slide 6: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result ($m) FY24 FY23 Analysis of Results EBITDA – Bulk Stockfeeds 44.4 36.0 See segment performance reporting – p3 EBITDA – Packaged Feeds and Ingredients 59.7 65.8 See segment performance reporting – p4 EBITDA – Ongoing operations before significant items 104.1 1
Slide 7: Balance Sheet
BALANCE SHEET Balance sheet ($m) June 2024 June 2023 Analysis of balances and movements Cash & cash equivalents 34.2 43.0 Cash is a function of timing of receipts/payments and draw down/repayment of bank funding Decrease in inventory of $13.3m across both Bulk Stockfeeds and Packaged Feeds and Inven
Slide 8: Working Capital
WORKING CAPITAL Working Capital ($m) June 24 June 23 Current receivables 135.0 133.0 Inventory 105.3 107.0 Significant reduction in working capital in H2, due to: Less Accounts Payables (220.4) (205.2) • strong debtor collections Working Capital 19.9 34.8 • business shortened its hold of strategic i
Slide 9: Cash Management
CASH MANAGEMENT Consolidated Cash Flow ($m) FY24 FY23 Analysis of movement Consolidated EBIT before individually significant items 66.7 63.7 Consolidated EBIT after significant items Depreciation and amortisation 26.1 24.8 Increase in line with capital expenditure and OMP assets acquired Consolidate
Slide 10: Capital Management
CAPITAL MANAGEMENT Net debt ($m) and leverage (times) • Strong operating cash flow generated in FY24 • OMP acquisition spend of $53m Includes • Significant headroom to leverage gearing and debt acquisition of OMP $53m covenants Includes proceeds from • Cash and undrawn committed bank debt to provide
Slide 11: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Delivered in FY24 • Earnings resilience with underlying EBITDA up 4.9% Operating Cash Flow coupled with high cash conversion Maintenance & ESG Capital (~60 – 80% of Depreciation) • Maintenance & ESG capital ($14.5m) - 59% of Depreciation and Working Capital • Reduction i
Slide 12: FY23 – FY25 Growth Plan Update
FY23 – FY25 GROWTH PLAN UPDATE LEADING ANIMAL NUTRITION FY24 RESULTS | 21 August 2024 12
Slide 13: FY23 – FY25 Growth Plan
FY23 – FY25 GROWTH PLAN KEY INITIATIVES FY22 FY23 FY24 FY25 • NovaqPro® international sales Growing with aqua customers •• 1 •• • • Companion animal sales 2 Premiumisation of rendered products 3 • • • Tallow & protein meal trading 4 5 EBITDA •• Earnings Growth Packaged & • NovaqPro® operating effici
Slide 14: FY23 - FY25 Growth Plan: Bulk Stockfeeds
FY23 - FY25 GROWTH PLAN: BULK STOCKFEEDS BULK STOCKFEED GROWTH UPDATE • More direct sourcing of raw materials underpinning Strategy arbitrage opportunities Leverage the flywheel effects of scale, extend our role in the supply chain and enhance our • Ridley Direct accounting for 6% (FY23 3%) of total
Slide 15: Bulk Stockfeeds Growth Update
BULK STOCKFEEDS GROWTH UPDATE PAKENHAM FEEDMILL (VIC) DE-BOTTLENECKING - completed November 2023 Purpose To meet ruminant demand in Gippsland Capacity 12.5% increase Capex $0.7m with payback period 2 years Status Incremental capacity already fully utilised CLIFTON FEEDMILL (QLD) UPGRADE - commission
Slide 16: Bulk Stockfeeds Growth Update
BULK STOCKFEEDS GROWTH UPDATE CARRICK FEEDMILL (TAS) ACQUISITION - planned completion 31 August 2024* Purpose To supply layer customer (Pure Foods Eggs - vendor) and provide for ruminant growth in Tasmania and backfill opportunities in Gippsland, VIC Capacity Currently producing 12kt pa on single sh
Slide 17: FY23 - FY25 Growth Plan: Packaged Feed & Ingredients
FY23 - FY25 GROWTH PLAN: PACKAGED FEED & INGREDIENTS INGREDIENT RECOVERY (FORMERLY RENDERING) GROWTH UPDATE • Maroota facility (NSW) considering projects to Strategy better utilise raw materials under new contracts Invest in processing capability to “Climbing the Wall of Value” following the closure
Slide 18: Ingredient Recovery Growth Update
INGREDIENT RECOVERY GROWTH UPDATE NEW TIMARU OMP FACILITY (NEW ZEALAND) - planned for completion October 2025 Purpose To meet customer requirements with new plate freezing capability and to provide capacity for growth Capacity Three-fold increase on current plant Capex Long-term lease of custom-buil
Slide 19: FY23 - FY25 Growth Plan: Packaged Feed & Ingredients
FY23 - FY25 GROWTH PLAN: PACKAGED FEED & INGREDIENTS PACKAGED AQUA NUTRITION PRODUCTS (FEED/SECTOR SUPPORT) GROWTH UPDATE • Continue to develop new branded products for rural Strategy Strategy market Extend our rural market Share in the growth of the • New packing line at extrusion facility provides
Slide 20: Ridley Sustainability Pillars
RIDLEY SUSTAINABILITY PILLARS Working with our partners, we have identified four pillars to deliver real value in sustainable ways: SMARTER INGREDIENTS OPTIMISED PRODUCTION EFFECTIVE SOLUTIONS MEANINGFUL PARTNERSHIPS Sourcing high-quality raw materials that are Optimising our manufacturing and suppl
Slide 21: Ridley Sustainability 2030 Scorecard – Progress Update
RIDLEY SUSTAINABILITY 2030 SCORECARD – PROGRESS UPDATE FOCUS OF OUR 2030 COMMITMENTS FY24 2030 The full text of our 2030 Commitments are set out in Ridley's Annual Report FY23 Target* Commitment SMARTER INGREDIENTS Sourcing high-quality raw materials that are Purchase soybean products from suppliers
Slide 22: Outlook
OUTLOOK LEADING ANIMAL NUTRITION FY24 RESULTS | 21 August 2024 22
Slide 23: Key Drivers
KEY DRIVERS In FY25 Ridley expects to create shareholder value through: Packaged & Ingredients segment from: • a full year earnings contribution of OMP • raw material supply benefits in Ingredient Recovery following the closure of a competitor • cost savings from the restructure of extrusion operati
Slide 24: Outlook
OUTLOOK Ridley’s business portfolio, with its diversified spread of operations and markets, provides a platform to deliver consistent growth. In FY25, Ridley expects earnings growth in the: • Packaged & Ingredients segment, from continued premiumisation in the petfood sector; and • Bulk Stockfeeds s
Slide 25: Important notice and disclaimer
The material in this presentation is general background information about the activities of Ridley Corporation Limited (ACN 006 708 765) and its related entities (Ridley), current as at the date of this presentation, unless otherwise stated. The content is information given in summary form and does
Slide 26: Historical Financial Information
HISTORICAL FINANCIAL INFORMATION LEADING ANIMAL NUTRITION FY24 RESULTS | 21 August 2024 26
Slide 27: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result ($m) FY24 FY23 Analysis of Result FY22 FY21 FY20 EBITDA – Ongoing operations before significant items 104.1 101.8 Up $2.3m, or 2.3% on prior year period 92.4 79.0 69.4 Remuneration costs associated with the Group’s incentive programs Corporate Costs (11.3) (
Slide 28: Balance Sheet - Assets
BALANCE SHEET - ASSETS Balance Sheet ($m) FY24 FY23 Analysis of Result FY22 FY21 FY20 Cash is a function of timing of receipts/payments and draw down/repayment of Cash & cash equivalents 34.2 43.0 27.1 39.9 45.8 bank funding Decrease in inventory levels across both Bulk Stockfeeds and Packaged Feeds
Slide 29: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Balance Sheet ($m) FY24 FY23 Analysis of Result FY22 FY21 FY20 Reflects timing of creditor payments within agreed trading terms and increased Current trade and other payables 220.4 205.2 202.2 165.5 161.3 commodity prices Current lease liabilities 5.1 4.2 Current portion
Slide 30: Cash Management
CASH MANAGEMENT Consolidated Cash flow ($m) FY24 FY23 Analysis of Result FY22 FY21 FY20 Consolidated EBIT before ISIs 66.7 63.7 Consolidated EBIT after significant items 63.3 39.5 (11.0) Depreciation and amortisation 26.1 24.8 Increase in line with capital expenditure and OMP assets acquired 25.8 29
Slide 31: Net Debt, Gearing & Leverage
NET DEBT, GEARING & LEVERAGE Major capital projects ($m) FY24 FY23 Analysis of Result FY22 FY21 FY20 Development capital expenditure 18.4 23.0 Includes both de-bottlenecking and Boost projects 10.9 10.4 42.9 Maintenance capital expenditure 14.5 11.3 Prioritised in line with the capital allocation mo
Slide 32: LEADING ANIMAL NUTRITION FY24 RESULTS | 21 August 2024
LEADING ANIMAL NUTRITION FY24 RESULTS | 21 August 2024 32