Maggie Beer Holdings Ltd. · ASX:MBH
Maggie Beer — FY2019 Earnings Presentation
36 slides from Maggie Beer's earnings presentation, Aug 29, 2019
Slide 1: FY19 – Results Presentation
FY19 – RESULTS PRESENTATION Laura McBain - Managing Director Michael Caragounis - CFO 29 August 2019
Slide 2: H1 FY19: Executing on our growth strategy; H2 FY19: Completing our premium brand portfolio
H1 FY19: EXECUTING ON OUR GROWTH STRATEGY H2 FY19: COMPLETING OUR PREMIUM BRAND PORTFOLIO WITH BENEFITS FROM BUSINESS TRANSITIONS STARTING TO FLOW THROUGH 2
Slide 3: Longtable Group’s premium brands
Longtable Group’s premium brands Longtable has curated a house of premium brands in lifestyle food and beverage with a focus on consumer demand for high quality, nutritious, premium food and beverages December 2017 August 2018 April 2019 Paris Creek Saint David Dairy Maggie Beer Farms Products 100%
Slide 4: Portfolio results FY19
Portfolio results FY19 The Group’s statutory financial results reflect a continued Maggie Beer Products period of transformational change on the pathway to • Turnaround due to new product sales and growth and are not representative of the underlying new retailers alongside sustainable cost out busin
Slide 5: Group balance sheet
Group balance sheet The Group is supported by a solid balance sheet. The cash balance places the Group in a strong position to progress strategic and operational initiatives. • Cash reflects the capital raisings of $19.8m, $'000s Jun-19 Dec-18 Jun-18 investments of $16.7m, negative operating cashflo
Slide 6: Maggie Beer Products
Maggie Beer Products Strong turnaround in result with $2.0m EBITDA for FY191 vs ($1.5)m loss in FY18 • Net sales up 9% to $20.9m • Sales to major retailers is a significant contributor to sales growth (A$'000s) FY19 FY18 FY17 • Successful expansion of the Cheese category Net Sales 20,919 19,278 18,0
Slide 7: Maggie Beer Products - positive sales & labour cost reduction momentum
Maggie Beer Products - positive sales & labour cost reduction momentum KEY DRIVERS Sales • Net sales has continued its positive trajectory • Successful New Product Development program has mitigated reductions in product categories • Sales growth to major retailer A has more than mitigated loss of sa
Slide 8: Paris Creek Farms
Paris Creek Farms The past 12 months for Paris Creek Farms, while challenging and its performance disappointing, have repositioned the company for profitable growth from H2 FY20 • Net sales down 13% • Transition to rebranded products • Re-packaged milk bottles led to a swift re- (A$'000s) FY19 FY18
Slide 9: Paris Creek Farms - positive sales & labour cost reduction momentum
Paris Creek Farms - positive sales & labour cost reduction momentum KEY DRIVERS Sales • Core business sales stabilised with positive momentum in Q4 • Swift re-introduction of the 2L and 1L milk bottles during March and April • Focus on re-building South Australian share whilst pursuing ranging oppor
Slide 10: Saint David Dairy
Saint David Dairy Delivering on the growth story and well positioned for continued success • Net sales up 23% • Milk sales up 11%, butter and cream sales up 54% or (A$'000s) FY19 FY18 FY17 $0.5m Net Sales 7,246 5,885 4,492 • Number of customers up by 15% Gross Margin 3,960 3,740 2,837 • Gross margin
Slide 11: Actions taken in H2 FY19 to deliver on our focused long term growth strategy
ACTIONS TAKEN IN H2 FY19 TO DELIVER ON OUR FOCUSED LONG TERM GROWTH STRATEGY 11
Slide 12: Key pillars to deliver growth
Key pillars to deliver growth We are focused on delivering strong performance along 4 key pillars Strong Investing in revenue sustainable Leveraging growth by marketing Cash flow manufacturing expanding programs to positive capability distribution in expand brand growth across brands Australia and r
Slide 13: Strong Revenue Growth
Strong Revenue Growth Increased Maggie Beer Products sales with major retailer through new product ranges in stocks and cheese range Stabilised Paris Creek Farms sales in South Australia with independent retailers Commenced expansion of Paris Creek Brand to national footprint through ranging of butt
Slide 14: Leveraging Manufacturing Capability
Leveraging Manufacturing Capability Developed an improved model for milk utilisation at Paris Creek Farms across complex organisation of milk, yogurt, cheese and butter Shared team resources with the highly experienced Maggie Beer Products manufacturing team now also leading Paris Creek Farms Produc
Slide 15: Sustainable Marketing Programs
Sustainable Marketing Programs COVERAGE HIGHLI Small marketing team that supports brands with agency support Saint David Dairy Brand continues to drive word of mouth based on strong customer relations and outstanding service Appointed new agencies to enhance Paris COVERAGE Creek Farms and Saint Davi
Slide 16: Positive cash flow
Positive cash flow Reduction of costs at Paris Creek Farms in areas including labour and freight Price increases at Saint David Dairy to better recover costs of milk Integrated sales team to deliver services to both Maggie Beer Products and Paris Creek Farms Lowered costs of outsourced services incl
Slide 17: Delivering on our ambition will substantially grow the Group
DELIVERING ON OUR AMBITION WILL SUBSTANTIALLY GROW THE GROUP 17
Slide 18: Our Ambition: a strong Australian house of brands
Our Ambition is to build a strong Australian house of brands in lifestyle food and beverage for meeting the evolving ways in which we live, work and eat Aspiration to grow revenues to $70m+ and Group EBITDA margin % to low double digits by FY22 18
Slide 19: Maggie Beer Products - Our Ambition
Maggie Beer Products Our Ambition To be Australia’s most famous and highly regarded culinary brand 19
Slide 20: Maggie Beer Products Business fundamentals
Maggie Beer Products Business fundamentals Maggie Beer Products is a highly regarded brand that is supported by strong business fundamentals REVENUE HIGHLY RETURNED TO GROWTH>9% IDENTIFIABLE POSITIVE EBITDA BRAND WITH AND CASHFLOW STRONG CREDENTIALS MIX OF CONTRACT FAST NPD AND INCREASING BRAND PROC
Slide 21: Maggie Beer Products Growth drivers
Maggie Beer Products Growth drivers We have identified a number of key initiatives to ensure we achieve our ambition INITIATIVES OUTCOME Invest in marketing (capped at 4% of revenue) ✓Increase brand - Improve brand positioning to better connect with consumer awareness across and improve shelf positi
Slide 22: Saint David Dairy - Our Ambition
Saint David Dairy Our Ambition To be the niche dairy brand most sought after by Australia’s best baristas, chefs and cooks 22
Slide 23: Saint David Dairy Business fundamentals
Saint David Dairy Business fundamentals Saint David Dairy growth is underpinned by a strong, sustainable business platform REVENUE HIGHLY REGARDED SOLID EBITDA AND GROWTH>20% FOR BRAND BY CHEFS, CASHFLOW LAST 3 YEARS COOKS, BARISTAS SAME DAY IN-HOUSE TESTED SUSTAINABLE MILK, TURNAROUND, LOW BARISTA
Slide 24: Saint David Dairy Growth Drivers
Saint David Dairy Growth Drivers We have identified a number of key initiatives to ensure we achieve our ambition INITIATIVES OUTCOME Invest in marketing (capped at 2% of revenue) ✓Increase brand - Amplify social, digital and web strategy awareness with - Increase community engagement baristas, rest
Slide 25: Paris Creek Farms - Our Ambition
Paris Creek Farms Our Ambition To be the number one household known biodynamic-organic dairy brand 25
Slide 26: Paris Creek Farms Business fundamentals
Paris Creek Farms Business fundamentals Paris Creek Farms has undergone significant change, but remains with strong fundamentals to underpin growth AWARD WINNING IMPROVED PRODUCT PRICING PRODUCTS FROM UNDERSTANDING IS NOW RESET FOR 100% BIODYNAMIC OF DRIVERS OF GP MARGINS ORGANIC MILK COSTS CNCA ACC
Slide 27: Paris Creek Farms Growth Drivers
Paris Creek Farms Growth Drivers We have identified a number of key initiatives to ensure we achieve our ambition INITIATIVES OUTCOME ✓Improve brand traction Invest in marketing (capped at 3% of revenue) in SA - Reinforce brand story in SA and Eastern Seaboard using ✓Increase brand Brand digital med
Slide 28: Key priorities for H1 FY20
Key priorities for H1 FY20 The future is very exciting and Longtable looks forward to building opportunities and unlocking value in its existing brands RETURN GROUP TO GROW DISTRIBUTION MANUFACTURING BRAND, MARKETING CASH FLOW POSITIVE CAPABILITY AND ADVERTISING • We have a solid • Increasing distri
Slide 29: Key takeaways of FY19
Key takeaways of FY19 Maggie Beer and Saint David Dairy are both cash flow positive and profitable, with a pathway set to return Paris Creek Farms to profit after disappointing year • Saint David generated $1 million EBITDA with revenue up 23% to $7.2m • Maggie Beer Products generated positive $2 mi
Slide 30: Appendices
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Slide 31: Appendix 1 – Portfolio management results FY19 v FY18
Appendix 1 – Portfolio management results FY19 v FY18 The Group’s management financial results reflect a continued period of transformational change on the pathway to growth and are not representative of the underlying business earnings into future periods $000’s Maggie Beer Products Maggie Paris St
Slide 32: Appendix 2 – Maggie Beer Products Historic Profit and Loss by Nature
Appendix 2 – Maggie Beer Products Historic Profit and Loss by Nature Maggie Beer Products % of Net % of Net % of Net 3 (A$'000s) FY17 Revenue FY18 Revenue FY19 Revenue Net Sales 18,088 19,278 20,919 Total COGS 8,486 9,950 10,967 Gross Margin 9,602 9,328 9,952 GM % 53.1% 48.4% 47.6% Other expenses To
Slide 33: Appendix 3 - Paris Creek Farms Historic Profit and Loss by Nature
Appendix 3 - Paris Creek Farms Historic Profit and Loss by Nature Paris Creek Farms % of Net % of Net % of Net (A$'000s) FY17 Revenue FY18 Revenue FY19 Revenue Net Sales 18,267 17,143 14,952 Total COGS 9,914 9,717 9,378 Gross Margin 8,353 7,426 5,575 GM % 45.7% 43.3% 37.3% Other expenses Total Labou
Slide 34: Appendix 4 - Saint David Dairy Historic Profit and Loss by Nature
Appendix 4 - Saint David Dairy Historic Profit and Loss by Nature Saint David Dairy % of Net % of Net % of Net (A$'000s) FY17 Revenue FY18 Revenue FY19 Revenue Net Sales 4,492 5,885 7,246 Total COGS 1,656 2,145 3,286 Gross Margin 2,837 3,740 3,960 GM % 63.1% 63.6% 54.6% Other expenses Total Labour a
Slide 35: Disclaimer
DISCLAIMER The presentation includes forward-looking statements regarding future events and the future financial performance of Longtable Group. Any forward looking statements included in this document involve subjective judgment and analysis and are subject to significant uncertainties, risks and c
Slide 36: Longtable Group
LONGTA3LE GROUP