Farm Pride Foods Limited · ASX:FRM
Farm Pride Foods — Reach Markets Live Webcast - The Insider: Meet the CEOs (August 2021)
14 slides from Farm Pride Foods's conference presentation, Aug 6, 2021
Slide 1: INVESTOR PRESENTATION – Reach Markets Live Webcast
6th August 2021 ASX Market Announcement Office Farm Pride Foods Ltd (ASX:FRM) Company Announcement INVESTOR PRESENTATION – Reach Markets Live Webcast On the 4 August 2021 the Company participated in the Reach Markets Live Webcast ‐ The Insider: Meet the CEOs Webcast. Our CEO, Daryl Bird, presented a
Slide 2: Reach Markets Meet the CEO Webcast: Shifting Focus
Reach Markets Meet the CEO Webcast Farm Pride Foods Ltd “SHIFTING FOCUS” 4th August, 2021 Presented By: Daryl BIRD, CEO, Farm Pride Foods Ltd SHIFTING FOCUS 1 Farm Pride | CEO Presentation Reach Markets 4th August, 2021 “SHIFTING FOCUS”
Slide 3: Disclaimer
Disclaimer This presentation dated 4th August, 2021 provides additional comment on the Annual Report for the 12 months ended 30 June 2020 of Farm Pride Foods Ltd Limited (The ’Company’) and accompanying information released to the market. As such, it should be read in conjunction with the explanatio
Slide 4: Industry overview
Industry overview Barn will Key industry metrics replace cage Share of category by egg type over next 3 years and be Annual Growth Annual Growth Annual Growth $867.6m dominant Revenue 2015–2020 2020–2025 2015–2025 type 1.9% 0.4% Annual Growth Annual Growth $33.0m Profit 2015–2020 2015–2020 -1.5% Ann
Slide 5: Industry overview: concentration of egg market
Industry overview Concentration of egg market Market player concentration Major players - share Pre AI FRM was >11% • The east coast states represent over 85% of egg sales in step with population • Market share of the total business is highly concentrated across 5-6 suppliers • FRM share has dropped
Slide 6: Industry overview: volatility and capital intensity
Industry overview Volatility of egg market Capital intensity • The egg market can be volatile • Supply fluctuations, feed prices, animal disease, shifts in demand and legislative changes all influence revenue volatility. • The egg industry is highly capital intensive with investment increasing over
Slide 7: Industry overview: rising costs and declining profits
Industry overview • Rising costs (‘17 to ‘19) driven by feed (drought), consumables (new laying systems e.g. CF and FR) and compliance Purchasing costs rising Profit declining • Some cost reprieve in 2020 with declining wheat and feed prices • Profits in general decline and future earnings will be f
Slide 8: Industry overview: key market trends
Industry overview Key market trends (now and mid term 2 - 4 years) Earnings Flat earnings predicted, So how to • Cage-free evolution now clearly timetabled with supermarkets stating by 2025 completely reshape earnings? cage free – Key focus on Barn Laid (cage free) development • Innovation in shell
Slide 9: The business of Farm Pride Foods Ltd
The business of Farm Pride Foods Ltd • Est’ 1937 as Vic Gov’t Egg Board, privatised (1993) after deregulation, incorporated & listed on ASX 1997 – 220 employees • 11 owned and/or operated farms – rearing, cage, barn laid and free range • 1.2m laying hens in Co’ network & >200k contracted ▪ Farms & e
Slide 10: Farm Pride the last 12 months
Farm Pride the last 12 months • 3 year turnaround commenced late FY19 under new management • Sustainable earnings track established FY20, but interrupted by Avian Influenza outbreak and COVID • 12 months lost (FY21) dealing with AI recovery & one time costs, disrupted foodservice sales (COVID) ▪ Inn
Slide 11: Farm Pride value added (innovation) today and tomorrow
Farm Pride value added (innovation) today and tomorrow Ingredients & value added business Tomorrow • Stage 1- utilise egg as a RM for innovation Today (2022-2025>) Export Industrial • Unique capability in egg industry customers Growth target • Key margin driver - earnings Export New • Key driver of
Slide 12: Innovation – adding value in stages
Innovation – adding value in 2 stages • Achieving a strong innovation footing in the next few years remains the key imperative • Converting our egg raw materials from our farms and other sources, maximising our unique value adding capability and capacity provides Farm Pride the best chance of genera
Slide 13: Value adding a key to higher earnings…
Value adding a key to higher earnings… 31.8% 25.1% 23.3% 14.4% 6.6% 6.9% 7.0% 4.6% 3.0% 0.6% Maggie Beer Farm Pride Sunny Queen Ridley Bega Cheese Inghams Huon Select Harvest Tassal Group A2 Milk Holdings Foods Corporation Revenue (A$m) $44.5 $90.2 $413.0 $967.9 $1,493.2 $2,555.3 $339.9 $247.9 $552.
Slide 14: END….
END…. 13 Farm Pride | CEO Presentation Reach Markets 4th August, 2021 “SHIFTING FOCUS”
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