Pure Foods Tasmania Ltd. · ASX:PFT
Pure Foods Tasmania — Investor Presentation (May 2024)
36 slides from Pure Foods Tasmania's investor presentation, May 1, 2024
Slide 1: Capital Raising Presentation
CAPITAL RAISING PRESENTATION Authorised by the Board on Tuesday, 30 April 2024 and released to ASX on Wednesday, 1 May 2024 1
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER NOT FOR RELEASE TO U.S. WIRE SERVICES OR DISTRIBUTION IN THE UNITED STATES IMPORTANT: You must read the following before continuing This presentation is dated 30th of April 2024 and has been prepared by Pure Foods Tasmania Limited (ASX:PFT or Company) in connection wi
Slide 3: Important Notice and Disclaimer (cont)
IMPORTANT NOTICE AND DISCLAIMER (cont) No representation or warranty is given, and nothing in this presentation or any other information made available by the Company, or any other party should be relied upon as a promise or representation, as to the future condition of the respective businesses and
Slide 4: Important Notice and Disclaimer (cont)
IMPORTANT NOTICE AND DISCLAIMER (cont) Investment risk and other risks An investment in New Shares is subject to investment and other known and unknown risks, some of which are beyond the control of PFT and its Directors, including possible loss of income and principal invested. PFT does not guarant
Slide 5: Capital Raising
CAPITAL RAISING PFT is undertaking an equity raise via a rights issue to raise approximately $2.2 million at the Offer Price of $0.04 (‘Entitlement Offer’) assuming all rights taken up. PFT current ordinary shares on issue is 110,294,712 and there are an additional 10,166,670 Options with 6,666,670
Slide 6: 1. Pure Foods Tasmania Overview
FOR PERSONAL USE ONLY 1. Pure Foods Tasmania Overview 6
Slide 7: Pure Foods Tasmania Overview
PURE FOODS TASMANIA OVERVIEW PFT was formed in 2015 with the aim to enhance and promote Tasmania’s food businesses. PFT’s strategy is to develop new products within its existing brands and in the plant-based food market, to acquire complementary brands and businesses and to increase its market penet
Slide 8: Pure Foods Tasmania Strategy
PURE FOODS TASMANIA STRATEGY PFT’s business strategy has had several iterations including a strong growth focus which entailed: • developing and launching new products; and • acquisitions, which included Daly, Lauds and Cashew Creamery. The current focus, however, is more aligned with tight capital
Slide 9: Pure Foods Tasmania Strategy contd.
PURE FOODS TASMANIA STRATEGY contd. PFT has also had productive discussions with our major customers, and they remain very supportive. The Company has long identified that it must increase revenue several fold to remain viable and that strategy has never wavered, and continues to consult with and re
Slide 10: Financial Commentary Q3 FY24
FINANCIAL COMMENTARY Q3 FY24 Pure Food Tasmania’s YTD performance is reflective of the initiatives the Company introduced at the beginning of this calendar year and referenced in our 1H24 results. Recapping: • The Group’s focus in 1H FY24 was on supporting unprecedented demand for its high-quality p
Slide 11: Financial Highlights Q4 FY24 (unaudited)
FINANCIAL HIGHLIGHTS Q4 FY24 (unaudited) Pure Food Tasmania’s YTD FY 24 gross revenue was $6.9 million at the end of March which is on par with the pcp: • Tasmanian Pate sales were $3 million up to the end of March YTD and remains the largest contributor to revenue. This growth has been assisted by
Slide 12: Financial Highlights Q4 FY24 (unaudited) contd.
FINANCIAL HIGHLIGHTS Q4 FY24 (unaudited) contd. • Woodbridge Smokehouse revenue was $800k down from $1.2 million pcp. The reduction in revenue was by design as we pulled back from non-profitable export markets, as the price of HOG (raw fish) increased by 45% in Q3. Historically HOG prices reduce in
Slide 13: Daly Potato Co Update: New Heat & Eat Frozen Daly Bake Range
DALY POTATO CO UPDATE NEW “HEAT & EAT” FROZEN DALY BAKE RANGE • Re Launching August 2024; • "Heat & Eat” frozen vegetable range – capturing a new market; • Consumers are demanding convenience, but currently there is no offering for the top tier premium consumers; • Packaging in box will make product
Slide 14: The Cashew Creamery quote
“The Cashew Creamery is a first of its kind for the Australian market due to its base ingredient of cashews. The vegan ice cream market is dominated by coconut-based products and cashew-based ice creams offer an alternative and superior taste product.” Michael Cooper, Managing Director 14
Slide 15: New 1 Litre Tub Range
-" asiieyy ee eer CHOC CHIP . RASPBERRY wy ID GLUTEN-FREE, VEGAN-FRIEN IN TASMANIA» ALL NATURAL FLAVOUR: New | Litre Tub Range CasHew creamery
Slide 16: IGA relationship adds 1,500 outlets
"Our relationship with IGA stores has seen PFT secure an additional 1,500 outlets across Australia for our Woodbridge Smokehouse business." Michael Cooper, Managing Director 16
Slide 17: PFT's Customer Base Continues to Grow Across All Channels
PFT'S CUSTOMER BASE CONTINUES TO GROW ACROSS ALL CHANNELS PERIOD DISTRIBUTION POINTS Q1 FY 21 650 Q3 FY 22 1,000 Q3 FY 23 2,100 Q3 FY 24 3,500 17
Slide 18: 2. Capital Raising Funds Usage
FOR PERSONAL USE ONLY 2. Capital Raising Funds Usage 18
Slide 19: Usage of Funds
USAGE OF FUNDS The Entitlement Offer will allow PFT to continue growth via acquisition and organic sales, improve operating efficiencies and capacity, and exploit new product expansion opportunities. It will also provide funding for ongoing due diligence costs associated with potential acquisition t
Slide 20: Usage of Funds – Growth Initiatives
USAGE OF FUNDS – GROWTH INITIATIVES 1. Accelerating Growth • Support DD for acquisitions (~$0.20m – FY24 /FY25). The Company has completed its initial DD on one target and discussions with our advisers are ongoing; • Marketing/branding (~$0.20m – FY24/FY25); • Working capital and new product develop
Slide 21: Usage of Funds contd.
USAGE OF FUNDS – contd. 1. Accelerating Growth • Potato & Gravy – pivot and relaunch into chilled space: • Instore cooking of the Company’s “Hot Box” product became a challenge for retail staff to manage; • Retailers pushed waste/markdowns onto PFT which was not sustainable; • The pivot is to reloca
Slide 22: Usage of Funds contd.
USAGE OF FUNDS – contd. 2. Driving Production Efficiencies • PFT will continue to look for revenue opportunities - the challenge is to maintain effective and efficient sustainable products that can be produced within PFT’s capability; • PFT has been partnering and working with key packaging and equi
Slide 23: 3. Capital Raising Details
FOR PERSONAL USE ONLY 3. Capital Raising Details 23
Slide 24: Capital Raising Details
CAPITAL RAISING DETAILS Items Details Entitlement Offer A non-underwritten and non renounceable rights issue will be undertaken to allow eligible Australian and New Zealand shareholders to acquire New Shares at a ratio of 1 New Share for every 2 shares held Pricing The Entitlement Offer will be offe
Slide 25: Sources and Use of Funds
SOURCES AND USE OF FUNDS $M Rights Issue (assuming 100% participation*) $2.2 million Transaction Costs Legal Fees $0.05 million ASX Fees Automic Registry Fees Growth initiatives Accelerating Production $1.70 million Driving Production Efficiencies Product Expansion Opportunities *Assuming all shareh
Slide 26: Pro forma Balance Sheet
Set out in the table is the Company’s (i) statement of financial position as at 31 December 2023 (audited); and (ii) pro forma statement of financial position as at 31 Pro forma Balance Sheet had occurred as at 31 December 2023 (Pro Forma Balance Sheet). 1 December 2023 (unaudited) giving effect to
Slide 27: Timetable
TIMETABLE Event Date Entitlement Offer Announcement of Entitlement Offer Wednesday 1 May 2024 Record date of determining eligibility for Entitlement 7pm Monday 6 May 2024 Despatch of Entitlement Booklet and Entitlement opens Tuesday 7 May 2024 Entitlement closes Tuesday 28 May 2024 Offer of shortfal
Slide 28: Key Risks
FOR PERSONAL USE ONLY Key Risks 28
Slide 29: Key Risks
Key Risks Reduction in demand for existing product ranges There is a risk that a change in economic conditions could cause consumers to reduce their consumption of PFT products as they "trade down" to cheaper sources of food. Changes in consumer dietary preferences or sentiment towards Tasmanian foo
Slide 30: Key Risks (continued)
Key Risks (continued) Risk that the Company's growth plans cannot be affected The Company has growth plans in order to expand production beyond the Company's current capacity. However, as with any growth plans, there are risks associated with the execution of these plans which may materially impact
Slide 31: Key Risks (continued)
Key Risks (continued) Contractual risk The Company has contractual obligations and rights with respect to a number of agreements it is a party to. These agreements may include provisions which allow for termination for convenience or otherwise. No assurance can be given that all such agreements will
Slide 32: Key Risks (continued)
Key Risks (continued) Insurance risks The Company insures its operations in accordance with industry practice. However, in certain circumstances, the Company's insurance may not be of a nature or level to provide adequate insurance cover. The occurrence of an event that is not covered or fully cover
Slide 33: Key Risks (continued)
Key Risks (continued) Climate change risks Climate change risks particularly attributable to the Company include: • the emergence of new or expanded regulations associated with the transitioning to a lower-carbon economy and market changes related to climate change mitigation. The Company may be imp
Slide 34: Foreign Selling Restrictions
FOR PERSONAL USE ONLY Foreign Selling Restrictions 34
Slide 35: Foreign Selling Restrictions
Foreign Selling Restrictions This presentation does not constitute an offer of Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the Shares may not be offered or sold, in any country outside Australia excep
Slide 36: About Pure Foods Tasmania (PFT)
About Pure Foods Tasmania (PFT) Pure Foods Tasmania Pty Ltd was formed in 2015 with the aim to enhance and promote Tasmania’s premium food and beverage businesses. PFT’s strategy is to develop new premium products within our existing brands and in the plant-based food market, to acquire complementar
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