Farm Pride Foods Limited · ASX:FRM
Farm Pride Foods — Shareholder Meeting (November 2019)
32 slides from Farm Pride Foods's shareholder meeting presentation, Nov 21, 2019
Slide 1: Farm Pride Foods Ltd 2019 AGM CEO Presentation
Farm Pride Foods Ltd 2019 AGM CEO Presentation “Managing for Value” 21st November, 2019 Presented By: Daryl BIRD, CEO, Farm Pride Foods Ltd
Slide 2: Agenda
Agenda • Industry & Market overview • The Business of Farm Pride - Our new mission • Farm Pride Foods Ltd FY19 Results • A difficult trading year • Buttressing the business • Moving Forward • Pride in every egg 2 Farm Pride | CEO Presentation AGM 2019
Slide 3: Industry overview
Industry overview National Market Share 8.1% 34.3% 27.4% 30.2% 247.1 1.0 ■ Farm Pride ■ Other Farm Pride ■ Pace ■ Sunny Queen Source: IBIS World Egg farming in Australia Report may 2019 Source: IBIS World Egg farming in Australia Report may 2019 Source: IBIS World Egg farming in Australia Report may
Slide 4: Market overview
Market overview +2 eggs per capita Vs PY Source: Australian Egg Industry Annual Report 2019 4 Farm Pride | CEO Presentation AGM 2019
Slide 5: The business of Farm Pride
farm pride PRIDE IN EVERY EGG
Slide 6: Today we manage 11 farms in our national network
• Today we manage 11 farms in our national network and approx. 7 external suppliers Source: FRM Management Review 2019 6 Farm Pride | CEO Presentation AGM 2019
Slide 7: The business of Farm Pride
The business of Farm Pride New long term vision – key tenets • Promote a culture of sustainable commercial success • Promote accountable and transparent performance • Establish a greater awareness of trading and market environment • Engrain integrity and respect as a hallmark of our business and to
Slide 8: A revitalised purpose and vision
A revitalised purpose and vision Our new corporate positioning, reinforcing • Developed by the our new mission - “PRIDE IN EVERY EGG” senior executive team • Communicated and rolled out Company wide • Linked to redefined business metrics • Being practiced and reinforced everyday 8 Farm Pride | CEO P
Slide 9: Farm Pride Foods Ltd FY19 Results
Farm Pride Foods Ltd FY19 Results
Slide 10: Farm Pride Foods Ltd – Headline Results FY19
Farm Pride Foods Ltd – Headline Results FY19 Result Vs LY Revenue $86.641M Underlying EBITDA $1.092M Profit after tax ($3.858M) Net assets $43.285M Net debt $14.667M Earnings per share (6.90 cents) 10 Farm Pride | CEO Presentation AGM 2019
Slide 11: Farm Pride Foods Ltd – Headline Results FY19
Farm Pride Foods Ltd – Headline Results FY19 ($’000) 2015 2016 2017 2018 2019 Revenue 91,341 93,765 97,778 86,116 86,641 Earnings before Interest & Tax (EBIT) 7,218 11,485 12,232 858 (5,324) EBIT Depreciation and Amortization (EBITDA) 12,190 15,988 15,713 5,386 1,092 Net Profit before tax (NPBT) 7,2
Slide 12: A difficult trading year
A difficult trading year • Our results show how difficult trading has been these last 12-18 months • Drought, and the ensuing impact of high wheat and feed prices, the cyclical over-supply of eggs, and various structural changes to the market, including the continuing evolution of cage to cage free
Slide 13: A difficult trading year cont.'
A difficult trading year cont.’ Key messages past trading year • The impact of drought continues, and wheat prices continue to remain higher than usual. • Supermarket retailers will continue the push from cage to cage free eggs. Momentum will build steadily over the next 2-3 years. Farm Pride, as wi
Slide 14: A difficult trading year cont.'
A difficult trading year cont.’ Key messages past trading year • The new management team have completed a full review of the business and market • A 3 year, 3 phase business plan has been developed to provide a sustainable roadmap for our mid term vision (1-3 years) • Initially, and as a priority -
Slide 15: Buttressing the business
farm pride PRIDE IN EVERY EGG
Slide 16: Buttressing the business against unfavorable conditions
Buttressing the business against unfavorable conditions • Key initiatives implemented to ‘buttress’ the business against prevailing and historical cyclical conditions; and to provide solid foundations for sustainable investment, growth and profitability Sales margin Unprofitable channels and custo
Slide 17: Buttressing the business against unfavorable conditions
Buttressing the business against unfavorable conditions Accountability Management restructure with greater focus on accountability and effective management of assets and with specific focus on egg supply forecasting and supply chain Innovation New Product Development program implemented and to s
Slide 18: Moving forward
farm pride PRIDE IN EVERY EGG Moving forward
Slide 19: 3 Year, 3 phase plan initiated – Managing For Value
3 Year, 3 phase plan initiated – “Managing For Value” Strategy & initiatives – 3 distinct phases 2019 – 2021+ • Approach business in 3 phases – Reinvent Farm Pride 3R’s 24-36 months Long Term Realign 6-24 months “Managing For Value” – sets an ‘all of Distance travelled Mid Term company’ paradigm to
Slide 20: An evolving roadmap to success in 3 distinct phases
An evolving roadmap to success in 3 distinct phases Review Business & Market ENABLERS identified Strategic Systems Key metrics REINVENT (FY21-FY22) Plans enhanced established Policy & Reporting CRM Engage Supermarket Retailers Engaged – strategic and long term supply Capital Exit unprofitable Focuse
Slide 21: An evolving roadmap to success in 3 distinct phases
An evolving roadmap to success in 3 distinct phases Review Business & Market ENABLERS identified Farms Strategic Systems Key metrics Priority REINVENT (FY21-FY22) Plans enhanced Ingredients established Focus Policy & EXTRA Greater Management oversight driving efficiency, Reporting Functional Mgt pro
Slide 22: An evolving roadmap to success in 3 distinct phases
An evolving roadmap to success in 3 distinct phases OUTCOMES Review “Strong & Business & Market ENABLERS Sustainable identified Operating Platform Farms Strategic Systems Key metrics Priority REINVENT (FY21-FY22) Established…” Plans enhanced Ingredients established Focus Performance Driven Culture P
Slide 23: Moving forward next 12 months
Moving forward next 12 months • Our new Mission and key tenets of expected business behaviours and accountability have been rolled out company wide and to ensure we position Farm Pride FIRST in everything we do! • Key cost out and productivity projects focused on: Freight & Logistics Egg separat
Slide 24: Moving forward next 12 months
Moving forward next 12 months • Our new Mission and key tenets of expected business behaviors and accountability rolled out company wide and to ensure we position Farm Pride First in everything we do! • Key cost out and productivity projects focused on: Freight & logistics Egg separation yield…t
Slide 25: Moving forward next 12 months
Moving forward next 12 months Future places we will • Our new Mission and key tenets of expected business behaviors and accountability play and develop innovation rolled out company wide and to ensure we position Farm Pride First in everything we do! • Key cost out and productivity projects focused
Slide 26: Moving forward next 12 months – Sales & Marketing
Moving forward next 12 months – Sales & Marketing • The business has engaged with our retail customers more closely and has successfully secured additional volumes and on a longer term supply basis New Private Label business Coles and Woolworths New supply destinations (WW & Coles) – Qld, Tasman
Slide 27: New Contemporary packaging for Farm Pride
New Contemporary packaging for Farm Pride Supported by targeted social and digital campaigns 27 Farm Pride | CEO Presentation AGM 2019
Slide 28: Moving forward next 12 months - Farms
Moving forward next 12 months - Farms • Farms FIRST initiative rolling out – “Our chickens come before our eggs…” Farm specific development programs focused on: Bird welfare and husbandry Farm asset value enhancement Staff training and development Bio security Productivity performance –
Slide 29: Moving forward next 12 months - Farms cont.
Moving forward next 12 months - Farms cont. • National farm network structure reorganised into 3 distinct geographic clusters for more efficient management • Assessments of specific farming assets such as Pittsworth and Mooroopna for future positioning being undertaken • Cage free farm capacity bein
Slide 30: Moving forward next 12 months - Farms cont.
Moving forward next 12 months - Farms cont. • High focus on externally contracted egg suppliers in FY19/20 to augment internal supply to meet new business evolution (18-24 months) and to preserve capital • Engaging new suppliers (cage free) • Focusing on strategic geographic hubs to provide logistic
Slide 31: Our 3 year mission has only started
Our 3 year mission has only started, but, “We believe, that if we have pride in every egg we produce and value add, our customers will be 100% satisfied with every Farm Pride egg they buy, cook and consume.” 31 Farm Pride | CEO Presentation AGM 2019
Slide 32: Questions?
ca farm pride PRIDE IN EVERY EGG ae: FINISH Questions?
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