26 Nov

2021 AGM Presentation

Pure Foods Tasmania Ltd 100 -104 Mornington Rd Mornington TAS 7018 ASX: PFT +61 3 6231 4233 www.purefoodstas.com ASX Release 26 November 2021 Annual General Meeting – CEO Presentation In accordance with Listing Rule 3.13.3, I attach the presentation to be given by the CEO at PFT’s Annual General Meeting today at 2pm ( AGM ). For shareholders who wish to view the AGM, it is being broadcast at the following link: https://us02web.zoom.us/webinar/register/WN_Ny4mp5JsTNKhGKEOxgG5xg Yours faithfully Justin Hill Company Secretary Pure Foods Tasmania AGM Financial Year 2021 Daly Potato Farm, Marion Bay TAS Michael Cooper CEO Woodbridge Smokehouse, Tasmania Pure Foods Tasmania started as a private company in 2015, formed by 18 shareholders to produce and showcase premium Tasmanian produce… Pure Foods Tasmania Pty Ltd (PFT) 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 and expand our plant - based food products within our new and existing brands, to acquire complementary brands and businesses and to increase our market penetration and distribution for our suite of brands and products globally. PFT ’ s suit e o f b r and s an d businesse s include: ½ W oodbridg e Smokehouse; ½ T asmania n Pate; ½ Dal y Potat o Co; ½ Pu r e T asmania n Seafood; ½ Laud s Plant - Base d Foods; ½ Th e Cash e w C r eamery ; and ½ N e w Pastu r es. Strategy PFT ’ s g ro wt h st r ateg y is twofold: ½ o rganicall y g r o w it s e xistin g p r oduc t r ange ; and ½ g r o w via th e acquisition o f complementary businesses. Growth will be achieved organically through increased penetration of existing markets, entry into new markets with a focus on exports and new product development. PFT intends to grow through the acquisition of complementary businesses, with a focus on synergistic and similar premium food and beverage businesses, as well as other complementary assets and businesses that align with its existing portfolio. Brands Through Acquisition O rganically Grown Brands Wh o i s Pu r e Foods Tasmania? I am excited about the outlook for our business in 2022 and beyond. Michael Cooper, Managing Director Who i s Pu r e Food s T asmania? 94% R e venu e G ro wth compa r e d to FY20 Stockists in FY21 2, 0 0 0 666 % f r om 300 in FY20 eComme r ce Sales 332% compa r e d t o FY20 Online Orders sent to 747 suburbs a r ound Aust r alia, including as far as Ciccone N T , Pt Douglas QL D , Flinders Is T AS, and Port Hedland W A 29 New SKUs launche d i n FY20 N e w B r ands Launched New Businesses Acquired 3 3 Managin g Di r ecto r ’ s Report m Strong Financial Results Delivered Overall, we are incredibly pleased with the financial results from our first full year of listing. The 2021 financial year saw strong levels of growth continue across all key financial metrics for the Company. PFT delivered FY21 sales revenue of $8.2 million up 94% vs FY20 with all divisions delivering positive revenue growth. PFT remains appropriately funded with a net cash position of $1.6 million as at 30 June 2021 and a further $1.2 million in undrawn debt facilities. Our People I want to recognise the significant contribution of all our employees over the year as we navigated the challenges of COVID in addition to integrating our acquisitions. Without the dedicated efforts of our team, our business would not be in the position it is today, and I would like to thank all of our staff, and the Board, for their contributions over the year. Importantly we are building a strong culture at the Company. Whilst we have grown rapidly, and via acquisition, all our staff are committed to the Company, with associated low staff turnover. Our strong talent and our people’s passion for the business will continue to drive product innovation and success in the future. Well Positioned for Growth in FY22 and Beyond The Company remains well positioned to continue to grow the business via product innovation and acquisition and to build a strong culture. Our quality product, the new distribution agreements with Monde Nissin Australia and Tas’Mania Fresh and our growing e - commerce platform position the Company to continue to drive revenue growth into FY22 and beyond. Export 6% Business End - Users 2% Internal Sales & Other 0.1% Consumer Di r ect 2% Major Retail 56 % Distributor & Independents 22% Di r ect Retail 12 % R e venue (A$ millions) 73% inc r ease vs FY20 8 7 6 5 4 3 2 1 0 FY17 FY18 FY19 FY20 FY21 T asmanian Pate 26% Daly Potato Co 22% W oodbridge Smokehouse 22% White Label 14 % Homestead Pate 13% Lauds 2% Cash e w Cr eamery N e w Pastu res Pu r e T as Seafood Other * 1% 0.5% R e venu e b y Custome r Segment Y ea r o n Y ear Ne t R e venu e G r o wth * includes externally sourced products for online store R e venu e b y Custome r Location % o f T ota l R e venue % o f Aust r alia n R e venue Singapo r e 3.41% Hon g Kon g 2.10% R e venu e b y B r and Aust r alia 94.49% WA 3% SA 2% QLD 2% NSW 53% VI C 16% TAS 19% Busines s & Financia l Summary Busines s & Financia l Summary Busines s & Financia l Summary PF T Ope r ation s R e vi e w Compan y Summary PF T G r ou p Result s FY2 0 v FY21 Sales FY21 FY20 Change A$000's A$000's A$000's % Group* 7,829 4,535 3,295 73% Net Loss/P r ofit (943) (196) (746) (380%) Underlying EBITDA (461) 41 (502) (1225%) * Net Sales R e venu e b y Ope r atin g Entity FY21 FY20 Change A$000's A$000's % T otal Sales R e venue 8,291 4,279 94% Woodbridge Smokehouse 2,023 1,063 90% T asmanian Pate 3,940 3,458 14% Daly Potato Co 1,779 n/a n/a Lauds Plant - Based Foods 396 n/a n/a The Cash e w C r eamery 153 n/a n/a Financia l Highlights ½ FY21 sales revenue of $8.2 million up 94% vs FY20 (including revenue from acquisitions) with all divisions delivering positive r e venu e g r o wth ½ W oodbridg e Smokehouse inc r ease d sale s b y 90 % v FY20 ½ St r on g g r o wt h i n e - comme r c e sales, u p 332 % v s FY20 ½ Active g r o wt h i n stockists f r o m 30 0 i n FY20 to 2,000 i n FY21 ½ Positiv e EBIT D A fo r al l five busines s entities ½ G r ou p EBIT D A fo r FY21 o f ($461,150) v s FY20 $41,009 ½ Investmen t o f o ve r $ 400 k i n marketing , b r and an d n e w p r oduc t d e velopmen t to driv e further g r o wt h i n FY 22 ½ $ 2 . 3 million invested in the acquisitions of Dal y Potato , Laud s Plant - Base d Food s and Th e Cash e w C r eamery ½ $3.5 million invested in plant and equipment to underpi n g r o wth ½ Group continues to remain well funded with a Net cash position of $1.6 million as at 30 June 2021 and a further $1.2 million in undrawn debt facilities FY2 1 Sales Re venu e $8.2m U p 94% v s FY20 PF T Ope ration s R e vi e w OPER A TIONA L HIGHLIGHT S – THRE E SU C CESSFU L A C QUISITIONS ½ Th e Compan y e x ecute d o n it s st r ateg y of identifying an d e x ecutin g o n ta r gete d value accretive acquisitions with Lauds Plant - Based Foods, The Cashew Creamery and Daly Potato Company providing entry into the rapidly growing plant - base d foo d segment ½ Significant growth in distribution network with n e w partner s an d k e y distribution ag r eements signed with Monde Nissan Australia and Tas’Mania Fresh providing increased access to the growing product range across Australia, Hong Kong and E - comme r c e i n Asia. ½ Launche d n e w p r emium Homestea d Pat e into 850 W oolworth s sto r e s nationall y wit h additiona l n e w SKUs launched over the year, further diversifying th e Compan y ’ s p r oduc t r ange ½ St r engthene d e - comme r c e platfor m an d expanded onlin e p r oduc t availability to ta r ge t r apidly g r o wing opportunity Michae l Cooper Managin g Di r ector We are exceptionally pleased to have delivered strong growth and executed against our key strategic objectives in our first full year as a listed Company. Over the past 12 months we have executed on three strategic acquisitions which have fast tracked our scale and growth in the emerging plant - based food market. Lauds, Cashew Creamery and Daly Potato Co have been seamlessly integrated into our business and all provide significant growth opportunities. We will continue to target complimentary, and value adding acquisitions to drive our growth and position the Company as a local leader in the rapidly growing plant - based food sector. PF T Ope ration s R e vi e w PF T Ope ration s R e vi e w m December 2020 was our largest month by revenue for Tasmanian Pate at 72% above monthly average for the 2021 financial year. PF T Ope ration s R e vi e w Tasmanian Pate Review Tasmanian Pate produces a wide range of premium pates that have been enjoyed for over 25 years by Australians. Ranged nationally in Woolworths stores and in qualit y independent g r ocers , T asmania n Pat e is a product you can guarantee will compliment any entertaining platter. Tasmanian Pate successfully received an Export License in August 2020, opening up opportunities with PFT's existing export partners. The operational team have been working on a large project of investment in automation machinery to create labour efficiencies. This investment has now been approved and planned for commission within H2 FY22. This change in machinery will create a packaging reformat, opening up an opportunity for marketing to communicate the brand to existing customers, and to increase sustainability. Homestea d b y T asmania n Pate Homestea d b y T asmania n Pat e bring s th e beauty o f T asmani a ’ s p r oduc e an d mead o w s t o you , to experience and enjoy with family and friends. Th r oug h a su b r ang e o f T asmania n Pate , PF T secu r ed th r e e n e w line s i n Octobe r 202 0 int o W oolworths nationall y unde r a n e w b r and , Homestead. Homestea d focuse s on p r emiu m T asmanian p r oduce , t o p r oduce fl avour s ye t t o b e see n in th e Aust r alia n pat e market. Foll o win g th e launc h o f the b r and ’ s r ang e i n October 2020 , Homestea d Pat e ha s launche d tw o n e w SKUs in Q1 FY22, Free Range Chicken with Aged Cheddar and Free Range Chicken with Red Chilli. Aged Cheddar wa s launche d nationall y th r oug h W oolworth s in September 2021. This follows on from the launch of th e b r an d int o independen t r etailer s nationall y in August 2021 through Monde Nissin Australia. This brand has great potential for PFT and will be a focus in FY22 in creating a premium and luxury offering. Revenue Growth Customer Segment by Value Sales Break - up by Brand Di r ect Retail 1.02% Food Service 0.04% Consumer Di r ect 0.04% FY21 FY20 $3.94m $3.46m Revenu e 14% G ro wth Stockists Aust r ali a Wide PF T Ope ration s R e vi e w Spirit Graphics Draft 4 - PFT 2021 Annual Report (4) - October 11, 2021 10:27 am March was the largest month for Woodbridge . representing 11 . 65 % of FY 21 total revenue . Stockists in Australia, Hong Kong, Vietnam, Malaysia, Singapore, and Indonesia . PF T Ope ration s R e vi e w Woodbridge Smokehous e R e vi e w The Southern Ocean p r oduces the finest fish, f r om which we make the finest smoked p roducts. I t ’ s that simple. Established in 2004, Woodbridge Smokehouse produces some of the most mouth - watering and luxurian t smoked Ocea n T r out an d Atlanti c Salmon available today – anywhere in the world. Situated on the verdant south - east coast of Tasmania, W oodbridg e Smokehous e is se t i n our o wn 25 - ac r e apple orchard. Traditional hand - smoking processes using our own fruit tree wood create the delicate and distinctive flavours for which Woodbridge Smokehouse is r en o wned. “New distribution channels launched with Monde Nissin Australia and Tas’Mania Fresh reflect the strong demand for our Woodbridge Smokehouse product and provide a significant avenue of growth for FY22 and beyond.” – Michael Cooper, Managing Director. Th e 202 1 Financia l Y ear was a perio d o f distribution expansion for Woodbridge Smokehouse. After successfully launching into the independent market in South Australia through PFT’s distribution partner, Monde Nissin Australia (MNA), the distribution of Woodbridge products was extended into Victoria, N e w Sout h W ales , AC T & W ester n Aust r alia , in early February, and into Queensland late July. The partnership was initially launched with 4 SKUs but was quickl y extende d t o 8 SKUs withi n th e F Y . Further concreting the partnership between MNA and PFT, Woodbridge has now secured national sole supplier status with MNA for smoked salmon and trout products, increasing group revenues by c.15% in FY22 (v s FY21 l e vels). A n ag r eemen t wit h T as’Mani a F r es h has bee n signe d to expand the distribution of Woodbridge Smokehouse into six major retail chains in Hong Kong, which generated the largest order to date of 40,000 units of 100g Atlantic Salmon and Ocean Trout, with a forecast o f a n additiona l 200,000 unit s i n H 1 FY22 Despite the uncertainty across the world with the COVID - 19 pandemic, PFT was able to sustain export sales through Woodbridge Smokehouse. This included the onboarding of new customers, The Meat Club and RedMart. Redmart is an e - commerce business based in Singapore, owned by Alibaba, which supplies across Australia. This new partnership opens up a large opportunity within the growing e - commerce market in Asia. PFT has also invested in equipment for smoking and filleting, to vertically integrate the entity and improve cost of goods. This equipment is being commissioned i n H 1 FY22 , c r eatin g cos t saving s an d expanding capacity within current product ranging and opening opportunities within new segments. T o p 5 P r oduct s b y V alue 1. Salmo n Col d Smoke d 100g 2. Ocea n T r out Col d Smoke d 100g 3. Salmo n Col d Smoke d 200g 4. Salmo n Col d Smoke d Whol e Sid e Sliced 5. Ocea n T r out Col d Smoke d 200g R e venu e G ro wth t 4 . Food Service 6.3% Customer Segment by Value Consumer Di r ect 2.9% Other 1.2% FY21 FY20 $2.02m $1.06m Revenu e 90% G r o wth PF T Ope ration s R e vi e w PF T Ope ration s R e vi e w Dal y Potat o C o R e vi e w Acqui r ed 100% October 2020 The Dalys have been growing potatoes on the pristine South East Coast of Tasmania for 30 years. Overlooking the beautiful Marion Bay, the farm enjoys perfect condition s for g ro win g th e world ’ s tasties t potatoe s – sandy soils, rain, and sunshine. Tasmania has some of the richest soils, which is ideal for growing potatoes. Daly Potato Co know consumers are busy, so the range of products aim to provide you with ready to eat solutions that are both delicious and nutritious, through farm fresh convenience. In March 2021, Daly launched a premium Homestyle Coleslaw product into Woolworths in Tasmania, Victoria and New South Wales. This product launch has bee n ver y successfu l an d i n Q 1 FY22 sits a s th e second - best performing SKU for Daly. The much - anticipated Potato & Gravy product was launched into the Tasmanian independent market in February 2021 , and gained great traction with customers selling cold and hot instore. The production and new product development team have been working hard to build on the product to meet major retailer requirements to facilitate a broader launch into the market. The Daly brand was a major focus for the PFT marketing team within FY21, with various marketing activities and campaigns, including the Daly Potato Head competition and North Melbourne Football Club Tasmanian game activation, which helped to drive consumer awareness and product trial instore. The operational focus for Daly in FY21 was on creating better labour management, through transitioning labour in house from a third - party provider, which was aided by the current PFT administration team. PFT also invested in production equipment to increase automation and capacity, through creating secondary production lines within production workflows. This has assisted in improving bottom lines and opening up capacity growth. T o p 3 Month s b y R e venue: 1. December 2. March 3. January Stockists in Tasmania, Victoria and New South Wales s 6 White Label 5.8% R e venu e G ro wth Customer Segment by Value Food Service & Consumer Di r ect 2% ct Retail 9% Sales Break - up by Brand $511,386 $1,779,000 $2,290,386 $2,088,000 Revenu e 110% G ro wth FY21 FY20 Prio r t o PFT Aquisition Afte r PFT Aquisition PF T Ope ration s R e vi e w am Dal y Potat o Hea d Competition Closing on 30 June, the Potato Head competition gave consumers the opportunity to win a year’s worth of Daly Potato Co products by sharing a photo online of them with their Daly beanie and/or products. This received great engagement from both consumers and retailers North Melbourne Football Activation at Blundstone Arena We went to Hobart's Blundstone Arena and handed out 5,000 Potato & Gravy 250g samples, and merchandise to the crowds on their way home from the football across two home games (On Saturday 26 June and 31 July 2021). The reception and feedback from consumers was great and this turned out to be an excellent brand awareness and product trial exercise. PF T Ope ration s R e vi e w Spirit aphics Draft m Laud s Plant - Based Food s R e vi e w Acqui r ed 100% February 2021 Lauds Plant - Based Foods is a Tasmanian - based creator of a range of dairy and cheese alternatives made from plants - predominantly nuts and oats. Its products help consumers to “feed their kindness”, relating either to themselves, their community or their planet through creating products that are delicious, nutritious, socially and environmentally sustainable and cruelty free. Laud s was establishe d i n 201 7 b y th r ee passionate Tasmanians – Dani Wheatley, Pia Palmer and Simon Paul. It was a common ideology that bonded the three and culminated in the journey to establish and build a plant - based business. Lauds operates with a strong social conscience. The founders are motivated by a love of food, a love of the planet, the ethical treatment of animals and the growth of sustainable food production processes. PFT was pleased to announce the acquisition of Lauds Plant - Based Foods Pty Ltd (“Lauds”) in February 2021. Prior to acquisition, Lauds provided all products for PFT’s recently launched New Pastures range, in which the mutual benefits of this successful partnership led to discussions that culminated in the agreement to acquire Lauds to support further growth and product development. t t Food Service 8% Consumer Di r ect & Other 2% n FY21 FY20 $396k $222k 78% G ro wth R e venu e G ro wth Customer Segment by Value Sales Break - up by Brand PF T Ope ration s R e vi e w PF T Ope ration s R e vi e w Lauds Plant - Based Foods Review continued… PF T Ope ration s R e vi e w m Th e Cash e w C r eamer y R e vi e w Acqui r ed 100% April 2021 The Cashew Creamery is a Tasmanian - based creator of a range of non - dairy ice cream products made from raw cashews. Wherever possible, its products are made from local and organic ingredients. The cashew ice cream is made in small batches using only the highest quality of ingredients. The Cashew Creamery products are packaged in home compostable or recyclable packaging to minimise the environmental impact of the company. Finishing off PFT's acquisitions for the Financial Year, was the purchase of The Cashew Creamery Pty Ltd (‘TCC’) in April 2021. The Cashew Creamery was established in 2016 by Jen Bruyn Schmidt and Matt Schmidt and produces non - dairy cashew - based ice cream. Jen has remained in the business as the production manager for the brand. The acquisition of The Cashew Creamery leverages PFT’s existing relationship with Lauds Plant - Based Foods with both Lauds and The Cashew Creamery operating in the plant - based markets. The businesses having an established relationship and working partnership including co - purchase agreements for ingredients – a cost saving which will further benefit from the consolidation of both businesses within PFT. The first project for the PFT team after the acquisition, was the development of multi - bar take home packs, to assist in the ranging into retail - based customers and to strategically compete with the larger ice cream brands. The 5 single flavou r pack s an d 2 multi - flavou r pack s joine d th e e xistin g r ang e o f singl e bars, 473m l tub s an d 5 L foo d servic e tubs. The Cashew Creamery has created sales success within its short period in the company, with 80% ranging achieved within the Tasmanian customer base. PFT has also secured national distribution of The Cashew Creamery into independent r etailers , launchin g i n market i n October 2021 , th r oug h its e xisting partnership with Monde Nissin Australia. This is a great achievement prior to the key summer season. Operationally, the focus since the acquisition has been in the preparation for moving the production facility from Moonah to Mornington, to join Tasmanian Pate, Lauds and PFT head office. The move was completed in August 2021 and allows The Cashew Creamery to expand. The facility also allows for efficiencies through cooperation with neighbours, Lauds, and reducing the distance between the production facility and the PFT Distribution Centre and head office. t Other 1% FY21 FY20 $153k $126k R e venu e 21% G r o wth Revenue Growth Customer Segment by Value PF T Ope ration s R e vi e w PFT has also begun to invest in state - of - the - art machiner y t o inc r eas e capacit y withi n FY22 , t o meet the increasing current and forecasted demand. The machinery is expected to be commissioned in Q3 FY22, with the facility recently moving to double shifts to meet current demand in the interim. Managing Director, Michael Cooper said, “This is very exciting for PFT shareholders. The acquisition of The Cashew Creamery further strengthens our footprint in plant - based foods. The Cashew Creamery has a very uniqu e p r oduc t that a s far a s we a r e awa r e is a first for the Australian market with a base ingredient of cashews as opposed to competitors who use coconut. W e ca n ’ t wait t o get Th e Cash e w C r eamery out th r ough our distribution channels in both Australia and through our export markets . ” T o p 5 Flavour s b y V alue: 1. Chocolat e Cash e w Bar 2. St r awberr y Cash e w Bar 3. Min t Chocolat e Cash e w Bar 4. V anilla Cash e w Bar 5. Coffe e Cash e w Bar Stockists Aust r ali a Wide PF T Ope ration s R e vi e w The Cashew Creamery Review continued… The Cashew Creamery has a very unique product that as far as we are aware is a first for the Australian market with a base ingredient of cashews as opposed to competitors who use coconut PF T Ope ration s R e vi e w The Cashew Creamery Review continued… Strong Growth in E - Commerce Sales 332% compa r e d t o FY20 PF T Ope ration s R e vi e w E - Commerce PFT’s growth for FY21 was further underpinned by the introduction of the e - commerce strategy, a cornerstone of the group’s future growth trajectory and operations. Providing an expanded customer base, the digital sales routes and online store was launched in August 2020. This has driven increased brand awareness, increased traffic and higher conversion rates. PFT anticipates significant levels of growth over the coming periods within the digital sales channels that will improve the performance of the group across all key business metrics. “Our e - commerce platform continues to grow, with sales up o ve r 300% during the year . W e wil l continu e t o inves t i n our e - commerce platform and see this channel as a high growth, high value distribution opportunity.” Michael Cooper, Managing Director NT 1% SA 2% NSW 31% QLD 17% T A S 13% VIC 31% One of the hampers sold on the online store throughout the year State Break - up of Online Orders by Value W A 3% A C T 1% Online Orders sent to 747 suburbs around Australia, including as far as Ciccone N T , Pt Douglas QL D , Flinders Is T AS, and Port Hedland W A E - Commerce y m Woodbridge, Tasmania Pure Foods Tasmania Pty Ltd ww w .pu r efoodstas.com Thank you for your ongoing support
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