Introduction Financials The Market Honey Supply Beekeeping Enterprise Outlook

Transcription

1 Introduction Financials The Market Honey Supply Beekeeping Enterprise Outlook

2 Capilano is the market leader of honey in Australia. It was established in 1953 as a 100% beekeeper owned co-operative. Historically a production driven company, with objectives to provide the best market for all the honey produced by its beekeeper shareholders. Capilano is now one of the world s largest honey packers. Capilano is a Brand that Australians trust (96% recognition factor). Renowned for consistency, flavour, quality and innovative delivery mechanisms. Export represents 20-30% of our business and we trade with over 32 countries.

3 Introduction (continued) Changes to legislation resulted in the company listing on the Bendigo Stock Exchange (BSX) to become a publically listed company in Capilano was then listed on the ASX in Board consists of: Four Independent Non-Executive Directors (two of which are the Foundation Shareholder s appointed Beekeeper Directors) Managing Director Head Office is located in Brisbane, with operational sites in Brisbane (QLD), Perth (WA) and Maryborough (Vic). Capilano has recently acquired a primary production beekeeping enterprise located in Evans Heads (NSW), specialised for the production of Manuka honey.

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5 ,160 86,003 Earnings before Interest & Tax (EBIT) 5,903 7, ,863 11,554 EBIT Depreciation & Amortisation (EBITDA) 7,762 9,054 13,206 Net Profit before tax (NPBT) 4,995 6,490 11,128 Net Profit after tax (NPAT) 3,447 4,619 7,845 Operating Cash Flow 3,244 11,801 7,621 Net Debt 16,053 7,593 4,665 Net Assets 26,947 28,583 33, % 42.5% 50.8% 8.5x 13.9x 31x Table ($,000 s) Revenue Current Ratio (Current Assets / Current Liabilities) Debt Ratio (Total Liabilities / Total Assets) Interest Cover (EBITDA / Interest)

6 Capilano s brand recognition and awareness remains at No.1. Consumer preference for honey remains with Capilano, with everyone in the family enjoying our products. Marketing premium Australian honeys to the world remains a priority. In-store messaging is a focus, as we reinforce: Brand heritage, product provenance, natural production environments, our specialist Australian beekeepers.

7 Drought impacted crops in Australia has meant honey prices have risen and the value of our products has gone up. Australian honey is no longer a commodity. Capilano is focussing on the marketing and sales of premium honeys. Key export markets are all growing. The production, blending and marketing of Manuka honeys and health & wellness products has been key to our success.

8 Capilano s imported supply chain of honey has enabled us to deliver customers product and choice during periods of prolonged drought and low Australian honey supply. Sales have grown in value and volume in all key segments (DR, DB, ER). In January 2015, Capilano acquired Chandler s Honey from Melbourne, who supplied industrial and food service markets (1,000t). Asia sales are progressing, but expansion is being limited by supply. Internet e-commerce sales strategy for Asia in place.

9 The Market (continued) 140,000 Total Sales ($000) 120, ,000 80,000 60,000 40,000 20,

10 14,000 12,000 10,000 8,000 Export - Bulk Export - Retail Domestic - Bulk Domestic - Retail 6,000 4,000 2,

11 Dollars (000s) Share of Total Honey /01/14 09/02/14 09/03/14 06/04/14 04/05/14 01/06/14 29/06/14 27/07/14 24/08/14 21/09/14 19/10/14 16/11/14 14/12/14 21/12/14 28/12/14 Total Capilano inc. Wescobee Total Beechworth Honey P/L Total Aust Rainforest P/L Total Ancient Distributors Total Byron Bay Honey Total Private Label Total Other Mfrs

12 Active Manuka honey is produced from the Leptospermum species of plants that are native to Australia and New Zealand. This honey is recognised for its scarcity and unique clinically proven antibacterial qualities and consequential premium price. On 30 July 2015 a Share Sale Agreement was signed to acquire 100% of the share capital in KirksBees Honey Pty Ltd. This beekeeping enterprise is one of Australia s largest active Manuka honey producers, which is located in Evans Head, New South Wales. The acquisition includes the assets required to operate the business including bee hives, apiary sites, vehicles, related property, sheds and honey extraction equipment.

13 The beekeeping enterprise was attractive to Capilano as a consequence of: the notable Manuka floral apiary sites the business has access to; the provision of future assurances in our supply chain with regard to high valued Manuka honey supply; the potential to grow production over time; the ability to train and foster new industry entrants to the beekeeping industry. Capilano recognises that growing premium honey supply and industry capability by investing in our supply chain will deliver increased product security, whilst delivering a material benefit to our earnings.

14 Preserve domestic market leadership. Continue to innovate, drive usage occasions and strengthen health & wellness credentials. Utilise existing operational capacity to benefit from economies of scale (eg. Maryborough). Increase the security of our supply chain: nurture & establish career paths for beekeepers; Full or part-owned beekeeping enterprises; Market leadership in honey price paid. Continued focus on quality, service and cost.