Full Year Results Investor Presentation 2023
PRODUCTION AND CLOSING
INVENTORY VOLUMES
Production volumes decreased 2% (3,804 MT) primarily due to reductions in ingredient volumes because of
higher Advanced Nutrition base powder production, partially offset by higher production of UHT whipping
cream and milk products. Closing finished goods and work-in-process inventories were up 31% due mainly
to a build in Advanced Nutrition base powders.
Ingredients
Production volumes down 12% (FY 23: 108,010 MT,
FY 22: 122,330 MT) driven by:
Advanced Nutrition base powder production up 38%
displacing ingredients production.
Reduction in milk processed of 4% (FY 23: 76.0m
kgMS, FY 22: 78.9m kgMS) due to optimisation of the
SMP/AMF lead bucket.
After record-high ingredient inventory levels at H1 23
due to ERP implementation issues, closing inventory
finished down 35% year on year (FY 23: 5,531 MT,
FY 22: 8,457 MT).
Advanced Nutrition
Production volumes up 26% (FY 23: 39,159 MT,
FY 22: 31,016 MT) driven by:
Base powder production up 38% driven by timing of
new SAMR registration and to enable maximisation of
FY 24 milk processing in peak milk months.
Lactoferrin production consistent with prior year.
The higher production and demand reductions in H2 have
resulted in higher closing inventory, up 82% (FY 23: 17,349
MT, FY 22: 9,519 MT).
PAGE 7
Consumer
Production volumes consistent with prior year
(FY 23: 53,753 MT, FY 22: 52,894 MT):
Small increase in volume due to commencement of
contract manufacture of ready-to-drink (RTD) milk
beverages.
Dairyworks volumes were largely consistent compared
to the prior year (FY 23: 21,195 MT, FY 22: 21,274 MT).
Foodservice
1,514 MT of UHT whipping cream produced for China
market, with 773 MT on hand on 31 July 2023.
Raw materials inventory
While closing volumes decreased only slightly at 3%
(FY 23: 17,240 MT, FY 22: 17,738 MT), total value was up
$20.2m (FY 23: $116.0m, FY 22: $95.8m) due to a change
in inventory mix to accommodate higher Advanced
Nutrition production and new products launching in early
FY 24. Also impacted by:
Higher costs driven by high inflation.
Higher balance of bulk cheeses at Dairyworks due to
earlier phasing of maturation cheese replenishment.
Production volume (MT)
Total*
Ingredients
Advanced Consumer** Foodservice
Nutrition
FY 21
FY 22
FY 23
215,049
206,240
202,436
138,971
122,330
108,010
20,990
31,016
39,159
55,088
52,894
53,753
1,514
Finished goods and work-in-process
closing inventory volume (MT)
Total*
Ingredients Advanced Consumer✶✶ Foodservice
Nutrition
FY 21
FY 22
FY 23
32,836
19,399
25,499
18,101
8,457
5,531
12,515
9,519
17,349
2,220
1,423
1,846
773
Excludes amounts not attributable to business units.
Dairyworks production volume was 21,195 MT (FY 22: 21,274 MT), with closing finished goods and
work-in-process inventory of 1,382 MT (FY 22: 995 MT).
FULL YEAR RESULTS INVESTOR PRESENTATION 2023View entire presentation