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Investor Presentaiton

FINANCIAL OVERVIEW FY19 FY18 % CHANGE GROSS SALES NET $46.8m $18.4m +154% $43.9m $16.9m +160% REVENUE GROSS* $9.2m $2.3m +300% PROFIT For personal use only EBITDA STATUTORY EBITDA GROSS SMARGIN* 21% 14% +50% bübs Key Drivers 2H19 gross margin improved to 23% vs. 19% in 1H19, due to the optimisation of product and channel mix, engaging new suppliers and improvements in allocating the milk pool. BubsⓇ products delivered 35% gross margin vs. 20% in FY18. Further group margin improvement is expected in FY20, with a full year realisation of one-step nutritional blending at Tatura and in-house processing at Deloraine. Strategic investment in building scale and sales momentum: + Investment in marketing (9% net revenue) to support strong domestic presence and building brand awareness in China; + Investment to reflect capability build in core markets and corporate, with increased headcount by 175% compared to FY18; + Fixed operating and administrative costs typical of business in rapid growth. The overall statutory net loss of $35.5 million incorporates expenses incurred outside of normal business operations: NORMALISED ($5.9m) ($6.0m) +1% ($34.0m) ($65.7m) +48% + $20.4m one-off non-cash expense for equity linked transaction with Chemist Warehouse + $5.9m fair value movement payable to NuLac Foods vendors related to 2017 acquisition + $1.3m share based payments for options issued in FY18 7 *Gross margin does not include the inventories written off. + $897K corporate transaction expense associated with all FY19 M&A transactions + $719K finance costs relating to unwinding of deferred consideration payable + $404K inventories written off for discontinued products + $236K employee costs provision for the termination settlement with previous CEO
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