Full Year Results Investor Presentation 2023 slide image

Full Year Results Investor Presentation 2023

REVENUE AND SALES VOLUMES Total revenue attributable to business units was down 8% ($117m) driven by lower ingredient sales volumes (down 18%) due to higher FY 21 carry-over inventory in FY 22, lower Global Dairy Trade (GDT) prices, and higher production of Advanced Nutrition base powders which displaced production of ingredient powders. Ingredients Revenue down 20% (FY 23: $661m, FY 22: $826m) driven by: Reduction in sales volumes of 18% (FY 23: 108,856 MT, FY 22: 132,481 MT) due to FY 22 benefiting from high carry over inventory (~10,000 MT) from FY 21 as a result of COVID-19 related delays. Increased Advanced Nutrition base powder production displacing production of ingredient powders, operational stability challenges, and higher milk sales at our Pokeno site to accommodate the processing upgrade project. Sales volumes mainly comprised of SMP/AMF (FY 23: 81% vs. FY 22: 61%) which was the lead bucket for most of the year. This significantly outperformed WMP and reduced the impact of lower sales volumes. Steadily declining GDT prices over the year due to reducing Chinese demand. Advanced Nutrition Revenue up 6% (FY 23: $440m, FY 22: $416m) driven by: Overall sales volumes lower by 5% (1,535 MT) due to a combination of reduced and deferred demand. Updated pricing which reflects recent significant increases in raw materials and packaging prices. Lactoferrin pricing remained strong in the period, however external sales were down 7 MT (FY 23: 30 MT, FY 22: 37 MT) as we consumed product into base powder production. Consumer Sales revenue increase of 6% (FY 23: $329m, FY 22: $309m) driven by: Impact of lag pricing and higher cheese prices passed through to customers compared to FY 22. Offset by 5% lower sales volumes (FY 23: 56,999 MT, FY 22: 59,786 MT) due to lower butter sales. Foodservice First sales of 757 MT ($4m) made in China for the JOYHANA branded UHT cream. Market feedback is positive with significant potential for higher sales volumes moving into FY 24. Other amounts not allocated to core business units Sales of raw milk and cream increased significantly on prior year (FY 23: $141m, FY 22: $91m) This is due to maximising the SMP/AMF bucket over WMP and production of infant base powder being pushed into the high milk flow months due to raw material shortages and operational stability challenges in the first half of the year. * Sales revenue ($ millions) Total* Ingredients Advanced Consumer** Foodservice Nutrition FY 21 1,307 635 406 266 FY 22 1,551 826 416 309 FY 23 1,434 661 440 329 4 Sales volume (MT) Total* Ingredients FY 21 FY 22 FY 23 218,759 225,773 198,583 125,914 132,481 108,856 58,483 59,786 Advanced Consumer** Foodservice Nutrition 34,362 33,506 31,971 56,999 757 Excludes amounts not attributable to business units. Dairyworks sales revenues were $283m (FY 22: $264m), with sales volumes of 24,781 MT (FY 22: 27,814 MT). PAGE 6 FULL YEAR RESULTS INVESTOR PRESENTATION 2023
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