Capilano - Morgans

Transcription

Capilano - Morgans
Introduction | Financials | The Market | Honey Supply | Beekeeping Enterprise | Outlook
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Capilano is the market leader of honey in Australia.
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It was established in 1953 as a 100% beekeeper
owned co-operative.
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Historically a production driven company, with
objectives to provide the best market for all the
honey produced by its beekeeper shareholders.
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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.
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Export represents 20-30% of our business and we
trade with over 32 countries.
Introduction (continued)
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Changes to legislation resulted in the company listing
on the Bendigo Stock Exchange (BSX) to become a
publically listed company in 2004.
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Capilano was then listed on the ASX in 2012.
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Board consists of:
₋ Four Independent Non-Executive Directors
(two of which are the Foundation Shareholder’s
appointed Beekeeper Directors)
₋
Managing Director
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Head Office is located in Brisbane, with operational
sites in Brisbane (QLD), Perth (WA) and Maryborough
(Vic).
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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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2013
2014
2015
72,160
86,003
Earnings before Interest & Tax (EBIT)
5,903
7,140
120,863
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
33,705
2.73
2.26
1.54
50.7%
42.5%
50.8%
8.5x
13.9x
31x
Table
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($,000’s)
Revenue
Current Ratio (Current Assets / Current Liabilities)
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Debt Ratio (Total Liabilities / Total Assets)
Interest Cover (EBITDA / Interest)
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Capilano’s brand recognition and awareness
remains at No.1.
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Consumer preference for honey remains with
Capilano, with everyone in the family enjoying our
products.
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Marketing premium Australian honeys to the
world remains a priority.
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In-store messaging is a focus, as we reinforce:
₋ Brand heritage,
₋ product provenance,
₋ natural production environments,
₋ our specialist Australian beekeepers.
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Drought impacted crops in Australia has meant
honey prices have risen and the value of our
products has gone up.
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Australian honey is no longer a commodity.
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Capilano is focussing on the marketing and sales of
premium honeys.
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Key export markets are all growing.
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The production, blending and marketing of
Manuka honeys and health & wellness products
has been key to our success.
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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.
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Sales have grown in value and volume in all key
segments (DR, DB, ER).
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In January 2015, Capilano acquired Chandler’s Honey
from Melbourne, who supplied industrial and food
service markets (1,000t).
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Asia sales are progressing, but expansion is being
limited by supply.
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Internet e-commerce sales strategy
for Asia in place.
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The Market (continued)
Total Sales ($000)
140,000
120,000
100,000
80,000
60,000
40,000
20,000
2012
2013
2014
2015
14,000
Export - Bulk
12,000
Export - Retail
10,000
Domestic - Bulk
Domestic - Retail
8,000
6,000
4,000
2,000
0
2011
2012
2013
2014
2015
Dollars (000s) Share of Total Honey
80.0
70.0
60.0
54.2
49.5
49.4
25.6
25.6
50.5
57.5
58.6
20.5
19.1
58.9
60.0
17.4
16.4
65.9
67.3
68.9
13.2
13.6
12.2
72.3
73.4
74.1
9.8
10.1
9.1
52.3
50.0
40.0
30.0
21.0
28.0
24.9
20.0
10.0
0.0
4wks
4wks
4wks
4wks
4wks
4wks
4wks
4wks
4wks
4wks
4wks
4wks
4wks 21/12/14 28/12/14
12/01/14 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
Total Capilano inc. Wescobee
Total Beechworth Honey P/L
Total Aust Rainforest P/L
Total Byron Bay Honey
Total Private Label
Total Other Mfrs
Total Ancient Distributors
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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.
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On 30 July 2015 a Share Sale Agreement was signed to
acquire 100% of the share capital in KirksBees Honey Pty
Ltd.
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This beekeeping enterprise is one of Australia’s largest
active Manuka honey producers, which is located in
Evans Head, New South Wales.
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The acquisition includes the assets required to operate
the business including bee hives, apiary sites, vehicles,
related property, sheds and honey extraction
equipment.
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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.
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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.
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Preserve domestic market leadership.
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Continue to innovate, drive usage occasions and
strengthen health & wellness credentials.
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Utilise existing operational capacity to benefit from
economies of scale (eg. Maryborough).
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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.
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Continued focus on quality, service and cost.