onlyuse
personalINVESTOR UPDATE
10 MARCH 2022
r
r personal use only
SNAPSHOT
Premium hemp & plant-based health and wellness products
Evolution to a branded, value-added health company
Vertically integrated business - producer, manufacturer & distributor
Strong retail relationships; important new contract announced with Woolworths on 9 March 2022
Operates in high-growth market verticals: plant-based food, pet supplements & sustainable ingredients
Plant-based products are a rapidly | |||
growing and evolving market segment | |||
only | TSN is positioned | ||
• Cleaner lifestyles, changes to eating habits, sustainable living | to leverage the | ||
choices, rising agricultural costs - macro trends fuelling growth | mainstream shift | ||
towards plant | |||
• Significant technological advances and innovation in segment | based, | ||
sustainable | |||
use | nutrition | ||
• Strong investment support for sector both offshore and in Australia | |||
personalr | 32% | 46% | 2x |
of Australians are | increase in | plant-based | |
now "flexitarian" | Australian plant- | products in | |
or "meat | based grocery sales | Australian | |
reducers"1 | in FY20 (vs FY19) 2 | supermarkets 2 |
Notes:
1 Food Frontier: Hungry for plant based: Australian Consumer Insights, Colmar Brunton, October 2019
2 Food Frontier 2020 State of the Industry: Australian Plant Based Meat Sector
Dedicated
Category |
Focused |
Brands |
useonly |
TM
TM
TSN business mix | ||
(1H FY22 - revenue) | ||
personalr | 45% | 55% |
Branded product sales
Ingredients sales
4
• | Launched in | • | Launched in | • | Acquisition settled |
September 2020 | June 2021 | 28 Jan 2022 | |||
• | Plant based | • | Innovative pet | • | Market leader in |
challenger | supplements brand | native & indigenous | |||
food brand | • | Gained strong | ingredients | ||
Sourced directly | |||||
• | Quickly gaining | distribution in | • | ||
distribution, | Australian retailers | from indigenous | |||
revenue and online | Direct to consumer | communities across | |||
sales growth | • | Australia | |||
channel growing | Growing and | ||||
• | Distribution | strongly | • | ||
agreements with | Feasibility | production is | |||
Coles and | • | sustainable and | |||
Woolworths | completed for | traceable | |||
launch into the US | Exports into the US | ||||
market | • | ||||
and South Korea |
- The traditional hemp ingredients business
- Continues to grow with innovative new products and upgraded production processes
- Long term supply contracts with 17 farming suppliers
1H FY22 financial summary
$M | 1H FY22A | 2H FY21A | 1H FY21A | |
Total revenue | 1.6 | 1.1 | 0.8 | |
0.7 | 0.5 | 0.3 | ||
Gross profit | ||||
only | (0.8) | (0.4) | (0.1) | |
Marketing expense | ||||
Other operating expenses | (2.7) | (3.4) | (1.3) | |
use | (2.6) | (3.1) | (0.9) | |
EBITDA | ||||
NPAT | (2.8) | (3.3) | (1.1) | |
Gross margin (%) | 43.0% | 44.9% | 38.8% | |
Cash | 5.4 | 0.9 | 4.1 | |
Borrowings | 1.1 | 1.2 | 1.2 | |
personalr | (2.9) | (2.7) | (1.2) | |
Operating cash flow | ||||
- Strong revenue growth: up 103.6% vs 1H FY21 with strong growth in the branded products portfolio despite COVID-19 related supply disruptions (which reduced branded product sales by ~20% in Q2 FY22)
- Gross profit uplift due to changing business mix: branded product portfolio generates higher gross margins
- Marketing expense increase: given significant investment in brand awareness in-line with Company transformation strategy over past 12-months
- Other operating expenses: reduction in operating expenses % sales in 1H FY22. Management maintain strong focus on efficiency of operations
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The Sustainable Nutrition Group Ltd. published this content on 09 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 March 2022 23:52:03 UTC.