2009 AGM Presentation Turners - PowerPoint PPT Presentation

Loading...

PPT – 2009 AGM Presentation Turners PowerPoint presentation | free to view - id: 1f6e97-ZDc1Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

2009 AGM Presentation Turners

Description:

2009 AGM Presentation Turners – PowerPoint PPT presentation

Number of Views:44
Avg rating:3.0/5.0
Slides: 104
Provided by: Wesl2
Category:
Tags: agm | com | diy | presentation | turners

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: 2009 AGM Presentation Turners


1
2009 AGM PresentationTurners Growers
  • Jeff Wesley

2
Slight Change in Presentation Format for 2009
  • Jeff Wesley Managing Director
  • Present Company Overview 2009 Update
  • Alistair Petrie - GM Domestic
  • Jack Sowerby - GM Enza Foods Group
  • Michael (Snow) Hardy GM Enza International

3
Group Financial Highlights (000s)
4
Group Financial Highlights (000s)
5
(No Transcript)
6
(No Transcript)
7
(No Transcript)
8
Where are we going as a Company and Why?
  • The business environment in which TG operate is
    changing. We can no longer survive and prosper as
    a produce wholesale/marketing company
  • To survive and prosper we must adapt to the
    changing environment
  • This change requires us to become selectively
    vertically integrated in the key produce line
    supply chains

9
Where are we going as a Company and Why? (cont)
  • We will participate in selected vertically
    integrated farm to fork produce business/category
    where we can
  • Occupy a significant position of supply e.g.
    citrus category
  • Occupy a significant fresh produce brand
    position e.g.ENZA and other brands
  • Occupy a position in a growth produce category
    eg mushrooms
  • Supply superior PVR controlled new fruit
    vegetable lines such as JAZZTM, ENVYTM, ENZAGold
    ENZARed Kiwifruit etc
  • License Growers overseas and in NZ to grow our
    varieties where we export them to global markets

10
Group of Companies and Brands
11
Status Produce 2008 FY- 2009 Update
  • 2008 was the worst year in recent memory for NZ
    tomato growers for two very different reasons
  • The irresponsible unprecedented importing of huge
    volumes of Australian tomatoes by a competitor in
    May June which collapsed the NZ domestic price.
  • The discovery of a new insect pest, the
    Bactericera cockerelli or Potato/Tomato Psyllid
    which closed all our export markets for 2008.
  • These events caused Status Produce a 4m
    turnaround in fortunes.

12
The Potato/Tomato Psyllid A native of North
America Recently Found in NZCost of Damage
Control Tens of Millions
13
Tomato consumption has been negatively affected
by the current economic conditions
14
Status Produce continued
  • Status Produce benchmarks itself against the
    worlds best
  • on labour, energy, nursery plant cost, nutrient
    usage and kg
  • produced - per M²/annum. It is an efficient
    producer of
  • tomato's compared to the worlds best with little
    opportunity
  • for significant costs reduction.
  • Export markets are now open but subject to
    expensive
  • phytosanitary treatments and air freight.

15
Status Produce continued
  • Domestic demand for tomatoes has weakened
    significantly
  • in the current recession bringing into play the
    rule of thumb
  • formula in fresh produce Oversupply the market
    by 5 and
  • see the price fall 20
  • Status is facing another difficult year with
    industry rationalisation being one pathway
    forward we are exploring.

16
Kerifresh Group - Kerikeri
  • The Kerifresh Group includes
  • NZs biggest citrus growing operation - lemons/
    mandarins, navels approx 3,500 MT/yr.
  • One of the ten largest kiwifruit growing
    operations in NZ producing 650,000 trays/yr.
  • In Kericold (76 owned) the biggest packing
    operation in Northland packing over 5,000 MT/yr
    of citrus, 1.3 million trays of kiwifruit and
    250,000 trays of avocadoes/yr

17
Kerifresh continued
  • The company has historically struggled to make
    profits and is being restructured.
  • A new General Manager has recently been
    appointed, the citrus re-planting programme
    accelerated and the green kiwifruit orchards
    grafted to new ENZA kiwifruit varieties of
    ENZARed, ENZAGold and ENZASummer Kiwi.
  • Kapiro Orchards has now been merged with
    Kerifresh.
  • All transport, crates and marketing is now
    supplied by TG Domestic and Delica.

18
Kerifresh Group
  • It is budgeted to make a small profit in 2009
    with increasing profits thereafter.
  • Since takeover, Kerifresh/Kericold has expanded
    into avocado packing and expects to take
    advantage of the major avocado production coming
    on stream in Northland in the next 2-3 years
    5,500MT 1 m trays
  • It has a bright future.

19
Delica NZ Ltd
  • In April 2007 we merged the export skills, brands
    and financial resources of TG Enza Asia with
    the international trading skills of Delica NZ
    Ltd.
  • The outcome of this merger has been an
    outstanding success.
  • In 2008 Delica increased its profit contribution
    to the Group by 534 over the 9 month period of
    2007.
  • As at April 2009 YTD, Delicas profit
    contribution to the group is up 48 on the
    previous period making it currently the 2nd
    highest profit produced in the group.
  • There is significant potential to profitably grow
    this business.

20
Delica continued
21
Floramax/FCC
  • Floramax revenue and profit contribution fell in
    2008 as a result of the recessionary market
    conditions and this trend has continued into
    2009, although it has not materially worsened.
  • Profit contribution April YTD is down 25 on 2008
    and a cost reduction plan is well underway.
    Floramax is exploring opportunities for on-line
    selling to florists and wholesalers while
    exploring the Brisbane flower market for
    opportunities.
  • FCC produced a satisfactory profit contribution
    in 2008 down marginally on 2007. As at April 2009
    YTD FCC is trading at similar levels to last year
    but has introduced a cost reduction programme to
    improve the bottom line.

22
Transport
  • Transport Division The recessionary market
    conditions
  • have affected our Transport Division more than
    most with
  • revenue down 9 YTD. While still profitable,
    contribution is
  • down 69 YTD on 2008.
  • An aggressive streamlining and cost reduction
    programme
  • is well underway which is expected to restore the
    profit
  • contribution for this division going forward.
  • Industry feedback suggests many transport
    operators are
  • struggling with low volumes and will not survive
    the
  • recession.

23
Kiwifruit Update The 50th Year
  • There has been a great deal going on in kiwifruit
    since the annual
  • report was published
  • Since that time we have applied to Kiwifruit New
    Zealand (KNZ)
  • for 3 Collaborative Marketing arrangements to
    export 340,000
  • trays of NZ Kiwifruit to our desperate customers
    in Korea, Mexico
  • and the USA. Zespri, the export monopoly
    surprisingly opposed all
  • 3 applications that were then rejected by KNZ.
    And this at a time
  • when the Zespri monopoly was telling growers to
    dump their good
  • fruit on the ground as the Zespri monopoly could
    not sell it.

24
Kiwifruit Update The 50th Year
  • An appeal to the Board of KNZ followed but a few
    days ago
  • our Appeal was dismissed, a decision we cannot
    understand
  • and which is not in our view in the interests of
    increasing the
  • overall wealth of NZ kiwifruit growers. We
    understand that no
  • appeal has ever succeeded which speaks volumes.
  • A new Collaborative Marketing application is
    about to be lodged but we expect the same outcome
    from the process.

25
Kiwifruit Update The 50th Year
  • ENZA owned kiwifruit varieties (unable to be sold
    by us from NZ
  • due to the Zespri export monopoly) are now being
    planted under license in Korea, Japan, Australia,
    Chile, South Africa, Egypt, Italy and England!
    With negotiations for 3 other countries underway.
  • New Zealand kiwifruit growers want to plant our
    varieties and we
  • want to grow them here in volume. But until the
    Zespri monopoly
  • changes that cant happen.
  • Our goal over time is to become an
    internationally branded, 12
  • month/year, supplier/marketer of the worlds
    highest quality new
  • variety kiwifruit to the worlds supermarkets.
    Just like we are with
  • ENZA on apples.

26
World Wide Fruit (WFL) UK 50 Enza owned
  • The write down of our investment to zero in WFL
    was
  • completed in 2008.
  • WFL continues to trade profitably in the UK
    market as it has
  • done for several years.
  • Once trading profits have helped restore the WFL
    Balance
  • Sheet to health we will be able to reverse the
    write off and
  • take dividends.

27
Pipfruit Growing Operations
  • The group is involved in growing mostly new Enza
    pipfruit
  • varieties in 2 orchards in Hawkes Bay which are
    in transition
  • and with the Inglis JV in Riwaka which is newly
    planted.
  • Volumes of high quality pipfruit have been
    produced at
  • above budget levels from the HB orchards and at
    budget
  • levels from the Inglis JV totaling over 310,000
    export cases
  • (tces). Inglis volume climbs steeply in the next
    few years.

28
Outlook for 2009
  • Always difficult to predict this early in the
    year.
  • Our company wide cost reduction programme is
    quickening pace
  • and the current exchange rate provides some
    reducing optimism for exports
  • with ENZA and Delica.
  • Domestic demand remains soft, especially for
    tomatoes the 2nd
  • biggest category and juice prices have also
    weakened.
  • At this stage profit is tracking similar to 2008
  • I will now ask 3 of my key GMs to present to
    you.

29
2009 AGM PresentationTurners Growers
  • Alistair Petrie
  • GM NZ Markets

30
  • 2008 Highlights
  • First 3 months tracked ahead of record 2007 year
  • 37,000 Jazz sold on local market at export
    prices
  • Improved position in citrus due to Kerifresh
    acquisition
  • Solid turn-around in South Island performance

31
  • 2008 Highlights
  • Entry to cruise boat business
  • Positioned PIX as leading exporter into the
    islands
  • Record year for pre-pack
  • Expanded cool chain and facilities

32
  • 2008 Lowlights
  • Economic condition severely affected last 3 months

Contribution 2007 vs 2008
33
  • 2008 Lowlights

Tomato Prices - Wholesale vs Retail
Tomato Imports Start
Tomato Imports at the highest level
34
  • 2008 Lowlights
  • Significant fall of berry business (loss of main
    suppliers)
  • Dropping exchange rate severely affecting
    affordability of imports
  • Loss of business in Waikato Bays markets to
    Foodstuffs Distribution Centre (DC) only
    partially offset by increased direct business to
    Foodstuffs DC
  • Progressive Ltd embark on a direct import program

35
  • 2009 Trends
  • Continued move towards retailer DCs
  • Continued move toward direct sourcing
    (Domestic/Imports)
  • Separation of traditional wholesale business and
  • supply to major supermarkets
  • Continued retailer drive towards Private Label

36
  • 2009 Trends
  • Continued increase in compliance cost of doing
  • business with supermarkets e.g. WQA, Food
    Safety,
  • QA programs
  • Consolidation/resurgence in independent trade
  • Continued pressure on terms of trade

37
  • 2009 Trends
  • Decrease of Imports due to exchange rates

38
2009 Trends
Imported Mandarins
California Freeze Year
39
  • Looking Ahead
  • Consolidation of current business
  • Focus on cost improvements
  • Mico management of all costs
  • - Cut 1 million of cost by end of 2009
  • Stores and Warehousing improvements/efficiencies
  • - Change hours of operations, improved staff
    utilisation
  • Increase in grower commissions to pay for cost
    of business
  • Luxury end products will continue to be tough

40
  • Looking Ahead
  • More focus on value and affordability
  • Trend on buying local/regional goods
  • Account Management
  • Identify further acquisition targets to support
    profitable vertical integration and minimise the
    direct approach by supermarkets
  • Now appropriate to identify pathways into the
    Australian domestic market

41
  • Looking Ahead
  • Increase sales of proprietary brands
  • Jazz
  • Target of
  • 45,000 TCEs
  • In 2009
  • New ENZA Gold

42
Looking Ahead
  • Re-branding
  • Beekist
  • Kerifresh
  • Tough year but in strong position to rebound in
    2010

43
  • THANK YOU

44
PRESENTATION TO ANNUAL GENERAL MEETING TURNERS
AND GROWERS LIMITED AUCKLAND 4 JUNE 2009 L
J (Jack) SOWERBY Managing Director
45
We are Enza Commercial Holdings Limited And
Comprise/Trade as
Enzafoods New Zealand Limited Based in New
Zealand
and
Enzacor Pty Limited Based in Australia
46
RESULTS AT A GLANCE DECEMBER 2008
  • The combined turnover in 2008 was 96,217K
  • Net profit before tax 7,404K
  • Total External Debt 1,252K
  • Net Assets 55,244K
  • Staff numbers, excluding seasonals 120

47
ENZAFOODS LOCATIONS
Auckland
Hastings
Nelson
Christchurch
Dunedin
48
AUSTRALIAN OFFICES
49
(No Transcript)
50
ENZAFOODS MANUFACTURES SELLS
Apple Juice Concentrates
Kiwifruit and Pear Concentrates
Carrot Juice Concentrate
Sliced, diced and pureed apples
Apple Syrup
Universal Fruit Base
Organic Products
Apple, Pear, Kiwifruit and Carrot Aromas
Retail Products
51
APPLES AWAITING PROCESSING AT HEIGHT OF FRUIT
RECEIVALS
52
INFEED
53
AT THE HEART OF THE PROCESS ARE 8 BUCHER PRESSES
THAT EXTRACT JUICE FROM THE APPLES
54
AJC CONCENTRATE IS DRUMMED OFF INTO 200KG DRUMS
55
DRUMS AWAITING SHIPPING
56
IN NELSON IN ADDITION TO A CONCENTRATES FACTORY
WE OPERATE A FRUIT INGREDIENTS PLANT WHERE APPLES
ARE PEELED, SLICED AND DICED AND THEN PACKED OFF
57
TEGRA MANUAL GRADING
58
POUCH FILLER
59
NELSON FI - CASCADE COOLER
60
SMALL FORMAT POUCH MACHINE
61
SMALL FORMAT POUCH ROOM
62
FRUITMARK TRADES IN
63
Louis Dreyfus
Enzacor represents a number of major product
lines including
  • French origin, 158 year old global commodities
    trading company.
  • Turnover US150 billion

64
Ocean Spray
  • One of the most sophisticated Cranberry
    ingredient suppliers in the world.

65
Kareks
  • Dried and Semi dried tomato production
  • in Turkey

66
Heinz Watties
  • Specialist unit for Heinz Watties.

67
Continental Food Sales
68
Dirafrost
Frozen European berry fruits
69
ENZA COMMERCIAL HOLDINGS GROUP FINANCIAL
PERFORMANCE
70
WORLD AJC PRICES
71
OUTLOOK
  • The outlook for the Enza Commercial Holdings
    Group is sound.
  • Enzafoods will need
  • To distance itself further from the commodity
    AJC business, specialising in higher value juice
    products, and
  • Develop its Fruit Ingredient business.
  • Enzacor Pty will need
  • To increase its market share in Australia.

72
THE IMMEDIATE FUTURE
  • Demand is weak due to the global recession.
  • Prices are further depressed by many of our
    larger customers holding significant inventory
    Chinese manufacturers being unable to sell
    their large volumes of concentrated product.
  • As a consequence of the global recession
    currency volatility has an enormous impact on
    our ability to trade profitably.
  • In the short term we have planned to reduce our
    operating costs by 3M annually by reducing
    non- essential costs and we continue to work on
    reducing all areas of costs that we can avoid.
    For the period ending 20 April we have saved
    900K.
  • We have to work smarter to continue to
    profitably grow.
  • Our goal is a sustainable 10 return on funds
    employed.

73
LONG TERM
  • For the Enza Commercial Holdings Group Limited
    to continue to prosper we will need to
  • To limit our exposure to commodity Juice
    Concentrate.
  • Develop further our existing Fruit Ingredient
    business.
  • Manage more effectively our volumes of fruit
    receipts for processing.
  • Move closer to the wholesale and retail
    markets.
  • Become closer aligned to a distribution chain.

74
2009 AGM PresentationTurners Growers
  • Snow Hardy
  • GM ENZA

75
  • 2008 Summary
  • Shipped 4.2m boxes
  • Down approx 400k boxes due to HB frost Spring
    2007
  • Contribution was 8.3m (1.98 per box)
  • Offered NZ growers fixed price returns for Asian
    sales for the first time via Delica. Other
    exporters have been doing this since 2001!
  • Sold 830k cases of Jazz and P Rose grown in
    Northern Hemisphere

76
  • 2008 Highlights
  • Highest Grower Returns paid to growers since
    deregulation. Average grower return 26.40
  • Exchange rate was at an all time high for most
    of the season but fell away towards the end.
    Helped lift grower returns late in the year
  • ENVY sampled in all major markets for the first
    time. Reception was overwhelming

77
  • Where are we?
  • Contribution in 2009 forecast to be 11.6m
    (2.41 per box)
  • No 1 Pipfruit exporter from NZ approx 30 of
    NZ Supply
  • Will export 4.8m cases in 2009 from NZ
  • Will market 1m cases of Jazz and Pacific Rose
    grown in the Northern Hemisphere in 2009
  • Leading player in New Variety Development -
    Globally Jazz and ENVY

78
  • Where are we going?
  • Increase contribution to 25m by 2014
  • Retain No1 position but increase share of NZ
    supply to 60 by 2014
  • Increase NZ volume to 10m cases by 2014
  • Increase Northern Hemisphere volumes to 5m by
    2014
  • Continue to lead the World with new Pipfruit and
    Kiwifruit varieties. Continue the search for the
    next Enza variety

79
  • How are we going to get there?
  • Form alliances and relationships with large
    growers and packers. Particularly in Hawkes Bay
    where we are under-represented
  • Review concept of pooling grower returns. May
    retain in some form where appropriate and change
    others
  • Review FAS commission structure. Look to give
    large suppliers breaks in commission. Need to
    give incentives for large suppliers without
    compromising the revenue stream

80
  • How are we going to get there?
  • Encourage growers to plant more of our own
    varieties both in NZ and offshore
  • Market first Envy in overseas markets this year
  • Increase Jazz promotional activity in North
    America
  • Revamp Pacific Rose brand and imagery

81
  • Challenges
  • ENZA should not become solely focused on Jazz
    Envy
  • - Need to ensure we continue to be strong
    marketers of traditional varieties e.g. Royal
    Gala, Fuji, Braeburn
  • Promote Pacific Series (already trademarked by
    ENZA)

82
  • Challenges
  • Cost effective Shipping
  • Look at the mix of containers vs. bulk charter
    vessels
  • Market Access is becoming more difficult every
    year
  • Low residue spray programs make achieving
    quarantine protocols tougher for some Asian
    markets
  • Work with PNZ and MAF to simplify access rules
  • Grow blocks for specific markets.

83
  • Challenges
  • Small size fruit
  • Limited markets and lower in value
  • Too much reliance on UK
  • Investigate techniques to grow larger size fruit
  • Pit/Blotch in Jazz. Have experienced some Pit
    and Blotch in NZ grown fruit this year. Need to
    do some more research to ensure effective control
    in the future
  • Continue momentum of Jazz in Northern
    Hemisphere markets as volumes increase

84
(No Transcript)
85
  • International Jazz Day
  • Inaugural International Jazz Day held in Berlin
    on 3rd February 2009
  • Attended by over 80 growers, packers, scientists
    and marketing partners from USA, Chile,
    Australia, France, UK and New Zealand
  • Very successful initiative. Hope to make an
    annual calendar event for the global Jazz
    community

86
  • International Jazz Day

87
  • Australian Jazz Expo
  • First Australian Jazz field days were hosted by
    Montague Fresh in Batlow, New South Wales
  • Have planted over 300,000 Jazz trees in
    Australia to date
  • This year will harvest and market 20,000 cases
  • Plantings all over Australia
  • Queensland, NSW, Victoria, Western Australia,
    Tasmania

88
  • Australian Jazz

89
  • Australian Jazz

90
  • Europe Jazz Volume Trends

91
European Jazz Weekly Sale Values
92
UK Jazz Sales Trend-Volume
93
UK Jazz Sales Trend-Price
94
  • USA Jazz Volume Trends

95
USA Jazz Price Trend
96
  • New Zealand Jazz Campaign
  • Aiming to market 45,000 cases of NZ grown Jazz
    on the domestic market in 2009
  • Extensive media campaign on TV, radio and
    newspapers nationwide
  • All fruit sold will be Class 1 export grade with
    PLUs

97
  • New Zealand Jazz Campaign

98
2009 Envy Packing
99
(No Transcript)
100
Latitude 41 Results
Variety Summary Production Order Report Variety
ENVY Season 2009
101
ENZAPak Results
Variety Summary Production Order Report Variety
ENVY Season 2009
102
(No Transcript)
103
2009 Annual General Meeting
About PowerShow.com