Shareholder Announcements

Harvest Update

July 14 2017, Shareholder Announcements

By email

Dear Shareholders

 HARVEST

We are pleased to inform you that this year’s harvest was completed on our company owned groves on the 8th of July (two weeks later than last year) with 89,000 tonnes of fruit being harvested, producing 13.2 million litres of oil, which was in line with our forecasts.  This compares to approximately 55,000 tonnes of fruit last year, producing 9.7 million litres of oil.  Although the fruit production was significantly above forecast, the oil accumulation in the fruit this year was a lot lower than average. This was due principally to seasonal conditions delaying flowering by 2 weeks which shortened the season, combined with severe frosts in early June that slowed the trees ability to accumulate oil into the fruit. Pleasingly, however we finished with a very good result overall with the extra fruit compensating the lower oil yields in the fruit.

This year’s harvest result is particularly satisfying, especially given that 1,593 hectares (approximately 23% of our total planted area) are still to reach productive maturity. Of these 1,593 hectares, 1,060 hectares are yet to come into any production because they are less than 3 years old.

The overall oil quality is very high this year.

 PROFIT

We are not in a position yet to give accurate profit guidance. However, once we have finalised year end management accounts and presented this to the board, we will send through a comprehensive report including expected full year profit and a more detailed operational update.

Please feel free to contact me at any time if you have any questions.

Kindest regards

Rob McGavin

Executive Chairman


 

Half Yearly Financial Report to 31 December 2016

March 20 2017, Shareholder Announcements

Sent by email

Dear Shareholders

Please find below a link to our half-yearly audit reviewed financial report for the six months to 31 December 2016 as well as an update below.

Boundary Bend Ltd 31 December 2016 Half Year Financial Report

Half-yearly results

For the half year to 31 December 2016 Boundary Bend Limited reported a net loss after tax of $5.26 million (2015: $4.55 million loss), which included a post-tax loss of $1.57 million from the Australian operations (2015: $2.30 million loss) and a post-tax loss of $3.69 million from US operations (2015: A$2.25 million loss).

It is important to note that we do not recognise the net value of the 2017 olive crop in our half yearly accounts, therefore the net value of the crop will not be realised until after we harvest and mill the olives in the June quarter. The loss for the period (both Australian and US operations) is smaller than forecast.  We expect to report a material full year profit, noting that the level of this profit is highly reliant on the final results of harvest which will not be completed until the end of June.

The consolidated entity reported positive cash flow from operations of $10.12 million compared to $17.09 million for the same period last year. In the same period last year, we sold a material amount of oil on the bulk market, which compares to the last 6 months where the majority of our olive oil has being sold as packaged goods, which is more evenly spread across the full year.

New Accounting Treatment of Bearer Plants (Olive Trees)

This reporting period is the first time we have adopted the revised accounting standard relating to the treatment of Bearer Plants (i.e. our olive trees). In previous reporting periods, the value of olive trees was recorded at fair value under AASB 141 Agriculture, and any movement in fair value included in the profit or loss account for the period. Under changes to the accounting treatment, olive trees will now be assessed under the AASB 116 Property Plant and Equipment accounting standard, and we have opted to record the trees at cost and depreciate the cost over their useful life. Costs associated with young trees will be capitalised until such a time as they are fully operational.

As required under accounting standards, the comparative Profit or Loss, Balance Sheet and Cash Flows have been restated to account for this new treatment. The impact of this restatement is set out in Note 1 of the Financial Report.

Sales Update

Packaged goods sales are on track to exceed last year’s sales by approximately 5% in value, which pleasingly will be achieved with a decreased in-store discounting program. Whilst our supermarkets business has continued to trade exceptionally well, we have also seen excellent growth in our ‘non-retail’ channels, mainly through sourcing of new customers, and additional sales to our existing customers.

Cobram Estate

The olive oil category has experienced some extremely strong discounting in the first half of the 2017 financial year, largely driven by our competitors. However, Cobram Estate maintained the market leading position at the end of the 2016 calendar year. Our average baseline (non-discounted, full price) dollar sales closed the calendar year approximately 15% higher than at the same time 12 months ago. This is a very strong position to be in, with exciting marketing activity planned for the coming months.

Red Island

In the first half of the 2017 financial year we have seen the launch of the new PET bottle into the Australian market. This innovation was met with 100% trade acceptance and is currently selling through all major supermarkets, however consumer uptake and understanding of the functionality of the squeeze bottle is slower than expected. We are initiating packaging changes to communicate better to consumers the benefits of the product. The Red Island bulk format business (tins) has undergone some changes, and is on track to exceed dollar sales vs last year.

Brand Share of EVOO 12m to 26Feb17

USA Operations

Our US based business continues to perform as planned, as we increase our packaged goods distribution footprint nationally, having currently been accepted in over 3,000 retail locations.  The 2016 harvest (October and November) pleasingly exceeded forecast volume of fruit milled, and sales prices achieved for bulk oil are also better than expected. Boundary Bend has completed the planting of our first 150 acres at our flagship grove and we have continued to secure additional volumes from independent growers.  Installation of an in-house bottling line has begun with expected production commencing in early April.   Expansion of the processing capacity is scheduled to begin in May of 2017 with final construction completed prior to the 2018 harvest as planned.

Value adding by-products and waste streams

We continue to research and develop value added products using the waste stream from the production of olive oil. Over the next six months several products will move from research phase into commercial trials and/or production. We expect to have our first products available for commercial sale in FY 2018 and have commenced discussion with potential customers and partners. The process and products are still commercially sensitive, but as always, we will update shareholders with further details when appropriate.

Grove improvement and 2017 Australian harvest

We have continued with our grove redevelopment program, having planted 160 hectares of olive trees at Boundary Bend Estate in the spring period. At Boort Estate we are in the process of planting 145 hectares on previously cleared land and replanting 200 hectares. The current Boort planting will be finalised within the next two weeks.

Harvest will start in a limited capacity on early varieties at both groves in late March but will commence in earnest in mid to late April.  We expect harvest to be complete by the end of June and will send shareholders a full update shortly thereafter.

Equity Placement

We continue to work with investors in relation to an equity placement to help fast-track our core growth pillars.  Any equity raising will be subject to attracting the right type of investor and at the right value. We will continue to update shareholder as this progresses.

Strategic planning

The board and key executives from both Australia and the USA have just completed our annual two-day strategic planning retreat. It was productive two days, which was mostly spent focusing on the strategic direction of our four growth pillars, and how we continue to increase shareholder value.

We thank you for your continuing support.  Should you have any questions please feel free to contact me at any time on mobile 0418 955 363 or via email r.mcgavin@boundarybend.com

Kindest regards

Rob McGavin

Executive Chairman


 2016 AGM Presentation

October 28 2016, Shareholder Announcements

Dear Shareholder,

Please find below a link to the presentation given by Rob McGavin at the 2016 Boundary Bend Limited AGM.

2016 BBL AGM Presentation


 

Boundary Bend Limited – Harvest and profit update

July 13 2016, Shareholder Announcements

13th July 2016

Sent by email

Dear Shareholders

 HARVEST

We are pleased to inform you that this year’s harvest was completed on the 25th June with approximately 55,000 tonnes of fruit being harvested, producing 9.7 million litres of oil. This was slightly behind our internal forecast of 10.2 million litres. The crop was expected to be lower (as outlined in previous correspondence) due to the biennial nature of the production cycle of olive trees which usually deliver a large crop one year followed by a smaller crop the following year (this year). For comparison, in 2014 and 2015 we produced 7.9 million and 13.7 million litres of oil respectively. Pleasingly, the overall oil quality is again very high this year.

 PROFIT

Once we have finalised year end management accounts in early August, we will send through a comprehensive report including expected full year profit and a more detailed operational update. In the meantime, we would like to advise the following that will, or has influenced the FY16 profit:

  • The final valuation of the oil at 30 June in accordance with Accounting Standards is yet to be finalised;
  • Production costs are materially higher than last year due principally to the price of irrigation water which was $4.2 million higher than forecast as a result of extremely low rainfall in the catchments for the last 2 years, driving up the price of annual allocations;
  • Costs associated with our four stated future growth strategies reduced FY16 profit by circa $12 million. These growth costs are consistent with our budgets.
    • Research, commercial trials and new product development with regards to value adding existing olive waste streams,
    • Branded sales and market development to drive increased returns per litre at farm gate,
    • Operating costs related to recently planted non-producing groves in Australia, and
    • Our investment in establishing Boundary Bend’s business in the USA (circa A$4.7 million).

Taking all this into account it is likely that full year trading profit (pre tax) will be in the vicinity of $2 million and an operating cashflow surplus of approximately $12 million.

Please feel free to contact me at any time if you have any questions.

Kindest regards

Rob McGavin


Half yearly Financial Reports to 31 December 2015

March 16 2016, Shareholder Announcements

16th March 2016

Sent by email

Dear Shareholders

Please find below a link to our half-yearly financial report for the six months to 31 December 2015 as well as an update below.

http://www.boundarybend.com/wp-content/uploads/2013/11/BBL-Half-Year-Report-Signed-31-Dec-2015-Final.pdf

Half-yearly results

For the half year to 31 December 2015 Boundary Bend Limited reported a net loss after tax of $4.5m (2014: $2.7m loss), which included loss of $2.25m from the Australian operations (2014: $2.13 loss) and a loss of A$2.25m from US operations (2014: A$0.59m loss).

It is important to note that we do not recognise the net value of the 2016 olive crop in our half yearly accounts, therefore the net value of the crop will not be realised until after harvest and mill the olives in the June quarter. The loss for the period (both Australian and US operations), is slightly better than budget. We are still expecting to report a full year profit but this is highly reliant on the final results of harvest which will not be completed until June.

The consolidated entity also reported positive cash flows from operations of $14.30m compared to $1.57m for the same period last year.

Sales Update

Oil sales are tracking ahead of budget for the 8 months to 29 February 2016, mainly attributable to strong packaged goods sales. Bulk sales are in line with forecast.  Sales of packaged goods (olive oil sold in bottles and tins) are tracking approximately 9.4% above the same time last financial year, and are forecast to exceed $80 million this financial year.

Cobram Estate still remains the major driver of our finished goods sales, accounting for over 65% of finished goods sales this year to date.  Over the past 12 months, Cobram Estate has extended its position as the number 1 brand of Extra Virgin olive oil sold in Australian supermarkets.  Red Island is well ahead of the previous year due to some increased supermarket rangings and pricing initiatives.  The following chart summarises the sales in retail revenue and volume of leading brands of Extra Virgin olive oil in Australian supermarkets.

USA Operations

Our US based business continues to perform as planned with major expansions completed late in the 2015 calendar year including phase 1 of the processing plant buildout, and the new oil storage facility at the Harter Road site in Woodland, California. The 2015 harvest (October and November) pleasingly exceeded forecast volume of fruit milled, and sales prices achieved are also better than planned. Planting of an initial 150 acres (60ha) will commence at the Boundary Bend flagship grove in May of 2016. Cobram Estate’s launch to the trade in the US has been well received by retailers with initial new store commitments 38% ahead of forecast for FY16. Finished product is scheduled to ship to retailers April 2016.

Grove development and 2016 Australian harvest

In early March 2016 we commenced planting a new greenfield development of 420 hectares at Boort Estate.

Harvest will start in a limited capacity on early varieties at both groves this week but will commence in earnest after Easter. We expect harvest to be complete by mid-June and will send shareholders a full update shortly thereafter.

Strategic planning

The board and key executives from both Australia and the USA have just completed our annual two-day strategic planning retreat. It was certainly one of our most successful retreats and there is no doubt in my mind that Boundary Bend is very well positioned and is pursuing real opportunities that have potential to significantly increase shareholder value.

We thank you for your continuing support.  Should you have any questions please feel free to contact me at any time on mobile 0418 955 363 or via email r.mcgavin@boundarybend.com

Kindest regards

Rob McGavin

Executive Chairman


Boundary Bend Limited – Dividend Information

December 23 2015, Shareholder Announcements

Dear Shareholder,

As you will be aware, Boundary Bend Limited (BBL) will be paying a 10 cent per share unfranked dividend on the 12 February 2016. The record date for this dividend is 29 January 2016.

This year the BBL board has decided to suspend the dividend reinvestment plan (DRP) until further notice. The reason for the suspension is that the board does not foresee the need for capital in the short-term and feels that it is not in the best interests of all shareholders to issue shares at the current traded price. Therefore, all shareholders will be paid a cash dividend on 12 February 2016.

If you have any questions please call me on 0448 313 774 or email s.beaton@boundarybend.com

Kindest regards

Sam Beaton


2015 BBL Bookbuild

December 10 2015, Shareholder Announcements

Dear Shareholders,

Taylor Collison Limited and Bell Potter Securities have notified Boundary Bend Limited (“BBL”) that the final price of the recent bookbuild was $3.30 per share.  In total 166,824 BBL shares were traded for a total transaction value of $550,519.

Kindest Regards

Rob McGavin


2015 BBL Bookbuild Process

October 26 2015, Shareholder Announcements

Dear Shareholders,

If you would like to participate in either buying or selling shares in Boundary Bend,  please read the attached document from Bell Potter and Taylor Collison.

Regards

Samuel Beaton

2015 – BBL Bookbuild Process 23 October 2015 – Final


2015 AGM Presentation

October 23 2015, Shareholder Announcements

Dear Shareholder,

Please find below a link to the presentation given by Rob McGavin at the 2015 Boundary Bend Limited AGM.

2015 BBL AGM final shareholders


Harvest update 1 July 2015

July 1 2015, Shareholder Announcements

By email

Dear Shareholders

HARVEST

We are pleased to inform you that harvest was completed last Thursday (25th) and that we finished with approximately 71,500 tons of fruit producing 13.75 million litres of oil. This was in line with our forecast of 13.8 million litres. This is the most oil we have ever produced in one season and pleasingly the overall oil quality is outstanding this year. For comparison in 2013 and 2014 we produced 13.5m and 7.9m litres of oil respectively.

PROFIT

Once we have had time to finalise end of year management accounts in early August, we will be sending through a comprehensive report including expected full year profit guidance and a more detailed operational update, but in the meantime we would like to inform you of the following that will influence projected profit:

  • The final valuation of the oil at 30 June
  • Production costs, which we expect to be approximately 15% higher than last year, particularly the price of water used to irrigate the groves,
  • Our continuing investment in innovation, research and investments to support efficiency gains,
  • Our investment in establishing Boundary Bend in the USA.

The world price of olive oil has increased materially over the last 12 months (see graph below) but is yet to flow meaningfully through to domestic retail prices.

Harvest 2015

Taking all this into account it is likely that full year trading profit (pre tax) will be lower than our forecast of $25m.

Please feel free to contact me at any time if you have any questions.

Kindest regards

Rob McGavin


Share Transaction – Paul Riordan

April 7 2015, Shareholder Announcements

7th April 2015                                                                                                                                    Annexure A

By email

Dear Shareholders

The Book-build conducted by Taylor Collison and Bell Potter late last year was successful with good demand from existing shareholders and some new shareholders.  Discussions have continued with a number of parties and we can report that Paul Riordan has recently agreed to sell 900,000 shares at $3.20 to three (3) existing shareholders.  Paul has indicated that he will not be selling anymore Boundary Bend shares.  Paul remains the 2nd largest Boundary Bend shareholder, behind Rob McGavin.

Kindest Regards

Rob McGavin

Executive Chairman


Half yearly Financial Reports to 31 December 2014

March 12 2015, Shareholder Announcements

12th March 2015                                                                                                                                   Annexure A

Sent by email

Dear Shareholders

Please find below a link to our half-yearly financial report for the six months to 31 December 2014 as well as an update below.

http://www.boundarybend.com/wp-content/uploads/2013/11/BBL-Half-Year-Report-Signed-31-Dec-2014.pdf

Half-yearly results

The result for the period is an after tax loss of $2,722,000 (2013: $3,926,000 after tax loss).  It is important to note that we do not recognise the net value of the 2015 olive crop in our half yearly accounts, therefore the net value of the crop will not be realised until after we harvest and mill the olives in the June quarter. The loss for the period is slightly better than budget. In the first half we generated a positive operating cash flow from operations of $1,570,000, compared to a net operating cash surplus of $1,965,000 for the same period last year.  The variance primarily relates to the lower 2014 harvest, which significantly reduced the bulk oil sales compared to the corresponding period.

Forecast full year result

Our full year profit will be largely dependent on the results of harvest between April and June. This is always difficult to forecast, with over 2.2 million trees across 6,060 hectares of olive groves. However, barring any unforeseen events we are still forecasting a profit before tax of approximately $25.0 million. Please note that this forecast is also subject to other variables including currency, world olive oil prices, and the retail pricing environment at the time.

Sales Update

Oil sales are tracking slightly ahead of budget for the financial year to 28 February 2015.  Sales of packaged goods (olive oil sold in bottles and tins) are tracking approximately 5% above the same time last financial year, and are forecast to exceed $75 million this financial year.  As a consequence of the smaller crop in 2014, our bulk sales are down approximately 40% year to date versus the same period in the 2013/14 financial year.

Cobram Estate remains the major driver of our finished goods sales, accounting for almost 70% of finished goods sales year to date.  Over the past 12 months, Cobram Estate has consolidated its position as the market leading brand of Extra Virgin olive oil sold in Australian supermarkets, and is currently the number one Extra Virgin olive oil by dollars, litres and units sold.  Red Island is currently the number three Extra Virgin olive oil by dollars, litres and units sold.  The following chart summarises the sales in revenue and volume of leading brands of Extra Virgin olive oil in Australian supermarkets.

Graph

Source: Aztec scan data (2015).  Note: data excludes Aldi Stores.

Export sales

BBL’s export sales of packaged goods continues to develop, with sales to South East Asia and Japan up 209% (from a low base) on the prior year.  The Chinese market for olive oil, traditionally dominated by gifting, is in an adjustment stage, resulting in substantial decline in sales to China versus the prior year.

European Crop/Global Prices

In recent months, the price of European olive oil has risen substantially as the impact of severe drought and a fruit fly infestation dramatically impacted the 2014/15 crop.  The price of Extra Virgin olive oil from Spain, the world’s largest producer, is currently 60% above the same time last year after olive trees across the Mediterranean suffered from drought and extreme heat in May and June, their peak blooming period when moisture is vital to develop a good crop.  Overall, global production in 2014/15 fell 24% to 2.5 million tonnes, at a time when global demand continues to grow driven by health and wellness trends which favour the consumption of Extra Virgin olive oil.

New bottling line at Lara

After 18 months of careful planning the new bottling line was recently commissioned at our Lara site. The new line increases our capacity from 4,000 bottles per hour to in excess of 12,000 bottles per hour.

US Operations

The US strategy continues to gain momentum. We are currently upgrading the commercial building on our 8.8 acre site in Woodlands (California), in readiness for the California olive harvest later this calendar year. The USA also remains a major focus for olive oil sales, with substantial research and development work currently underway.

2015 Australian harvest

Harvest is due to commence on 14 April at Boundary Bend Estate.  Harvest usually starts at Boort Estate about 2 weeks after Boundary Bend Estate due to its location being further south. We expect harvest to be complete in early June and will send shareholders a full update shortly thereafter.

Strategic planning

The board and key executives have just completed our annual two day strategic planning retreat. We continue to assess new opportunities for Boundary Bend both here and abroad.  If any of these come to fruition we will certainly keep shareholders informed.

We thank you for your continuing support.  Should you have any questions please feel free to contact me at any time on mobile 0418 955 363 or via email r.mcgavin@boundarybend.com

Kindest regards

Rob McGavin

Executive Chairman


Director Changes

February 4 2015, Shareholder Announcements

Dear Shareholders,

We are pleased to announce that Sam Beaton has accepted a position as an executive director of Boundary Bend Limited, effective 15 January 2015.

Sam has been employed by Boundary Bend since August 2009. For the majority of the time Sam has been the group CFO and Company Secretary. Sam has a strong operational and strategic focus and during his time he has been heavily involved in all corporate transactions, including asset purchases, equity raising, debt restructures and more recently the expansion into the US. Following this new appointment, Sam will continue to hold the role of CFO and Company Secretary.

Sam is 38 years old and holds a Bachelor of Commerce (Accounting and Finance) and a Bachelor of Science (Industrial Organic Chemistry) from the University of Melbourne and is also a Chartered Accountant. Sam has had over 15 years of experience in both corporate finance and accounting. Sam began his career with KPMG and since then has held senior manager roles within corporate finance and accounting, both in Australia and the UK. Sam has wide experience in financial modelling and analysis, management of corporate debt, capital raisings, business planning and strategy.

On a more sombre note, Tim Jonas has asked to take a period of unpaid leave from his role as a non-executive director. For the past few months Tim has battled health complications post surgery, and would like to focus his time and energy on making a full recovery. We hope to have Tim back on the Board in 3 to 6 months time. During Tim’s leave there will still be three non-executive directors on the board.


 Dividend Reinvestment Plan

December 24 2014, Shareholder Announcements

Dear Shareholder,

Please find following information regarding the dividend reinvestment plan option.

BBL Letter – Dividend Reinvestment Plan


Bookbuild Results

December 22 2014, Shareholder Announcements

Dear Shareholder,

Taylor Collison Limited and Bell Potter Securities Limited have notified Boundary Bend Limited (“BBL”) that the final price of the recent bookbuild was $3.30 per share.  In total 476,530 BBL shares were traded for a total transaction value of $1,572,549.


2014 AGM Presentation

October 24 2014, Shareholder Announcements

Dear Shareholder,

Please find below a link to the presentation given by Rob McGavin at the 2014 Boundary Bend Limited AGM.

2014 AGM Presentation


Harvest and Profit Update

August 13 2014, Shareholder Announcements

Dear Shareholder,

With the completion of harvest we are writing to update you on the profit impact of the 2014 harvest and associated matters.

Shareholders letter August 2014


Harvest Update and Finalisation of Equity Placement

July 2 2014, Shareholder Announcements

Dear Shareholder,

With harvest nearing completion it was timely that we provided you with an update of results to date. We have also finalised the equity placement as part of our USA expansion.

Harvest update and finalisation of equity placement – 30 June 2014


USA Expansion and Equity Placement

May 7 2014, Shareholder Announcements

Dear Shareholder,

We are pleased to announce our exciting plans to expand our “new-world” olive model to California USA, and to inform you of an issue of shares at $3.80 per share.

BBL USA expansion and equity raising – May 2014


 

Letter to Shareholders March 2014

Please find our half-year financial report for the six months to 31 December 2013 along with a general update.  Shareholder Half Yearly Update March 2014

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Matthew Bailey Becomes a Non-Executive Director of Boundary Bend Limited

Dear Shareholders We are pleased to announce that Matthew Bailey has agreed to become a non-executive director of Boundary Bend Limited.  This will increase the total number of non-executive directors to four. With the continued stellar growth of Cobram Estate and the purchase of the Red Island brand in November   2012, Boundary Bend now has […]

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Boundary Bend Dividend Reinvestment Plan

December 11 2013, Shareholder Announcements

Dear Shareholders, As previously advised, Boundary Bend Limited (BBL) will be paying a fully franked 10 cent per share dividend on 17 February 2014 (record date 31 January 2014). The board received a number of requests from shareholders to consider a dividend reinvestment plan and has decided to offer this as an option to shareholders. […]

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Taylor Collison Limited and Bell Potter Securities Limited

November 5 2013, Shareholder Announcements

Dear BBL shareholders Taylor Collison Limited and Bell Potter Securities Limited have notified Boundary Bend Limited (“BBL”) that they closed the Bookbuild on Wednesday night. The final price was $2.50 per share for 2,798,633 BBL shares totalling $6,996,583. Settlement is set for 12 November 2013 Kindest regards Rob

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AGM Presentation 2013

October 25 2013, Shareholder Announcements

AGM Presentation 2013

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Proposed Sale of Shares 2013

Proposed Sale of Shares 2013

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