Shareholder Announcements

Harvest Update

29 June 2018, Shareholder Announcements

By email

Dear Shareholders

Harvest Results

You will recall that our 2018 harvest was forecast to be detrimentally impacted by severe frosts. Our Australian harvest has now been completed with 30,500 tonnes of fruit milled, producing 5.42 million litres of oil and disappointingly behind our internal post-frost forecast of 7 million litres.  Estimating crop levels and resultant oil is always very difficult but the frost resulted in extreme variability from variety to variety and from tree to tree.  Overall the oil accumulation was in line with long term average but the number and final weight of the fruit on the trees was about 20% lower than our post-frost estimates.  Although it does not change the outcome, this crop was expected to be lower (as outlined in previous correspondence) for three separate reasons:

  • 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). This is inconvenient but does not impact our ability to manage brand/customer requirements from year to year.  For example, from a high cropping year we will supply the market for say 14 months and from a low cropping year we may only supply the market for 10 months. Therefore, our stock levels vary greatly but our monthly sales are reasonably stable.
  • A number of severe frosts in spring last year causing cumulative bud and flower damage. In fact, the Bureau of Metrology weather station at Swan Hill airport recorded the lowest ever September minimum temperature on the 16th of September -1.7degrees.
  • The major replanting program of replacing non-preferred varieties undertaken over the last few years means 31% of the grove area is not mature and 21% is under 3 years old and has not produced any crop.

For comparison, in 2016 and 2017 we produced 9.7 million and 13.2 million litres of oil respectively.

Nothing that has occurred this harvest in any way impacts next year’s expected production; in fact subject to normal agriculture risks we expect a very large crop as the trees compensate for the small crop this year and the recently planted trees will further mature.

A small consolation is that the overall oil quality this year was high, with a record percentage of the total production being Extra Virgin.  We also have enough volume to fully supply our Cobram Estate and Red Island brands until new season oil is available in May 2019. This oil is from a combination of our own groves, 3rd party purchased oil and careful 2017 harvest oil stock management (since the frost).

Price rise

On a positive note, we have finalised negotiating a price rise of circa 15% across the entire market for our packaged goods including Cobram Estate, Red Island and Private label effective 1 July 2018.

Financial Result

Once we have finalised full year management accounts in late July, we will send through a comprehensive report including the expected full year financial result and a more detailed operational update.  This update will also include a summary of earnings associated with the core business (normalised earnings) and those costs associated with new business development including the USA and olive by-product value add business.

Post the frost event, we advised shareholders that our full year result would be around ‘breakeven’. However, the lower than expected crop will certainly result in a full year loss.

Taking into account the lower crop together with the impact of the price rise, we expect the value of the oil produced to be approximately $11 million less than the last forecast, although the final valuation of the oil at 30 June is yet to be finalised (in accordance with Accounting Standards).

Operating cashflow

As previously explained, Boundary Bend’s reported full year financial result in any one year is substantially impacted by the volume of oil produced from each year’s harvest. Under the Accounting Standard AASB 141 “Agriculture” (with which Boundary Bend must comply), the oil is required to be measured at fair value less the anticipated selling costs. This means that the expected profit or loss relating to the sale of oil is recognised in the year of harvest, as opposed to when the oil is sold, meaning that the reported result will not typically align with the company’s cash flows.  So, our end of year profit or loss is not easily predictable as it is very sensitive to each year’s harvest yields but conversely trading each month is highly stable and predictable as customers purchase consistently throughout the year.

Although we will record a full year loss, on a positive note Boundary Bend is forecasting to report a positive operating cashflow[1] of approximately $17 million for the 2018 financial year and expects the 2019 financial year to produce a surplus of more than $20 million.

Dividend

We are still forecasting to maintain our dividend of 12 cents per share to be paid in February 2019.  As per usual the board will assess all the information at hand and announce details at our October AGM.

In summary, despite a lower than anticipated crop for 2018, operating cashflow is strong and we are pleased with the price rises that we have achieved. Thank you for your support and understanding and do not hesitate to contact me anytime if you have any questions on 0418955363.

Kindest regards

Rob McGavin

Executive Chairman

 

[1] Operating cashflow is the net cashflow generated from operating activities and after deducting payment of tax and interest. Operating cashflow excludes items such as capital expenditure, debt repayment, equity raising and dividends.


 

Paul and Fi Riordan moving to USA, Harvest update and recent awards

1 May 2018, Shareholder Announcements

Dear Shareholders and Staff,

It is with great appreciation that we announce Paul and Fiona Riordan and their two boys, Will and Angus, are moving to live in Woodland, California, to assist in executing our exciting USA based business. For those who are more recent shareholders, Paul and I are the founders of Boundary Bend and Paul is still the 2nd largest shareholder.  With the USA business growing so quickly and the ever-increasing importance of grove development and management, grower relations and processing logistics, combined with the enormous potential opportunity in this market, this is a timely and positive move for Boundary Bend.

Sincere thanks to Paul and Fi and their boys for accepting this challenge.

Harvest update

On Sunday 22 April we hosted about 90 shareholders at Boundary Bend to see harvest and processing in full swing.  It was a great day and thanks to all those who made the effort to attend.  It is very early days but after the first 2 weeks of harvest, oil production is approximately in line with crop projections made at the end of the flowering period last November. As previously advised, the spring frost had a major impact on our already reduced ‘off year’ crop. Oil quality to date is very good following a benign and dry autumn.

Recent awards

We are very excited and proud to announce that Cobram Estate has won a total of 1 Best in Class, 7 gold and 3 silver medals across both the 2018 New York International Olive Oil Competition (NYIOOC) and Olive Japan International Extra Virgin Olive Oil Competition.

These awards further complement leading Australian consumer group CHOICE awarding us most recommended Extra Virgin Olive Oil for taste and quality. Our Australian Extra Virgin Olive Oil is a world class award winner.

NYIOOC image

NYIOOC is the world’s largest and most prestigious olive oil quality contest, and the most trusted guide to the year’s best extra virgin olive oils in the world. We are delighted to announce that the NYIOOC awarded Cobram Estate:

BEST IN CLASS

  • Cobram Estate Australia Select (sold only in the US market)

 GOLD

  • Cobram Estate Reserve Hojiblanca
  • Cobram Estate Premiere
  • Cobram Estate Robust Flavour Intensity
  • Cobram Estate Light Flavour Intensity

SILVER

  • Cobram Estate Classic Flavour Intensity
  • Cobram Estate Reserve Picual

OliveJapan image

OLIVE JAPAN is one of the most premiere extra virgin olive oil awards in the world, bringing together the highest standards of integrity and professionalism in awarding medals to the best oils from around the globe. Olive Japan presented the following awards to Cobram Estate:

GOLD

  • Cobram Estate Classic Flavour Intensity
  • Cobram Estate Superior Premiere
  • Cobram Estate Reserve Picual

 SILVER

  • Cobram Estate Reserve Hojiblanca

 

A very big thank you for your continued support.

Kindest regards

Rob McGavin

Executive Chairman


 

 Boundary Bend $25m equity placement

27 April 2018, Shareholder Announcements

Sent by email

Dear Shareholders

Further to my email last week, we are pleased to announce that we have closed the equity placement, as we now have firm commitments for the full $25 million at $8.50 per share.

Should you have missed out, and would like to purchase some more shares in Boundary Bend, please contact myself or Sam Beaton (s.beaton@boundarybend.com) as we do have a number of registered sellers.

Thank you so much to those who participated in this equity raising.

Kindest regards

Rob McGavin

Executive Chairman


 

Half Yearly Financial Report to 31 December 2017

16 March 2018, 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 2017 as well as an update below.

Boundary Bend Ltd 31 December 2017 Half Year Financial Report

Half-yearly results

For the half year to 31 December 2017, Boundary Bend Limited reported a net after tax loss of $7.44 million (2016: $5.26 million loss). The loss was driven by a few key factors, including the continued development spend on our USA business, the increased spending on the innovation & value-add and the increased marketing spend across our brands as we continue to drive increased farm gate returns from selling olive oil.  It is also important to note that we do not recognise the net value of the 2018 olive crop in our half yearly accounts: the net value of the crop will not be realised until after we harvest and mill the olives in the June quarter.

The consolidated entity reported positive cash flow from operations of $9.58 million compared to $10.12 million for the same period last year. For the half year to 31 December, capital expenditure was $16.57 million (2016: $10.60 million). This primarily relates to the acquisition of a 5,500 hectare property near Mildura (with 3,000 hectares suitable for planting olive trees), continued spend on re-developing our existing olive groves and the expansion of our USA oil storage and processing plant.

A dividend of 12 cents per share was paid on 16 February 2018 in respect of the full-year ended 30 June 2017. A Dividend Reinvestment Plan (DRP) was offered to shareholders, with 23.86% of shares participating.

Sales Update (Australia)

Sales Update

Packaged goods sales are tracking 6% ahead of budget for the 8 months to the end of February 2018 and forecast to finish slightly ahead of budget by 30 June 2018.  This is a strong result in a very competitive market with deep competitor discounting.  We have also had wins outside of the traditional retail channel, such as Cobram Estate ultra-premium EVOO now selling successfully through Wine Selectors which has a database of around 200,000 people.

Cobram Estate

Cobram Estate has maintained a market leading position in the olive oil category as of February 2018 with strong baseline (non-promotion) sales in both Woolworths and Coles.  The brand has stood up against intense half-price discounting by our European competitors and low everyday pricing by our Australian olive oil competitors.  Cobram Estate is performing to forecast in Aldi following national ranging in July 2017.  We are pleased to announce that the Masterchef partnership has been renewed for another year.  Masterchef will be back on Channel Ten in May.

Red Island

Red Island sales have maintained momentum throughout the financial year with the re-introduction of glass bottles in Woolworths.  The 3 litre tin has been an extremely strong performer in Woolworths, being the third largest selling olive oil product by revenue over the past 12 months.  Since the AGM we are pleased to announce the Red Island website has been relaunched, and I encourage you to have a look – redisland.com

Australia Retail - EVOO - 4 Feb 2018

As previously announced, Consumer advocacy group CHOICE, recently tested and compared 23 Australian and European extra virgin olive oils, to see if they met the quality criteria, and rated them for their quality, taste and authenticity.    Only 6 of the 23 olive oils tested were recommended by Choice and 4 of those 6 were produced and bottled by Boundary Bend.  More pleasingly Cobram Estate Classic came 1st and was the only Gold medal awarded and Red Island came 2nd with a Silver Medal.
Choice  

 USA Operations

Overall, our USA business is performing well with excellent support from Californian olive growers giving us the future fruit supply and hence the scale we had hoped to achieve.  Pleasingly, branded sales of Cobram Estate are performing well ahead of forecast.

Operationally, our 2017 harvest was in line with expectations and we are currently expanding our olive processing and storage capacity in readiness for the substantial increase in contracted fruit for the 2018 harvest. We now have a fully operational bottling line, and we are continuing to search for land suitable for planting olives, with another 400 acres expected to be planted in the first half of 2019.

Value adding by-products and waste streams

We continue to research and develop value-added products using the by-product waste streams from our groves. Our first new products have successfully progressed from research phase into commercial production, and we are close to finalising our first sales agreements for these products. The process and products are still commercially sensitive, but as always, we will update shareholders with further details when appropriate.

Olive Wellness Institute

We are pleased to announce that the Olive Wellness Institute (sponsored by Boundary Bend) has just launched a new website.  It is certainly worth a look.  http://olivewellnessinstitute.org/

The Olive Wellness Institute has been created to increase awareness of Extra Virgin Olive Oil and other olive products by gathering, sharing and promoting expert, credible and evidence-based information on their nutrition, health and wellness benefits.

Key benefits of the site include:

  • Provides a credible reference point for yourself, colleagues, friends and family – to help share accurate science and debunk myths;
  • Contains an olive science database with credible references related to olive health and wellness; and
  • Lists olive health and wellness experts across the globe, including our own global Advisory Panel, who provide insight and guidance, and ensure a high level of scientific direction.

Olive Wellness Institute logo

Grove improvement and 2018 Australian harvest

We are continuing with the grove redevelopment program at Boort Estate.  We are currently planting 300 hectares which we expect to be completed in the coming weeks.

Harvest will start in a limited capacity on early varieties at both groves in late March, however will commence in earnest in mid-April.  As advised in November, a late Spring frost affected the groves, therefore we expect the crop will be about 30% lower than anticipated.  We anticipate harvest to be complete by the end of June and will send shareholders a summary shortly thereafter.

Strategic planning

The board and key executives have just completed our annual two-day strategic planning retreat. It was a productive two days, which was mostly spent focusing on 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

 

Shareholder day at Boundary Bend

We hope to see you all at Boundary Bend Estate to see the harvest in full swing on the 22nd April.  I have attached the invitation again but please email Tristen t.vanderkley@boundarybend.com to RSVP or if you have any questions or need help.

Kindest regards

Rob McGavin

Executive Chairman


 

DIVIDEND REINVESTMENT PLAN

13 December 2017, Shareholder Announcements

Dear Shareholder,

As you will be aware, Boundary Bend Limited (BBL) will be paying an unfranked 12 cents per share dividend on 16 February 2018 (record date 31 January 2018). The board has resolved to recommence the dividend reinvestment plan (DRP) and therefore will be offering this to all shareholders.

The price for the dividend reinvestment has been set at $8.00 per share. The board has taken into account recent share trades from pre and post the announcement of 22 November 2017 concerning the frost impact to the 2018 crop. The last price after the frost announcement was $8.00 per share.

A copy of our DRP information booklet is available on our company website http://www.boundarybend.com/investors/reports-and-publications/.

Irrespective of previous elections, to participate in the DRP, you must complete the enclosed election form and return it to our share registry either using the reply-paid envelope or sending to:
Link Market Services Limited
Locked Bag A14,
Sydney South
NSW, 1235

Election forms received after the dividend record date of 31 January 2018 will not be eligible to participate in this particular divided re-investment.

It is important to note, that if you wish to receive all of your dividend in cash, no action is required.

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

Kindest regards,

Samuel Beaton

Company Secretary and Executive Director


Frost Causes Crop Loss at Boundary Bend Groves

22 November 2017, Shareholder Announcements

Dear Shareholders,

I am very disappointed to inform you that the Boundary Bend groves were recently hit with frost which burnt off a significant number of developing flowers.  It is the worst frost damage at our groves since 2006 and we expect that the total 2018 crop will be about 30% lower than initially anticipated.  As you would expect, this frost will have a material negative impact on the FY 2018 profit, and in all probability will reduce profitability to around a break-even position for the full year.  All things being equal we should see higher than expected production the following year (FY19). This is because the olive trees will compensate with excessive growth this year due to the lower crop load, and olives produce fruit on 1-year old wood, so all growth that they put on this year will be cropping potential for next year.

Apart from the cropping potential, we do not expect any medium or long-term impact on the trees from the frost.  The actual damage to the crop could only be assessed at flowering (full bloom) which finished a couple of weeks ago, and it took the technical team many days to crunch the numbers after thousands of observations and measurements were collected over a ten-day period.  This is a very difficult job as frosts affect different areas of the groves and varying sizes of trees differently. For example, due mainly to the undulating nature of the groves, it is common to have sections of individual rows with no damage at all and other sections on the same row with 100% loss which makes the assessment extremely difficult.

Depending on which way you look at it, we were fortunate that the 2018 crop had a lot lower potential (due to the biennial bearing nature of the trees) so our actual net loss from the frost was a lot lower than if we were in an on-production year.  In fact, if no other adverse climatic event occurs, the aggregate oil production of 2018 and 2019 crops could still be similar to what was initially anticipated prior to the frost event. We will also be able to manage our oil supply position to enable us to continue to support the ongoing growth of our packaged goods business.

Again, I am very sorry to have to deliver this disappointing news.

Kindest regards

Rob McGavin

Executive Chairman


2017 AGM Presentation

October 27 2017, Shareholder Announcements

Dear Shareholder,

Please find below a link to the presentation given by Rob McGavin at the 2017 Boundary Bend Limited AGM.

BBL AGM – October 2017 Presentation


 

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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