Bank First Corporation

Annual Report
2022

bestonglobalfoods.com.au

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Contents

Our year – FY22 summary 

Letter from the Chairman and Chief Executive Officer 

Capital management 

Sustainability 

Directors 

Executives 

Directors’ report 

Auditor’s independence declaration 

Financial report 

Directors’ declaration 

Independent auditor’s report 

ASX additional information 

Corporate directory 

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 20222

Our year – FY22 summary

Achievement of our strategic  
imperatives is transforming the Company

Management changes
3 new career dairy executives 
bringing significant 
experience, plus two internal 
promotions. Over 80% refresh 
of the senior executive team.

Increased milk supply
Increased milk supply 
contracted, offering record 
prices in an increasingly 
competitive environment, 
representing the 8th 
consecutive year of growth.

Record sales
24% revenue growth due 
to price increases and 
improved product mix 
implemented in Q4 FY22 
and carried into FY23. 50% 
of FY22 GM achieved in Q4.

Expanding markets
Product sales launched in 
Japan and South Korea, 
in addition to products 
continuing to be sold in 
more than a dozen existing 
markets.

Sustainability focus
Initiated a full carbon audit 
and other key initiatives on 
our quest to become one of 
Australia’s most sustainable 
dairy companies.

Record production
24/7 operations and 
resolution of operational 
issues led to record levels 
of production of mozzarella, 
whey powder and lactoferrin.

Lactoferrin
Sold 5MT in Q4 to key 
customers in Australia, Asia, and 
Europe, including into high-
grade infant formula. Planned 
capital expenditure to expand 
production capability.

Capital management
Capital raising undertaken 
to reduce gearing, expand 
nutraceutical capacity and 
invest in high ROI projects.

BESTON GLOBAL FOODS COMPANY LIMITED

Listed in 2015 and headquartered in Adelaide, South Australia, 
Beston (ASX:BFC) is a proud Australian company taking the 
best of Australian dairy and meat produce to the world with 
fresh milk supplied by our valued farmers.

Our dairy operations are centred in South Australia with 
2 factories located at Murray Bridge and Jervois. Our meat 
operations are based at Shepparton in Victoria.

We have approximately 300 employees and 45 dairy 
farmer suppliers. Our products are mainly sold in Australia, 
Philippines, Vietnam, Malaysia and China.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 20223

Strong growth in our core dairy business to continue in FY23

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…with 4Q22 and beyond showing improved trajectory

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4

Letter from  
the Chairman and CEO

Dear Valued Shareholder,

The past year has been one which has been characterised by 
some exciting developments and strong growth within your 
Beston Global Food Company, but also by the continuation 
of the unprecedented on-going effects of the COVID-19 
pandemic and new unanticipated cost pressures arising from 
geopolitical events, particularly in Europe.

Despite the challenging conditions and a year marked by 
significant uncertainty, Beston has been able to navigate its 
way through, staying focused on its controllables, posting 
record milk intake, record production and sales values. We are 
grateful for the commitment of our people, AND the loyalty of 
our farmer partners, customers, and consumers.

FY22 overview

The 2021-2022 financial year was marked by many changes 
in our operating environment. The continuation of COVID-19 
lock-downs adversely affected consumer demand, led to 
workforce shortages through employee absenteeism and 
created severe disruptions in domestic and global supply 
chains. These issues were compounded by global instability 
(the Russian-Ukraine war) which led to substantial increases in 
the costs of key production inputs, particularly transport (with 
international freight costs up by 300%) and energy costs. Tight 
labour market conditions and truck and driver shortages further 
contributed to the significant cost inflation experienced during 
the FY22 year.

Notwithstanding these challenges, the Company made 
substantial progress on a number of different fronts. Beston 
recorded significant operational improvements at its factories 
in the first half of FY22 (and delivered several record 
operational outcomes) which continued into the second half. 
These operational improvements, along with some repricing 
of contracts in response to global events, lifted margins and 
earnings in Q4 and has facilitated the migration of the business 
from a focus on volume performance to value performance (in 
line with the objectives in the Company’s strategic imperatives 
and ten-year business plan previously enunciated to 
shareholders).

While the financial performance of the Company did not meet 
expectations in the first nine months of FY22 as a result of 
the challenges faced, the results achieved underscored the 
underlying trend towards sustained increases in margins and 
earnings, as was demonstrated by the strong financial results 
of Q4.

The underlying trend towards improved financial performance 
in 1H22 was demonstrated by increase in revenue per litre of 
milk processed (up by 20% on 1H21) and an increase in dairy 
gross margin (up by 5.2% on 1H21) during the period. Revenue 
per litre for FY22 overall was 20% higher over the prior year 
and Group gross margins were 5.8 times higher than in FY21.

The dairy division, and the Group as a whole, delivered positive 
EBITDA and cash flows in Q4 with margins up by 60% on the 
previous comparative period (pcp). Mozzarella production for 
FY22 was up by 22% on FY21, and lactoferrin production was 
up by 700% on FY21.

These operational and financial improvements have generated 
a momentum in the business which is continuing, and building, 
in FY23.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 20225

Strategic imperatives

The following table details the progress made against our strategic imperatives:

Value has been created through a consistent focus on our five strategic imperatives

1.   Milk supply

•  FY22 milk supply c. 155ML.

•  Security of supply (contracts with dairy farms).

•  Sourcing ≈30% of South Australian milk. Targeting further growth.

2.   Sales pipeline

•  FY22 Group sales up 24% on FY21 and continuing strongly in FY23.

•  3 significant mozzarella contracts with high quality customers.

•  Mix of domestic and export customers in different market segments.

•  Strong demand in 2H22 and FY23 for dairy products with prices strengthening.

3.   Capacity  
utilsation

•  Mozzarella production increased by ≈28% in FY22 v FY21 on higher milk supply 

and reliable plant operations with quality gains.

•  Capacity utilisation at Jervois now at around 90%: stable plant operations, 

enabling yield and unit cost efficiency gains.

4.   Product mix

•  Transition to higher margin product mix with addition of lactoferrin to FY22 sales. 

Gross margins increased v 1H21 and improving.

5.   Dairy 

nutraceuticals

• 

• 

Lactoferrin plant commissioned 4Q21 on budget and operating well. FY23 
production will be around 16T-19T.

Lactoferrin range expanded to produce for Japanese market specifications in 
addition to China market. We now export to China, USA, Japan, South Korea, 
India and EU.

• 

Innovating with aim to produce higher specification lactoferrin for niche markets.

•  Developing capability to extract other nutraceuticals.

Outlook is 
strenghtening

COVID-19 impacts
receeding across
the world

Dairy commodity
prices rising

Lactoferrin sales
increasing in a 
soft market

Our consistent focus on these strategic imperatives has 
resulted in the achievement of a number of important 
milestones and created a platform for future growth in earnings 
and margins. Some of the important milestones achieved in 
FY22 are:

•  All milk supplied in the year (around 155 million litres in total) 
was processed into our range of mozzarella, cream, butter, 
cheddar and whey powder products.

•  Milk supply to our factories was 4% higher than the prior 

year, even though the national milk supply was down by 9% 
over the same period.

•  All milk requirements for FY23 were contracted (circa 

160ML) prior to 30 June 2022.

•  Several new high quality export contracts were secured 

with customers in Japan, Korea and Thailand.

•  Supply partnerships with McCains, Woolworths and 

Mondelez were renewed.

•  The first sales of cream cheese to the Philippines and South 

Korea were contracted.

•  BFC awarded “Best Mozzarella” in Australia in the Dairy 

Australia Association Awards.

•  Several key capital installations completed successfully, 

including new milk and cream silos at Jervois with 
associated infrastructure improvements.

•  Licensing agreement successfully signed with Kanematsu, 

Japan for plant based alternative meat products.

 
 
 
6

Letter from the Chairman and CEO

Operating performance

Lactoferrin

The construction and commissioning of the Company’s 
lactoferrin plant expansion was completed on time (in July 
2021) and on budget. The uplift in sales of lactoferrin from the 
expanded plant did not occur as expected within the FY22 
year as potential customers (who also experienced their own 
staffing and other challenges through the COVID pandemic) 
took their time (in many cases six to nine months) to test 
the technical properties and purity levels of the lactoferrin 
produced from the new plant.

The Company achieved sales of 8MT by financial year and 
(representing approximately 50% of total production for the 
FY22 year) and advised shareholders in July 2022 that it 
had secured new sales agreements for lactoferrin of 16.6MT 
representing almost all of the planned FY23 production.

The results being achieved with lactoferrin sales highlight 
the value of the decision which was made by the Company 
(and supported by shareholders) to expand the capacity 
and capabilities of our dairy nutraceutical plant at Jervois. 
Our lactoferrin products are now being used by local and 
international infant formula companies, a number of which are 
making significant inroads into the USA market, in light of the 
recent product shortages in that country.

The operations team at Beston’s dairy factories performed 
extremely well during FY22 and put behind them the significant 
operating issues faced in FY21 when some plant break-downs 
at the Jervois factory were exacerbated by the difficulty in 
procuring spare parts due to the COVID-induced closure of 
plant and equipment suppliers in Europe. The improvements 
in operating performance at these factories were critical to the 
uplift in margins and earnings in FY22, as discussed above, 
and to the positive financial results recorded in Q4, when 
the Company showed what it was capable of achieving as 
Australia, along with the rest of the world, came out of the 
COVID-19 era.

Similar achievements in operations and productivity were 
recorded at Beston’s meat business, Provincial Foods Group 
(PFG) based in Shepparton, Victoria. While the growth in 
this business was hampered by COVID-19 restrictions in key 
Victorian and NSW markets, costs in the business were well 
controlled under the new management put in place at PFG and 
gross margins were increased on the prior year.

The improvements in operational performance and 
manufacturing reliability achieved across the Group in FY22 
continues to trend positively in FY23 across our main key 
performance indicators.

The mozzarella production of 14,821 metric tonnes in FY22 was 
a record for the Company and has taken our capacity utilisation 
of the mozzarella plant to around 90%. The flexible functionality 
incorporated in the Italian built state-of-the-art mozzarella plant 
(which was installed and commissioned in May 2018), along 
with the agility of our technical production team, has enabled 
us to produce at least eight different types of mozzarella to suit 
different customer profiles in different countries. Some 40% of 
mozzarella production in FY22 was exported, with the balance 
allocated to domestic customers.

BFC has excess demand for its range of dairy products and 
now has a sales mix which is more broadly spread across a 
high quality customer base than previously. The core dairy 
products provide scale and efficiency (which we now have) 
so as to produce functional proteins and other nutraceutical 
products where added value is found.

Left to Right: Hon Adrian Pederick MP, Member for Hammond, 
Dr Roger Sexton AM, Hon Peter Malinauskas, Premier of South 
Australia, Hon Clare Scriven, Minister for Primary Industries, 
Regional Development, Forest Industries, and Fabrizio Jorge.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 20227

BFC received registration from the Australian Therapeutic 
Goods Administration (TGA) during FY22 for three of its newly 
developed “TRUEFERRIN” branded nutraceutical products. 
The approval and registration of these products by the TGA 
have provided an important testament to the quality and 
bio-active functionality of BFC’s lactoferrin products and has 
opened up the opportunity for further growth in sales to the 
registered therapeutical products area of the burgeoning 
health and well-being market.

Lactoferrin has been shown in numerous scientific and clinical 
trials over a period of 50 years, to have significant anti-viral, 
anti-bacterial and anti-fungal properties. Lactoferrin inhibits 
entry into human cells and boosts immunity.

The TGA approval has enabled us to capitalise on the 
diverse applications of lactoferrin as a functional ingredient 
and enter the flourishing nutraceuticals market in Australia. 
It has also provided the required credentials to allow us to 
explore strategic alliances overseas that can benefit from our 
unique selling proposition of being a high quality, high purity 
manufacturer of lactoferrin.

Through the work done by our team of highly qualified 
technical specialists, we have been able to expand our 
lactoferrin production to meet the specifications for the 
Japanese market in addition to the GB-90 specifications for the 
China market. BFC now exports its lactoferrin products to South 
Korea, India, Poland, and Western EU in addition to Japan and 
China.

The Company now supplies lactoferrin to its customers, either 
as TRUEFERRIN (around 95% purity) or MEDIFERRIN (up to 98% 
purity). Lactoferrin has a shelf life of at least three years thereby 
providing different shipping options and the optionality for high 
grading of the customer base.

The investment we have made in plant and equipment to 
fractionate the protein streams in milk to produce lactoferrin 
and other high value dairy nutraceuticals is part of our long 
game strategy to capture the opportunities arising from the 
rising global demand for health supplements and functional 
foods which support human well-being by assisting the 
natural anti-inflammatory responses in the human body and 
boosting immunity. Global research indicates that over 65% of 
consumers in developed countries are considering immunity 
benefits as top of mind when making healthy food choices 
today. We believe that this trend will continue to grow in a 
post-COVID world.

8

Letter from the Chairman and CEO

Management changes

The Company made a number of important new appointments 
to its senior executive team in the latter part of FY22.

•  Fabrizio Jorge was appointed as Chief Executive of Beston, 
effective 1 April 2022 following a stellar career in the global 
dairy industry with Nestle, Fonterra and Bubs.

•  David Isherwood was appointed as Chief Manufacturing 
Officer, effective 26 April 2022 having spent most of his 
career with Fonterra Ltd in various production, management 
and business development roles across the world.

•  Cameron Woods was appointed as Director, Food and 

Beverage division with responsibility for Group sales and 
marketing, effective from 16 May 2022. Cameron has a 
wealth of experience working in the global FMCG sector 
and for the past seven years was the Head of APAC 
(based in Singapore) for Leprino Foods, one of the largest 
manufacturers of mozzarella in the world.

As part of these changes, the Company’s Financial Controller, 
Nick Wagner, was promoted to Chief Financial Officer.

The leadership team hit the ground running in Q4 and, as the 
world began to emerge from the debilitating era of COVID-19, 
very quickly implemented a number of revised go-to-market 
strategies and business development priorities to secure a 
focus on sustainable and profitable growth across our various 
product portfolios.

The Board is of the view that we have one of the most 
competent and experienced leadership teams in the food 
manufacturing industry in Australia. The team is totally focussed 
and aligned on the forward objectives of the Company and is 
well equipped to ensure that the earnings momentum which is 
in train is not only continued, but can be accelerated in future 
periods.

Looking ahead

Since its start up in 2012, BFC has been on a strong growth 
trajectory based around a ten year three phase business plan. 
The first phase of this business plan was focussed on building 
out our asset base and the second phase was focussed 
around scaling up production. All of the objectives in these first 
and second phases of the plan have been achieved and we 
are now in the third phase with a well scaled business which is 
currently processing around 155 million litres of milk per annum 
in our dairy factories.

While we have experienced a number of unanticipated set-
backs and challenges since listing in 2015, including two years 
of drought followed closely thereafter by almost three years of 
COVID-19, the Company has navigated its way through these 
challenges and established a sound platform for long term 
sustainable, profitable growth.

We are a young Company in comparison with most dairy 
companies in Australia but have demonstrated our persistence 
and determination in the face of the many challenges during 
the relatively short period of our journey.

In building our business, we have always played the long 
game, and stayed the course, to implement the objectives in 
the ten year business plan. The completion of the ‘build out’ 
and ‘scaling up’ work undertaken as part of implementing the 
first and second phases of this ten year plan has enabled the 
business to move from a focus on volume performance to a 
focus on value performance (‘valorisation’) in the third phase 
of the plan (which we are now in). We have also achieved a 
number of important strategic milestones over this time. These 
include:

•  Year-on-year growth in revenues of 68% per annum on 

average to June 2022 (i.e. well in excess of the 20% year-
on-year growth target in our business plan). Beston was 
recognised as the fastest growing food and beverage 
company in Australia and the second fastest growing food 
company in the Asia Pacific Region over the period 2016-
2019 in a survey undertaken by the prestigious Financial 
Times, in conjunction with Nikkei Asia and Germany’s 
Statistica (April 2021).

•  Despite a decline in total milk production across Australia, 
we have built our milk pool from 17 million litres in 2015 
to circa 155 million litres currently (representing year-on-
year growth of 135% per annum over the period). From a 
‘standing start’ in 2015, Beston has grown to become the 
largest dairy processor in South Australia, taking in around 
35% of all milk produced in the state.

• 

In response to a growing global demand for functional dairy 
ingredients, we acquired a dairy nutraceutical ‘chassis’ and 
expanded it in 2021 to fractionate whey protein streams 
and provide the capacity to produce more than 20 tonnes 
of lactoferrin per annum. Our lactoferrin is recognised as 
one of the world’s most pure lactoferrin products with high 
levels of bio-availability.

•  Only one of 10 manufacturers of lactoferrin in the world with 
now installed capacity to produce 5% of the world demand 
for lactoferrin.

•  Won over 160 major industry awards for quality, both in 

Australia and overseas.

•  We have continued to grow our Dairy Foods portfolio 

and built capability and capacity in the production of high 
quality mozzarella, more than tripling the total production 
output since 2019 (ie from 4,400 tonnes pa in FY2019 to 
approximately 15,000 tonnes pa currently). BFC is now well 
positioned to continue to respond to the rapid growth of 
QSR (quick service restaurants) and Foodservices channel 
in a post COVID-19 world across the entire Asia Pacific 
region.

•  Built capability and capacity to supply ready-to-heat meat 
and alternative meat products to meet the growing global 
demand for protein.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 20229

Beston is not following the large dairy companies to become 
‘all things to all people’ in the dairy space, but has carved out 
a niche to be a supplier of healthy, safe, authentic, premium 
quality protein products (ie dairy protein as well as meat 
protein and plant based protein products). We believe that 
the company is well positioned to capitalise on the emerging 
trends in the global food industry.

In Asia alone, the growth in demand for protein is expected 
to increase by 78% through to the year 2050 according to 
Barclays Bank UK PLC. A recent article in The Economist (May 
2022) flagged ‘The coming food catastrophe’ and predicted 
that shortages of protein could start to emerge in the next few 
years as a result of a ‘battered global food system’ which has 
been weakened by COVID-19, climate change, energy shocks 
and the Russian invasion of Ukraine.

The results achieved in Q4 of FY22, we believe, are indicative 
of how the Company can thrive and grow into the future.

In closing, we would like to thank all of our employees for their 
huge efforts and dedication in helping us to fulfil the objectives 
of the Company during a challenging period. We have jumped 
a lot of hurdles during the year as a result of the commitment, 
alignment and belief of our employees and generated a 
powerful momentum from all the contributions they have made.

We also wish to thank our shareholders, suppliers, customers 
and, very importantly, our farmers for their continued support. 
Their loyalty has been integral to the important progress which 
has been made by the Company during the 2021-22 financial 
year.

Roger Sexton 
Chairman 

Fabrizio Jorge
Chief Executive Officer

10

Review of Operations

FY22 carried on the strong trajectory of growth in the milk and production 
fundamentals, as well and continuing the Group’s increasing top-line revenue 
growth. Milk supply continued to increase despite the overall Australian milk pool 
decreasing, revenue growth continued with an increase of 24% over the prior year, 
and the dairy production facilities continued to show the improved production 
capability as a result of the increased focus on preventative maintenance.

Dairy operations

Milk supply and prices

Mozzarella production

At the beginning of the financial year, we forecast milk supply 
to be around 155mL. The final milk supply totalled 151mL, up 
around 4% on the previous year, in the face of pricing volatility 
leading to farmers reducing their output significantly in the 
fourth quarter. This reflected the overall South Australian milk 
pool, which decreased 1.8% against the prior year based on 
Dairy Australia statistics, most of which was in May (10% lower 
volumes than expected) and June (18% lower) 2022. 

The increased milk supply in FY22 allowed Beston’s Dairy 
businesses to complete record levels of production in all 
product categories. Operational performance of the Jervois 
and Murray Bridge production facilities was not impacted 
by production issues which hampered the business in prior 
periods, and substantially all of the milk secured by Beston 
in FY22 was allocated to production of cheese and related 
products at Jervois and Murray Bridge, per the below chart.

We are delighted that our contract dairy farm suppliers have 
continued to see milk pricing improve in the FY23 season. 
The Group has always held the view that dairy farmers should 
receive a fair and appropriate economic price for their milk. 
Input cost increases faced by farmers have been recognised in 
record milk prices being offered by processors.

The reduction in delivered milk in the fourth quarter of FY22 
led to production guidance being insignificantly under-
delivered, with 14,821 tonnes of mozzarella being produced for 
the year – a record for our Jervois plant, and a 22% increase 
on the prior period, despite an increase of only 4% in total milk 
delivered compared to the prior period.

Lactoferrin production

With the increased reliability of the performance of the Jervois 
mozzarella plant, lactoferrin production was ramped up to 
deliver production of 14.3 tonnes of finished goods lactoferrin 
for FY22, and a further 1.5 tonnes of finished goods equivalent 
lactoferrin was held in concentrate form yet to be dried. 
Lactoferrin held on hand available to satisfy the increased 
demand in FY23 totalled approximately 10.5 tonnes of finished 
goods powder and equivalent in liquid concentrate as at 
30 June 2022, noting that lactoferrin has a shelf life of 3 years.

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022FY22 Mozzarella Production and Milk Supply

s
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1,400

1,200

1,000

800

600

400

200

0

Jul-21

Aug-21

Sep-21

Oct-21

Nov-21

Dec-21

Jan-22

Feb-22 Mar-22 Apr-22 May-22

Jun-22

Milk used in production

Milk sold

Production

11

16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0.00

)
s
e
r
t
i
l

n
o

i
l
l
i

m

(
k

l
i

M

 
 
12

Review of operations

Provincial Food Group increased 
revenue by approximately 27% 
over the prior period and reported 
$12.8 million of sales in FY22, 
with the potential to grow by 
around 20% in FY23.

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022Meat operations

The Provincial Food Group (“PFG”) increased revenue in the 
year ended 30 June 2022 by approximately 27% over the prior 
period. However, it was not able to achieve the sales growth 
planned for the business at the start of the year, mainly as a 
result of being in Victoria which was substantially impacted by 
COVID-19 lockdowns and other restrictions. Operating for much 
of the year under the more stringent COVID-19 restrictions in 
place throughout Victoria, the efficiency of factory operations 
was significantly lower than under normal operating conditions. 

None-the-less, the PFG management team, supported by the 
factory personnel, delivered a commendable performance to 
maintain operations throughout the lock-down periods, and to 
manage extended periods of absenteeism caused by lock-
down restrictions.

A number of management changes have been made at PFG 
during recent months to increase the depth and breadth of 
the skill base, with the appointment of existing team members 
to new roles including Commercial Manager and Operations 
Manager. We expect these appointments, along with the 
normalisation of operations post-COVID-19, will result in a lift in 
performance in PFG in FY23.

Sales growth was targeted to come primarily from new 
products for customers in the food services and retail sectors. 
Reviews of existing contracts have been undertaken to ensure 
that the business has been able to substantially pass on the 
increasing input and conversion costs to which the business 
has been subjected. Capital projects such as the installation of 
rooftop solar farms have been completed in order to reduce 
the reliance on volatile energy markets.

The business reported $12.8 million of sales in FY22 and has 
the potential to grow by around 20% in FY23 if the margin 
reviews and sales opportunities currently being pursued can 
be converted in a timely manner under the new leadership.

13

Financial summary

A transformative year

Beston Global Food Company Limited (ASX: BFC) (the Group) 
advised shareholders in its Trading Updates on 2 June 2022 
and 29 July 2022 that the Group would report a statutory 
loss for FY22 as a result of the net profit after tax (NPAT) loss 
recorded in the first half and some of the early months of the 
second half.

The Q4 results for FY22 showed a positive Group earnings 
before interest, tax, depreciation and amortisation (EBITDA) and 
positive Group operating cash flows, reflecting the significant 
improvements achieved in the Group’s factory operations, and 
the progress achieved in implementing a range of continuous 
improvement initiatives to improve margins. The momentum 
built up in Q4 has continued into 1Q23 and has provided the 
basis for confirmation of the operating and earnings guidance 
as detailed in the aforementioned Trading Update lodged with 
the ASX on 29 July 2022.

Overview

The FY22 financial performance of BFC was significantly 
impacted by a number of COVID-19 related events in the first 
nine months of the year. These events included:

•  A slowdown in global lactoferrin sales due to declines in 
birth rates over the COVID-19 period, and reduced global 
demand for infant formula, particularly in China. This led 
to significantly lower volumes of lactoferrin sales against 
expectation for FY22 ($14.3m lower than expectation).

•  A dramatic reduction in food service sales, as restaurants 

and hospitality outlets were closed as a result of 
government-imposed lockdowns.

•  Significant increases in international freight costs (by as 

much as 300% for many shipping routes utilised by Beston) 
which were not able to be fully passed onto customers 
under the terms of contracts then in place ($2.2m).

•  Stock write-downs due to delayed delivery of mozzarella 

shipments ($1.5m).

•  Significant staffing & absenteeism implications for our 

Shepparton meat and plant-based alternative factory for a 
substantial part of the year due to COVID-19 management 
mandates imposed by the Victorian Government.

The financial impacts of COVID-19 related events were 
exacerbated by underperformance in the whey powder plant 
at Jervois in the first half, which caused some whey powder 
from impacted production runs to be downgraded and 
subsequently sold at a discount to our normal high-quality 
products and is estimated to have cost the business $1.9m. 
Of the plant performance ($1.9m), lactoferrin sales ($14.3m) and 
demand/COVID-19 issues ($3.7m) noted, none are expected to 
reoccur in FY23 (total of $19.9m of non-recurring issues).

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 202214

Review of operations

We were also subjected to delayed take-up of lactoferrin sales 
following the completion of the plant expansion, as potential 
customers took time to independently assess the purity and 
technical quality of the lactoferrin produced in our new plant. 
Milk supplied during the first half of the year was also naturally 
lower in protein than expected, and milk supplied in the 
fourth quarter dropped off significantly against expectation 
(combined impact of $3.0m, per chart on page 3).

The Group made a number of operational and management 
changes during FY22 which resulted in substantial 
improvements in margins, profits and cashflow in the fourth 
quarter. These changes were critical in enabling the Group to 
cope with the challenges to the business presented by the 
impact of COVID-19 and the significant increase in input costs 
which arose from geopolitical events, weather conditions and 
other unexpected events. 

During the fourth quarter, the newly established management 
team put in place a series of actions to review our market, 
customer, product, and pricing mix positionings, all of which 
contributed to an uplift in margins and operating results. Over 
50% of the Company’s FY22 margins were delivered in fourth 
quarter alone.

Global supply chain delays, energy shocks, the Russian 
invasion of Ukraine, truck and driver shortage related freight 
issues, tightening labour market conditions, interrupted and 
inconsistent customer trading, and significant increases in farm 
gate milk prices all contributed to the significant cost inflation 
experienced during the FY22 year.

Sales product price increases were put in place across all 
customers and channels during the fourth quarter of FY22. 
These price increases started contributing to the uplift in 
bottom line results in this period but will contribute more 
significantly in FY23 as more longer-term contracts roll over 
and are able to be reset at the higher prices.

The continuous improvement initiatives which have been put 
in place across the Group in FY22 (via management changes, 
operational improvements, costs efficiencies, channel-led value 
creation etc.) as we valorise our business model will continue 
to deliver in FY23 and be reflected in future financial results.

The key operational outcomes for FY22 and FY23 Guidance 
are summarised in the table below:

Measure

Milk Supply
Mozzarella production
Lactoferrin production
Group Sales
EBITDA
Revenue per litre of milk
Capex

mL
MT
MT
$m
$m
$/l
$m

FY21  
Actuals
146
12,150
2
112
-24
0.77
17

FY22  
Actuals
151
14,821
16
140
-18
0.84
5

Variance to  
FY21 Actuals
↑4%
↑22%
↑700%
↑25%
↑25%
↑9%
↓70%

FY23  
Guidance
155 - 175
15k - 16k
16 - 19
150 - 180
8 - 10
1.00 - 1.15
6 - 8

Variance to  
FY22 Actuals
↑9%
↑5%
↑10%
↑18%
↑ significant
↑28%
↑40%

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202215

Capital Management

During the latter stages of FY22, Beston implemented a capital management 
strategy to reset the balance sheet and accelerate transformational growth in 
the revenue and earnings of the Company, while consolidating our position as 
South Australia’s largest and leading dairy company.

The key activities undertaking in FY22 and early FY23 were:

•  Completing the sale of the investment in Neptune Bio 

Innovations in July 2021.

•  Restructuring the Group’s banking facilities to better match 
the needs of the business through FY23 and beyond. 

• 

Initiating a capital raise which will be completed in 
November 2022.

The company has worked with its principal bankers to 
restructure the Group’s banking facilities to better match the 
needs of the business from FY22 into FY23 and beyond. The 
revised facilities were negotiated during the final quarter of 
FY22, and implemented in September 22 ahead of the FY23 
peak milk supply season commencing. The following table 
summarises the liquidity position of the company as at 30 June 
22, and notes the new facilities have been put in place as of 
the first quarter of FY23.

 Facilities Types

Mortgage
Term Loan
Equipment Lease and Hire Purchase
Working Capital

Drawn
30 June 22
$m

FY23 facility 
limits

 2.6 
 36.5 
 5.7 
 3.0 
47.8

$m
 2.6 
 36.5 
 5.7 
 18.7 
63.5

As a consequence of the timely implementation of the 
capital management activities, including the revised banking 
arrangements, the Group has sufficient funding to be able to 
execute its business plans.

A further $26.5 million after costs is expected to be raised 
from investors during the new financial year. A placement 
programme to raise approximately $3.3 million was supported 
by a non-renounceable entitlement offer to raise approximately 
$25 million, to be completed in November 2022. 

The primary use of the funds raised is to:

•  Continue to increase the underlying cash generation 

of the dairy business through further investment in the 
bioactive protein and nutraceuticals space, to capture 
additional lactoferrin throughout the peak milk period, and 
to continue Beston’s leadership in the bioactive protein and 
nutraceuticals space ($3 million).

• 

Invest in several high ROI manufacturing projects to 
accelerate profit and sustainability improvements including 
vertically integrating our cheese processing capabilities to 
capture lost margin ($7.5 million). 

•  Retire debt to provide greater capacity to enhance 
profitability and to fund future growth opportunities, 
whilst providing a greater level of protection against 
unexpected or uncertain events such the impacts of 
COVID-19 ($16 million).

 
16

Sustainability

The Board of Directors and Management Team recognised the critical importance 
of protecting the planet that we live on, and have therefore implemented a number 
of policies and practices with the objective of positioning Beston as the leading 
sustainable dairy company in Australia. We believe that the sustainability measures 
we have put in place will also lead to productivity improvements in our business.

Beston is a member of the Dairy Manufacturers Sustainability 
Council (DMSC). As such, Beston continually aims to reduce 
the environmental impact of its operations and tracks its 
performance against a scorecard of environmental and 
sustainability performance.

Targets in the scorecard include energy consumption, 
greenhouse gas emissions, efficiency of water use, wastewater 
production (and re-use) and diversion of packaging waste from 
landfill.

Beston appointed an Environment and Sustainability 
Manager in 2020 with responsibility for the development and 
implementation of the Company’s sustainability strategies 
and ensure compliance with all environmental legislative 
requirements. The Work Health and Safety, and Maintenance 
Managers assist in ensuring compliance activities are 
completed and maintained.

To oversee the continuing progress in this area, the Board 
established an Environment and Sustainability Committee 
which comprises key members of the senior management 
team and is chaired by the Chairman of the Board, Dr Roger 
Sexton AM.

Sustainability strategy

Beston is targeting to have net zero emissions by 2050 and 
halve its global emissions footprint by 2030. Our sustainability 
strategy provides the foundation and direction for the decision-
making in our factories.

Our goal is to positively impact our environment, our people 
and the next generation.

We aim to play a leadership role in moving to a net zero 
carbon organisation in the dairy industry and to offer carbon 
neutral production to our customers. We avoid waste by 
reducing material inputs to our products (such as by enhanced 
yield practices) and re-using waste from our manufacturing 
operations (such as the whey bi-product from cheese making) 
to make more products.

Our approach to becoming carbon neutral has not been to buy 
carbon offsets from the market, but rather to take a more direct 
approach by targeting the systemic causes of climate change 
within our own supply chain and achieve measurability (as per 
our on-farm methane abatement programs described below). 
An independent carbon audit measured against the Federal 
Government ‘Carbon Active’ standard commissioned this year 
is central to establishing our benchmarks and priorities for 
coming years.

The sustainability team at Beston has looked at how our 
Company can help to shape the future of the food system to 
promote sustainability and understand the role that dairy can 
play in engendering long term sustainability in the industry.

A number of important initiatives have been put in place at our 
factories around packaging, water usage, promoting healthy 
soils and achieving zero waste.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202217

PACKAGING

PROMOTING HEALTHY SOILS

Non plastic target 100%
– Re-use, recycle or compost
Plastic target 70%
– Re-use, recycle or compost 
Packaging target 50%
– Recycled content

Minimise single use plastic

On track for 50% attainment in 2023

The re-use of plastic has been a strong focus in FY22 
given the achievement in re-use of non-plastics. Some 
17 MT of plastic was saved by optimising Mozzarella film 
and 4 MT saved through changes in the use of cling film. 
A collaborative trial was conducted during FY22 with 
customers on a 100% recyclable plastic wrap for cheese.

Beston has approximately 80 ha of land associated with 
the Jervois and Murray Bridge sites. Much of this land is 
irrigated to manage water discharge but also to enable 
neighbour/partners to graze stock. We aim to ensure 
these soils remain healthy and productive for future 
generations. In FY22 we engaged an independent 
external soil expert to challenge our existing practices 
and prioritise an action plan. Our FY23 target is to 
complete this work and implement the action plan.

WATER USAGE

ZERO WASTE

Achieve a 
10% reduction 
in water use every year 
for the next 5 years

TARGET:  
Achieve a 
50% reduction 
in FY23

A reduction in water usage target has been initiated 
for FY23. Site water audits have identified key areas 
where a step change in water usage can be achieved. 
Significant funding and capital works are planned to start 
during FY23 to achieve the target of a 10% reduction in 
water usage every year for the next five years.

FY22 saw many initiatives delivered by the sustainability 
team to achieve zero waste to landfill:

• 

returning all packaging from chemical products to the 
suppliers for re-use

•  separating cardboard from waste bins for recycling 
(some 17 tonnes of cardboard was diverted from 
landfill in FY22)

•  saving plastic lids from additive products and 

returning to the supplier (some 15 pallets of lids were 
saved and recycled during FY22), and

•  collecting and separating scrap metal from our 
factories and the local community and recycling.

18

Sustainability

The economic benefits 
of the ‘farming the sky’ 
concept are that Beston can 
reduce its power bills while 
enabling farmers to also 
reduce their power costs.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202219

Farming the sky

Bio-security protocols

Beston takes a very proactive stance in protecting Australia’s 
biosecurity. Our Company was an early mover in putting bio-
security protocols in place to mitigate the risks associated with 
Foot and Mouth Disease.

The protocols put in place on 25 July 2022 have included:

•  An international travel ban for Beston milk supply staff and 

families.

•  Where possible, limiting farm visits and redirecting 

meetings to offsite locations.

•  When necessary, such as for quality issue resolution, 

Beston farm visits will be by prior appointment with farmers 
only, no cold calls.

•  Beston vehicles are not to enter properties. Beston staff 
are to request farmers to collect them from the roadside 
outside of properties, and drive them into their properties.

•  Beston farm visits when necessary, will be limited to one 

per day.

•  All items of clothing and footwear are to be changed 

and washed in between farm visits including jackets and 
jumpers. Separate pair of footwear will be used specifically 
only for farm visits, this footwear will be cleaned and 
disinfected in between farm visits.

These protocols will remain in place until the Australian 
Government has advised that the risk of Foot and Mouth 
Disease has ceded.

Electricity and natural gas are amongst the highest input costs 
in our manufacturing processes and are amongst the highest 
items in terms of greenhouse gas emissions at our factories. 
As a result, we are constantly seeking efficiency gains to 
reduce the consumption of energy at our production sites.

We installed a 354 kWh solar power generation plant at our 
Provincial Foods factory at Shepparton, Victoria during FY22 
which came into operation in December 2021. This plant has 
substantially lowered our energy bills at PFG and also reduced 
our emissions of greenhouse gas.

Beston has been engaged in examining the feasibility of an 
even larger 2.31 mWh Consumption Based PPA Solar System 
and 500.0 kWp/1000 kWh battery Energy Storage capability at 
our Jervois facility. Options which have been considered are 
on-roof or on-ground solar panels (or a combination).

A detailed assessment has been performed using data that 
included actual energy consumption, operating hours and 
behavioural patterns. The preferred option is to be staged and 
will provide our Jervois plant with the opportunity to reduce 
greenhouse gas emissions by an estimated 4,820 metric 
tonnes per annum. The initiative would provide Jervois with 
the ability to eliminate the risk of future price rises and provide 
supply security for at least a third of the factory’s annual 
consumption.

The project under consideration will also provide the 
opportunity to generate power in excess of our requirements 
and to feed the surplus into the grid for on-purchase by our 
contract dairy farmers at a rate cheaper than grid prices.

The economic benefits of this ‘farming the sky’ concept are 
that Beston can reduce its power bills while enabling farmers 
to also reduce their power costs. The use of battery storage 
will also provide grid stability and eliminate cooling down-time 
at our mozzarella, butter, whey and lactoferrin plants in times of 
power outages.

This renewable energy project has involved extensive 
technical design work to ensure that the plant both optimises 
the current needs and also accommodates expansion for 
future needs.

20

Sustainability

On-farm methane abatement program

Contribution to food security

The livestock sector in Australia is responsible for 48% of the 
country’s methane emissions (mainly due to the digestive 
functions of cattle and sheep). Methane emissions make up 
about 25% of Australia’s total greenhouse gas emissions.

Beston estimate that more than half of the greenhouse gas 
emissions associated with the production of its dairy products 
(and ingredients) emanate from the on-farm production of 
milk. The bulk of the methane emissions generated on farms 
(ie around 80%) is enteric, resulting from dairy cows burping 
methane gas from their digestive tract during rumination, a 
natural process for all grass eating animals. The remaining 20% 
is emitted from manure stored in anaerobic conditions.

In order to tackle the problem, and reduce the carbon 
footprint associated with its supply chain, Beston launched a 
project in May 2022, in conjunction with the South Australian 
Departments of Primary Industries and Regional Development 
(PIRSA), to introduce alternative feeding strategies for the 
cows owned by the Company’s contract dairy farmers. The 
project involves a study of 3,500 cows with the introduction of 
innovative feed supplements into the cows diet to modify the 
conditions in the cows’ rumen and reduce the generation of 
methane as the cows digest their food. The methane emissions 
from each cow is captured digitally to provide a basis for 
comparison with a control group of traditionally fed cows.

Beston has been a ‘first mover’ in establishing this methane 
abatement program. The program has developed as a 
collaboration between Beston, South Australian dairy farmers, 
the SA Department of Primary Industries and Regional 
Development and scientists at the University of Adelaide.

The data collected from each farm is stored in an Azure 
database and placed on a Beston developed OZIRIS 
distributed ledger platform to ensure indisputable chain of 
custody for each cow on each farm and compliance with all 
Government standards for carbon tracking.

Currently, direct livestock emissions account for about 70% 
of greenhouse gas emissions by the agricultural sector in 
Australia and 11% of total Australian emissions.

Research by the CSIRO (Australia’s Protein Roadmap, March 
2022) shows that the future of global food security will rely 
heavily on global access to proteins. The world will need to 
produce around 60% more food to feed an expected 9.7 billion 
people by 2050. To feed rising populations, the global demand 
for protein is expected to increase by 20% through to 2025.

This means that the world must produce more protein, more 
sustainably, and from more sources. To meet this challenge, 
plant-based proteins are increasingly becoming an alternative 
to the consumption of traditional protein from animal based 
products.

Australia is the world’s third fastest growing market for plant-
based foods. In 2019-20 Australia’s plant based meat sector 
generated $185 million in sales (up by 32% from 2018-19).

The CSIRO estimates that Australia’s plant based protein sector 
could grow to $9.0 billion in sales by 2030.

Market research suggests that for most consumers, the 
consumption of plant based meat alternatives is not about 
eliminating animal products completely, but rather diversifying 
their diet (ie with a “flexitarian” lifestyle).

The use of plant based food products is also a means by 
which the world can tackle emerging food shortages with 
an expanding population and the rapidly increasing global 
demand for protein.

The global plant based food market is expected to grow from 
USD 29.4 billion in 2020 to USD 162 billion by 2030.

The technique used to produce alternative meat products 
(commonly called meat analogues) is via extrusion, a process 
that utilises high heat and pressure to texturise vegetable 
protein with water into a product with a fibrous consistency 
like animal meat. The key to the taste and quality of alternative 
meat products is flavour and texture.

Beston acquired plant-based production technology, along 
with appropriate plant and equipment from the US in 2020 and 
undertook contract manufacturing for a period of time in order 
to build capability and capacity at its wholly owned subsidiary 
company, Provincial Food Group based in Shepparton, 
Victoria. We recently entered into a joint venture with Japanese 
company, Kanematsu, to produce plant-based burgers for 
distribution in Japan, Asia and Australia.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202221

• 

In conjunction with our team at Provincial Foods, a pilot 
export project was conducted on Halal meat burgers to 
track the product from origin to market in Singapore and 
substantiate the Halal status of the projects (in view of the 
increasing concern in Asia about fake Halal meat products 
being sold which are neither Halal certified nor, often, are 
not even beef as labelled). The pilot project was successful 
and Beston Technologies have now signed a pre-licensing 
Agreement with Singapore based WhatsHalal Pty Ltd for 
potential application of the technology in the Asian Halal 
market.

Beston Technologies has recently been awarded a Provisional 
Patent for the real time near-infra-red (NIR) portable device 
developed for Halal meat quality identification purposes. 
Two further patents are pending in related areas and are 
anticipated to be filed in January 2023, all of which will extend 
Beston Technologies’ patent portfolio.

Beston Technologies is expanding its association with 
the University of Adelaide’s Institute for Photonics and 
Advanced Sensing (IPAS) through a recently awarded 
Federal Government Innovation Connections Grant. This 
grant builds upon previous POC trials for multi-modal sensing 
applications, to enable Minimum Viable Products (MVP) to be 
developed by December 2022. It is anticipated that these 
will be commercialised in early 2023, with targeted clients 
demonstrating firm interest in associated Software as a Service 
(SaaS) support and licensing.

Beston has previously advised shareholders of its objective 
to commercialise its technology business to allow it to realise 
its full potential and enable Beston to focus on its core 
business as a protein based, food and beverage company. 
That objective remains. Beston expended significant funds 
initially to develop its IP and technology platform but has 
made extensive use of Government grants in the last few 
years to further expand the applicability of the technology and 
increase its affordability relative to other emerging competitors 
in the marketplace. Much of the progress in recent times has 
been achieved through a collaboration with the University of 
Technology Sydney (Computer Sciences), supported by the 
Australian Government’s DIIS Entrepreneurs Programme, and 
a 3-year award of the prestigious CSIRO supported SIEF Ross 
Metcalfe Business Fellowship grant.

Beston Technology

The aim of providing traceability of its ingredients and 
verification of the authenticity of our products has been at 
the front and centre of BFC’s activities from our first day of 
operations as a start up company in 2012.

As has been noted in previous Annual Reports, when Beston 
started out, we wanted to incorporate technology on to our 
packaging which could both prevent counterfeiting of our 
products (a big problem for food and beverage companies in 
China) and empower consumers so that they could verify the 
provenance of our product and track-and-trace the ingredients. 
We looked around the world to find a suitable off-the-shelf 
technology for our needs and discovered that none actually 
existed.

We therefore set about to develop our own technology 
platform which has turned out to be ground breaking, as 
demonstrated by the fact that it has been awarded 13 patents 
including a block chain patent from the USA. The OZIRIS 
technology platform is embodied within our 100% owned 
subsidiary, Beston Technologies Pty Ltd.

Over the past few years, we have been further refining the 
technology so as to enable it to be used as a Software-as-a-
Service (SaaS) by other food producers in Australia.

As a result of the refinements we have put in place, the Beston 
Technologies’ platform has evolved into a multifunctional 
device which has broader applications across food and 
beverage supply chains. These applications have been tested 
in proof-of-concept trials involving recycling of plastic wasted, 
meat and food recall and the authentication of rare minerals:

•  The OZIRIS technology has been successfully tested 

in waste transfer stations to quickly and efficiently sort 
plastic packaging into recyclable and non-recyclable. The 
application puts Beston’s technology in a unique position 
to play a leading role in managing the recycling of plastic 
packaging in Australia and is particularly relevant to the 
recent introduction of Federal Government legislation 
which requires food manufacturers (and others) to have 75% 
of their packaging recyclable by 2025 (as part of a wider 
Government objective to create a ‘circular economy’ for 
product packaging waste management).

•  The OZIRIS technology has been used successfully in trials 
with a major supermarket chain to reduce food wastage via 
the data capture of food which is close to ‘use by’ expiry 
dates or subject to food recalls by manufacturers. A number 
of major supermarket chains are committed to achieving 
zero food waste to landfill by 2025. The team at Beston 
Technologies recently released a Food Recall Podcast. The 
Podcast explained a Proof of Concept (POC) trial made in 
conjunction with GSI Australia, Australian Dairy Federation 
(ADF) and EY on a review and trial of BFC’s Mozzarella 
supply-chain (end-to-end) including the Jervois dairy 
factory and farmers. This involved ADF’s draft traceability 
guidelines (full dairy supply chain including retailers) and 
Beston Technologies Blockchain and Smart contracts (food 
recall with Woolworths). Beston Technologies will work 
with the partners in advancing the adoption of traceability 
application in dairy supply chains to save waste, time and 
improve efficiencies.

22

Directors

The Company has a well-defined Board succession and renewal planning 
process to identify and nominate potential new directors to the Board in 
a professional manner, as well as maintaining the current diverse balance 
of experience across different industries it currently possesses. The Board 
reviews potential new directors considered suitable for appointment and 
assesses them against a range of criteria including skills, experience, 
knowledge, personal qualities, ability to exercise independent judgement 
and diversity required to discharge the Board’s duties.

The Board ultimately makes selections of the preferred candidates for positions of Directors, if required to be filled, and 
does so with a view to ensuring that the Board maintains an appropriate mix and balance of skills and that succession 
plans are in place for Directors. The Board is currently comprised of highly experienced business leaders from different 
backgrounds who collectively possess the skills, experience, tenure and diversity considered necessary to appropriately 
govern an ASX-listed organisation in the food production industry.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202223

Roger Sexton AM 
Chairman

Dr Roger Sexton is an investment banker and a company 
director. He has extensive experience in the agricultural 
sector, having worked for the Australian Bureau of 
Agricultural Economics and Industries Assistance 
Commission, with a particular focus on the dairy industry. 
Roger also has had extensive experience overseas and 
particularly in China and the Asia Pacific, as a result of 
leading trade and investment missions to the region for 
more than 30 years and from working on investment 
banking transactions in the region. Roger is actively 
engaged in a number of community organisations, 
including as Chairman and Principal Patron of the 
Freemasons Foundation Men’s Health Centre at the 
University of Adelaide. Until recently, he served as 
President (SA/NT Division) of the Australian Institute 
of Company Directors and has been a member of the 
Australian Accounting Standards Board.

Cheryl Hayman 
Independent Non-Executive Director

Cheryl Hayman brings international experience including 
significant strategic and marketing expertise derived 
from a 20 year corporate career which spanned local 
and global consumer retail organisations. Her skills 
include developing marketing and business strategy 
across diverse industry segments, growth orientated 
innovation and product development. Cheryl has 
expertise in traditional and digital communications, an 
ability to carve out a competitive edge for business 
development and the ability to drive strategic brand 
development. Cheryl is a Director of Ai Media 
Technologies Ltd (ASX:AIM), Hancock & Gore Limited 
(ASX:HNG) and Chartered Accountants Australia and 
New Zealand, as well as not-for-profits, Peer Support 
Australia and the Darlinghurst Theatre Company. 
She serves on the Digital Experts Advisory Committee 
for the Department of Prime Minister and Cabinet.

Stephen Gerlach AM  
Non-Executive Director

Stephen Gerlach is a company director and corporate 
adviser. He was formerly a Partner of the legal firm 
Finlaysons for 23 years and its Managing Partner for 7 
years. Stephen is the Chancellor of Flinders University. 
Stephen was a Director and Chairman of Santos Ltd, 
Elders Ltd, Elders Rural Bank and Equatorial Mining 
Ltd. He was also director of a number of other public 
companies including Southcorp Ltd, Brunner Mond 
Holdings Ltd (UK) and companies located in the UK, 
the USA and Chile. He has been actively involved in a 
number of community and professional associations and 
is currently a Trustee of the Australian Cancer Research 
Foundation, a Director of the General Sir John Monash 
Scholarship Foundation, Chairman of Psychosis Australia 
Trust. He was the inaugural Chairman of Foodbank 
South Australia Inc from 1999 to 2014, and a director of 
Foodbank Australia. 

Kevin Reid 
Independent Non-Executive Director 

Kevin Reid is a director and consultant. He is a Fellow of 
the Institute of Chartered Accountants in Australia and 
New Zealand and a Graduate of the AICD Company 
Directors Course. He is a former partner of PwC in 
Sydney and Adelaide practicing as an assurance 
and transaction services specialist, with extensive 
international and domestic exposure to the food 
retail and manufacturing sector. Kevin occupied many 
leadership positions in both Sydney and Adelaide. He 
has capital markets experience working with clients 
listed on ASX, NASDAQ and London’s AIM market. He 
has a passion for the for-purpose sector, and is currently 
a director of ACH Group, Can:Do Group and Meals 
on Wheels SA and recently retired as a director of the 
Maggie Beer Foundation. Kevin is an advisor and mentor 
to business leaders.

Neil Longstaff 
Independent Non-Executive Director

Neil Longstaff has had a career across a range of food 
categories. He has spent more than 20 years working at 
executive levels and consulting within the dairy industry, 
including roles as Chief Executive Officer of Kyvalley 
Dairy Group and General Manager, Commercial Group 
with Murray Goulburn Co-operative. His commercial 
experience in the dairy industry has included both 
branded and commodity products within domestic and 
export markets.

Prior to his career in the dairy industry, Neil held 
marketing and sales roles with companies including 
Lanes Biscuits, SPC, Heinz, Nabisco and Nicholas Kiwi.

Left to right: Cheryl Hayman, Neil Longstaff,  
Roger Sexton, Stephen Gerlach and Kevin Reid.

24

Executives

The Company made a number of important new 
appointments to its senior executive team in the latter 
part of FY22, ensuring we have the right team in 
place for our next stage of growth.

Left to right: Cameron Woods,  
Hamish Browning, Fabrizio Jorge,  
David Isherwood and Adrian Bartsch.

Fabrizio Jorge 
Chief Executive Officer

Nick Wagner 
Chief Financial Officer

David Isherwood 
Chief Manufacturing Officer

Fabrizio is a highly credentialed senior executive 
with over 25 years of global experience in the food 
and beverage industry and particularly in dairy 
products, across Latin America, Europe, Africa, 
the Middle East, Asia, Australia and New Zealand.

Nick is a senior finance executive with over 15 years 
of experience and has been with Beston since 2017. 
He oversees the financial management, funding, 
and investments of the domestic and international 
operations.

Fabrizio started his working career with Nestlé in 
Brazil in 1997 and then worked with Nestlé in various 
executive positions across Asia, Oceania, Africa 
and the Middle East. Fabrizio then joined Fonterra 
Cooperative Limited in 2009, working in a number 
of senior roles, based out of Auckland, Sao Paulo, 
Bangkok, Singapore and Melbourne. Most recently, 
Fabrizio has been the Chief Operating Officer of 
Bubs Australia Limited, overseeing significant growth 
into new markets in Asia and the USA.

Fabrizio holds a Bachelor’s degree in Business 
Administration from the Pontificia Catholic 
University in Sao Paulo, Brazil and is a graduate 
of the International Business School, University of 
California, USA and the Institute of Management 
Development (IMD), Lausanne, Switzerland.

Before joining BFC, Nick has held several senior 
finance roles in ASX listed entities including Elders 
Ltd, Viterra Inc, OZ Minerals Ltd, and Codan Ltd. 
Nick’s commercial experience was built on a 
professional foundation gained working for big 4 
accounting firm PwC, both in Australia and overseas.

Nick has completed both a Bachelor of Commerce 
and a Master of Business Administration from the 
University of Adelaide, is a graduate and member of 
the AICD, and is a Chartered Accountant (CAANZ).

David has 30 years of dairy experience with much of 
this centred around business growth and strategic 
change. His career was initially in commercial 
engineering, strategy and M&A.

David joined Beston in April from Fonterra where 
he led transformational manufacturing change 
in mozzarella and nutritional proteins for the 
Foodservice and Sports markets respectively. Most 
recently he has been globally based; driving sales, 
business partnerships and operational integration.

He holds Bachelor of Science (Chemistry) and 
Bachelor of Engineering (Hons) degrees from 
Canterbury University, New Zealand and a Diploma 
in Business Administration (Finance and Marketing) 
from Massey University, NZ.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202225

Hamish Browning 
Director, Agribusiness and Milk

Cameron Woods 
Director, Food and Beverages

Adrian Bartsch
Director, People and Culture

Hamish’s career spans over 25 years in agriculture 
and food with Elders Ltd, Frontier International 
Agri Pty Ltd (Ruralco J/V, ASX:RHL), Thomas Foods 
International, and Beston Global Food Company. 
Senior management and administration roles held 
within these companies include Managing Director, 
Chief Operations Officer, General Manager, Senior 
Trader, and Chairman.

Hamish has a Graduate Diploma in Financial 
Services – AFMA, Cert IV in Frontline Business 
Management, Global Agribusiness Program - 
Harvard Business School and Executive Change 
Management Program – Aus Graduate School of 
Mgt.

Cameron is a senior executive with a 20 year-career 
in marketing, sales, and general management across 
Australia, Asia, and the UK.

Cameron joined Beston from Leprino Foods 
Company, where he was Managing Director of 
the APAC region, based in Singapore. In this role, 
he had responsibility for the regional sales and 
operations of Leprino across the APAC region. 
Privately owned, Leprino is one of the largest dairy 
companies in the USA. Prior to moving into the food 
and beverage industry with Leprino, Cameron held 
senior marketing and brand management positions 
in Australia and overseas with the L’Oreal Group.

He holds a Bachelor of Business Marketing degree 
from Swinburne University, Melbourne and on 
completion of his studies in 2004, held post-
graduate roles with both Ford Australia and Nestle 
Australia.

Adrian joined Beston in 2019 as Human Resource 
Manager focusing on the Murray Bridge & Jervois 
plants, having previously been employed as a HR 
Manager within the meat industry for over 10 years, 
including roles with JBS Australia & Thomas Foods 
International.

During his time in HR, Adrian has been involved in a 
number of plant and operational expansions which 
has seen considerable growth in terms of operations 
and staffing.

Adrian holds a Bachelor of Management (Human 
Resource Management) from the University of South 
Australia.

26

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202227

Directors' report

The Directors present their report on the consolidated entity consisting of 
Beston Global Food Company Limited (’the Company’) and the entities it 
controlled at the end of, or during, the year ended 30 June 2022. Throughout 
the report, the consolidated entity is referred to as the Group.

Directors

Significant changes in the state of affairs

The following persons were Directors of Beston Global Food 
Company Limited during the whole of the financial year and up 
to the date of this report unless otherwise stated:

There were no significant changes in the state of affairs of the 
consolidated entity during the year.

•  R N Sexton

•  S Gerlach

•  N Longstaff
•  C Hayman (appointed 5 August 2021)
•  K Reid (appointed 31 January 2022)
•  P Coventry (resigned 31 January 2022)
I McPhee (resigned 31 January 2022)
• 
•  J Andrew (resigned 19 August 2022)

Principal activities

During the year the principal continuing activities of the Group 
consisted of:

(a) Production of dairy, meat, and water products for sale into 

local and international markets.

(b) Development and production of health and well-being 
focused food, beverage and pharmaceutical products.

(c) Development and commercialisation of end-to-end food 

traceability and anti-counterfeit technology.

Dividends - Beston Global Food Company Limited

Events since the end of the financial year

Financing facilities

As at 30 June 2022 the Group’s working capital financing 
facilities comprised a $41.8 million multi-option loan facility 
(the “Facilities”) expiring 31 August 2023. As at 30 June 2022 
the Group had drawn down $39.5 million under the Facilities.

On 7 September 2022, the Group completed negotiations to 
arrange a new increased facility of $53.2 million expiring 31 
August 2023.

The new facility agreement includes two debt repayments 
totalling $16mill to be completed within the timeframes 
contained in the agreement. The timing of the planned capital 
raise discussed in note 20(a)(i) to the financial statements 
has required the Group to seek extension for the first debt 
repayment due on 30 September 2022. The Group’s bankers 
have agreed to extend the terms of the repayment. The 
repayment has been agreed with the Group’s bankers to be 
paid out of the proceeds of the Placement and Entitlement 
discussed in note 20(a)(i) to the financial statements. A second 
debt repayment scheduled for 31 December 2022 has been 
brought forward to align with the expected proceeds from the 
Entitlement Offer.

There were no dividends provided for during the year ended 
30 June 2022 (2021: nil).

These repayments are expected to be funded via the 
proceeds raised in the capital raise noted below.

Review of operations

Information on the operations and financial position of the 
Group and its business strategies and prospects is set out in 
the review of operations and activities on pages 10 to 14.

Employee share issue

The Board of BFC provided STI bonuses to key members 
of the senior management team in recognition of the 
transformative work which was delivered in Q4 of FY22 to 
achieve the profit targets for that period, as the Company 
recovered from the impacts of COVID-related events and other 
factors which led to under performance in prior months, and 
particularly in H1.

28

The recipients of the STI bonus payments in respect of Q4/
FY22 have opted to receive the payments in BFC shares, 
rather than cash. Accordingly, the following new shares were 
issued on 2 September 2022:

Fabrizio Jorge, Chief Executive Officer
David Isherwood, Chief Manufacturing Officer
Cameron Woods, Director, Food & Beverages
Nick Wagner, Chief Financial Officer
Hamish Browning, Director, Agribusiness & Milk Supply
Adrian Bartsch, Director, People & Culture

1,036,270
777,200
777,200
712,435
712,435
466,320

Strategic partnership update

BFC provided an update on 05 August 2022 on its discussions 
with KCG Corporation in Thailand (“KCG”) in relation to 
a potential strategic partnership under the terms of a 
Memorandum of Understanding (MOU) between KCG and BFC.

BFC and KCG have completed their mutual due diligence, 
within the target date of 31 August 2022, and neither party 
identified any issues of concern that would preclude the 
strategic placement from proceeding.

However, several matters remain unresolved, relating 
particularly to the terms and conditions of the Supply 
Agreement which is planned to be put in place between KCG 
and BFC as per the signed MOU.

Until such time these matters can be resolved, BFC has 
advised KCG that it has withdrawn its offer, under the terms of 
the MOU, to make a strategic placement of shares to KCG.

The management teams of KCG and BFC will continue to focus 
on the terms and conditions of the Supply Agreement. Any 
such Supply Agreement requires that the interests of both 
parties be properly balanced, so as to ensure the longevity and 
viability of the Agreement.

No other matter or circumstance has occurred subsequent 
to the period end that has significantly affected, or may 
significantly affect, the operations of the Group, the results 
of those operations or the state of affairs of the Group or 
economic entity in subsequent financial periods.

Likely developments and expected results of 
operations

The Company has made announcements to the Australian 
Stock Exchange dated 2 June 2022, 6 June 2022, 29 July 
2022 and 31 August 2022 setting out information on likely 
developments for the Group in the coming financial year.

Compliance with environmental regulation

The Group and its activities in Australia are subject to strict 
environmental regulations. The Group’s manufacturing facilities 
in Jervois, Murray Bridge and Shepparton operate under 
various licences and permits under state, federal and territory 
laws in Australia.

Beston Global Food Company regularly monitors its 
compliance with licences and permits in various ways, 
including through its own environmental audits as well as those 
conducted by regulatory authorities and other third parties, and 
to the best of the Directors’ knowledge all activities have been 
undertaken in compliance with or in accordance with a process 
agreed with the relevant authority.

The Company has not incurred any significant liabilities under 
any environmental legislation during the financial year. There 
have been no significant known breaches of the Group’s 
licence conditions or any environmental regulations to which it 
is subject.

The Group commenced a wide range of initiatives during FY22 
in order to meet its sustainability objectives and reduce its 
carbon footprint.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202229

30

Directors’ report

Information on directors

Roger Sexton AM B.Ec (Hons), M.Ec, PhD (Econ), FAICD, FAIM, S.F.Fin, C.Univ
Chair – non-executive

Experience and expertise

Other current directorships
Former directorships in last 3 years
Special responsibilities

Stephen Gerlach AM LL.B, FAICD
Non-executive director

Experience and expertise

Other current directorships
Former directorships in last 3 years

Special responsibilities

Neil Longstaff B.Bus, GAICD
Non-executive director

Experience and expertise

Other current directorships
Former directorships in last 3 years
Special responsibilities

Dr Roger Sexton is an investment banker and a company director. He has extensive experience 
in the agricultural sector, having worked for the Australian Bureau of Agricultural Economics and 
Industries Assistance Commission, with a particular focus on the dairy industry. Roger also has 
had extensive experience overseas and particularly in China and the Asia Pacific, as a result of 
leading trade and investment missions to the region for more than 30 years and from working 
on investment banking transactions in the region. Roger is actively engaged in a number 
of community organisations, including as Chairman and Principal Patron of the Freemasons 
Foundation Men’s Health Centre at the University of Adelaide. Until recently, he served as 
President (SA/NT Division) of the Australian Institute of Company Directors and has been a 
member of the Australian Accounting Standards Board.
KeyInvest Ltd
–
Founder of Beston Global Food Company Limited
Chair of the Board
Member of audit and risk committee

Stephen Gerlach is a company director and corporate adviser. He was formerly a Partner of the 
legal firm Finlaysons for 23 years and its Managing Partner for 7 years. Stephen is the Chancellor 
of Flinders University. Stephen was a Director and Chairman of Santos Ltd, Elders Ltd, Elders 
Rural Bank and Equatorial Mining Ltd. He was also director of a number of other public companies 
including Southcorp Ltd, Brunner Mond Holdings Ltd (UK) and companies located in the UK, 
the USA and Chile. He has been actively involved in a number of community and professional 
associations and is currently a Trustee of the Australian Cancer Research Foundation, a Director 
of the General Sir John Monash Scholarship Foundation, Chairman of Psychosis Australia Trust. 
He was the inaugural Chairman of Foodbank South Australia Inc from 1999 to 2014, and a director 
of Foodbank Australia.
–
Chairman, AML3D Ltd
Chairman Ebony Energy Ltd
Founder of Beston Global Food Company Limited
Member of the remuneration and nomination committee

Neil Longstaff has had a career across a range of food categories. He has spent more than 20 
years working at executive levels and consulting within the dairy industry, including roles as Chief 
Executive Officer of Kyvalley Dairy Group and General Manager, Commercial Group with Murray 
Goulburn Co-operative. His commercial experience in the dairy industry has included both 
branded and commodity products within domestic and export markets.

Prior to his career in the dairy industry, Neil held marketing and sales roles with companies 
including Lanes Biscuits, SPC, Heinz, Nabisco and Nicholas Kiwi.
–
–
Member of the audit and risk committee
Member of the environment and sustainability committee

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202231

Cheryl Hayman B.Com, FAICD, FGIA
Non-executive director

Experience and expertise

Other current directorships

Former directorships in last 3 years

Special responsibilities

Kevin Reid FCA, GAICD
Non-executive director

Experience and expertise

Other current directorships

Former directorships in last 3 years

Special responsibilities

Company Secretary

Richard Willson B.Acc, FCPA, FAICD

Cheryl Hayman brings international experience including significant strategic and marketing 
expertise derived from a 20 year corporate career which spanned local and global consumer 
retail organisations. Her skills include developing marketing and business strategy across 
diverse industry segments, growth orientated innovation and product development. Cheryl has 
expertise in traditional and digital communications, an ability to carve out a competitive edge for 
business development and the ability to drive strategic brand development. Cheryl is a Director 
of Ai Media Technologies Ltd (ASX:AIM), Hancock & Gore Limited (ASX:HNG) and Chartered 
Accountants Australia and New Zealand, as well as not-for-profits, Peer Support Australia and the 
Darlinghurst Theatre Company. She serves on the Digital Experts Advisory Committee for the 
Department of Prime Minister and Cabinet.
Ai Media Technologies Ltd (ASX:AIM)
Hancock and Gore Ltd (ASX:HNG)
Chartered Accountants Australia and New Zealand
Clover Corporation Ltd 
Shriro Holdings Ltd
HGL Limited 
Member of the remuneration and nomination committee

Kevin Reid is a director and consultant. He is a Fellow of the Institute of Chartered Accountants 
in Australia and New Zealand and a Graduate of the AICD Company Directors Course. He is 
a former partner of PwC in Sydney and Adelaide practicing as an assurance and transaction 
services specialist, with extensive international and domestic exposure to the food retail and 
manufacturing sector. Kevin occupied many leadership positions in both Sydney and Adelaide. 
He has capital markets experience working with clients listed on ASX, NASDAQ and London’s 
AIM market. He has a passion for the for-purpose sector, and is currently a director of ACH Group, 
Can:Do Group and Meals on Wheels SA and recently retired as a director of the Maggie Beer 
Foundation. Kevin is an advisor and mentor to business leaders.
ACH Group Inc.
Townsend House Inc.
Meals on Wheels SA
Royal South Australian Deaf Society Inc.
AML3D Limited (ASX: AL3)
Maggie Beer Foundation Limited
Chair of the audit and risk committee

Mr Willson is an experienced, Non-Executive Director, Company 
Secretary and CFO with more than 20 years’ experience 
predominantly within the mining and agricultural sectors for both 
publicly listed and private companies.

Mr Willson has a Bachelor of Accounting from the University of South 
Australia, is a Fellow of CPA Australia, and a Fellow of the Australian 
Institute of Company Directors.

Richard is a Non-Executive Director of Titomic Limited (ASX:TTT), 
AusTin Mining Limited (ASX:ANW), Thomson Resources Limited 
(ASX:TMZ), PNX Metals Limited (ASX:PNX), MedTEC Holdings Limited, 
and Unity Housing Company Limited; and Company Secretary of 
a number of ASX Listed Companies. Richard is the Chairman of 
the Audit Committee of Titomic Limited, AusTin Mining Limited and 
Unity Housing Company, and is the Chairman of the Remuneration & 
Nomination Committee of Titomic Limited.

32

Directors’ report

Meetings of directors

The numbers of meetings of the Company’s Board of Directors 
and of each Board committee held during the year ended 30 
June 2022, and the numbers of meetings attended by each 
Director were:

Full meetings 
of directors

A

14
14
8
14
8
14
12
8

B

14
14
8
14
8
14
12
8

R N Sexton
S Gerlach
P Coventry
N Longstaff
I McPhee
J Andrew
C Hayman
K Reid

Meetings of committees
Audit  
and risk
B
A

Remuneration 
and nomination

A

B

5
–
–
5
3
4
3
3

5
–
–
5
3
4
3
3

1
–
1
–
–
1
1
–

1
1
1
–
–
1
1
–

A = Number of meetings attended

B = Number of meetings held during the time the Director held 
office or was a member of the committee during the year

Remuneration Report Audited

At the 2021 AGM 51% of votes cast were against the 
Remuneration Report constituting a ‘first strike’ under the 
Corporations Act 2001.

The Board understands that the first strike outcome reflects 
sentiment among some shareholders regarding the overall 
performance of the Company, rather than any particular 
concern with the Remuneration Report itself. The Board 
regularly reviews its remuneration policies and structures and 
remains of the view that they are appropriate for the Company. 
The Board notes that at the 2021 AGM shareholders approved 
the Company’s plans to implement an employee incentive 
plan (BFCEIP). The BFCEIP is a further step in ensuring that the 
Company has appropriate market competitive remuneration 
structures in place that can attract, motivate and retain 
individuals of the highest ability to its management team.

Remuneration report overview

The Directors of Beston Global Foods Company Limited 
present the Remuneration Report (the Report) for the Group 
for the year ended 30 June 2022. This Report forms part of 
the Directors’ Report and has been audited in accordance with 
section 300A of the Corporations Act 2001.

The Report details the remuneration arrangements for the 
Company’s key management personnel (KMP). The KMP of 
the Company are defined as those persons having authority 
and responsibility for planning, directing and controlling major 
activities of the Company, directly or indirectly. The Company’s 
KMP comprises:

•  Non-executive directors (NEDs)

•  Senior executives

In previous years the Company operated under an Investment 
Management Agreement (IMA) that saw the Chief Executive 
Officer and Chief Financial Officer employed by the Investment 
Manager. On 28 May 2021, the internalisation of the IMA was 
approved by shareholders and the IMA formally terminated 
on 28 August 2021. The Chief Executive Officer and the Chief 
Financial Officer are now employed by the Company.

The table below outlines the KMP of the Group and their 
movements during FY22:

Position

Term as KMP

Name
Non-executive directors
R N Sexton Non-executive Chairman Full financial year
Full financial year
S Gerlach
Full financial year
J Andrew

Non-executive Director
Independent 
Non-executive Director
Independent 
Non-executive Director
Independent 
Non-executive Director
Independent 
Non-executive Director
Independent 
Non-executive Director
Independent 
Non-executive Director

N Longstaff

C Hayman

K Reid

I McPhee 

P Coventry

Senior executives
F Jorge
D Flew

Chief Executive Officer
Interim Chief Executive 
Officer
Chief Financial Officer
Interim Chief Financial 
Officer
D Isherwood Chief Manufacturing 
Officer

N Wagner

Full financial year

Appointed 5 August 2021

Appointed 31 January 2022

Ceased 31 January 2022

Ceased 31 January 2022

Appointed 1 April 2022
Ceased 30 April 2022

Appointed 15 February 2022
Appointed 29 August 2021

Appointed 26 April 2022

Due to the operation of the IMA, in prior years the Chief 
Executive Officer and the Chief Financial Officer were not 
considered to be KMP for statutory reporting purposes. For 
the purposes of this report, they have been included in KMP 
following termination of the IMA from 29 August 2021 and the 
consequent transfer of their employment to the Company. 

Ms Andrew resigned on 19 August 2022, after the reporting 
date and before the date the financial report was authorised 
for issue. There were no other changes to KMP in this time.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202233

Remuneration philosophy

The performance of the Company is significantly influenced 
by the quality of its Directors and executives. To prosper, 
the Company must attract, motivate and retain highly skilled 
people to undertake these roles.

To this end, the Company adopts the following key principles in 
its remuneration policy:

•  Remuneration is set at levels that will attract and retain 
good performers and motivate and reward them to 
continually improve business performance.

•  Remuneration is structured to reward the achievement 
of business targets that are focussed on increasing 
Shareholder value.

•  Variable incentives are structured to ensure an appropriate 
balance is maintained between achievement of short-term 
and longer-term business objectives.

Remuneration and Nomination Committee

The Board has established a Remuneration and Nomination 
Committee (RNC). It comprises three non-executive directors 
(NEDs). The RNC recommends director nominees for each 
annual general meeting and ensures that the audit and risk, 
remuneration and nomination, and corporate governance 
committees of the Board have the benefit of qualified 
and experienced independent directors. The Committee 
also recommends to the Board the remuneration policies 
and practices of the Company and reviews and ratifies 
remuneration of NEDs and senior executives.

Executive KMP remuneration

The Company aims to reward executives with a level and 
mix of remuneration commensurate with their positions and 
responsibilities in the Company to:

• 

reward executives for Company and individual performance 
against the Company’s targets that were approved by the 
Board;

•  align the interests of executives with those of shareholders; 

and

•  ensure total remuneration is competitive by market 

standards.

Following the termination of the IMA, the Board sought 
and received shareholder approval at the AGM held on 
26 November 2021 to implement the BFCEIP referred to earlier 
in this report. The Board is in the process of implementing the 
BFCEIP that will apply for the first time for the financial year 
ending 30 June 2023. A summary of the key terms that will 
apply under the BFCEIP was provided to shareholders prior to 
the AGM at which the BFCEIP was approved by shareholders. 
The BFCEIP is not open to NEDs.

Executives fixed remuneration consists of base salary, 
superannuation and other non-monetary benefits set at market 
competitive levels.

As disclosed to the ASX on 31 August 2022, the Board 
resolved to pay discretionary bonuses in form of shares in the 
Company to key members of the senior management team in 
recognition of the transformative work which was delivered in 
the last quarter of the financial year. The new shares issued are 
detailed in this report.

For the year ending 30 June 2023 and under the BFCEIP, 
executive remuneration will include variable incentive 
components comprising a Short-Term Incentive (STI) and a 
Long-Term Incentive (LTI). Details of the STI and LTI applicable 
for next financial year will be advised to shareholders prior to 
the next AGM.

Executive contracts

(i)  Management fee

The Group had a formal Investment Management Agreement 
(IMA) with Beston Pacific Asset Management Pty Ltd (BPAM) 
as the Investment Manager to outsource key management 
activities, including the services of the Chief Executive Officer 
and the Chief Financial Officer, for a fee of 1.20% (exclusive 
of GST) per annum of the Group’s portfolio value. On 28 
May 2021, the internalisation of the IMA was approved 
by shareholders at the EGM. The approval resulted in a 
termination fee being paid to BPAM consisting of $1.13m in cash 
and 21,125,000 shares. The share price on 29 May was $0.092 
per share, and an expense of $3,073,500 was recognised on 
that date and included in the 30 June 2021 financial results. 
The date at which the agreement was settled was 28 August 
2021.

Management fees totalling $552,638 were paid for the 
period from 1 July 2021 to the termination date of the IMA 
being 28 August 2021 for services rendered to that date. The 
Chief Executive Officer and Chief Financial Officer remained 
employed by the Investment Manager until 28 August 2021, 
along with some other personnel deployed into the Company. 
Following termination of the IMA the employment of the Chief 
Executive Officer, Chief Financial Officer and other personnel 
deployed by the Investment Manager into the Company was 
transferred to the Company at the same rates of remuneration.

(ii) Executive employment agreements

All executives are employed on individual open-ended 
contacts that set out the terms of their employment.

CEO

Under the terms of his employment contract, as disclosed to 
the ASX on 4 January 2022:

•  The CEO receives fixed remuneration of $514,000 per 

annum. This total remuneration package (TRP) comprises a 
base salary of $440,000, superannuation of $44,000 and a 
rental allowance of $30,000. An increase of 2.5% applied to 
the base salary of $440,000 from 1 July 2022.

•  The CEO is eligible for a short-term incentive (STI) of 

$100,000 for FY23 payable in cash after 12 months of 
service. The CEO is eligible for a long-term incentive (LTI) of 
$100,000 for FY23, payable in BFC shares. 

34

Directors’ report

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202235

CMO 
•  The CMO receives fixed remuneration of $353,568 per 
annum. This TRP comprises a base salary of $300,000, 
superannuation of $23,568 and a rental allowance of 
$30,000.

•  The CMO is eligible for an STI of $75,000 for FY23 to be 

paid in cash after the first 12 months of service as CMO. The 
CMO is eligible for an LTI of $75,000 for FY23, payable in 
BFC shares.

CFO
•  The CFO receives fixed remuneration of $302,500 per 

annum. This TRP comprises a base salary of $275,000 and 
superannuation of $27,500. 

•  The CFO will be eligible for an STI of $68,750 for FY23 

payable in cash after the first 12 months of service as CFO. 
The CFO is eligible for an LTI of $68,750 for FY23, payable 
in BFC shares.

Payment of STIs and LTIs are subject to the attainment of 
mutually agreed key performance indicators and profit targets 
of BFC and will first apply for the year ended 30 June 2023 
when the BFCEIP is in place.

Non-executive directors’ remuneration

The Board seeks to set aggregate remuneration at a level 
which provides the Company with the ability to attract 
and retain quality Directors, whilst incurring a cost which 
is acceptable to shareholders. The Board has resolved to 
provide for non-executive Directors’ fees (per annum) of up 
to a maximum of $350,000 per annum in total. This amount is 
subject to annual review and has not been increased since the 
Company was listed in 2016.

In addition to earning a Director’s fee, a Director may also 
be paid fees or other amounts as the Directors determine 
if a Director performs special duties or otherwise performs 
services outside the scope of the ordinary duties of a Director. 
A Director may also be reimbursed for out-of-pocket expenses 
incurred as a result of their directorship or any other special 
duties.

Dr Roger Sexton AM
Mr Stephen Gerlach AM
Mr Neil Longstaff
Ms Cheryl Hayman
Mr Kevin Reid

Annual fee

$60,000
$40,000
$40,000
$40,000
$40,000

Termination provisions

Resignation Termination 
for cause
No notice

3 months

3 months

No notice

CEO

Other executives 
notice period 
(by company or 
executive)

Termination 
payment
With cause – nil
Without cause 
– 3 months
With cause – nil
Without cause
 – 3 months

In addition, Directors will be entitled to statutory 
superannuation.

NEDs do not receive any additional fees for participation in any 
committees. 

NEDs have long been encouraged by the Board to hold shares 
in the Company (purchased by the Director on market in 
accordance with corporate governance rules). It is considered 
good corporate governance for Directors to have a stake in the 
Company whose Board he or she sits on.

Termination payments

Mr Flew resigned from his position effective 30 April 2022. Mr 
Flew received $30,065 in respect of unused annual leave owed 
to him.

Overview of Group performance

Statutory performance indicators

The following table shows key performance indicators for the 
group over the last five financial years:

Loss for the year attributable to owners of ($’000)
Basic earnings per share (cents)
Share price at year end (cents)
Net tangible assets per share (cents)

2022

2021

2020

2019

2018

(21,725.0)
(2.5)
7.9
5.7

(21,821.2)
(3.4)
13.5 
11.7 

(11,579.2)
(2.5)
8.5 
15.7 

(26,975.0)
(6.1)
12.0 
13.7 

(12,593.0)
(2.8)
17.5
23.6

36

Directors’ report

Remuneration of non-executive directors

The following table shows details of the remuneration expense 
recognised for the Group’s NEDs for the current and previous 
financial year measured in accordance with the requirements 
of the accounting standards.

Name
R N Sexton

S Gerlach

N Longstaff

J Andrew

K Reid

C Hayman

I McPhee

P Coventry

J Kouts

C Cooper

Total NED remuneration

Year
2022
2021

2022
2021

2022
2021

2022
2021

2022
2021

2022
2021

2022
2021

2022
2021

2022
2021

2022
2021

2022
2021

Short–term benefits
Directors fees Other services
$
 – 
 – 

$
 60,000 
 60,000 

Superannuation benefits
$
 6,000 
 5,700 

Post–employment
Total
$
 66,000
 65,700

 40,000 
 40,000 

 40,000
20,000 

40,000 
22,923 

 20,000
– 

34,102
–

23,333
 40,000 

 23,333
 40,000 

– 
 20,000 

– 
17,282

 – 
 – 

 3,900 
5,200

 – 
 – 

 – 
 – 

–
–

 – 
 – 

 – 
 – 

 – 
 – 

 – 
–

 4,000
 3,800 

4,000
 1,900 

4,000
2,178 

2,000
– 

3,410
–

2,333
 3,800 

2,333
 3,800 

– 
 1,900 

–
1,642

 44,000
 44,000

47,900
27,100

44,000
25,101

22,000
–

37,512
–

 25,666
 43,800

25,666
 43,800

–
 21,900

–
18,924

280,768
 260,205 

3,900 
 5,200 

28,076
 24,720 

312,744
 290,325

Dr Sexton and Mr Gerlach are shareholders and Directors 
of the Investment Manager that provided services to the 
Company up to 28 August 2021 at which time the IMA 
terminated. They may have received remuneration from 
the Investment Manager for services provided by them to 
the Investment Manager. As directors, shareholders and 
employees of the Investment Manager, in their respective 
capacities, they may have benefited from the entry by the 
Investment Manager into the IMA with the Company, through 
payment of fees under the IMA.

The Company believes that the IMA was entered into on arm’s 
length terms, was terminated on arm’s length terms and that 
the remuneration paid to the Investment Manager up to the 
termination date was reasonable.

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202237

Executive KMP Remuneration

Executive KMP remuneration disclosed in the table below is 
for the period during which each executive was a KMP. Some 
executives may have been employed by the Company in 
other roles before or after the period during which they were 
undertaking KMP roles.

Short-term benefits

Salary 
$
110,000
178,692
230,026
54,615

Incentives 
$
100,000
68,750
–
75,000

Allowances 
and other 
$
7,500
24,000
–
5,462

Post-employment 
benefits
Superannuation 
contributions 
$
11,000
20,447
16,940
3,928

Other long-term 
benefits
Movement  
in leave accruals 
$
11,565
14,870
–
4,568

Total 
$
240,065
306,759
246,966
143,573

Performance 
related %
41.65
22.41
–
52.23

573,333

243,750

36,962

52,315

31,003

937,363

26.00

Name
F Jorge
N Wagner
D Flew
D Isherwood

Total

Year
2022
2022
2022
2022

2022

Remuneration for senior executives who became KMP of the 
Company on termination of the IMA on 28 August 2021 when 
their employment was transferred to the Company is shown 
in the table above from the earlier of 29 August 2021 or their 
commencement date.

Reconciliation of ordinary shares held by KMP

Share holdings

2022
Current KMP
R N Sexton
S Gerlach
J Andrew
N Longstaff
C Hayman
K Reid
F Jorge
N Wagner
D Isherwood

Total
Former KMP
P Coventry
I McPhee
D Flew

Total

Balance at the start of 
the period or date of 
becoming KMP

Acquired during 
the period

Balance at the end 
of the period or date 
ceasing to be KMP

21,872,630
5,034,587
 –
 103,704
– 
 –
 –
52,890
–

27,063,811

57,142 
1,750,000 
481,528

2,288,670

19,732,658 
18,704,487 
–
357,142
500,000
–
43,200
–
217,392

39,554,879

–
– 
– 

 –

41,605,288
23,739,074
–
460,846
500,000
–
43,200
52,890
217,392

66,618,690

57,142
1,750,000
481,528

2,288,670

On 2 September 2022, the following new shares were issued 
to KMP at a fair value of 9.65c per share.

F Jorge
N Wagner
D Isherwood

1,036,270 shares
712,435 shares
777,200 shares

The Company has not issued any options or rights to acquire 
shares.

38

Directors’ report

Loans to key management personnel

Proceedings on behalf of the company

No loans were made to KMP or their related parties during the 
year.

Other transactions with key management personnel

There were no other transactions with KMP of their related 
parties during the year.

This is the end of the audited remuneration report.

No person has applied to the Court under section 237 of the 
Corporations Act 2001 for leave to bring proceedings on behalf 
of the Company, or to intervene in any proceedings to which 
the Company is a party, for the purpose of taking responsibility 
on behalf of the Company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf 
of the Company with leave of the Court under section 237 of 
the Corporations Act 2001.

Shares under option

(a)  Unissued ordinary shares

As at the date of this report, there were no unissued ordinary 
shares under option.

No options were granted to the Directors or any of the key 
management personnel of the Company since the end of the 
financial year.

Insurance of officers and indemnities

(a) 

Insurance of officers

During the financial year, Beston Global Food Company 
Limited paid premiums with respect to a contract to insure the 
Directors and secretaries of the Company and its Australian-
based controlled entities, and the general managers of each 
of the divisions of the Group. The insurance contract prohibits 
disclosure of the liability’s nature and the amount of the 
insurance premium.

The liabilities insured are legal costs that may be incurred in 
defending civil or criminal proceedings that may be brought 
against the officers in their capacity as officers of entities in the 
Group, and any other payments arising from liabilities incurred 
by the officers in connection with such proceedings. This does 
not include such liabilities that arise from conduct involving a 
wilful breach of duty by the officers or the improper use by the 
officers of their position or of information to gain advantage 
for themselves or someone else or to cause detriment to the 
Company. It is not possible to apportion the premium between 
amounts relating to the insurance against legal costs and those 
relating to other liabilities.

(b)  Indemnity of auditor

Beston Global Food Company Limited has agreed to indemnify 
their auditors, Ernst & Young Australia, to the extent permitted 
by law, against any claim by a third party arising from Beston 
Global Food Company Limited’s breach of their agreement. 
The indemnity stipulates that Beston Global Food Company 
Limited will meet the full amount of any such liabilities including 
a reasonable amount of legal costs.

Non-audit services

The following non-audit services were provided by the entity’s 
auditor, Ernst & Young Australia. The directors are satisfied 
that the provision of non-audit services is compatible with 
the general standard of independence for auditors imposed 
by the Corporations Act 2001. The nature and scope of each 
type of non-audit service provided means that the auditor 
independence was not compromised.

Ernst & Young Australia received, or are due to receive, the 
following amounts for provisions of non-audit services:

Fees for non-audit services:
Tax compliance services
Blockchain services

Total remuneration for non-audit services

30 June

30 June

2022

$’000

2021

$’000

39
101

140

68
–

68

Rounding of amounts

The Company is of a kind referred to in ASIC Corporations 
(Rounding in Financial/Directors’ Reports) Instrument 
2016/191, issued by the Australian Securities and Investments 
Commission, relating to the ‘rounding off’ of amounts in the 
directors’ report. Amounts in the directors’ report have been 
rounded off in accordance with that Instrument to the nearest 
thousand dollars, or in certain cases, to the nearest dollar.

This report is made in accordance with a resolution of 
Directors.

R N Sexton
Chairman 
Adelaide

30 September 2022

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 
Auditor’s Independence Declaration

39

40

Financial 
report

for the year ended 30 June 2022

Consolidated statement of comprehensive income 

Consolidated balance sheet 

Consolidated statement of cash flows 

Notes to the consolidated financial statements 

Directors’ declaration 

43

44

46

47

76

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 202241

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 202242

Beston Global Food Company Limited 
ABN 28 603 023 383

Annual 
financial  
report 

for the year ended 30 June 2022

Financial statements 

Consolidated statement of comprehensive income 

Consolidated balance sheet 

Consolidated statement of changes in equity 

Consolidated statement of cash flows 

Notes to the consolidated financial statements 

Directors’ declaration 

These financial statements are the consolidated 
financial statements for the Group consisting of 
Beston Global Food Company Limited and its 
subsidiaries. A list of subsidiaries is included in 
note 12.

The financial statements are presented in the 
Australian currency.

Beston Global Food Company Limited is a company 
limited by shares, incorporated and domiciled in 
Australia.

Its registered office is:

Beston Global Food Company Limited
Level 9, 420 King William Street
Adelaide South Australia 5000

Its principal place of business is:

Beston Global Food Company Limited
Level 9, 420 King William Street
Adelaide South Australia 5000

43

44

45

46

47

76

A description of the nature of the consolidated entity’s 
operations and its principal activities is included in the 
review of operations on page 3 and in the directors 
report on page 7, both of which are not part of these 
financial statements.

The financial statements were authorised for 
issue by the Directors on the 30 September 2022. 
The Directors have the power to amend and reissue 
the financial statements.

Through the use of the internet, we have ensured 
that our corporate reporting is timely and complete. 
All press releases, financial reports and other 
information are available at our Investors’ Centre on 
our website: bestonglobalfoods.com.au

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 202243

Consolidated statement of  
comprehensive income
For the year ended 30 June 2022

Revenue from continuing operations
Sale of goods
Other revenue

Other income

Expenses
Cost of sales of goods
Other expenses from ordinary activities

Operating overheads
Selling and distribution
Corporate overheads and business support
Other expenses from ordinary activities

Loss from operations

Finance income
Finance expenses
Net finance expense

Impairment of non-financial assets
Internalisation of IMA

Loss before income tax

Income tax benefit

Loss for the period

Item that may be reclassified to the profit or loss
Exchange differences on translation of foreign operations
Items that will not be reclassified to the profit or loss
Changes in the fair value of equity instruments at FVOCI

Other comprehensive gain/(loss) for the period, net of tax

30 June
2022
$'000

30 June
2021
$'000

Notes

2
2

3(a)

3(b)

3(b)
3(b)
3(b)
3(b)

3(c) 
3(c) 

6(b)

139,706 
48 

112,420 
48 

139,754 

112,468 

113 

826 

(129,131)

(110,641)

(16,520)
(4,365)
(12,360)
– 

(12,218)
(3,766)
(10,593)
(91)

(22,509)

(24,015)

11 
(1,209)

(1,198)

(2,000)
–

4 
(690)

(686)

(1,485)
(3,074)

(25,707)

(29,260)

4

3,981

7,389

(21,726)

(21,871)

8(b)

8(b)

(21)

–

(21)

(63)

600 

537 

Total comprehensive loss or the period

(21,747)

(21,334)

Loss is attributable to:
Owners of Beston Global Food Company Limited
Non-controlling interests

Total comprehensive loss for the period is attributable to:
Owners of Beston Global Food Company Limited
Non-controlling interests

(21,725)
(1)

(21,821)
(50)

(21,726)

(21,871)

(21,746)
(1)

(21,284)
(50)

(21,747)

(21,334)

Loss per share attributable to the ordinary equity holders
Basic (loss) per share
Diluted (loss) per share

18(a)
18(b)

(2.53)
(2.53)

(3.38)
(3.38)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
44

Consolidated balance sheet
As at 30 June 2022

Current assets
Cash and cash equivalent
Trade and other receivables
Prepayments
Inventories
Investments

Non current assets
Receivables
Right-of-use assets
Property, plant and equipment
Deferred tax assets
Intangible assets

Total assets

Current liabilities
Trade and other payables
Financial liabilities
Employee benefit obligations

Non-current liabilities
Financial liabilities
Employee benefit obligations
Deferred tax liabilities

Total liabilities

Net assets

Contributed equity

Other reserves
Accumulated losses

Notes

5(a)
5(b)
5(c)
6(c)
12(c)

5(b)
5(d) 
6(a)
6(d)
6(b)

5(e)
5(f) 
6(e)

5(f) 
6(e)
6(d)

8(a)

8(b)
8(c)

 30 June 
2022
 $'000 

 30 June 
2021
 $'000 

322 
16,660
2,209
18,117 
– 

922 
16,731
2,021
18,874 
1,200 

37,308

39,748 

150 
21 
57,192
31,801
5,071

150 
155 
55,543 
27,506 
7,081 

94,235
131,543

90,435 
130,183 

17,896
24,292
1,256 

43,444

31,762
184 
2,006

33,952
77,396

18,439 
1,529 
789 

20,757 

31,709 
110 
1,713 

33,532 
54,289 

54,147

75,894 

176,580 

174,636 

(8,376)
(113,258)

(6,411)
(91,533)

54,946

76,692 

Non-controlling interests

Total equity

12(b)

(799)

(798)

54,147

75,894 

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 202245

Consolidated statement of changes in equity
For the year ended 30 June 2022

Attributable to the owners of Beston Global Food Company Limited

Balance at 1 July 2020

Notes

Share
capital
$'000

Other 
reserves
$'000

Accum 
losses
$'000

Total
$'000

159,337 

(8,892)

(69,712)

80,733 

Profit/(loss) for the period
Other Comprehensive Income
Total Comprehensive income for the period

 8(b) 

– 
– 
– 

– 
537 
537 

(21,821)
– 
(21,821)

(21,821)
537 
(21,284)

NCI
$'000

(748)

(50)
– 
(50)

Total
equity
$'000

79,985 

(21,871)
537 
(21,334)

Issue of share capital

8(a), (b)

15,299 

1,944 

– 

17,243 

– 

17,243 

As at 30 June 2021

174,636 

(6,411)

(91,533)

76,692 

(798)

75,894 

Balance at 1 July 2021

174,636

(6,411)

(91,533)

76,692

(798)

75,894

Profit/(loss) for the period
Other Comprehensive Income
Total Comprehensive income for the period

 8(b) 

–
–
–

–
(21)
(21)

(21,725)
–
(21,725)

(21,725)
(21)
(21,746)

Issue of share capital

8(a), (b)

1,944

(1,944)

–

–

(1)
–
(1)

–

(21,726)
(21)
(21,747)

–

As at 30 June 2022

176,580

(8,376)

(113,258)

54,946

(799)

54,147

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 202246

Consolidated statement of cash flows
For the year ended 30 June 2022

Cash flows from operating activities
Receipts from customers

Payments to suppliers and employees
Interest received
Interest paid

30 June
2022
$'000

30 June
2021
$'000

Notes

139,143

107,389

(157,756)
_
(1,209)

(138,042)
4 
(622)

Net cash (outflows) from operating activities

9(a)

(19,822)

(31,271)

6(a)
6(b)

Cash flows from investing activities
Payments for PP&E
Payments for intangibles
Proceeds on disposal of NBI
Proceeds on disposal of Dairy Farms (net of costs)
Proceeds on disposal of livestock

Net cash inflows/(outflows) from investing activities

Cash flows from financing activities
Proceeds from the issue of shares
Proceeds from borrowings
Repayment of borrowings
Payment of lease liabilities
Proceeds from government grants

Cash inflows/(outflows) from financing activities

Net (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Net foreign exchange differences

Cash and cash equivalents at the end of period

5(a)

(5,202)
(616)
1,200
–
–

(16,244)
(315)
– 
39,004 
280 

(4,618)

22,725 

–
23,060
(244)
134
900

23,850

(590)
922
(10)

322

15,299 
4,105 
(20,517)
156 
– 

(957)

(9,503)
10,556 
(131)

922 

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

BESTON GLOBAL FOOD COMPANY LIMITED | FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 202247

Contents of the notes  
to the consolidated  
financial statements 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

Segment information results 

Revenue 

Other income and expense items 

Income tax benefit 

Financial assets and financial liabilities 

Non-financial assets and liabilities 

Impairment 

Equity 

Cash flow information 

Financial risk management 

Capital management 

Interests in other entities 

Contingent liabilities and contingent assets 

Commitments 

Events occurring after the reporting period 

Related party transactions 

Remuneration of auditors 

Earnings per share 

Parent entity financial information 

Summary of significant accounting policies 

Difference to ASX Appendix 4E 

48

50

50

51

52

55

58

60

61

61

63

64

65

65

65

66

66

67

67

68

75

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS48

1  Segment results

(a)  Description of segments

The Group’s executive management committee, consisting of the Chief Executive Officer and the Chief Financial Officer, examines the Group’s 
performance both from a product and geographic perspective and has identified four reportable segments of its business:

•  The Australian Dairy segment which owns production plants and uses milk to produce cheese and other dairy products.

•  The Australian Meat segment is focused on the production of high quality and innovative meat and related products for expanding domestic 

and export markets.

•  The Australian Other segment includes other Australian domiciled businesses developing technological software for tracking the 

provenance and authenticity of goods, as well as the production of spring water and related products.

•  The International Other segment includes foreign entities providing sales support and customer support for customers of the consolidated 

entity.

•  The Corporate function provides business support to the operating segments.

(b)  Segment results

The segment information for the year ended 30 June 2022 and the year ended 30 June 2021 provided to the executive management 
committee for the reportable segments, including segment assets and liabilities, are as follows:

2022
Revenue
Contracts with domestic customers
Contracts with international customers
Other revenue
Other income
Finance income

Total revenue

Expenses
Cost of Sales
Other operating costs
Selling and distribution
Business support
Finance costs
Impairment expense

Corporate allocation

Total expenses

Operating result before tax
Attributable to owners of Beston
Attributable to NCI

Total segment assets
Capital expenditure
Total segment liabilities

Australian 
Dairy
$'000

Australian 
Meat
$'000

Australian 
Other
$'000

International 
Other
$'000

Corporate
$'000

Total
$'000

99,671
27,100
37
121
–

12,782
–
–
–
–

126,929

12,782

(117,287)
(14,118)
(4,216)
(5,207)
–
–

(2,173)

(11,749)
(1,870)
(121)
(1,441)
–
(2,000)

(226)

(143,001)

(17,407)

(16,072)
(16,072)
–

80,213
4,950
(65,898)

(4,625)
(4,625)
–

9,735
219
(5,065)

153
–
11
23
11

198

(94)
(300)
(28)
(52)
–
–

(5)

(479)

(281)
(281)
(1)

2,166
2
(422)

–
–
–
–
–

–

–
–
–
(523)
–
–

(2)

(525)

(525)
(525)
–

150
–
(32)

–
–
–
50
–

50

–
(420)
–
(5,031)
(1,209)
–

2,406

112,606
27,100
48
194
11

139,959

(129,130)
(16,708)
(4,365)
(12,173)
(1,209)
(2,000)

–

(4,254)

(165,666)

(4,204)
(4,204)
–

39,281
–
(5,979)

(25,707)
(25,707)
(1)

131,545
5,171
(77,396)

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
Australian 
Dairy

Australian 
Meat

Australian 
Other

International 
Other

Corporate

$'000

$'000

$'000

$'000

$'000

(b)  Segment results (continued)

2021 
Revenue
Contracts with domestic customers
Contracts with international customers
Other revenue
Other income
Finance income

Total revenue

Expenses
Cost of Sales
Other operating costs
Selling and distribution
Business support
Impairment expense
Internalisation of IMA
Finance costs
Impairment expense
Corporate allocation

Total expenses

Operating result before tax
Attributable to owners of Beston
Attributable to NCI

Total segment assets
Capital expenditure
Total segment liabilities

81,551 
20,658 
37 
226 
– 

102,472 

(101,294)
(10,107)
(3,664)
(3,765)
(91)
– 
– 
– 
(6,413)

10,080 
– 
– 
– 
– 

10,080 

(9,246)
(1,717)
(78)
(1,030)
– 
– 
(1,485)
– 
(641)

(125,334)

(14,197)

(22,862)
(22,862)
– 

78,993 
15,100 
(42,493)

(4,117)
(4,117)
– 

12,472 
905 
(4,741)

131 
– 
11 
– 
– 

142 

(101)
(394)
(24)
(41)
– 
– 
– 
– 
(20)

(580)

(438)
(438)
(50)

1,831 
138 
(456)

49

Total

$'000

91,762 
20,658 
48 
826 
4 

113,298 

(110,641)
(12,218)
(3,766)
(10,593)
(91)
(690)
(1,485)
(3,074)
– 

– 
– 
– 
– 
– 

– 

– 
– 
– 
(228)
– 
– 
– 
– 
(6)

– 
– 
– 
600 
4 

604 

– 
– 
– 
(5,529)
– 
(690)
– 
(3,074)
7,080 

(234)

(2,213)

(142,558)

(234)
(234)
– 

261 
– 
59 

(1,609)
(1,609)
– 

36,626 
101 
(6,658)

(29,260)
(29,260)
(50)

130,183 
16,244 
(54,289)

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS50

2  Revenue

3  Other income and expense items 

The Group derives the following types of revenue:

Contracts with customers
Leasing income

Total revenue

30 June
2022
$’000
139,706
48

30 June
2021
$’000
112,420
48

139,754

112,468

(a)  Recognising revenue from major business activities

Revenue is recognised for the major business activities using the 
methods outlined below.

(i)  Sale of goods

Revenue from contracts with customers is recognised when control 
of the goods or services are transferred to the customer at an amount 
that reflects the consideration to which the Group expects to be 
entitled in exchange for those goods or services. The Group has 
generally concluded that it is the principal in its revenue arrangements 
because it typically controls the goods or services before transferring 
them to the customer.

Revenue from the sale of dairy and meat products is recognised at the 
point in time when control of the asset is transferred to the customer, 
generally on delivery of the goods to the customer’s location.

The Group considers whether there are other promises in the contract 
that are separate performance obligations to which a portion of the 
transaction price needs to be allocated (e.g. rebates, case deals).

(b)  Disaggregation of revenue from contracts with 
customers

The Group derives revenue from the sale of goods in the following 
major geographical regions:

30 June
$'000
Dairy

30 June
$'000
Meat

30 June
$'000
Other

30 June
$'000
Total

Sale of goods

2022
Australia
Asia
Europe
North America

99,671
22,169
2,001
2,930

12,782 
– 
– 
– 

Total

126,771 

12,782 

2021
Australia
Asia
Europe
North America

81,551 
17,127 
1,637 
1,894 

10,080 
– 
– 
– 

Total

102,209 

10,080 

153 
– 
– 
– 

153 

131 
– 
– 
– 

131 

112,606
22,169
2,001
2,930
139,706 

91,762 
17,127 
1,637 
1,894 
112,420 

 30 June 
2022
 $'000 

 30 June 
2021
 $'000 

Notes

(a) Other income
Reversal of prior year 
impairment of financial assets
Other items
Government grants

6(b),7

(b) Break down of expenses by nature
Changes in inventories of 
finished goods and work in 
progress
Raw materials and 
consumables used
Employee benefits expense
Depreciation and amortisation 5(c),6(a),(b)
Impairment of non-financial 
assets
Internalisation of Management 
Agreement
Management fee
Other expenses
Net loss on disposal of assets
Consultancy expenses
Short-term & low value lease 
expense
Rates and taxes
Repairs and maintenance
Insurance expenses
Logistics and marketing 
expenses

(c) Finance income and costs

Interest income
Net exchange gains
Finance income

Finance charges paid for 
financial liabilities
Net exchange losses
Finance costs
Net finance costs

10(a)(i)

– 
99 
14 

113 

600 
33 
193 

826 

(15,500)

(10,267)

122,797 

104,068 

21,185 
4,313
2,000

15,542 
3,001 
1,485 

–

3,074 

553 
4,912
– 
1,879
562 

4,274 
3,743 
3,012 
10,645 

1,445 
3,724 
91 
1,980 
467 

3,686 
2,219 
2,578 
8,775 

164,375

141,868 

– 
11
11 

(1,209)
–
(1,209)

(1,198)

4 
– 
4 

(622)
(68)
(690)

(686)

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
4 

Income tax benefit

(a) 

Income tax benefit

Current tax

Current tax

Total current tax expense

Deferred income tax

(Increase) in deferred tax assets

Increase in deferred tax liabilities

Other adjustment

Total deferred tax expense

Income tax (benefit)

(b)  Numerical reconciliation of income tax expense to prima facie tax payable

Loss from continuing operations before income tax

Tax at the Australian tax rate of 30.0% (2021 - 30.0%)

Tax effect of amounts which are not deductible (taxable) in calculating taxable income:

IMA Internalisation expense

Impairment of Provincial Food Group

Entertainment

Reversal of NBI asset impairment

Derecognition of foreign tax losses

Unrecognised DTA on tax losses

Sundry items

Income tax benefit

(c)  Tax losses

Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 30.0%

51

30 June

30 June

2022

$'000

2021

$'000

Notes

–

–

– 

– 

6(d)

6(e)

 (4,295)

(8,053)

293

21

668

(4)

(3,981)

(7,389)

(3,981)

(7,389)

(25,707)

(29,260)

(7,712)

(8,778)

–

600

–

–

(233)

3,264

100

922

446

5

(180)

211

–

(15)

(3,981)

(7,389)

24,831

20,067

7,449

6,020 

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
52

5  Financial assets and financial liabilities

(a)  Cash and cash equivalents

Cash at bank and in hand

(b)  Trade and other receivables

Trade receivables
Provision for impairment

Other receivables
Goods and services tax (GST) receivable

30 June

30 June

2022

$’000
322

2021

$’000
922

30 June 2022
Current  Non-current
 $’000 
 $’000 
–
14,270
–
(143)

Total
 $’000 
14,270
(143)

30 June 2021
Current  Non-current
 $’000 
 $’000 
– 
14,184 
– 
(254)

Total
 $’000 
14,184 
(254)

14,127

883
1,650

16,660

–

14,127

13,930 

– 

13,930 

150
–

150

1,033
1,650

16,810

1,095 
1,706 

16,731

150 
– 

150 

1,245 
1,706 

16,881

(i)  Trade and other receivables

If collection of the amounts is expected in one year or less they are 
classified as current assets. If not, they are presented as non-current 
assets. Trade receivables are generally due for settlement within 
90 days and therefore are all classified as current. The Group’s 
impairment and other accounting policies for trade and other 
receivables are outlined in notes 20(m)(iii) and 20(k) respectively. 
This category generally applies to trade and other receivables.

(ii)  Fair value of trade and other receivables

Due to the short-term nature of the current receivables, their carrying 
amount is assumed to be the same as their fair value. For non-current 
receivables, the fair values are also not significantly different to their 
carrying amounts.

(iii) 

Impairment and risk exposure

Information about the impairment of trade and other receivables, their 
credit quality and the Group’s exposure to credit risk, foreign currency 
risk and interest rate risk can be found in note 10.

(c) Prepayments

30 June 2022
Current 
 $’000 
2,209

Total
 $’000 
2,209

30 June 2021
Current 
 $’000 
2,021 

Total
 $’000 
2,021 

Prepayments

(d)  Leases

Group as a Lessee

The group entered into a lease contract for the property used for its 
head office on 30 June 2020. 

Set out below are the carrying amounts of right-of-use assets 
recognised and the movements during the period: 

As at 1 July 2020
Additions
Depreciation Expense
As at 30 June 2021

As at 1 July 2021
Additions
Depreciation Expense
As at 30 June 2022

Property
 $’000 
311
–
156

155

155
–
134

21

Total
 $’000 
311
–
156

155

155
–
134

21

The following are the amounts recognised in the profit and loss:

Depreciation of right-of-use assets

Interest expense on lease liabilities

30 June

30 June

2022

$’000
134

–

134

2021

$’000
156

–

156

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
53

(e)  Trade and other payables

Current liabilities
Trade payables
Goods and service tax (GST) payable
Accrued expenses
Payroll liabilities
Other creditors

30 June

30 June

2022

$’000

15,599
536
763
610
388

2021

$’000

15,035 
585 
831 
588 
1,400 

17,896

18,439

Trade payables are unsecured and are usually paid within 30 days of 
recognition.

(i)  Fair value of trade and other payables

The carrying amounts of trade and other payables are considered to 
be the same as their fair values, due to their short-term nature.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS54

5  Financial assets and financial liabilities (continued) 

(f)  Financial assets and financial liabilities 

Financial liabilities
Current financial liabilities: loans and borrowings
Current financial liabilities: other
Current financial liabilities

Non-current financial liabilities: loans and 
borrowings
Non-current financial liabilities: other
Non-current financial liabilities

Financial liabilities: loans and borrowings
Current
Overdraft
Hire purchase facility
Hire purchase facility
Hire purchase facility
Term loan
Property mortgage

Non-current
Hire purchase facility
Hire purchase facility
Hire purchase facility
Term loan
Term loan
Property mortgage

Total financial liabilities: loans and borrowings

Financial liabilities: other
Current
Office lease liability
Insurance premium funding
Deposits on sale of trade debtors 

Non-current
Office lease liability

Total financial liabilities: other

Notes

Interest rate

Maturity

7.22%
December 2025
3.56%
3.62% September 2029
December 2024
4.22%
August 2023
BBSY + 2.50%
November 2024
BBSY + 2.50%

3.56%
December 2025
3.62% September 2029
December 2024
4.22%
August 2023
BBSY + 2.50%
November 2024
BBSY + 2.50%
November 2024
BBSY + 2.50%

9.23%
1.79%
4.24%

August 2022
October 2022
November 2022

9.23%

August 2022

30 June

2022

 $'000 
15,988
8,305

24,292

31,762
– 

31,762

30 June

2022

 $'000 

2,990 
101 
957 
321 
11,200
419 

15,988

252 
3,742 
312 
23,300
1,996
2,160 

31,762
47,749 

41 
805 
7,459 

8,305 

– 

– 
8,305 

30 June

2021

 $'000 
1,270 
259 

1,529 

31,668 
41 

31,709 

30 June

2021

 $'000 

– 
95 
436 
321 
– 
418 

1,270 

– 
4,136 
– 
23,000 
1,953 
2,579 

31,668 
32,938 

245 
14 
– 

259 

41 

41 
300 

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS55

(g) 

 Transferred financial assets that are not derecognised in their entirety

Securitisations
Carrying amount of transferred assets

Carrying amount of associated liabilities

Net position

Notes

6(b)

6(d)

30 June  
2022

$'000 

7,459 

7,459 

– 

30 June 
2021

$'000 

– 

– 

– 

A subsidiary company, Beston Pure Dairies Pty Ltd ( BPD) , has entered into an arrangement to sell a portion of its trade debtors to a financial 
institution at a value that reflects a discount to the face value of the debtor amounts. The arrangement is part of the effective management of the 
Group’s working capital needs. 

Under the arrangement, BPD receives 80% of the face value of the debtors amounts on sale to the financial institution in the form of a deposit. 
The remainder, net of the fair value discount, is received from the financial institution typically 45-60 days after the sale of the debtors. The 
credit risk of the underlying trade debtors, and the ongoing customer relationship, is retained by BPD.

6  Non-financial assets and liabilities

(a)  Property, plant and equipment

At 1 July 2020
Cost
Accumulated depreciation

Net book amount
Year ended 30 June 2021
Opening net book amount
Additions
Depreciation charge

Closing net book amount

At 30 June 2021
Cost
Accumulated depreciation

Net book amount

At 1 July 2021
Cost
Accumulated depreciation

Net book amount
Year ended 30 June 2022
Opening net book amount
Additions
Depreciation charge

Closing net book amount
At 30 June 2022

Cost
Accumulated depreciation

Net book amount

Land
$'000

Buildings
$'000

Plant and 
equipment
$'000

Furniture, 
fittings and 
equipment
$'000

Motor 
vehicles
$'000

10,353 
–

10,353 

10,353 
– 
– 

10,353 

10,353 
– 

10,353 

10,353 
– 

10,353 

10,353 
– 
– 

10,353 

10,353 
– 

10,353 

83 
(6)

77 

77 
37 
(7)

35,080 
(4,433)

30,647 

30,647 
15,901 
(2,318)

107 

44,230

120 
(13)

107 

120 
(13)

107 

107 
52 
(12)

147 

171 
(25)

147 

50,981 
(6,751)

44,230 

50,981
(6,751)

44,230

44,230
5,027
(3,392)

45,865

56,007
(10,143)

45,865

374 
(257)

117 

117 
259 
(49)

327 

633 
(306)

327 

633 
(306)

327 

327 
124 
(62)

389 

757 
(368)

389 

677 
(110)

567 

567 
47 
(88)

526 

724 
(198)

526 

724 
(198)

526 

526 
–
(88)

438 

724 
(286)

438 

Total
$'000

46,567
(4,806)

41,761

41,761
16,244
(2,462)

55,543

62,811 
(7,268)

55,543 

62,811
(7,268)

55,543

55,543
5,202
(3,553)

57,192

68,013
(10,821)

57,192

Property, plant and equipment is stated at historical cost less depreciation and impairment. Land is carried at cost.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
56

6  Non-financial assets and liabilities (continued)

(a)  Property, plant and equipment (continued)

Depreciation is calculated using the straight-line method to allocate 
their cost amount, net of their residual values, less impairment, over 
their estimated useful lives:

•  Buildings 

•  Plant and equipment 

20 – 50 years

5 – 40 years

•  Furniture, fittings and equipment  3 – 10 years

•  Motor vehicles 

7 – 15 years

See note 20(p) for the other accounting policies relevant to property, 

(b)  Intangible assets

At 1 July 2020

Cost or fair value
Accumulated amortisation

Net book amount

Year ended 30 June 2021
Opening net book amount
Additions
Disposals
Assets classified as held for sale and other disposals
Impairment charge
Amortisation charge

Closing net book amount
At 30 June 2021
Cost or fair value
Accumulated amortisation

Net book amount

At 1 July 2021

Cost or fair value
Accumulated amortisation

Net book amount
Year ended 30 June 2022

Opening net book amount
Additions
Disposals
Impairment charge
Amortisation charge

Closing net book amount

At 30 June 2022
Cost or fair value
Accumulated amortisation

Net book amount

Internally 
generated 
software*
$'000

Goodwill
$'000

Customer 
contracts
$'000

Water 
licences
$'000

Trademarks
and patents
$'000

7,404 
– 

7,404 

7,404 
– 
– 
–
(1,485)
– 

5,919 

5,919 
– 

5,919 

5,919
– 

5,919

5,919
– 
– 
(2,000)
– 

3,919

3,919
– 

3,919

1,304 
(805)

499 

1,758 
(1,232)

526 

499 
315 
– 
– 
– 
(167)

647 

1,619 
(972)

647 

1,619 
(972)

647 

647 
458
– 
– 
(337)

769

526 
– 
– 
– 
– 
(216)

310 

1,758 
(1,448)

310 

1,758 
(1,448)

310 

310 
– 
– 
– 
(289)

21

2,077
(1,309)

768

1,758 
(1,737)

21 

205 
– 

205 

205 
– 
– 
–
– 
– 

205 

205 
– 

205 

205 
– 

205 

205 
– 
– 
– 
– 

205 

205 
– 

205 

– 
– 

– 

– 
– 
– 
– 
– 
– 

– 

– 
– 

– 

– 
– 

– 

– 
158
– 
– 
– 

158 

– 
– 

158 

Total
$'000

10,671 
(2,037)

8,634 

8,634 
315 
– 
–
(1,485)
(383)

7,081 

9,501 
(2,420)

7,081 

9,501
(2,420)

7,081

7,081
616
– 
(2,000)
(626)

5,071

8,117
(3,046)

5,071

* Software includes capitalised development costs being an internally generated intangible asset.

plant and equipment. 

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57

(i)  Amortisation methods and useful lives

Significant estimates

The Group amortises IT development and software from the date of 
first use, using the straight-line method over 3-5 years.

The Group has the right to use water over an indefinite period and 
therefore the water licences are considered to have an indefinite 
useful life. 

Customer contracts were acquired as part of the AQUAessence Pty 
Ltd and Australian Provincial Cheese Pty Ltd business combinations. 
They are recognised at their fair value at the date of acquisition and 
are amortised on a straight-line based on the timing of the projected 
cash flows of the contracts over their estimated useful lives.

(ii) 

 Impairment tests for goodwill and other indefinite life 
intangibles

As at 30 June 2022, the Group has deferred tax assets totalling 
$31.8m (2021 - $27.5m), mostly comprising of carried forward tax 
losses. The Group’s detailed financial model, referred to in Note 20(a)
(v), indicates that it is probable that the Group will generate sufficient 
future taxable profit against which the tax losses can be utilised within 
a 5-year period. The losses can be carried forward indefinitely and 
have no expiry date.

(ii)  Deferred tax liabilities

30 June

30 June

2022

$’000

2021

$’000

1,971
36

2,006

1,677
36

1,713

Goodwill and other indefinite life intangibles have been tested for 
impairment. Based on valuations undertaken of the Dairy CGU to 
which the goodwill relates, goodwill relating to the meat segment was 
impaired by $2,000,000. Refer to note 7 for further discussion relating 
to impairment assessments.

The balance comprises temporary 
differences attributable to:
Property, plant and equipment
Other

(c) 

Inventories

(iii) Tax consolidation 

Current assets
Raw material and stores
Finished goods

 30 June 

 30 June 

2022

2021

 $’000 

 $’000 

2,799 
15,318 

18,117 

3,284
15,590

18,874

(i)  Assigning costs to inventories

The costs of individual items of inventory are determined using 
weighted average costs. See note 20(l) for the Group’s other 
accounting policies for inventories.

(ii)  Amounts recognised in profit or loss

Inventories recognised as expense during the year ended 30 June 
2022 amounted to $119,799,308 - (2021 - $93,801,343). There 
were write-downs of inventories during the year of $381,475 (2021 
- $1,010,460).

(d)  Deferred tax balances

(i)  Deferred tax assets

The balance comprises temporary 
differences attributable to:
Tax losses and offsets
Employee benefits
Accruals
Tax only assets
Intangibles
Other
Total deferred tax assets

30 June

30 June

2022

$’000

2021

$’000

30,944
493
56
167
269
(128)

31,801

26,854
267
46
254
237
(152)

27,506

Members of the tax consolidated group and tax sharing 
agreement

Beston Global Food Company Limited and its 100% owned Australian 
resident subsidiaries formed a tax consolidated group with effect from 
11 February 2015. Beston Global Food Company Limited is the head 
entity of the tax consolidated group. Members of the tax consolidated 
group have entered into a tax sharing agreement that provides for 
the allocation of income tax liabilities between the entities should 
the head entity default on its tax payment obligations. No amounts 
have been recognised in the financial statements in respect of this 
agreement on the basis that the possibility of default is remote.

Tax effect accounting by members of the tax consolidated 
group

Measurement method adopted under AASB Interpretation 1052 Tax 
Consolidation Accounting

The head entity and the controlled entities in the tax consolidated 
group continue to account for their own current and deferred tax 
amounts. The Group has applied the stand-alone taxpayer approach 
in determining the appropriate amount of current taxes and deferred 
taxes to allocate to members of the tax consolidated group. These tax 
amounts are measured as if each entity in the tax consolidated group 
continues to be a separate taxable entity in its own right. The nature 
of the tax funding agreement is discussed further below.

In addition to its own current and deferred tax amounts, the head 
entity also recognises current tax liabilities (or assets) and the 
deferred tax assets arising from unused tax losses and unused tax 
credits assumed from controlled entities in the tax consolidated group.

Nature of the tax funding agreement

Members of the tax consolidated group have entered into a tax 
funding agreement. Under the funding agreement, the wholly-owned 
entities fully compensate Beston Global Food Company Limited 
for any current tax payable assumed and are compensated for any 
current tax receivable and deferred tax assets relating to unused 
tax losses or unused tax credits transferred to Beston Global Food 
Company Limited under the tax consolidation legislation. The funding 
amounts are determined by reference to the amounts recognised in 
the wholly-owned entities’ financial statements.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS58

6  Non-financial assets and liabilities (continued)

7 

Impairment

(d)  Deferred tax balances (continued) 

(a)  Management analysis

(iii) Tax consolidation (continued)

Nature of the tax funding agreement (continued)

The tax funding agreement requires payments to/from the head 
entity to be recognised via an inter-entity receivable (payable) which 
is at call. To the extent that there is a difference between the amount 
charged under the tax funding agreement and the allocation under 
AASB Interpretation 1052, the head entity accounts for these as 
equity transactions with the subsidiaries.

The amount receivable or payable under the tax funding agreement 
are due upon receipt of the funding advice from the head entity, which 
is issued as soon as practicable after the end of each financial year. 
The head entity may also require payment of interim funding amounts 
to assist with its obligation to pay tax instalments.

(e)  Employee benefit obligations

30 June 2022

30 June 2021

Current 

 $’000 

Non-
current
 $’000 

Total Current 

 $’000 

 $’000 

Non-
current
 $’000 

Total

 $’000 

Leave 
obligations (i)

1,256 

184 

1,440 

789 

110 

899 

(i)  Leave obligations

The leave obligations cover the Group’s liability for long service leave 
and annual leave.

The current portion of this liability includes all of the accrued annual 
leave, the unconditional entitlements to long service leave where 
employees have completed the required period of service and also 
those where employees are entitled to pro-rata payments in certain 
circumstances. The entire amount of the provision of $1,255,869 (2021 
- $789,770) is presented as current, since the Group does not have 
an unconditional right to defer settlement for any of these obligations. 
However, based on past experience, the Group does not expect 
all employees to take the full amount of accrued leave or require 
payment within the next 12 months. The following amounts reflect 
leave that is not to be expected to be taken or paid within the next 
12 months.

Current leave obligations expected to be 
settled after 12 months

30 June

30 June

2022

$’000

310

2021

$’000

195

The Group performed its annual impairment test in June 2021 
and 2022. The Group considered the relationship between its 
market capitalisation and book value, among other factors, when 
reviewing for indicators of impairment. At 30 June 2022, the market 
capitalisation of the Group was below the book value of its equity, 
indicating a potential impairment of assets.

Goodwill which has been acquired through business combinations, 
and intangible assets with indefinite lives, are related to the Australian 
Dairy and Australian Meat operating and reporting segments, which 
are CGUs for the purposes of impairment testing. These assets have 
been tested for potential impairment using assumptions relevant for 
each of the CGU’s. Conservative estimates have been applied to 
ensure each of the CGUs are robust in their assessment of future cash 
flows.

Discount rates represent the current market assessment of the risks 
specific to each CGU, taking into consideration the time value of 
money and individual risks of the underlying assets that have not 
been incorporated in the cash flow estimates. The discount rate 
calculation is based on the specific circumstances of the Group and 
its CGUs, and is derived from the Group’s weighted average cost of 
capital (WACC).

The WACC takes into account both debt and equity. The cost of equity 
is derived from the expected return on investment by the Group’s 
investors. CGU-specific risk is incorporated by applying individual 
beta factors. The beta factors are evaluated annually based on 
publicly available market data. Adjustments to the discount rate are 
made to factor in the specific amount and timing of the future tax flows 
in order to reflect a pre-tax discount rate.

Growth rates are based on published industry research. Management 
have intentionally used conservative growth rate estimates when 
extrapolating cash flows beyond the forecast period. Growth rate 
estimates of 2.5% were used across all CGUs.

(i)  Australian Dairy CGU

The recoverable amount of the Australian Dairy CGU, $90.1 million as 
at 30 June 2022 (2021 - $129.0 million), has been determined based 
on a fair value less cost to sell calculation using cash flow projections 
from financial budgets and forecasts covering a five year period, 
with input from an independent valuation specialist, and approved 
by senior management. The impacts of COVID-19 on future cash 
flows was considered when determining inputs for the fair value less 
cost to sell calculations. The carrying value of goodwill allocated to 
the Australian Dairy CGU is $1,092,067, and the carrying value of 
indefinite life intangible assets allocated to the Australian Dairy CGU 
is $79,662.

Key assumptions which impact the recoverable amount of the 
Australian Dairy CGU are detailed in note 7(b) overleaf.

Management have determined that a reasonable possible change in 
the key assumptions of the fair value less costs of disposal calculation 
would not cause the carrying amount to exceed the recoverable 
amount of the Dairy CGU. As a result of this analysis management did 
not identify impairment for this CGU.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS59

(ii)  Australian Meat CGU

(c)  Key assumptions - Australian Meat

The calculation of fair value of the Australian Meat CGU is most 
sensitive to the following assumptions:

•  Discount rates;

•  Real sales growth; and

•  Gross margin.

Each of the sensitivities below assumes that a specific assumption 
moves in isolation, while all other assumptions are held constant. 
A change in one of the aforementioned assumptions could be 
accompanied by a change in another assumption, which may increase 
or decrease the net impact.

(i)  Discount rates

The pre-tax discount rate applied to the cash flow projections is 13% 
and the cash flows beyond the five-year period are extrapolated using 
a 2.5% growth rate that is the same as the long-term average growth 
rate. It was concluded that the fair value less costs of disposal did 
exceed the value in use, and an impairment of the Meat CGU goodwill 
balance was recognised per 7(a)(ii).

An increase of the pre-tax discount rate to 15.5% (i.e. +1.5%) in the 
Australian Meat CGU would result is a decrease in the recoverable 
amount of $1.4 million. This decrease would result in additional 
impairment of $1.56 million.

(ii)  Gross margin

A decrease of the gross margin by 2.5% in the Australian Meat CGU 
would result is a decrease in the recoverable amount of $3.7 million. 
This decrease would result in additional impairment of $4.1 million.

(iii)  Real sales growth

A decrease in the real growth rate achieved by 2.5% in the Australian 
Meat CGU would result is a decrease in the recoverable amount 
of $2.8 million. This decrease would result in additional impairment of 
$3.3 million.

The recoverable amount of the Australian Meat CGU, $10.4 million 
as at 30 June 2022, has been determined based on a fair value less 
cost to sell calculation using cash flow projections from financial 
budgets and forecasts covering a five year period, with input 
from an independent valuation specialist, and approved by senior 
management. The impacts of COVID-19 on future cash flows was 
considered when determining inputs for the fair value less cost to sell 
calculations. The carrying value of goodwill allocated to the Australian 
Meat CGU is $4,828,442, and the carrying value of indefinite life 
intangible assets allocated to the Australian Meat CGU is $nil.

Key drivers which impact the recoverable amount of the Australian 
Meat CGU are detailed below in note 7(c).

Management have determined that a reasonable possible change in 
the key assumptions of the fair value less cost of disposal calculation 
would cause the carrying amount to exceed the recoverable amount 
of the Australian Meat CGU. As a result of this analysis management 
have determined a $2m impairment in Goodwill for this CGU.

(b)  Key assumptions – Dairy

The calculation of fair value of the Dairy operating CGU is most 
sensitive to the following assumptions:

•  Discount rates;

•  The price of milk paid to farmers and other suppliers;

•  The volume of milk obtained from farmers and other suppliers; and

•  The yields achieved through the production process.

Each of the sensitivities below assumes that a specific assumption 
moves in isolation, while all other assumptions are held constant. 
A change in one of the aforementioned assumptions could be 
accompanied by a change in another assumption, which may increase 
or decrease the net impact.

(i)  Discount rates

The pre-tax discount rate applied to the cash flow projections is 13% 
and the cash flows beyond the five-year period are extrapolated using 
a 2.5% growth rate that is the same as the long-term average growth 
rate.

An increase of the pre-tax discount rate to 15.5% (i.e. +1.5%) in the 
Dairy CGU would result is a decrease in the recoverable amount of 
$24.4 million. This decrease would not result in impairment.

(ii)  Milk supply prices

An increase of the milk supply prices by 5.0% in the Dairy CGU would 
result is a decrease in the recoverable amount of $80.4m million. This 
decrease would not result in impairment.

(iii)  Milk supply volume

A decrease of the milk supply volumes by 5.0% in the Dairy CGU 
would result in a decrease in the recoverable amount of $58.9 million. 
This decrease would not result in impairment.

(iv)  Production yields

A decrease of the production yields by 2.5% in the Dairy CGU would 
result is a decrease in the recoverable amount of $14.2 million. This 
decrease would not result in impairment.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS60

8  Equity

(a)  Contributed equity

30 June 
2022 
Shares

30 June 
2021 
Shares

30 June 
2022 
$’000

30 June 
2021 
$’000

Ordinary shares 
- fully paid

863,799,408 842,674,408

176,580

174,636

(i)  Movements in ordinary share capital

Balance 30 June 2021
Opening balance 1 July 2021
Placement of shares

Number of 
shares
842,674,408 
842,674,408 
21,125,000 

$’000

174,635,752 
174,635,752 
1,943,500 

Balance 30 June 2022

863,799,408 

176,579,252 

(ii)  Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the 
proceeds on winding up of the Company in proportion to the number 
of and amounts paid on the shares held.

On a show of hands every holder of ordinary shares present at a 
meeting in person or by proxy, is entitled to one vote, and upon a poll 
each share is entitled to one vote.

Ordinary shares have no par value and the Company does not have a 
limited amount of authorised capital.

(b)  Other reserves

The following table shows a breakdown of the balance sheet line item 
‘other reserves’ and the movements in these reserves during the year. 
A description of the nature and purpose of each reserve is provided 
below the table.

Financial assets at FVOCI
Unallocated shares
Share based payments
Foreign currency translation 

Financial assets at FVOCI
Opening balance
Reversal of impairment
Balance 30 June

Share-based payment reserve
Opening balance
Placement of shares
Internalisation of IMA
Balance 30 June

Foreign currency translation
Opening balance
Currency translation differences 
arising during the year
Balance 30 June

Notes

12(c)

 30 June 

 30 June 

2022

 $'000 
(7,793)
_
– 
(583)

(8,376)

(7,793)
– 

(7,793)

1,944
(1,944)
–

– 

2021

 $'000 
(7,793)
– 
1,944 
(562)

(6,411)

(8,393)
600 

(7,793)

– 
–
1,944 

1,944 

(562)
(21)

(499)
(63)

(583)

(562)

(i)  Nature and purpose of other reserves

Financial assets at FVOCI

The financial assets at FVOCI reserve is used to revalue financial 
assets (equity instruments, as per elected upon adoption of AASB 9 
Financial Instruments) through other comprehensive income. Gains 
and losses on these financial assets are never recycled to the profit 
and loss.

Share-based payment reserve

The share-based payment reserve is used to recognise shares 
required to be issued on August 28th 2021 for the purpose of 
internalising the Investment Management Agreement with BPAM. 
This represents the fair value of the shares at the date that the 
internalisation received shareholder approval, being May 28th 2021.

Foreign currency translation

Exchange differences arising on translation of the foreign controlled 
entity are recognised in other comprehensive income as described 
in note 20(d) and accumulated in a separate reserve within equity. 
The cumulative amount is reclassified to profit or loss when the net 
investment is disposed of.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS61

(c)  Accumulated losses

10  Financial risk management

Movements in accumulated losses were as follows:

30 June

30 June

2022

$’000
(91,533)
(21,725)

2021

$’000
(69,712)
(21,821)

This note explains the Group’s exposure to financial risks and how 
these risks could affect the Group’s future financial performance. 
Current year profit and loss information has been included where 
relevant to add further context. Senior management oversees the 
management of these risks. The Board of Directors reviews and 
agrees policies for managing each of these risks.

(a)  Market risk

(113,258)

(91,533)

(i)  Foreign exchange risk

Foreign exchange risk is the risk that the fair value of future cash flows 
of an exposure will fluctuate because of changes in foreign exchange 
rates. The Group’s exposure to risk of changes in foreign exchange 
rates relates primarily to the Group’s operating activities (when 
revenue or expense is denominated in a foreign currency) and the 
Group’s net investments in foreign subsidiaries.

Foreign exchange contracts are utilised as a short-term tool to 
mitigate some foreign exchange risk. These open contracts as at 
30 June 2022 are immaterial in nature.

Exposure

The Group’s exposure to foreign currency risk at the end of the 
reporting period, expressed in Australian dollar, was as follows:

30 June

30 June

2022

$’000
(21,726)

2021

$’000
(21,871)

4,313

3,001 

30 June 2022

30 June 2021

Trade receivables

Trade payables

CNY

$’000

190

–

USD

$’000

363 

– 

CNY

$’000

181 

(1)

Amounts recognised in profit or loss

During the year, the following foreign exchange related amounts were 
recognised in profit or loss:

Amounts recognised in profit or loss
Net foreign exchange gain/(loss) included in 
other income/other expenses
Total net foreign exchange gains/(losses) 
recognised in profit before income tax for the 
period

30 June

30 June

2022

$’000

2021

$’000

11

11

(68)

(68)

– 

2,000 

758 
(11)
382
–

– 

– 

(600)

1,485 
3,074 
27 
68 
1,010 
(193)

91 

54 

(890)

(5,493)

375 
(4,295)

(8,262)
(8,053)

(1,584)

3,761 

293 

563 

668 

(38)

(19,822)

(31,271)

Opening balance
Net loss for the period attributable to equity 
holders of the parent
Balance 30 June

9  Cash flow information

(a) 

 Reconciliation of loss after income tax to net cash 
outflow from operating activities

Notes

3(b) 

12(c)

6(b)

6(c)(ii)

Profit/(loss) after tax

Non-cash adjustments:
Depreciation & amortisation 
expense
Reversal of impairment of financial 
asset
Impairment of non-financial assets
Internalisation of IMA
Bad debts written off
Foreign exchange loss
Inventory write-off
Grant income

Non-operating activities:
(Gain)/loss on disposal of fixed 
assets
Loss on disposal of livestock

Change in:
(Increase) in trade and other 
receivables
(Increase)/decrease in inventories
(Increase) in deferred tax assets
Increase/(decrease) in trade 
payables
Increase in deferred tax liabilities
Increase/(decrease) in other 
provisions

Net cash outflow from operating 
activities

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
62

10  Financial risk management (continued)

(b)  Credit risk

(a)  Market risk (continued)

(i)  Foreign exchange risk (continued)

Sensitivity

The sensitivity of profit or loss to changes in the exchange rates is 
summarised below. Given the foreign currency balances included 
in the consolidated balance sheet at balance date, if the Australian 
dollar at that date strengthened by 10% with all other variables held 
constant, then the impact on post tax profit/(loss) arising on the 
balance sheet exposure would be as follows:

Impact on post-tax 
profit

30 June 
2022

30 June 
2021

$’000
(17)
21 
–
–

$’000
(16)
20 
(33)
40 

Index
CNY/AUD exchange rate - increase 10%
CNY/AUD exchange rate - decrease 10%
USD/AUD exchange rate - increase 10%
USD/AUD exchange rate - decrease 10%

(ii) 

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of 
a financial instrument will fluctuate because of changes in market 
interest rates. The Group’s exposure to the risk of changes in market 
interest rates relates primarily to the Group’s external debt facilities 
and cash at bank held at variable rates.

Cash and cash equivalents
Borrowings (excluding fixed rate)

Sensitivity

30 June

30 June

2022

2021

$’000
322 
(42,065)

$’000
922 
(27,965)

(41,743)

(27,043)

The following sensitivity analysis is based on the interest rate risk 
exposures in existence at balance date. At 30 June 2022, if interest 
rates had moved as illustrated in the table below, with all other 
variables held constant, post-tax profit and equity would have been 
impacted as follows:

Credit risk is the risk that a counterparty will not meet its obligations 
under a financial instrument or customer contract, leading to a 
financial loss. The Group is exposed to credit risk from its operating 
activities (primarily trade receivables) and from its financing activities, 
including deposits with banks and financial institutions, foreign 
exchange transactions and other financial instruments. The maximum 
exposure to credit risk before any credit enhancements at the end of 
each reporting period is the carrying amount of the financial assets 
(refer note 5(b)).

(i)  Risk management

Customer credit risk is managed by each business unit subject to 
the Group’s established policy, procedures and control relating 
to customer credit risk management. Credit quality of a customer 
is assessed based on an extensive credit rating scorecard and 
individual credit limits are defined in accordance with this assessment.

Management have regular reporting and assessment of key 
customers’ credit risk in order to manage this.

(ii)  Trade receivables

Outstanding customer receivables are regularly monitored and any 
shipments to major customers are generally covered by letters of 
credit or other forms of credit insurance obtained from reputable 
banks and other financial institutions.

An impairment analysis is performed at each reporting date based on 
the expected credit loss using the simplified approach. The provision 
amounts are based on the expected recoverability risk for past due 
debtors. The provision reflects the probability-weighted outcome, 
the time value of money and reasonable and supportable information 
that is available at the reporting date about past events, current 
conditions, and forecasts of future economic conditions. Generally, 
trade receivables are written-off if past due for more than one year 
and are not subject to enforcement activity. 

Impairment losses are recognised in profit or loss within other 
expenses. Subsequent recoveries of amounts previously written off 
are credited against other expenses. See note 20(m) for information 
about how impairment losses are calculated.

Movements in the provision for impairment of trade receivables that 
are assessed for impairment collectively are as follows:

30 June

30 June

2022

$’000
(344)
344

2021

$’000
(323)
323

At 1 July
Provision for impairment recognised during 
the year
Receivables written off during the year as 
uncollectible
At 30 June

Interest rates - increase by 100 basis points
Interest rates - decrease by 100 basis points

(iii)  Price risk

Exposure

The Group is affected by the price volatility of certain commodities. 
Its operating activities require the ongoing purchase of milk to 
manufacture cheddar and other cheese products, and therefore 
require a continuous supply of milk. The Group manages commodity 
risk by where possible entering into longer term relationships with key 
suppliers that create more certainty around key commodity prices.

30 June

30 June

2022

$’000
254 
335 

2021

$’000
254 
27 

(335)

(27)

254 

254 

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
63

Total

Over 5 
years
$'000

$'000
–  16,597
–  50,328
– 
5,726
–  72,651

(iii)  Past due but not impaired

As at 30 June 2022, trade receivables of $3,965,728 (2021 - 
$3,477,407) were past due but not impaired. These relate to a number 
of independent customers for whom there is no recent history of 
default.

30 June

30 June

2022

$’000
3,697
8
260 

3,965

2021

$’000
3,043 
430 
4 

3,477 

Up to 3 months
3 to 6 months
6 to 9 months
At 30 June

(c)  Liquidity risk

The Group monitors its risk to a shortage of funds using a liquidity 
planning tool. The Group’s objective is to maintain a sufficient cash 
surplus in order to pay its debts as and when they fall due.

All financial liabilities of the Group are non-derivatives and have 

contractual maturities of up to 4 years.

(i)  Maturities of financial liabilities

The table below summarises the maturity profile of the Group’s 
financial liabilities based on contractual undiscounted payments:

At 30 June 2022
Trade and other payables
Borrowings
Hire purchase facilities
Total non-derivatives

At 30 June 2021

Trade and other payables
Borrowings
Hire purchase facilities
Total non–derivatives

11  Capital management

(a)  Risk management

The Group’s objectives when managing capital are to safeguard their 
ability to continue as a going concern, so that they can continue to 
provide returns for shareholders and benefits for other stakeholders.

In order to maintain the capital structure, the Group may adjust 
the amount of dividends paid to shareholders, return capital to 
shareholders or issue new shares.

(b)  Dividends

There were no dividends provided for during the year ended 30 June 
2022 (2021: $nil).

On  
demand
$'000
4,560
– 
– 
4,560

Less than 
3 months
$'000
12,037 
– 
– 
12,037 

3 to 12 
months
$'000
–
22,872
1,420
24,292

1 to 5 
years
$'000
– 
27,456
4,306
31,762

17,510 
– 
– 
17,510 

929 
14 
– 
943 

(1)
418 
1,097 
1,514 

– 
27,532 
4,177 
31,709 

–  18,438 
–  27,964 
– 
5,274 
–  51,676 

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
64

12  Interests in other entities

(a)  Material subsidiaries

The Group’s principal subsidiaries at 30 June 2022 are set out below. Unless otherwise stated, they have share capital consisting solely of 
ordinary shares that are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the Group. 
The country of incorporation or registration is also their principal place of business.

Name of entity

Country of 
incorporation 
and operation

Ownership interest 
held by the Group

Ownership interest 
held by NCI

Principal activities

Beston Global Food Company Limited
Beston Farms Pty Ltd
Beston Pure Dairies Pty Ltd
Beston Pure Foods (Australia) Pty Ltd
Beston Global Food (Thailand) Company Limited
Beston Global Food Company (Hong Kong) Limited
Beston Food (Shanghai) Co. Limited
Beston Technologies Pty Ltd
AQUAessence Pty Ltd
Provincial Food Group Pty Ltd

Australia
Australia
Australia
Australia
Thailand
Hong Kong
China
Australia
Australia
Australia

(b)  Non-controlling interests (NCI)

2022 
%
100.0
100.0
100.0
100.0
98.0
100.0
100.0
100.0
51.0
100.0

2021 
%
100.0
100.0
100.0
100.0
98.0
100.0
100.0
100.0
51.0
100.0

2022 
%
–
–
–
–
2.0
–
–
–
49.0
–

2021 
%
–
–
–
–
2.0
–
–
–
49.0
–

Food services
Dairy farming
Dairy production
Sales and distribution
Sales and distribution
Sales and distribution
Sales and distribution
Technology developer
Water products
Protein processing

Set out below is summarised financial information for each subsidiary that has non-controlling interests that are material to the Group. The 
amounts disclosed for each subsidiary are before inter-company eliminations.

Interest in:
Share capital

AQUAessence Pty Ltd - Summarised balance sheet
Current assets
Current liabilities

Current net assets

Non-current assets
Non-current liabilities

Non-current net assets

Net assets
Accumulated NCI

AQUAessence Pty Ltd - Summarised statement of comprehensive income
Revenue
Profit/(loss) for the period

Total comprehensive income

Profit/(loss) allocated to NCI

AQUAessence Pty Ltd - Summarised statement of cash flows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase/(decrease) in cash and cash equivalent

 30 June 

 30 June 

2022

2021

 $’000 

 $’000 

(799)

(798)

155
422

(267)

1,192
422

770

503
205

165
(1)

(1)

(1)

164
–
(168)
4

139 
454 

(315)

1,230
454

776

461
204

138
(103)

(103)

(50)

163
–
(167)
(4)

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS65

(c) 

Investments

Name of entity
Neptune Bio-Innovations Pty Ltd

Total investments

Investment sold in FY21.

Country of incorporation 
and operation

Australia

% of ownership 
interest
2021 
%
10

2022 
%
–

Measurement 
method

Carrying 
amount

FVOCI

2022 
$’000
–
–

2021 
$’000
1,200
1,200

13  Contingent liabilities and contingent assets

The Group had no contingent assets or liabilities at 30 June 2022 
(2021 – nil).

The recipients of the STI bonus payments in respect of Q4/FY22 
have opted to receive the payments in BFC shares, rather than cash. 
Accordingly, the following new shares were issued on 2 September 
2022:

14  Commitments

At 30 June 2022, the Group had commitments of $289,877,913 
relating to milk supply purchases from farmers. These milk purchase 
commitments have terms of between 1 and 9 years. 

At 30 June 2022, the Group had nil commitments relating to 
equipment capital expenditure.

15  Events occurring after the reporting period

Financing facilities

As at 30 June 2022 the Group’s working capital financing facilities 
comprised a $41.8 million multi-option loan facility (the “Facilities”) 
expiring 31 August 2023. As at 30 June 2022 the Group had drawn 
down $39.5 million under the Facilities.

On 30 August 2022, the Group completed negotiations to arrange a 
new increased facility of $53.2 million expiring 31 August 2023.

The new facility agreement includes two debt repayments totalling 
$16mill to be completed within the timeframes contained in the 
agreement. The timing of the planned capital raise discussed in 
note 20(a)(i) to the financial statements has required the Group to 
seek extension for the first debt repayment due on 30 September 
2022. The Group’s bankers have agreed to extend the terms of 
the repayment. The repayment has been agreed with the Group’s 
bankers to be paid out of the proceeds of the Placement and 
Entitlement discussed in note 20(a)(i) to the financial statements. 
A second debt repayment scheduled for 31 December 2022 has 
been brought forward to align with the expected proceeds from the 
Entitlement Offer.

These repayments are expected to be funded via the proceeds raised 
in the capital raise noted below.

Employee share issue

The Board of BFC provided STI bonuses to key members of the senior 
management team in recognition of the transformative work which 
was delivered in Q4 of FY22 to achieve the profit targets for that 
period, as the Company recovered from the impacts of COVID-related 
events and other factors which led to under performance in prior 
months, and particularly in H1.

Fabrizio Jorge, Chief Executive Officer 
David Isherwood, Chief Manufacturing Officer
Cameron Woods, Director, Food & Beverages
Nick Wagner, Chief Financial Officer
Hamish Browning, Director, Agribusiness & Milk Supply
Adrian Bartsch, Director, People & Culture

1,036,270
777,200
777,200
712,435
712,435
466,320

Strategic partnership update

BFC provided an update on 05 August 2022 on its discussions with 
KCG Corporation in Thailand (“KCG”) in relation to a potential strategic 
partnership under the terms of a Memorandum of Understanding 
(MOU) between KCG and BFC.

BFC and KCG have completed their mutual due diligence, within 
the target date of 31 August 2022, and neither party identified any 
issues of concern that would preclude the strategic placement from 
proceeding.

However, several matters remain unresolved, relating particularly to 
the terms and conditions of the Supply Agreement which is planned to 
be put in place between KCG and BFC as per the signed MOU.

Until such time these matters can be resolved, BFC has advised KCG 
that it has withdrawn its offer, under the terms of the MOU, to make a 
strategic placement of shares to KCG.

The management teams of KCG and BFC will continue to focus 
on the terms and conditions of the Supply Agreement. Any such 
Supply Agreement requires that the interests of both parties be 
properly balanced, so as to ensure the longevity and viability of the 
Agreement.

No other matter or circumstance has occurred subsequent to the 
period end that has significantly affected, or may significantly affect, 
the operations of the Group, the results of those operations or the 
state of affairs of the Group or economic entity in subsequent financial 
periods.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS66

16  Related party transactions

(e) Loans to/from related parties

Loans to other related parties
Beginning of year

End of year

30 June 

30 June 

2022

$’000 

2021

$’000 

33

–

33 

33

There is no allowance account for impaired receivables in relation to 
any outstanding balances, and no expense has been recognised in 
respect of impaired receivables due from related parties.

17  Remuneration of auditors

During the year the following fees were paid or payable for services 
provided by the auditor of the entity and its related practices:

Fees to Ernst & Young (Australia)
Fees for auditing the statutory financial 
report of the parent covering the group and 
auditing the statutory financial reports of any 
controlled entities
Fees for other services:

Tax compliance services
Blockchain services

Total fees to Ernst & Young (Australia) [A]

Fees to other overseas member firms of 
Ernst & Young (Australia) [B]

Total auditor remuneration [A] + [B]

30 June

30 June

2022

$’000

2021

$’000

309

273

39
101

449

–

449

68
–

341

–

341

(a)  Subsidiaries

Interests in subsidiaries are set out in note 12(a).

(b)  Key management personnel compensation

Short-term employee benefits
Post-employment benefits

30 June 

30 June 

2022

$’000 
854
52
906

2021

 $’000 
260
25
285 

(c)  Transactions with other related parties

The following transactions occurred with related parties:

Sales of goods and services

Sale of goods to related parties
Remuneration paid for directors services
Interest income from related parties

Purchases of goods and services

Purchases of various goods and services 
from related parties
Management fee for Directors interests via 
the investment manager
Cost of internalisation of Investment 
Management Agreement

30 June 

30 June 

2022

2021

 $’000 

 $’000 

–
4
248

114 
5
230 

–

(60)

(553)

(1,445)

–

(3,074)

The Group entered into the following transactions with related parties:

•  Provision of additional directors’ services to all associates and 

investee entities

•  Procurement of management services from the Investment 

Manager

(d) 

 Outstanding balances arising from sales/purchases of 
goods and services

The following balances are outstanding at the end of the reporting 
period in relation to transactions with related parties:

Outstanding balances receivable/(payable)
Current receivables 
Current payables

 30 June 

 30 June 

2022

2021

 $’000 

 $’000 

–
–

3 
(300)

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
67

18  Earnings per share

19  Parent entity financial information

(a)  Basic earnings/(loss) per share

(a)  Summary financial information

30 June

30 June

The individual financial statements for the parent entity show the 
following aggregate amounts:

2022

Cents

(2.53)

2021

Cents

(3.38) 

–

–

(2.53)

(3.38) 

30 June

30 June

2022

Cents

2021

Cents

ASSETS
Current assets
Non-current assets

Total assets

LIABILITIES
Current liabilities
Non-current liabilities
Total liabilities

30 June 
2022

30 June 
2021

$’000

$’000

5,186
57,572

62,758

848
4,999
5,847

6,137
75,415

81,552

1,945
4,045
5,990

(2.53)

(3.38) 

Net assets

56,911

75,563

EQUITY
Issued capital
Reserves
Accumulated losses

Total equity

Profit/(loss) for the period

Total comprehensive income/(loss)

176,580
(5,850)
(113,819)

56,911

(19,717)

(19,717)

174,636
(6,915)
(92,158)

75,563

(21,062)

(21,062)

(b)  Contingent liabilities of the parent entity

The parent entity did not have any contingent liabilities as at 30 June 
2022 or 30 June 2021.

From continuing operations attributable to the 
ordinary equity holders 
From discontinued operations
Total basic earnings/(loss) per share 
attributable to the ordinary equity holders 

(b)  Diluted earnings/(loss) per share

From continuing operations attributable to the 
ordinary equity holders 
From discontinued operations
Total diluted earnings/(loss) per share 
attributable to the ordinary equity holders 

–

–

(2.53)

(3.38) 

(c) 

 Reconciliation of earnings used in calculating earnings 
per share

Basic earnings/(loss) per share
Loss attributable to the ordinary equity 
holders used in calculating basic earnings/
(loss) per share:
From continuing operations
From discontinued operations

Diluted earnings/(loss) per share
Loss from continuing operations attributable 
to the ordinary equity holders 
Used in calculating basic earnings/(loss) per 
share
Used in calculating diluted earnings/(loss) per 
share

30 June

30 June

2022

$’000

2021

$’000

(21,726)
–

(21,726)
–

(21,871)
–

(21,871)
–

–

–

(21,726)

(21,871)

(21,726)

(21,871)

(d) 

 Weighted average number of shares used as the 
denominator

Weighted average number of ordinary 
shares used as the denominator in 
calculating basic and diluted earnings/
(loss) per share

2022 
Number

2021 
Number

860,268,929

644,707,646

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
68

20  Summary of significant accounting policies

This note provides a list of the significant accounting policies adopted 
in the preparation of these consolidated financial statements to 
the extent they have not already been disclosed in the other notes 
above. These policies have been consistently applied to all the years 
presented, unless otherwise stated. The financial statements are for 
the Group consisting of Beston Global Food Company Limited and its 
subsidiaries.

(a)  Basis of preparation

These general-purpose financial statements have been prepared in 
accordance with Australian Accounting Standards and interpretations 
issued by the Australian Accounting Standards Board and the 
Corporations Act 2001. Beston Global Food Company Limited is a 
for-profit entity for the purpose of preparing the financial statements.

(i) Going Concern

The Group incurred a net loss after tax of $21.7 million and had net 
cash outflows from operating activities of $19.8 million for the year 
ended 30 June 2022.

The financial statements have been prepared on the basis that the 
Group is a going concern which contemplates continuity of normal 
business activities and the realisation of assets and discharge of 
liabilities in the normal course of business.

The Directors believe that the Group will continue as a going concern 
and that it is appropriate to adopt the going concern basis for the 
preparation of the financial report based on the Group’s cash flow 
forecasts and revenue projections that have been prepared based on 
current market conditions and business plans. To continue as a going 
concern the Group requires the generation of sufficient funds from 
operating activities to meet its financial obligations, the continued 
support of its bankers and the successful completion of the Group’s 
capital management and funding activities (the “Capital Management 
Plan”) as described below.

Cash flow from operating activities

A budget and cash flow forecast has been prepared for the twelve-
month period from the date of signing the financial statements. The 
cash flow forecast has been prepared on reasonable economic, 
operating and trading performance assumptions including those 
achieved in the Q4 trading period of FY22 (i.e., performance post the 
COVID-19 pandemic). If this forecast is achieved, it will support the 
Directors’ going concern assertion. These forecasts are dependent 
upon the ability of the Group to secure the necessary milk volumes 
at the prices forecast by the Group. These volumes and prices 
are based on the Group’s existing contracted milk purchases from 
suppliers. These forecasts are also dependant on the cash payment 
and collection profile being materially in line with the Group’s cash 
flow forecasts.

Financing facilities

As at 30 June 2022, the Group’s working capital facilities comprised 
a $41.8 million multi-option loan facility expiring 31 August 2023. As at 
30 June 2022, the Group had drawn down $39.5 million under these 
facilities.

On 30 August 2022, the Group successfully negotiated and entered 
into an amended facility agreement, comprising an increased total 
facility limit of $53.2 million expiring 31 August 2023. The amended 
terms included certain stepped reductions in the facility limit totaling 
$16 million over the period to 31 December 2022 (“Debt Amortisation 
Payments”) and a requirement to return rental bank guarantees of $1.1 
million to the bank by 30 November 2022. The amended facility terms 
were negotiated after review of the Capital Management Plan (as 
described below) by the Group’s bankers.

The timing of the planned capital raise (summarised below) has 
required the Group to seek further amendments to the above terms, 
including extension of the first Debt Amortisation Payment, which was 
due on 30 September 2022. On 29 September 2022 the Group’s 
bankers agreed to remove certain undertakings and to vary the 
terms of the Debt Amortisation Payments such that the Group is 
required to repay $8 million, or the amount of the net proceeds from 
the Institutional Placement outlined below if less than $8 million, by 
31 October 2022. Any difference between the net proceeds from 
the Institutional Placement and $8 million referred to above plus a 
further $8 million is required to be paid by 30 November 2022, the 
timing aligned to the expected proceeds from the Entitlement Offer 
outlined below. This agreement is subject to the execution of a formal 
amendment deed.

Following completion of the Capital Management Plan (below), 
the Group will have reduced its gearing levels. The Directors are 
confident of establishing or renewing sufficient debt facilities prior to 
expiry of the current facilities on 31 August 2023.

Capital management plan

The Directors of the Group are of the view that there are a number 
of compelling opportunities to allocate capital to projects which 
can accelerate the profitability of the Group, reduce debt, including 
meeting the Debt Amortisation Payments, and are supportive of 
a number of areas of investment which have been identified by 
Management for achieving cost savings and margin increases. 
The Board is also supportive of appropriate acquisition opportunities, 
which have the potential to provide synergistic benefits to the Group 
and expand its product portfolio.

Consistent with this view, the Group has initiated plans to undertake 
a fully/partially underwritten capital raise, comprising an Institutional 
Placement and Entitlement Offer targeting to raise at least $25 million 
to raise sufficient funds for the purposes outlined in the paragraph 
above.

In summary, having considered the foregoing matters, the Directors 
believe that the Group will continue as a going concern.

However, if the Group is unable to successfully complete the Capital 
Management Plan as described above and generate sufficient cash 
flows from operations, meet debt repayment requirements and 
successfully renegotiate (during the period to 31 August 2023) its bank 
facilities, a material uncertainty would exist in relation to the Group’s 
ability to continue as a going concern and, therefore, whether it would 
be required to realise its assets and extinguish its liabilities other than 
in the normal course of business and at amounts different to those 
stated in the financial statements.

The financial statements do not include adjustments relating to 
the recoverability and classification of recorded asset amounts or 
the amounts and classification of recorded liabilities that might be 
necessary should the consolidated entity not continue as a going 
concern.

(ii)  Compliance with IFRS

The consolidated financial statements of the Beston Global Food 
Company Limited Group also comply with International Financial 
Reporting Standards (IFRS) as issued by the International Accounting 
Standards Board (IASB).

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS69

(iii)  Historical cost convention

Recoverability of deferred tax balances

These financial statements have been prepared under the historical 
cost basis.

(iv)  New and amended standards adopted by the Group

The Group has applied certain standards and amendments which 
are effective for the first time in their annual reporting period 
commencing 1 July 2021. There are no new standards, interpretations 
or amendments to existing standards that are effective for the first 
time that have a material impact in current or future reporting periods 
and on foreseeable future transactions.

(v)  New standards and interpretations not yet adopted

Certain new accounting standards and interpretations have been 
published that are not mandatory for 30 June 2022 reporting periods 
and have not been early adopted by the Group. The Group has 
assessed that none of these are relevant to the Group.

Standards not yet effective

There are no other standards that are not yet effective and that would 
be expected to have a material impact on the entity in the current 
or future reporting periods and on foreseeable future transactions. 
None of these are expected to have a material effect on the financial 
statements.

(a)  Basis of preparation (continued)

(vi)  Key judgements, estimates and assumptions

The preparation of financial statements requires the use of certain 
critical accounting estimates. It also requires management to exercise 
its judgement in the process of applying the Group’s accounting 
policies.

Financial forecasting

Management maintains a detailed financial model that it uses to 
forecast the future performance of each of its segments within the 
Group. This model was updated for the latest available information 
as at 30 June 2022. Key uses of the financial model include 
understanding expected financial performance, capital expenditure, 
cash-flow and capital and debt management requirements of 
the Group. The financial model is also the key input for valuation 
purposes, including impairment assessments. Significant assumptions 
that drive the forecast outcomes are subject to detailed review for 
reasonableness by management, and approval by the Board.

By their nature, financial forecasts are inherently uncertain and 
dependent upon realisation of critical assumptions. Should expected 
future business conditions change, this could lead to a change in 
these critical assumptions which could have a material impact on 
the forecast financial performance of the Group, assessment of 
the recoverable amount of assets for impairment purposes, and 
recognition of deferred tax assets.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash 
generating unit exceeds its recoverable amount, which is the higher of 
its fair value less costs of disposal and its value in use. The fair value 
less cost to sell calculation is based on the detailed financial model 
as discussed in 7(a), with cash flows derived from the forecast for the 
next five years. The key drivers used to determine the recoverable 
amount for the different CGUs are disclosed and further explained in 
note 7(b)(c).

Deferred tax assets are recognised for unused tax losses to the extent 
that it is probable that taxable profit will be available against which 
the losses can be utilised. Management judgement is required to 
determine the amount of deferred tax asset that can be recognised, 
based on the likely timing and the level of future taxable profits, 
together with future tax planning strategies. Further details on 
deferred tax balances are disclosed in note 6(d).

(b)  Principles of consolidation

The consolidated financial statements incorporate the assets and 
liabilities of all subsidiaries of Beston Global Food Company Limited 
(“Company” or “parent entity”) as at 30 June 2022 and the results of 
all subsidiaries for the year then ended. Beston Global Food Company 
Limited and its subsidiaries together are referred to in this financial 
report as the Group or the consolidated entity.

(i)  Subsidiaries

Subsidiaries are all entities (including structured entities) over which 
the Group has control. The Group controls an entity when the Group is 
exposed to, or has rights to, variable returns from its involvement with 
the entity and has the ability to affect those returns through its power 
to direct the activities of the entity. Subsidiaries are fully consolidated 
from the date on which control is transferred to the Group. They are 
deconsolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on 
transactions between Group companies are eliminated. Unrealised 
losses are also eliminated unless the transaction provides evidence 
of the impairment of the transferred asset. Accounting policies 
of subsidiaries have been changed where necessary to ensure 
consistency with the policies adopted by the Group.

Non-controlling interests in the results and equity of subsidiaries are 
shown separately in the consolidated statement of comprehensive 
income, consolidated statement of changes in equity and 
consolidated balance sheet respectively.

(ii)  Associates

Associates are all entities over which the Group has significant 
influence but not control or joint control. This is generally the case 
where the Group holds between 20% and 50% of the voting rights. 
Investments in associates are accounted for using the equity method 
of accounting (see (iii) below), after initially being recognised at cost.

(iii)  Equity method

Under the equity method of accounting, the investments are initially 
recognised at cost and adjusted thereafter to recognise the Group’s 
share of the post-acquisition profits or losses of the investee in profit 
or loss, and the Group’s share of movements in other comprehensive 
income of the investee in other comprehensive income. Dividends 
received or receivable from associates and joint ventures are 
recognised as a reduction in the carrying amount of the investment.

When the Group’s share of losses in an equity-accounted investment 
equals or exceeds its interest in the entity, including any other 
unsecured long-term receivables, the Group does not recognise 
further losses, unless it has incurred obligations or made payments on 
behalf of the other entity.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS70

20  Summary of significant accounting policies (continued)

(iii)  Equity method (continued)

(iii)  Group companies

Unrealised gains on transactions between the Group and its 
associates and joint ventures are eliminated to the extent of 
the Group’s interest in these entities. Unrealised losses are 
also eliminated unless the transaction provides evidence of an 
impairment of the asset transferred. Accounting policies of equity 
accounted investees have been changed where necessary to ensure 
consistency with the policies adopted by the Group.

The carrying amount of equity-accounted investments is tested for 
impairment in accordance with the policy described in Note 20(i).

(c)  Segment reporting

Operating segments are reported in a manner consistent with the 
internal reporting provided to the chief operating decision maker.

The Board of Beston Global Food Company Limited has appointed 
an executive management committee which assesses the financial 
performance and position of the Group and makes strategic 
decisions. The executive management committee, which has been 
identified as being the chief operating decision maker, consists of the 
Chief Executive Officer and the Chief Financial Officer.

(d)  Foreign currency translation

The results and financial position of foreign operations (none of 
which has the currency of a hyperinflationary economy) that have 
a functional currency different from the presentation currency are 
translated into the presentation currency as follows:

•  assets and liabilities for each balance sheet presented are 

translated at the closing rate at the date of that balance sheet

• 

income and expenses for each statement of profit or loss and 
statement of comprehensive income are translated at average 
exchange rates (unless this is not a reasonable approximation of 
the cumulative effect of the rates prevailing on the transaction 
dates, in which case income and expenses are translated at the 
dates of the transactions), and

•  all resulting exchange differences are recognised in other 

comprehensive income.

When a foreign operation is sold, the associated exchange 
differences are reclassified to profit or loss, as part of the gain or loss 
on sale.

Goodwill and fair value adjustments arising on the acquisition of a 
foreign operation are treated as assets and liabilities of the foreign 
operation and translated at the closing rate.

(i)  Functional and presentation currency

(e)  Revenue recognition

Items included in the financial statements of each of the Group’s 
entities are measured using the currency of the primary economic 
environment in which the entity operates (‘the functional currency’). 
The consolidated financial statements are presented in Australian 
dollars ($), which is Beston Global Food Company Limited’s functional 
and presentation currency.

(ii)  Transactions and balances

Foreign currency transactions are translated into the functional 
currency using the exchange rates prevailing at the dates of the 
transactions. Foreign exchange gains and losses resulting from the 
settlement of such transactions and from the translation at year end 
exchange rates of monetary assets and liabilities denominated in 
foreign currencies are recognised in profit or loss.

Foreign exchange gains and losses are presented in the consolidated 
income statement on a net basis within other income or other 
expenses.

Non-monetary items that are measured in terms of historical cost in a 
foreign currency are translated using the exchange rates at the date of 
initial transactions.

Non-monetary items that are measured at fair value in a foreign 
currency are translated using the exchange rates at the date when 
the fair value was determined. Translation differences on assets and 
liabilities carried at fair value are reported as part of the fair value gain 
or loss.

Revenue from contracts with customers is recognised when control 
of the goods or services are transferred to the customer at an amount 
that reflects the consideration to which the Group expects to be 
entitled in exchange for those goods or services. The Group has 
generally concluded that it is the principal in its revenue arrangements 
because it typically controls the goods or services before transferring 
them to the customer.

Revenue from the sale of dairy and meat products is recognised at the 
point in time when control of the asset is transferred to the customer, 
generally on delivery of the goods to the customer’s location.

The Group considers whether there are other promises in the contract 
that are separate performance obligations to which a portion of the 
transaction price needs to be allocated (e.g. rebates, case deals).

Revenue for interest income is recognised on the following basis:

Interest income is recognised using the effective interest method. 
When a receivable is impaired, the Group reduces the carrying 
amount to its recoverable amount, being the estimated future cash 
flow discounted at the original effective interest rate of the instrument 
and continues unwinding the discount as interest income. Interest 
income on impaired loans is recognised using the original effective 
interest rate.

(f)  Government grants

Grants from the government are recognised at their fair value where 
there is a reasonable assurance that the grant will be received and the 
Group will comply with all attached conditions.

Government grants relating to costs are deferred and recognised in 
the profit or loss over the period necessary to match them with the 
costs that they are intended to compensate.

Government grants relating to the purchase of property, plant and 
equipment are included in non-current liabilities as deferred income 
and are credited to profit or loss on a straight-line basis over the 
expected lives of the related assets.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS71

(g)  Income tax

(h)  Leases

The income tax expense or credit for the period is the tax payable 
on the current period’s taxable income based on the applicable 
income tax rate for each jurisdiction adjusted by changes in deferred 
tax assets and liabilities attributable to temporary differences and to 
unused tax losses.

The current income tax charge is calculated on the basis of the tax 
laws enacted or substantively enacted at the end of the reporting 
period in the countries where the Group’s subsidiaries and associates 
operate and generate taxable income. Management periodically 
evaluates positions taken in tax returns with respect to situations 
in which applicable tax regulation is subject to interpretation. It 
establishes provisions where appropriate on the basis of amounts 
expected to be paid to the tax authorities.

(g)  Income tax (continued)

Deferred income tax is provided in full, using the liability method, on 
temporary differences arising between the tax bases of assets and 
liabilities and their carrying amounts in the consolidated financial 
statements. However, deferred tax liabilities are not recognised if they 
arise from the initial recognition of goodwill. Deferred income tax is 
also not accounted for if it arises from initial recognition of an asset or 
liability in a transaction other than a business combination that at the 
time of the transaction affects neither accounting nor taxable profit 
or loss. Deferred income tax is determined using tax rates (and laws) 
that have been enacted or substantially enacted by the end of the 
reporting period and are expected to apply when the related deferred 
income tax asset is realised or the deferred income tax liability is 
settled.

Deferred tax assets are recognised only if it is probable that 
future taxable amounts will be available to utilise those temporary 
differences and losses.

(g)  Income tax (continued)

Deferred tax liabilities and assets are not recognised for temporary 
differences between the carrying amount and tax bases of 
investments in foreign operations where the Group is able to control 
the timing of the reversal of the temporary differences and it is 
probable that the differences will not reverse in the foreseeable 
future.

Deferred tax assets and liabilities are offset when there is a legally 
enforceable right to offset current tax assets and liabilities and when 
the deferred tax balances relate to the same taxation authority. 
Current tax assets and tax liabilities are offset where the entity has a 
legally enforceable right to offset and intends either to settle on a net 
basis, or to realise the asset and settle the liability simultaneously.

Beston Global Food Company Limited and its wholly-owned 
Australian controlled entities have implemented the tax consolidation 
legislation. As a consequence, these entities are taxed as a single 
entity and the deferred tax assets and liabilities of these entities are 
set off in the consolidated financial statements.

Current and deferred tax is recognised in profit or loss, except to the 
extent that it relates to items recognised in other comprehensive 
income or directly in equity. In this case, the tax is also recognised in 
other comprehensive income or directly in equity, respectively.

The Group has applied AASB 16 using the modified retrospective 
approach and therefore the comparative information has not been 
restated and continues to be reported under AASB 117 and IFRIC 4.

•  Group as a lessee

The Group applies a single recognition and measurement approach 
for all leases, except short-term leases and leases of low-value assets. 
The Group recognises lease liabilities to make lease payments and 
right-of-use assets representing the right to use the underlying assets.

•  Right-of use assets

The Group recognises right-of-use assets at the commencement 
date of the lease (i.e., the date the underlying asset is available 
for use). Right-of-use assets are measured at cost, less any 
accumulated depreciation and impairment losses, and adjusted for 
any remeasurement of lease liabilities. The cost of right-of-use assets 
includes the amount of lease liabilities recognised, initial direct costs 
incurred, and lease payments made at or before the commencement 
date less any lease incentives received. Unless the Group is 
reasonably certain to obtain ownership of the leased asset at the end 
of the lease term, the recognised right-of-use assets are depreciated 
on a straight-line basis over the shorter of its estimated useful life and 
the lease term. Right-of-use assets are subject to impairment.

•  Lease liabilities

At the commencement date of the lease, the Group recognises 
lease liabilities measured at the present value of lease payments 
to be made over the lease term. The lease payments include fixed 
payments (including in-substance fixed payments) less any lease 
incentives receivable, variable lease payments that depend on an 
index or a rate, and amounts expected to be paid under residual value 
guarantees. The lease payments also include the exercise price of 
a purchase option reasonably certain to be exercised by the Group 
and payments of penalties for terminating a lease, if the lease term 
reflects the Group exercising the option to terminate. The variable 
lease payments that do not depend on an index or a rate are 
recognised as expense in the period on which the event or condition 
that triggers the payment occurs. In calculating the present value of 
lease payments, the Group uses the lessee’s incremental borrowing 
rate at the lease commencement date if the interest rate implicit in 
the lease is not readily determinable. After the commencement date, 
the amount of lease liabilities is increased to reflect the accretion 
of interest and reduced for the lease payments made. In addition, 
the carrying amount of lease liabilities is remeasured if there is a 
modification, a change in the lease term, a change in the in-substance 
fixed lease payments or a change in the assessment to purchase the 
underlying asset.

•  Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its 
short-term leases of machinery and equipment (i.e., those leases that 
have a lease term of 12 months or less from the commencement date 
and do not contain a purchase option). It also applies the lease of low-
value assets recognition exemption to leases of office equipment that 
are considered of low value (i.e., below $10,000). Lease payments on 
short-term leases and leases of low-value assets are recognised as 
expense on a straight-line basis over the lease term.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS72

20  Summary of significant accounting policies (continued)

(i) 

Impairment of non-financial assets

Goodwill and intangible assets that have an indefinite useful life are 
not subject to amortisation and are tested annually for impairment, 
or more frequently if events or changes in circumstances indicate 
that they might be impaired. Other assets are tested for impairment 
whenever events or changes in circumstances indicate that the 
carrying amount may not be recoverable. An impairment loss is 
recognised for the amount by which the asset’s carrying amount 
exceeds its recoverable amount. The recoverable amount is the 
higher of an asset’s fair value less costs of disposal and value in use. 
For the purposes of assessing impairment, assets are grouped at the 
lowest levels for which there are separately identifiable cash inflows 
which are largely independent of the cash inflows from other assets or 
Groups of assets (cash-generating units). Non-financial assets other 
than goodwill that suffered an impairment are reviewed for possible 
reversal of the impairment at the end of each reporting period.

This assessment is referred to as the SPPI test and is performed at an 
instrument level.

The Group’s business model for managing financial assets refers to 
how it manages its financial assets in order to generate cash flows. 
The business model determines whether cash flows will result from 
collecting contractual cash flows, selling the financial assets, or both.

Financial assets fair value through profit and loss

Financial assets at fair value through profit or loss include financial 
assets held for trading, financial assets designated upon initial 
recognition at fair value through profit or loss, or financial assets 
mandatorily required to be measured at fair value. Financial assets 
are classified as held for trading if they are acquired for the purpose 
of selling or repurchasing in the near term. Derivatives, including 
separated embedded derivatives, are also classified as held for 
trading unless they are designated as effective hedging instruments.

(j)  Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash 
and cash equivalents includes cash on hand. Bank overdrafts are 
shown within borrowings in current liabilities in the consolidated 
balance sheet.

(k) 

Trade receivables

Trade receivables are recognised initially at the transaction price 
as determined under AASB 15. Subsequently, trade receivables are 
carried at amortised cost and are subject to impairment. See note 
5(b) for further information about the Group’s accounting for trade 
receivables and note 10(b) for a description of the Group’s impairment 
policies.

(l) 

Inventories

Raw materials and stores, work in progress and finished goods

Raw materials and stores, work in progress and finished goods are 
stated at the lower of cost and net realisable value. Cost comprises 
direct materials, direct labour and an appropriate proportion of 
variable and fixed overhead expenditure, the latter being allocated on 
the basis of normal operating capacity.

Costs are assigned to individual items of inventory on the basis 
of weighted average costs. Costs of purchased inventory are 
determined after deducting rebates and discounts. Net realisable 
value is the estimated selling price in the ordinary course of business 
less the estimated costs of completion and the estimated costs 
necessary to make the sale.

(m)  Investments and other financial assets

(i)  Classification and measurement

With the exception of trade receivables, the Group initially measures 
a financial asset at its fair value plus, in the case of a financial asset 
not at fair value through profit or loss, transaction costs. Transaction 
costs of financial assets carried at fair value through profit or loss are 
expensed in profit or loss. Trade receivables are measured at the 
transaction price determined under AASB 15.

The classification of financial assets depends on the financial asset’s 
contractual cash flow characteristics and the Group’s business model 
for managing them. In order for a financial asset to be classified 
and measured at amortised cost or fair value through OCI (for a 
debt instrument), it needs to give rise to cash flows that are ‘solely 
payments of principal and interest (SPPI)’ on the principal amount 
outstanding.

Financial assets with cash flows that are not solely payments of 
principal and interest are classified and measured at fair value through 
profit or loss, irrespective of the business model.

Financial assets at fair value through profit or loss are carried in the 
Consolidated balance sheet at fair value with net changes in fair value 
recognised in the statement of profit or loss.

Financial assets at amortised cost

This category is the most relevant to the Group. The Group measures 
financial assets at amortised cost if both of the following conditions 
are met:

•  The financial asset is held within a business model with the 

objective to hold financial assets in order to collect contractual 
cash flows; and

•  The contractual terms of the financial asset give rise on specified 
dates to cash flows that are solely payments of principal and 
interest on the principal amount outstanding.

Financial assets at amortised cost are subsequently measured using 
the effective interest (EIR) method and are subject to impairment. 
Gains and losses are recognised in profit or loss when the asset is 
derecognised, modified or impaired. The Group’s financial assets 
at amortised cost includes trade receivables and other receivables 
within the Trade and other receivables balance in the Consolidated 
balance sheet.

Financial assets designated at fair value through OCI (equity 
instruments)

Upon initial recognition, the Group can elect to classify irrevocably 
its equity investments as equity instruments designated at fair value 
through OCI when they meet the definition of equity under AASB 132 
Financial Instruments and are not held for trading. The classification 
is determined on an instrument-by-instrument basis. Gains and 
losses on these financial assets are never recycled to profit or loss. 
Dividends are recognised as other income in the statement of profit 
or loss when the right of payment has been established, except when 
the Group benefits from such proceeds as a recovery of part of the 
cost of the financial asset, in which case, such gains are recorded in 
OCI. Equity instruments designated at fair value through OCI are not 
subject to impairment assessment.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS73

(ii)  Recognition and derecognition

The Group initially recognises a financial asset when it becomes 
party to the contractual provisions of the instrument. A financial asset 
(or, where applicable, a part of a financial asset or part of a group of 
similar financial assets) is primarily derecognised (i.e., removed from 
the Group’s consolidated statement of financial position) when:

event occurring after the impairment was recognised (such as 
an improvement in the debtor’s credit rating), the reversal of the 
previously recognised impairment loss is recognised in profit or loss.

Impairment testing of trade receivables is described in Note 10(b).

(n)  Financial liabilities

•  The right to receive cash flows from the asset have expired; or

(i) 

Initial recognition and measurement

•  The Group has transferred its rights to receive cash flows from the 
asset or has assumed an obligation to pay the received cash flows 
in full without material delay to a third party under a ‘pass-through’ 
arrangement; and either (a) the Group has transferred substantially 
all the risks and rewards of the asset, or (b) the Group has neither 
transferred nor retained substantially all the risks and rewards of 
the asset, but has transferred control of the asset.

(iii) 

Impairment

The Group recognises an allowance for expected credit losses 
(ECLs) for all debt instruments not held at fair value through profit 
or loss. ECLs are based on the difference between the contractual 
cash flows due in accordance with the contract and all the cash flows 
that the Group expects to receive, discounted at an approximation 
of the original effective interest rate. The expected cash flows will 
include cash flows from the sale of collateral held or other credit 
enhancements that are integral to the contractual terms.

(m)  Investments and other financial assets (continued)

(iii) 

Impairment (continued)

ECLs are recognised in two stages. For credit exposures for which 
there has not been a significant increase in credit risk since initial 
recognition, ECLs are provided for credit losses that result from 
default events that are possible within the next 12-months (a 12-month 
ECL). For those credit exposures for which there has been a significant 
increase in credit risk since initial recognition, a loss allowance is 
required for credit losses expected over the remaining life of the 
exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Group applies a 
simplified approach in calculating ECLs. Therefore, the Group 
does not track changes in credit risk, but instead recognises a loss 
allowance based on lifetime ECLs at each reporting date. The Group 
has established a provision matrix that is based on its historical credit 
loss experience, adjusted for forward-looking factors specific to the 
debtors and the economic environment.

The Group considers a financial asset in default when contractual 
payments are 90 days past due. However, in certain cases, the Group 
may also consider a financial asset to be in default when internal or 
external information indicates that the Group is unlikely to receive the 
outstanding contractual amounts in full before taking into account 
any credit enhancements held by the Group. A financial asset is 
written off when there is no reasonable expectation of recovering the 
contractual cash flows.

Assets carried at amortised cost

For loans and receivables, the amount of the loss is measured as 
the difference between the asset’s carrying amount and the present 
value of estimated future cash flows (excluding future credit losses 
that have not been incurred) discounted at the financial asset’s 
original effective interest rate. The carrying amount of the asset is 
reduced and the amount of the loss is recognised in profit or loss. If a 
loan has a variable interest rate, the discount rate for measuring any 
impairment loss is the current effective interest rate determined under 
the contract.

If, in a subsequent period, the amount of the impairment loss 
decreases and the decrease can be related objectively to an 

Financial liabilities are classified, at initial recognition, as financial 
liabilities at fair value through profit or loss, loans and borrowings, 
payables. All financial liabilities are recognised initially at fair value 
and, in the case of loans and borrowings and payables, net of directly 
attributable transaction costs. The Group’s financial liabilities include 
trade and other payables, and loans and borrowings.

(ii)  Subsequent measurement

The measurement of financial liabilities depends on their classification, 
as described below:

Loans and borrowings

This is the category most relevant to the Group. After initial 
recognition, interest-bearing loans and borrowings are subsequently 
measured at amortised cost using the EIR method. Gains and losses 
are recognised in profit or loss when the liabilities are derecognised 
as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or 
premium on acquisition and fees or costs that are an integral part 
of the EIR. The EIR amortisation is included as finance costs in the 
statement of profit or loss.

This category generally applies to interest-bearing borrowings.

(iii)  Derecognition

A financial liability is derecognised when the obligation under the 
liability is discharged or cancelled or expires. When an existing 
financial liability is replaced by another from the same lender on 
substantially different terms, or the terms of an existing liability are 
substantially modified, such an exchange or modification is treated 
as the derecognition of the original liability and the recognition of 
a new liability. The difference in the respective carrying amounts is 
recognised in the statement of profit or loss.

(o)  Assets held for sale

The Group classifies non-current assets and disposal groups as held 
for sale if their carrying amounts will be recovered principally through 
a sale transaction rather than through continuing use. Non-current 
assets and disposal groups classified as held for sale are measured 
at the lower of their carrying amount and fair value less costs to sell. 
Costs to sell are the incremental costs directly attributable to the 
disposal of an asset (disposal group), excluding finance costs and 
income tax expense.

The criteria for held for sale classification is regarded as met only 
when the sale is highly probable, and the asset or disposal group is 
available for immediate sale in its present condition. Actions required 
to complete the sale should indicate that it is unlikely that significant 
changes to the sale will be made or that the decision to sell will be 
withdrawn. Management must be committed to the plan to sell the 
asset and the sale expected to be completed within one year from the 
date of the classification.

Property, plant and equipment and intangible assets are not 
depreciated or amortised once classified as held for sale.

Assets and liabilities classified as held for sale are presented 
separately as current items in the statement of financial position.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS74

20   Summary of significant accounting policies (continued) 

(p)  Property, plant, and equipment

(iii)  Software (e-commerce platform and other applications)

The Group’s accounting policy for land and buildings is explained in 
note 6(a). All other property, plant and equipment is stated at historical 
cost less depreciation and impairment. Historical cost includes 
expenditure that is directly attributable to the acquisition of the items. 
Cost may also include transfers from equity of any gains or losses 
on qualifying cash flow hedges of foreign currency purchases of 
property, plant, and equipment.

Subsequent costs are included in the asset’s carrying amount or 
recognised as a separate asset, as appropriate, only when it is 
probable that future economic benefits associated with the item 
will flow to the Group and the cost of the item can be measured 
reliably. The carrying amount of any component accounted for as a 
separate asset is derecognised when replaced. All other repairs and 
maintenance are charged to profit or loss during the reporting period 
in which they are incurred.

The depreciation methods and periods used by the Group are 
disclosed in note 6(a).

The assets’ residual values and useful lives are reviewed, and 
adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its 
recoverable amount if the asset’s carrying amount is greater than its 
estimated recoverable amount (note 20(j)).

Gains and losses on disposals are determined by comparing 
proceeds with carrying amount. These are included in profit or loss. 
When revalued assets are sold, it is Group policy to transfer any 
amounts included in other reserves in respect of those assets to 
retained earnings.

(q)  Intangible assets

(i)  Goodwill

Goodwill is not amortised but it is tested for impairment annually, or 
more frequently if events or changes in circumstances indicate that it 
might be impaired, and is carried at cost less accumulated impairment 
losses. Gains and losses on the disposal of an entity include the 
carrying amount of goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose of 
impairment testing. The allocation is made to those cash-generating 
units or Groups of cash-generating units that are expected to benefit 
from the business combination in which the goodwill arose. The units 
or Groups of units are identified at the lowest level at which goodwill 
is monitored for internal management purposes, being the operating 
segments (note 1).

(ii)  Trademarks and licences

Separately acquired trademarks and licences are shown at historical 
cost. Trademarks, licences and customer contracts acquired in a 
business combination are recognised at fair value at the acquisition 
date. They have a finite useful life and are subsequently carried at cost 
less accumulated amortisation and impairment losses.

Costs associated with maintaining software programs are recognised 
as an expense as incurred. Development costs that are directly 
attributable to the design and testing of identifiable and unique 
software products controlled by the Group are recognised as 
intangible assets when the following criteria are met:

• 

it is technically feasible to complete the software so that it will be 
available for use

•  management intends to complete the software and use or sell it

• 

• 

there is an ability to use or sell the software

it can be demonstrated how the software will generate probable 
future economic benefits

•  adequate technical, financial and other resources to complete the 
development and to use or sell the software are available, and

• 

the expenditure attributable to the software during its 
development can be reliably measured.

Directly attributable costs that are capitalised as part of the software 
include employee costs and an appropriate portion of relevant 
overheads.

Capitalised development costs are recorded as intangible assets and 
amortised from the point at which the asset is ready for use.

(iv)  Amortisation methods and periods

Refer to note 6(b) for details about amortisation methods and periods 
used by the Group for intangible assets.

(r)  Trade and other payables

These amounts represent liabilities for goods and services provided 
to the Group prior to the end of financial year which are unpaid. 
The amounts are unsecured and are usually paid within 30 days 
of recognition. Trade and other payables are presented as current 
liabilities unless payment is not due within 12 months from the 
reporting date. They are recognised initially at their fair value and 
subsequently measured at amortised cost using the effective interest 
method.

(s)  Employee benefits

(i)  Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits 
and accumulating sick leave that are expected to be settled wholly 
within 12 months after the end of the period in which the employees 
render the related service are recognised in respect of employees’ 
services up to the end of the reporting period and are measured at 
the amounts expected to be paid when the liabilities are settled. The 
liabilities are presented as current employee benefit obligations in the 
consolidated balance sheet.

(ii)  Other long-term employee benefit obligations

The liabilities for long service leave and annual leave that are not 
expected to be settled wholly within 12 months after the end of the 
period in which the employees render the related service, they are 
therefore measured at the present value of expected future payments 
to be made in respect of services provided by employees up to the 
end of the reporting period using the projected unit credit method. 
Consideration is given to expected future wage and salary levels, 
experience of employee departures and periods of service. Expected 
future payments are discounted using market yields at the end of the 
reporting period of corporate bonds with terms and currencies that 
match, as closely as possible, the estimated future cash outflows. 

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS75

Remeasurements as a result of experience adjustments and changes 
in actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the balance 
sheet if the entity does not have an unconditional right to defer 
settlement for at least twelve months after the reporting period, 
regardless of when the actual settlement is expected to occur.

(iii)  Share-based payments

Employees and Directors of the Group may receive remuneration 
in the form of share-based payments, whereby employees render 
services as consideration for equity instruments (equity-settled 
transactions). The cost of equity-settled transactions is determined 
by the fair value at the date when the grant is made using an 
appropriate valuation model. The cost is recognised, together with a 
corresponding increase in other capital reserves in equity, over the 
period in which the performance and/or service conditions are fulfilled 
in employee benefits expense.

The cumulative expense recognised for equity-settled transactions 
at each reporting date until the vesting date reflects the extent to 
which the vesting period has expired and the Group’s best estimate 
of the number of equity instruments that will ultimately vest. The 
expense or credit in the consolidated statement of comprehensive 
income for a period represents the movement in cumulative expense 
recognised as at the beginning and end of that period. No expense is 
recognised for awards that do not ultimately vest, except for equity-
settled transactions for which vesting is conditional upon a market 
or non-vesting condition. These are treated as vesting irrespective 
of whether or not the market or non-vesting condition is satisfied, 
provided that all other performance and/or service conditions are 
satisfied.

When the terms of an equity-settled award are modified, the minimum 
expense recognised is the expense had that terms not been modified, 
if the original terms of the award are not met. An additional expense 
is recognised for any modification that increases the total fair value of 
the share-based payment transaction, or is otherwise beneficial to the 
employee as measured at the date of modification. The dilutive effect 
of outstanding options is reflected as additional share dilution in the 
computation of diluted earnings per share.

(t)  Contributed equity

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares 
or options are shown in equity as a deduction, net of tax, from the 
proceeds.

(u)  Dividends

Provision is made for the amount of any dividend declared, being 
appropriately authorised and no longer at the discretion of the entity, 
on or before the end of the reporting period but not distributed at the 
end of the reporting period.

(v)  Earnings per share

(i)  Basic earnings per share

(ii)  Diluted earnings per share

Diluted earnings per share adjusts the figures used in the 
determination of basic earnings per share to take into account:

• 

• 

the after income tax effect of interest and other financing costs 
associated with dilutive potential ordinary shares, and

the weighted average number of additional ordinary shares that 
would have been outstanding assuming the conversion of all 
dilutive potential ordinary shares.

(w)  Rounding of amounts

The Company is of a kind referred to in ASIC Corporations (Rounding 
in Financial/Directors’ Reports) Instrument 2016/191, issued by the 
Australian Securities and Investments Commission, relating to the 
‘rounding off’ of amounts in the financial statements. Amounts in the 
financial statements have been rounded off in accordance with that 
instrument to the nearest thousand dollars, or in certain cases, the 
nearest dollar.

(x)  Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of 
associated GST, unless the GST incurred is not recoverable from the 
taxation authority. In this case it is recognised as part of the cost of 
acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST 
receivable or payable. The net amount of GST recoverable from, or 
payable to, the taxation authority is included with other receivables or 
payables in the consolidated balance sheet.

Cash flows are presented on a gross basis. The GST components 
of cash flows arising from investing or financing activities which are 
recoverable from, or payable to the taxation authority, are presented 
as operating cash flows.

(y)  Parent entity financial information

The financial information for the parent entity, Beston Global Food 
Company Limited, disclosed in note 19 has been prepared on the 
same basis as the consolidated financial statements, except as set out 
below.

(i) 

 Investments in subsidiaries, associates and joint venture 
entities

Investments in subsidiaries, associates and joint venture entities are 
accounted for at cost, less any impairment, in the financial statements 
of Beston Global Food Company Limited. Dividends received from 
associates are recognised in the parent entity’s profit or loss when its 
right to receive the dividend is established.

(ii)  Tax consolidation legislation

Beston Global Food Company Limited and its wholly-owned 
Australian controlled entities have implemented the tax consolidation 
legislation.

Refer to note 6 for further details.

Basic earnings per share is calculated by dividing:

21  Difference to ASX Appendix 4E

• 

the profit/(loss) attributable to owners of the Company, excluding 
any costs of servicing equity other than ordinary shares

•  by the weighted average number of ordinary shares outstanding 
during the financial year, adjusted for bonus elements in ordinary 
shares issued during the year and excluding treasury shares.

The financial statements are consistent with the Company’s ASX 
Appendix 4E released to ASX on 31 August 2022, with the exception 
of a $7.2m reclassification of financial liabilities from non-current 
liabilities to current liabilities, related to the Company’s banking 
facilities. These facilities were renegotiated subsequent to balance 
date – refer note 15.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS76

Directors’ 
declaration

In the Directors’ opinion:

(a)  the financial statements and notes set out on pages 42 to 75 are in accordance 

with the Corporations Act 2001, including:

(ii)   complying with Accounting Standards, the Corporations Regulations 2001 and 

other mandatory professional reporting requirements, and

(iii)   complying with International Financial Reporting Standards , as disclosed in 

note 20(a)(ii), and

(iv)  giving a true and fair view of the consolidated entity’s financial position as 

at 30 June 2022 and of its performance for the financial year ended on that 
date, and

(b) based on the matters set out in note 20(a)(i), there are reasonable grounds to 

believe that the Company will be able to pay its debts as and when they become 
due and payable.

This declaration has been made after receiving the declarations required to be 
made to the directors by the Chief Executive Officer and the Chief Financial Officer 
in accordance with section 295A of the Corporations Act 2001 for the financial year 
ended 30 June 2022.

This declaration is made in accordance with a resolution of Directors.

R N Sexton
Chairman 
Adelaide

30 September 2022

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 2022Independent Auditor’s Report to the Members  
of Beston Global Food Company Limited

77

78

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202279

80

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202281

82

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 202283

ASX additional information

Additional information required by the Australian Stock Exchange Ltd and not 
shown elsewhere in this report is as follows. The information is current as at 8 
September 2022.

Ordinary share capital

Twenty largest holders of quoted equity securities

868,281,268 fully paid Ordinary Shares are held by 3,507 
individual Shareholders.
All Ordinary Shares carry one vote per share.
There are no restricted securities or securities subject to 
voluntary escrow
There is no current on-market buyback.

Distribution of equity securities

The number of shareholders, by size of holding, in each class 
are:

Range

Securities

%

100,001 and Over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000

791,803,836
71,149,977
4,146,690
1,157,065
23,700

Total
Unmarketable Parcels

868,281,268
2,539,504

91.19
8.19
0.48
0.13
0.00

100
0.29

Number of 
holders
831
1,654
509
359
154

3,507
729

%

23.70
47.16
14.51
10.24
4.39

100
20.79

Substantial shareholders
(As disclosed in substantial holding 
notices given to the Company)
Kunteng Pte Ltd
Australia Aulong Auniu Wang Food 
Holdings Pty Ltd
Allianz SE
Wilson Asset management Group

Number of 
Shares Held
64,051,111

%

14.99%

66,894,345 14.90%

20

55,469,040
56,388,613

9.21%
6.53%

Rank Name

1

2

3

4
5
6
7
8

9

10
11
12
13

14

15
16
17
18
19

KUNTENG PTE LTD 
HSBC CUSTODY NOMINEES 
(AUSTRALIA) LIMITED 
AUSTRALIA AULONG AUNIU WANG 
FOOD HOLDINGS PTY LTD 
BNP PARIBAS NOMINEES PTY LTD 
BNP PARIBAS NOMS PTY LTD 
HISHENK PTY LTD 
BLUE RIDGE HOLDINGS PTY LTD 
MS SHERYL DENG 
BESTON PACIFIC ASSET MANAGEMENT 
PTY LTD 
BNP PARIBAS NOMS PTY LTD 
WILLOUGHBY CAPITAL PTY LTD 
CITICORP NOMINEES PTY LIMITED 
FIRST BOOM INVESTMENTS LIMITED 
J P MORGAN NOMINEES AUSTRALIA 
PTY LIMITED 
ROSIANO PTY LTD 
FIRST BOOM INVESTMENTS LIMITED 
CITICORP NOMINEES PTY LIMITED 
FAT PROPHETS PTY LTD 
MNA FAMILY HOLDINGS PTY LTD 
MERRILL LYNCH (AUSTRALIA) 
NOMINEES PTY LIMITED 

Number of 
Shares Held
64,051,111

%

7.38

54,865,041

6.32

54,449,834

6.27

44,299,946
35,962,075
27,905,882
21,403,143
20,181,214

5.10
4.14
3.21
2.47
2.32

17,312,145

1.99

13,388,176
12,700,000
11,807,676
11,428,572

10,342,994

8,569,729
8,333,334
8,250,979
6,544,452
6,544,118

1.54
1.46
1.36
1.32

1.19

0.99
0.96
0.95
0.75
0.75

6,267,469

0.72

Total 444,607,890

51.21

Balance of register 423,673,378 48.79

Grand total 868,281,268 100.00

84

Corporate directory

BESTON GLOBAL FOOD COMPANY LIMITED
ABN 28 603 023 383

Annual Report for the period ended 30 June 2022

INCORPORATION
Incorporated in Australia on 24 November 2014

DIRECTORS
Roger Sexton 
Stephen Gerlach 
Neil Longstaff 
Cheryl Hayman 
Kevin Reid 

CEO
Fabrizio Jorge

Chairman
Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director 
Independent Non-Executive Director

COMPANY SECRETARY
Richard Willson

REGISTERED OFFICE
Level 9, 420 King William St, 
Adelaide, South Australia 5000 
+61 (0)8 8470 6500

PRINCIPAL PLACE OF BUSINESS
Level 9, 420 King William St,  
Adelaide, South Australia 5000 
+61 (0)8 8470 6500

SHARE REGISTER
Link Market Services
Tower 4, Collins Square, 727 Collins St, 
Melbourne, Victoria 3008 
+61 (0)3 9200 4555

Beston Global Food Company Limited shares are listed on the 
Australian Stock Exchange (ASX)

LEGAL ADVISORS
Minter Ellison

AUDITORS
Ernst & Young Australia

BANKERS
National Australia Bank

BESTON GLOBAL FOOD COMPANY LIMITED | ANNUAL REPORT 2022 
 
bestonglobalfoods.com.au