2021 ANNUAL REPORT
Pure Foods Tasmania Limited & Controlled Entities
For the financial year ended 30 June 2021
Daly Potato Farm, Marion Bay TAS
Pure Foods Tasmania started as a private company
in 2015, formed by 18 shareholders to produce
and showcase premium Tasmanian produce…
Woodbridge Smokehouse, Tasmania
2
Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Contents
Who is Pure Foods Tasmania?
Chairman’s Report
Managing Director’s Report
Business & Financial Summary
PFT Operations Review
Tasmanian Pate Review
Woodbridge Smokehouse Review
Daly Potato Co Review
New Pastures Review
Lauds Plant-Based Foods Review
The Cashew Creamery Review
Pure Tasmanian Seafood Review
E-Commerce
What's Ahead for PFT?
Our People
Corporate Governance
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Financial Statements
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Independent Audit Report
Shareholder Information
Corporate Directory
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3
5
7
9
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15
17
21
23
27
31
33
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69
73
74
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Pure Foods Tasmania Pty Ltd | 2021 Annual Report Who is Pure Foods
Tasmania?
Pure Foods Tasmania Pty Ltd (PFT) was formed
in 2015 with the aim to enhance and promote
Tasmania’s premium food and beverage businesses.
PFT’s strategy is to develop new premium products
and expand our plant-based food products
within our new and existing brands, to acquire
complementary brands and businesses and to
increase our market penetration and distribution for
our suite of brands and products globally.
PFT’s suite of brands and businesses include:
½ Woodbridge Smokehouse;
½ Tasmanian Pate;
½ Daly Potato Co;
½ Pure Tasmanian Seafood;
½ Lauds Plant-Based Foods;
½ The Cashew Creamery; and
½ New Pastures.
Strategy
PFT’s growth strategy is twofold:
½ organically grow its existing product range; and
½ grow via the acquisition of complementary
businesses.
Growth will be achieved organically through increased
penetration of existing markets, entry into new
markets with a focus on exports and new product
development.
PFT intends to grow through the acquisition
of complementary businesses, with a focus on
synergistic and similar premium food and beverage
businesses, as well as other complementary assets
and businesses that align with its existing portfolio.
Organically
Grown
Brands
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Brands Through Acquisition
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Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Chairman’s Report
I am pleased to present the Pure Foods Tasmania Annual
Report for the financial year ended 30 June 2021.
The strategic objective outlined for Pure Foods
Tasmania in the 2020 Annual Report was to acquire,
grow and develop premium food businesses in
Tasmania, particularly if associated products are
complimentary to existing products. I have the
pleasure to report that in the past 12 months Pure
Foods Tasmania has executed on its strategy by
identifying and acquiring Daly Potato Company, Lauds
Plant-Based Foods and the Cashew Creamery, an
investment of $2.3 million.
The three strategic acquisitions have integrated
seamlessly into our business and have provided
entry into the emerging plant-based food market,
while also providing significant growth opportunities
for the Company.
In addition to expanding the product portfolio through
acquisitions, Pure Foods Tasmania has launched New
Pastures (plant-based) and Premium Homestead Pate,
further diversifying the product range.
The Pure Foods Tasmania Board recognises that
good governance is vital in meeting shareholder
and community expectations and is an important
contributor to the Company’s success. It also seeks to
monitor Company’s values and fosters a positive culture.
Investment in the right people remains a focus in
maintaining a skilled, engaged and effective workforce.
On behalf of the Board, I would like to thank Michael
Cooper and our hard-working team members for their
commitment and dedication to operational efficiencies
and the development of new products.
Your Board is confident that appropriate strategies
are in place, supported by a strong Company
culture, to drive the right outcomes for customers,
the community and continued value creation for
our shareholders over the long-term. On behalf of
my fellow Directors, I thank you for your continued
support for our Company and look forward to
providing further updates throughout the year.
Malcolm McAully
Non-Executive Chairman
3
Pure Foods Tasmania Pty Ltd | 2021 Annual Report I am excited about the outlook for
our business in 2022 and beyond.
Michael Cooper, Managing Director
4
Who is Pure Foods Tasmania?Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Managing Director’s Report
FY21 has been an exciting year for Pure Foods as we continued to execute on our
strategy, deliver value for our shareholders and quality products to our end customers.
As a business we continue to execute against the
strategic objectives we set on listing. We have been
able to organically grow our core business via new
product ranges, significantly expanded distribution
channels and the launch of our e-commerce
platform. We have also identified and executed
on three acquisitions which have strategically
complemented our business and delivered significant
upside growth opportunities.
Importantly, the acquisitions have been seamlessly
integrated into our business with the management
teams and founders of those acquired business
remaining crucial components to our future success.
Our Company is well placed to continue to provide
premium products into our rapidly expanding
distribution network and I am excited about the
outlook for our business in 2022 and beyond.
Strategic Acquisitions Broaden Our Offering
The acquisitions of Lauds and The Cashew Creamery
extended our position in the rapidly growing plant-
based food market which complemented our core
product range of premium Tasmanian food products.
The plant-based food market provides significant
opportunities for our business both locally and
internationally and we will continue to position the
Company as a local leader in this field.
The acquisition of the Daly Potato Company opened
the opportunity for the Company to expand into the
fresh food meal solutions business and provided
significant scale and synergies. The Company remains
well positioned to continue to grow the business via
product innovation and acquisition and continues to
build a strong culture across our business.
Extending our Distribution to Over 2,000 Stockists
We have grown our product offering with 29 new SKUs
over the year enhancing the availability of quality
Tasmanians produce in Australia and internationally
and have extended our distribution network to over
2,000 stockists.
Australia for the supply of (WBSH) salmon and trout
products in Australia. The Company also secured
an agreement with Tas’Mania Fresh to expand the
distribution of WBSH into six major retail chains
in Hong Kong. The new distribution channels for
WBSH reflect the quality and customer demand for
the underlying product and will provide a significant
avenue of growth for FY22 and beyond.
The growth and international roll out of the
Woodbridge Smokehouse (WBSH) salmon and trout
products continued during the year. The Company
secured a sole supplier agreement with Monde Nissan
Growing e-Commerce Offering
The Company’s product expansion was further
underpinned by the introduction of the e-commerce
strategy, a cornerstone of the group’s future growth
trajectory and operations. Providing an expanded
customer base, digital sales routes and online store
was launched in August 2020.
This has driven increased brand awareness, increased
traffic and higher conversion rates. PFT anticipates
significant levels of growth over the coming periods
within the digital sales channels that will improve the
performance of the group across all key business
metrics. Importantly we delivered strong growth
in e-commerce sales, up 332% vs FY20 and this will
continue to be an area of focus for the Company.
continued on next page…
5
Managing Director’s ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Business & Financial Summary
Strong Financial Results Delivered
Overall, we are incredibly pleased with the financial
results from our first full year of listing. The 2021
financial year saw strong levels of growth continue
across all key financial metrics for the Company. PFT
delivered FY21 sales revenue of $8.2 million up 94%
vs FY20 with all divisions delivering positive revenue
growth. PFT remains appropriately funded with a net
cash position of $1.6 million as at 30 June 2021 and a
further $1.2 million in undrawn debt facilities.
Our People
I want to recognise the significant contribution of
all our employees over the year as we navigated the
challenges of COVID in addition to integrating our
acquisitions. Without the dedicated efforts of our
team, our business would not be in the position it is
today, and I would like to thank all of our staff, and the
Board, for their contributions over the year.
Importantly we are building a strong culture at the
Company. Whilst we have grown rapidly, and via
acquisition, all our staff are committed to the Company,
with associated low staff turnover. Our strong talent
and our people’s passion for the business will continue
to drive product innovation and success in the future.
Well Positioned for Growth
in FY22 and Beyond
The Company remains well positioned to continue
to grow the business via product innovation and
acquisition and to build a strong culture. Our quality
product, the new distribution agreements with Monde
Nissin Australia and Tas’Mania Fresh and our growing
e-commerce platform position the Company to continue
to drive revenue growth into FY22 and beyond.
Michael Cooper
Managing Director
21 September 2021
94%
Revenue Growth
compared to FY20
New
Businesses
Acquired3
New Brands
Launched
3
29
New SKUs
launched in FY20
eCommerce Sales
332% compared to FY20
Stockists in FY21
2,000
666% from 300 in FY20
Online Orders
sent to
747
suburbs
6
around Australia, including as far as Ciccone NT, Pt
Douglas QLD, Flinders Is TAS, and Port Hedland WA
Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportManaging Director’s Report Revenue by Country
Australian Revenue by State
Hong Kong
Singapore 3.41%
2.10%
WA 3.30%
VIC
15.78%
TAS
18.70%
Business & Financial Summary
NSW
53.23%
Australia
94.49%
Hong Kong 2.10%
SA 1.55%
Business &
Financial Summary
QLD 1.92%
Revenue by Country
Singapore 3.41%
Revenue by Brand
Revenue by Customer Location
% of Total Revenue
% of Australian Revenue
Woodbridge
Smokehouse
22%
White
Label
14%
Revenue by Country
Revenue by Country
Major
Retail
56%
Distributor
&
Independents
22%
Hong Kong
2.10%
Singapore 3.41%
Hong Kong
2.10%
Direct
Retail
12%
Singapore 3.41%
Export 6%
Internal Sales
& Other 0.1%
Business End-Users 2%
Consumer Direct 2%
Year on Year
Net Revenue Growth
Year on Year Revenue Growth
73% increase vs FY20
8
7
6
)
s
n
o
i
l
l
i
5
m
Australia
$
A
4
94.49%
(
e
u
n
e
v
e
R
2
3
1
Australia
94.49%
0
FY17
FY18
FY19
FY20
FY21
Revenue by Country
Revenue by Country
Revenue by
Customer Segment
Cashew Creamery
Customer Segments by Value
Australian Revenue by State
Australian Revenue by State
Homestead
Pate
13%
Lauds 2%
Daly
Potato Co
22%
WA 3.30%
Cashew Creamery
New Pastures
Pure Tas Seafood
0.5%
Other* 1%
WA 3.30%
Tasmanian
Pate
26%
Australia 94.49%
VIC
15.78%
VIC
15.78%
TAS
18.70%
TAS
18.70%
WA
3%
SA 1.55%
SA 1.55%
QLD 1.92%
QLD 1.92%
NSW
53.23%
SA
2%
NSW
53.23%
QLD
2%
NSW
53%
VIC 16%
Revenue by Brand
Revenue by Brand
Revenue by Brand
TAS
19%
E-Commerce
Value by state
Woodbridge
Smokehouse
22%
21% Growth
White
Label
14%
Woodbridge
Smokehouse
22%
White
Label
14%
WA 3%
ACT 1%
$153k
Daly
Potato Co
22%
Homestead
Pate
13%
Daly
Potato Co
22%
$126k
Homestead
Pate
VIC
31%
13%
Lauds 2%
NSW
31%
Lauds 2%
Tasmanian
Pate
26%
FY21
FY20
Cashew Creamery
New Pastures
Pure Tas Seafood
Cashew Creamery
New Pastures
Pure Tas Seafood
0.5%
NT 1%
0.5%
Tasmanian
Pate
26%
Other* 1%
TAS
13%
QLD
17%
Other* 1%
* includes externally sourced products for online store
SA 2%
7
Other 1%
d
Distributor
&
e n t s
Independents
Major
22%
Retail
56%
Direct
Retail
12%
%
3
6
c t R etail
r
e
D i
Export 6%
Distributor
&
Independents
22%
e
u
n
e
v
e
R
Direct
Retail
12%
Export 6%
Business End-Users 2%
Internal Sales
Consumer Direct 2%
& Other 0.1%
Business End-Users 2%
Consumer Direct 2%
Major
Retail
56%
& Indep e n
%
4
3
s
r
o
t
u
b
i
r
t
s
i
D
Internal Sales
& Other 0.1%
Year on Year Revenue Growth
Year on Year Revenue Growth
73% increase vs FY20
73% increase vs FY20
)
s
n
o
i
l
l
i
m
$
A
(
e
u
n
e
v
e
R
8
7
6
5
4
3
2
1
0
)
s
n
o
i
l
l
i
m
$
A
(
e
u
n
e
v
e
R
8
7
6
5
4
3
2
1
0
FY17
FY18
FY19
FY17
FY20
FY18
FY21
FY19
FY20
FY21
Cashew Creamery
Cashew Creamery
Customer Segments by Value
Customer Segments by Value
Other 1%
Other 1%
e n t s
d
& Indep e n
4
%
3
s
r
o
t
u
b
i
r
t
s
i
D
e n t s
d
& Indep e n
4
%
3
s
r
o
t
u
b
i
r
t
s
i
D
e
r
D i
%
3
6
c t R etail
%
3
6
c t R etail
e
r
D i
21% Growth
21% Growth
e
u
n
e
v
e
R
$153k
e
u
n
e
v
e
R
$153k
$126k
$126k
FY21
FY20
FY21
FY20
E-Commerce
E-Commerce
Value by state
Value by state
WA 3%
ACT 1%
WA 3%
ACT 1%
VIC
31%
NSW
31%
VIC
31%
NSW
31%
TAS
13%
QLD
TAS
17%
13%
NT 1%
QLD
17%
NT 1%
SA 2%
SA 2%
Business & Financial Summary Pure Foods Tasmania Pty Ltd | 2021 Annual Report
8
Business & Financial Summary PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report PFT Operations Review
Company Summary
PFT Group Results FY20 v FY21
Sales
Group*
Net Loss/Profit
Underlying EBITDA
* Net Sales
Revenue by Operating Entity
Total Sales Revenue
Woodbridge Smokehouse
Tasmanian Pate
Daly Potato Co
Lauds Plant-Based Foods
The Cashew Creamery
FY21
A$000's
7,829
(943)
(461)
FY20
A$000's
4,535
(196)
41
FY21
A$000's
8,291
2,023
3,940
1,779
396
153
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A$000's
%
3,295
(746)
(502)
FY20
A$000's
4,279
1,063
73%
(380%)
(1225%)
Change
%
94%
90%
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Financial Highlights
½ FY21 sales revenue of $8.2 million up 94% vs FY20
(including revenue from acquisitions) with all
divisions delivering positive revenue growth
½ Woodbridge Smokehouse
increased sales by 90% v FY20
½ Strong growth in e-commerce sales,
up 332% vs FY20
½ Active growth in stockists from 300 in FY20
to 2,000 in FY21
½ Positive EBITDA for all five business entities
½ Group EBITDA for FY21 of ($461,150)
vs FY20 $41,009
½ Investment of over $400k in marketing, brand
and new product development to drive further
growth in FY22
½ $2.3 million invested in the acquisitions of
Daly Potato, Lauds Plant-Based Foods and
The Cashew Creamery
½ $3.5 million invested in plant and equipment
to underpin growth
½ Group continues to remain well funded with a Net
cash position of $1.6 million as at 30 June 2021 and
a further $1.2 million in undrawn debt facilities
FY21 Sales
Revenue $8.2m
Up 94%
vs FY20
9
Business & Financial Summary PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual Report
OPERATIONAL HIGHLIGHTS –
THREE SUCCESSFUL ACQUISITIONS
½ The Company executed on its strategy of
identifying and executing on targeted value
accretive acquisitions with Lauds Plant-Based
Foods, The Cashew Creamery and Daly Potato
Company providing entry into the rapidly growing
plant-based food segment
½ Significant growth in distribution network with
new partners and key distribution agreements
signed with Monde Nissan Australia and Tas’Mania
Fresh providing increased access to the growing
product range across Australia, Hong Kong and
E-commerce in Asia.
½ Launched new premium Homestead Pate into 850
Woolworths stores nationally with additional new
SKUs launched over the year, further diversifying
the Company’s product range
½ Strengthened e-commerce platform and expanded
online product availability to target rapidly growing
opportunity
Michael Cooper
Managing Director
We are exceptionally pleased to have
delivered strong growth and executed
against our key strategic objectives
in our first full year as a listed
Company. Over the past 12 months
we have executed on three strategic
acquisitions which have fast tracked
our scale and growth in the emerging
plant-based food market. Lauds,
Cashew Creamery and Daly Potato
Co have been seamlessly integrated
into our business and all provide
significant growth opportunities. We
will continue to target complimentary,
and value adding acquisitions to drive
our growth and position the Company
as a local leader in the rapidly growing
plant-based food sector.
10
PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report 11
PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual Report December 2020 was our largest month by
revenue for Tasmanian Pate at 72% above
monthly average for the 2021 financial year.
12
PFT Operations ReviewPFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Tasmanian Pate Review
Tasmanian Pate produces a wide range of premium pates
that have been enjoyed for over 25 years by Australians.
Homestead by Tasmanian Pate
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of Tasmania’s produce and meadows to you, to
experience and enjoy with family and friends.
Through a sub range of Tasmanian Pate, PFT secured
three new lines in October 2020 into Woolworths
nationally under a new brand, Homestead.
Homestead focuses on
premium Tasmanian
produce, to produce
flavours yet to be seen in
the Australian pate market.
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Following the launch of the
brand’s range in October
Neutral
2020, Homestead Pate has launched two new SKUs
Black
B6
in Q1 FY22, Free Range Chicken with Aged Cheddar
and Free Range Chicken with Red Chilli. Aged Cheddar
was launched nationally through Woolworths in
September 2021. This follows on from the launch of
the brand into independent retailers nationally in
August 2021 through Monde Nissin Australia. This
brand has great potential for PFT and will be a focus in
FY22 in creating a premium and luxury offering.
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Ranged nationally in Woolworths stores and in
quality independent grocers, Tasmanian Pate is a
product you can guarantee will compliment any
entertaining platter.
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Tasmanian Pate successfully received an Export
License in August 2020, opening up opportunities
with PFT's existing export partners.
The operational team have been working on a large
project of investment in automation machinery to
create labour efficiencies. This investment has now
been approved and planned for commission within
H2 FY22.
This change in machinery will create a packaging
reformat, opening up an opportunity for marketing
to communicate the brand to existing customers,
and to increase sustainability.
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2021 Charts
2021 Charts
2021 Charts
Stockists
Australia Wide
Tas Pate
Tas Pate
Tas Pate
Revenue Growth
Customer Segment by Value
Customer Segment by Value
Customer Segment by Value
Customer Segment by Value
Sales Break-up by Brand
Sales Break-up by Brand
Sales Break-up by Brand
Sales Break-up by Brand
14% Growth
14% Growth
14% Growth
$3.94m
$3.94m
$3.94m
$3.46m
$3.46m
$3.46m
e
u
n
e
v
e
R
e
u
n
e
v
e
R
e
u
n
e
v
e
R
FY21
FY21
FY21
FY20
FY20
FY20
Woodbridge
Woodbridge
Woodbridge
Direct Retail 1.02%
Direct Retail 1.02%
Direct Retail 1.02%
Food Service 0.04%
Consumer Direct 0.04%
Food Service 0.04%
Food Service 0.04%
Consumer Direct 0.04%
Consumer Direct 0.04%
r
r
t o
t
c
r
t o
u
u
Distrib
u
Distrib
Distrib
t
c
Dir e
Dir e
Dir e
19.6 7 %
19.6 7 %
19.6 7 %
t o
t
c
M a j o r R etail
M a j o r R etail
M a j o r R etail
9 . 2 3 %
9 . 2 3 %
9 . 2 3 %
7
7
7
Customer Segments by Value
Customer Segments by Value
Customer Segments by Value
Consumer Direct 2.9%
e l 2 4 %
e l 2 4 %
e l 2 4 %
hite La b
hite La b
W
W
hite La b
W
H
o
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a
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d 25%
T a
s
%
%
%
1
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n P
n P
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m a nia
m a nia
T a
s
T a
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13
Other 1.2%
e
t
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R
u
d
n
tor &
Other 1.2%
Other 1.2%
ents
%
4
tor &
ents
Direct
tor &
ents
Consumer Direct 2.9%
a
i
l
4
1
.
3
%
Direct
Direct
Consumer Direct 2.9%
Food Service
6.3%
Food Service
Food Service
6.3%
6.3%
Daly Potato
Daly Potato
Daly Potato
90% Growth
90% Growth
90% Growth
$2.02m
e
u
$2.02m
n
$2.02m
e
v
e
R
e
u
n
e
v
e
R
e
u
n
e
v
e
R
$1.06m
$1.06m
$1.06m
FY21
FY20
FY21
FY21
FY20
FY20
110% Growth
$2,290,386
110% Growth
110% Growth
$511,386
$2,290,386
$2,290,386
e
$1,779,000
$511,386
n
$511,386
u
e
v
e
R
$1,779,000
$1,779,000
$2,088,000
$2,088,000
FY21
FY20
e
u
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R
e
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R
FY21
FY21
FY20
FY20
Lauds
.
3
2
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i
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e
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t
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e
%
d
4
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.
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p
e
d
u
b
i
r
t
s
i
d
n
e
p
e
d
%
4
.
3
2
u
b
i
r
t
s
i
D
n
I
D
n
I
R
e
t
a
i
l
4
1
.
3
%
e
t
a
i
l
4
1
.
3
%
E
x
port 24. 9 %
E
x
E
x
port 24. 9 %
port 24. 9 %
Customer Segments by Value
Sales Break-up by Brand
Customer Segments by Value
Customer Segments by Value
Consumer Direct 2%
Sales Break-up by Brand
Sales Break-up by Brand
White Label 5.8%
Food Service &
Direct Retail 9%
Food Service &
Food Service &
Consumer Direct 2%
Consumer Direct 2%
$2,088,000
Direct Retail 9%
Direct Retail 9%
White Label 5.8%
White Label 5.8%
utor
%
6
2
b
i
r
t
s
i
utor
%
6
2
b
i
r
t
s
i
D
D
utor
%
6
2
b
i
r
t
s
i
D
%
3
6
l
i
a
et
%
3
6
l
i
a
et
M ajor R
%
3
6
l
i
a
et
M ajor R
M ajor R
D
aly Potatio C o
9
4 .2 %
D
D
aly Potatio C o
aly Potatio C o
9
9
4 .2 %
4 .2 %
Customer Segments by Value
Sales Break-up by Brand
Lauds
Lauds
Customer Segments by Value
Customer Segments by Value
Direct R
Sales Break-up by Brand
Sales Break-up by Brand
t u r e s
N e w
s
a
P
2 %
1
e
t
a
il
3
1
%
Dist
ri
b
u
t
o
Direct R
r
s
Direct R
e
&
I
n
t
a
il
e
t
a
il
d
e
p
3
1
3
1
%
endents 5 9 %
%
Food
Service 8%
Consumer Direct
& Other 2%
Food
Food
Service 8%
Service 8%
p
endents 5 9 %
endents 5 9 %
Consumer Direct
Consumer Direct
& Other 2%
& Other 2%
Dist
ri
b
u
t
o
r
s
Dist
ri
b
u
t
o
r
s
&
I
n
&
I
n
d
e
p
d
e
N e w
N e w
s
a
P
t u r e s
2 %
P
1
s
a
t u r e s
2 %
1
L
a
u
ds Plant - B a s
%
%
8
8
s
d
d Foo
e
%
8
8
s
d
8
8
s
d
L
a
u
L
a
u
ds Plant - B a s
ds Plant - B a s
e
d Foo
e
d Foo
e
u
n
e
v
e
R
e
u
n
e
v
e
R
e
u
n
e
v
e
R
78% Growth
$396k
78% Growth
78% Growth
$396k
$396k
$222k
FY21
$222k
$222k
FY20
FY21
FY21
FY20
FY20
PFT Operations ReviewPFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual Report
Stockists in Australia, Hong
Kong, Vietnam, Malaysia,
Singapore, and Indonesia.
March was the largest month
for Woodbridge. representing
11.65% of FY21 total revenue.
14
Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportPFT Operations Review Woodbridge
Smokehouse Review
The Southern Ocean produces the
finest fish, from which we make the
finest smoked products. It’s that simple.
Established in 2004, Woodbridge Smokehouse
produces some of the most mouth-watering and
luxuriant smoked Ocean Trout and Atlantic Salmon
available today – anywhere in the world.
Situated on the verdant south-east coast of Tasmania,
Woodbridge Smokehouse is set in our own 25-acre
apple orchard. Traditional hand-smoking processes
using our own fruit tree wood create the delicate and
distinctive flavours for which Woodbridge Smokehouse
is renowned.
2021 Charts
2021 Charts
“New distribution channels launched with Monde
Nissin Australia and Tas’Mania Fresh reflect the strong
demand for our Woodbridge Smokehouse product and
Tas Pate
provide a significant avenue of growth for FY22 and
beyond.” – Michael Cooper, Managing Director.
Tas Pate
The 2021 Financial Year was a period of distribution
expansion for Woodbridge Smokehouse. After
successfully launching into the independent market
in South Australia through PFT’s distribution partner,
Monde Nissin Australia (MNA), the distribution of
Woodbridge products was extended into Victoria,
New South Wales, ACT & Western Australia, in
early February, and into Queensland late July. The
partnership was initially launched with 4 SKUs but was
quickly extended to 8 SKUs within the FY.
14% Growth
$3.94m
14% Growth
e
u
n
e
v
e
R
$3.94m
e
u
n
e
v
e
R
Further concreting the partnership between MNA
and PFT, Woodbridge has now secured national sole
supplier status with MNA for smoked salmon and trout
products, increasing group revenues by c.15% in FY22
(vs FY21 levels).
FY21
FY21
FY20
FY20
An agreement with Tas’Mania Fresh has been signed to
expand the distribution of Woodbridge Smokehouse
into six major retail chains in Hong Kong, which
generated the largest order to date of 40,000 units of
100g Atlantic Salmon and Ocean Trout, with a forecast
of an additional 200,000 units in H1 FY22
Despite the uncertainty across the world with the
COVID-19 pandemic, PFT was able to sustain export
sales through Woodbridge Smokehouse. This
included the onboarding of new customers, The
Meat Club and RedMart. Redmart is an e-commerce
business based in Singapore, owned by Alibaba,
which supplies across Australia. This new partnership
opens up a large opportunity within the growing
e-commerce market in Asia.
PFT has also invested in equipment for smoking and
filleting, to vertically integrate the entity and improve
cost of goods. This equipment is being commissioned
in H1 FY22, creating cost savings and expanding
capacity within current product ranging and opening
opportunities within new segments.
Customer Segment by Value
Top 5 Products by Value
Customer Segment by Value
Direct Retail 1.02%
Food Service 0.04%
Consumer Direct 0.04%
Sales Break-up by Brand
Sales Break-up by Brand
Food Service 0.04%
Consumer Direct 0.04%
2. Ocean Trout Cold Smoked 100g
Direct Retail 1.02%
1. Salmon Cold Smoked 100g
t o
u
Distrib
t
c
Dir e
19.6 7 %
t o
u
Distrib
t
c
Dir e
3. Salmon Cold Smoked 200g
19.6 7 %
r
r
4. Salmon Cold Smoked Whole Side Sliced
$3.46m
$3.46m
5. Ocean Trout Cold Smoked 200g
M a j o r R etail
M a j o r R etail
9 . 2 3 %
9 . 2 3 %
7
7
e l 2 4 %
hite La b
e l 2 4 %
W
hite La b
W
H
o
m
e
s
t
e
%
1
5
e
t
a
n P
%
1
5
e
t
a
n P
m a nia
d 25%
s
T a
m a nia
T a
s
H
o
m
e
s
t
e
a
a
d 25%
Woodbridge
Woodbridge
Revenue Growth
Customer Segments by Value
Customer Segment by Value
Customer Segments by Value
90% Growth
90% Growth
Food Service
6.3%
Food Service
6.3%
Consumer Direct 2.9%
Consumer Direct 2.9%
Other 1.2%
Other 1.2%
$2.02m
$2.02m
e
u
n
e
v
e
R
e
u
n
e
v
e
R
$1.06m
$1.06m
FY21
FY21
FY20
FY20
Daly Potato
Daly Potato
110% Growth
110% Growth
$2,290,386
$511,386
$2,290,386
$511,386
$1,779,000
$1,779,000
$2,088,000
$2,088,000
e
u
n
e
v
e
R
e
u
n
e
v
e
R
FY21
FY21
FY20
FY20
tor &
tor &
ents
ents
%
d
%
n
4
4
.
e
.
3
3
p
2
2
e
d
n
d
u
n
b
e
p
i
r
e
t
d
s
n
D
u
b
i
r
t
s
D
i
i
I
I
Direct
Direct
R
R
e
e
t
a
t
a
i
l
i
l
4
1
.
3
%
4
1
.
3
%
E
x
E
x
port 24. 9 %
port 24. 9 %
Customer Segments by Value
Sales Break-up by Brand
Customer Segments by Value
Food Service &
Consumer Direct 2%
Direct Retail 9%
Food Service &
Consumer Direct 2%
15
Direct Retail 9%
Sales Break-up by Brand
White Label 5.8%
White Label 5.8%
utor
%
6
2
utor
b
i
r
t
s
i
D
%
6
2
b
i
r
t
s
i
D
%
3
6
l
i
a
et
%
3
6
l
i
a
et
M ajor R
M ajor R
D
aly Potatio C o
9
D
4 .2 %
aly Potatio C o
9
4 .2 %
Lauds
Lauds
Customer Segments by Value
Sales Break-up by Brand
Customer Segments by Value
Sales Break-up by Brand
Direct R
Direct R
e
t
a
il
3
1
%
e
t
a
il
3
1
%
Dist
ri
b
u
t
o
r
s
Dist
&
ri
b
u
t
o
r
s
I
n
d
e
p
&
I
n
d
e
p
endents 5 9 %
endents 5 9 %
Food
Service 8%
Consumer Direct
& Other 2%
Food
Service 8%
Consumer Direct
& Other 2%
N e w
s
a
P
t u r e s
2 %
1
N e w
s
a
P
t u r e s
2 %
1
%
8
8
s
d
d Foo
e
%
8
8
s
d
d Foo
e
L
a
u
ds Plant - B a s
L
a
u
ds Plant - B a s
e
u
n
e
v
e
R
e
u
n
e
v
e
R
78% Growth
$396k
78% Growth
$396k
$222k
$222k
FY21
FY20
FY21
FY20
PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual Report
16
PFT Operations ReviewPFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report 2021 Charts
2021 Charts
2021 Charts
Tas Pate
Tas Pate
Tas Pate
Customer Segment by Value
Customer Segment by Value
Customer Segment by Value
Sales Break-up by Brand
Sales Break-up by Brand
Sales Break-up by Brand
14% Growth
14% Growth
14% Growth
Daly Potato Co Review
u
Distrib
Dir e
19.6 7 %
$3.94m
Acquired 100% October 2020
$3.46m
$3.46m
t o
u
u
Distrib
Distrib
t
c
Dir e
Dir e
19.6 7 %
19.6 7 %
$3.94m
$3.46m
$3.94m
r
t o
t
c
t o
t
c
r
r
Direct Retail 1.02%
Direct Retail 1.02%
Direct Retail 1.02%
Food Service 0.04%
Food Service 0.04%
Consumer Direct 0.04%
Consumer Direct 0.04%
Food Service 0.04%
Consumer Direct 0.04%
e
u
n
e
v
e
R
e
u
n
e
v
e
R
e
u
n
The Dalys have been growing potatoes on the pristine
e
v
e
South East Coast of Tasmania for 30 years. Overlooking
R
the beautiful Marion Bay, the farm enjoys perfect
conditions for growing the world’s tastiest potatoes –
sandy soils, rain, and sunshine. Tasmania has some of
the richest soils, which is ideal for growing potatoes.
FY20
FY20
FY21
FY21
FY21
FY20
H
o
H
o
M a j o r R etail
M a j o r R etail
9 . 2 3 %
9 . 2 3 %
The Daly brand was a major focus for the PFT
marketing team within FY21, with various marketing
activities and campaigns, including the Daly Potato
Head competition and North Melbourne Football Club
s
T a
Tasmanian game activation, which helped to drive
consumer awareness and product trial instore.
M a j o r R etail
9 . 2 3 %
n P
n P
m a nia
m a nia
d 25%
d 25%
d 25%
H
o
s
T a
T a
m
m
m
a
a
a
t
t
t
e
e
e
s
s
s
7
7
7
e
e
e
s
%
1
5
e
t
a
n P
m a nia
e l 2 4 %
e l 2 4 %
hite La b
hite La b
W
W
hite La b
W
e l 2 4 %
%
%
1
5
e
t
a
1
5
e
t
a
Woodbridge
Woodbridge
Daly Potato Co know consumers are busy, so the
Woodbridge
range of products aim to provide you with ready to
eat solutions that are both delicious and nutritious,
through farm fresh convenience.
The operational focus for Daly in FY21 was on creating
better labour management, through transitioning
labour in house from a third-party provider, which was
aided by the current PFT administration team.
Customer Segments by Value
Customer Segments by Value
Customer Segments by Value
Consumer Direct 2.9%
Consumer Direct 2.9%
Food Service
6.3%
e
u
n
e
v
e
R
$2.02m
$2.02m
Food Service
6.3%
90% Growth
90% Growth
$2.02m
e
u
n
e
v
e
R
In March 2021, Daly launched a premium Homestyle
Food Service
Coleslaw product into Woolworths in Tasmania,
90% Growth
6.3%
Victoria and New South Wales. This product launch has
been very successful and in Q1 FY22 sits as the second-
tor &
tor &
ents
ents
best performing SKU for Daly.
e
d
u
%
%
n
n
4
4
e
.
.
The much-anticipated Potato & Gravy product was
e
3
3
p
v
2
2
e
e
d
launched into the Tasmanian independent market
n
R
in February 2021, and gained great traction with
customers selling cold and hot instore. The production
and new product development team have been
working hard to build on the product to meet major
retailer requirements to facilitate a broader launch into
the market.
FY20
FY20
FY21
d
u
n
b
e
i
p
r
t
e
s
d
D
n
$1.06m
$1.06m
$1.06m
FY21
FY21
FY20
u
b
i
r
t
s
D
x
x
E
E
i
i
I
I
port 24. 9 %
port 24. 9 %
I
1. December
E
2. March
x
port 24. 9 %
3. January
Other 1.2%
Other 1.2%
Consumer Direct 2.9%
Other 1.2%
PFT also invested in production equipment to increase
automation and capacity, through creating secondary
production lines within production workflows. This has
Direct
Direct
Direct
assisted in improving bottom lines and opening up
tor &
ents
capacity growth.
d
%
n
4
e
.
3
p
Top 3 Months by Revenue:
2
e
d
n
4
1
.
3
%
4
1
.
3
%
u
b
i
r
t
s
D
4
1
.
3
%
R
R
R
t
t
t
e
e
e
i
i
i
i
l
l
l
a
a
a
Customer Segments by Value
Customer Segments by Value
Customer Segment by Value
Customer Segments by Value
Sales Break-up by Brand
Sales Break-up by Brand
Sales Break-up by Brand
Sales Break-up by Brand
Food Service &
Food Service &
Consumer Direct 2%
Consumer Direct 2%
Food Service &
Consumer Direct 2%
White Label 5.8%
White Label 5.8%
White Label 5.8%
Daly Potato
Daly Potato
Daly Potato
Revenue Growth
110% Growth
110% Growth
110% Growth
$2,290,386
$2,290,386
$511,386
$511,386
e
u
n
e
v
e
R
e
u
n
e
v
e
R
$1,779,000
$1,779,000
e
u
n
e
v
e
R
FY21
FY21
$2,290,386
Direct Retail 9%
Direct Retail 9%
Direct Retail 9%
utor
utor
b
i
r
t
s
%
%
b
6
6
i
r
2
2
t
s
i
i
D
D
$511,386
$2,088,000
$2,088,000
$1,779,000
FY20
FY20
FY21
$2,088,000
FY20
Prior to PFT Aquisition
After PFT Aquisition
utor
%
6
2
b
i
r
t
s
i
D
%
%
3
3
6
6
l
l
i
i
a
a
et
et
M ajor R
M ajor R
Lauds
Lauds
Lauds
Customer Segments by Value
Customer Segments by Value
Customer Segments by Value
Sales Break-up by Brand
Sales Break-up by Brand
Stockists in Tasmania, Victoria
Sales Break-up by Brand
and New South Wales
Dist
Dist
ri
b
u
t
o
ri
b
u
t
o
r
r
s
s
&
&
I
I
n
n
d
d
Direct R
e
t
a
il
N e w
N e w
t u r e s
t u r e s
s
s
a
a
P
2 %
2 %
1
1
P
N e w
t u r e s
s
a
2 %
1
P
e
Direct R
Direct R
Dist
e
t
a
t
a
il
il
3
3
ri
b
u
t
o
1
1
%
%
3
1
%
r
s
&
I
n
d
Food
Food
Service 8%
Service 8%
e
e
p
p
endents 5 9 %
endents 5 9 %
e
p
endents 5 9 %
Consumer Direct
Consumer Direct
& Other 2%
& Other 2%
Consumer Direct
& Other 2%
Food
Service 8%
L
L
a
a
u
u
ds Plant - B a s
e
ds Plant - B a s
L
a
d Foo
d Foo
ds Plant - B a s
u
e
%
%
8
8
8
8
s
s
d
d
e
u
n
e
v
e
R
e
u
n
e
%
v
8
e
8
R
s
d
d Foo
e
%
3
6
l
i
a
et
M ajor R
D
D
aly Potatio C o
aly Potatio C o
9
D
4 .2 %
4 .2 %
aly Potatio C o
9
78% Growth
78% Growth
78% Growth
$396k
$396k
$396k
e
u
n
e
v
e
R
$222k
$222k
$222k
FY21
FY21
FY20
FY20
FY21
FY20
4 .2 %
9
17
PFT Operations ReviewPFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual Report
Daly Potato Co Review continued
Daly Potato Head Competition
Closing on 30 June, the Potato Head competition gave consumers the opportunity to win a year’s worth of Daly
Potato Co products by sharing a photo online of them with their Daly beanie and/or products. This received great
engagement from both consumers and retailers
18
PFT Operations ReviewPFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Daly Potato Co Review continued
North Melbourne Football Activation at Blundstone Arena
We went to Hobart's Blundstone Arena and handed out 5,000 Potato & Gravy 250g samples, and merchandise to
the crowds on their way home from the football across two home games (On Saturday 26 June and 31 July 2021).
The reception and feedback from consumers was great and this turned out to be an excellent brand awareness
and product trial exercise.
19
PFT Operations ReviewPFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual Report 20
Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportPFT Operations Review New Pastures Review
PFT launched into the Plant-Based foods market in November 2020 through a
range of cheese and dairy alternatives, produced by Lauds Plant-Based Foods.
This range was launched through PFT’s online store, servicing Australia wide
through home delivery. The range was also sold into independents around
Tasmania through PFT’s sales team.
The development of the range was a soft launch into the market, targeting
a mass consumer market who are experimenting with a plant-based or
“flexitarian” diet.
PFT’s presence in the plant-based market was strengthened in H2 FY21 through
the acquisitions of Lauds Plant-Based Foods and The Cashew Creamery.
Moving forward to FY22, the New Pastures brand will be the leading plant-based
brand for growth within major retail for PFT and will be the overarching brand
of PFT’s plant-based operating arm, where Lauds and The Cashew Creamery
have been consolidated within.
PFT is currently exploring various new product development opportunities for
the New Pastures brand within current and new segments.
This focus is aligned with PFT’s Strategic Plan to grow organically and through
acquisitions into the expanding global plant–based cheese market, which is
forecasted to reach $3.9 Billion by 2024 1.
Total Revenue
for the brand
$15,800
for FY21
Stocked in Tasmania
and delivered Australia wide
through the online store
1. Plant-based Cheese Market - Global Outlook and Forecast 2019-2024, Report, December 2019.
21
Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPFT Operations ReviewPFT Operations Review 22
PFT Operations ReviewPFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report 2021 Charts
Tas Pate
14% Growth
$3.94m
$3.46m
FY21
FY20
Woodbridge
90% Growth
$2.02m
$1.06m
FY21
FY20
e
u
n
e
v
e
R
e
u
n
e
v
e
R
Daly Potato
110% Growth
$2,088,000
$2,290,386
$511,386
$1,779,000
e
u
n
e
v
e
R
FY21
FY20
2021 Charts
2021 Charts
Tas Pate
Tas Pate
Customer Segment by Value
Sales Break-up by Brand
Direct Retail 1.02%
Food Service 0.04%
Consumer Direct 0.04%
14% Growth
14% Growth
$3.94m
$3.94m
$3.46m
$3.46m
Customer Segment by Value
Customer Segment by Value
Sales Break-up by Brand
Sales Break-up by Brand
Direct Retail 1.02%
Direct Retail 1.02%
Food Service 0.04%
Food Service 0.04%
Consumer Direct 0.04%
Consumer Direct 0.04%
r
t o
t
c
r
t o
u
u
Distrib
Distrib
t
c
Dir e
Dir e
19.6 7 %
19.6 7 %
r
t o
t
c
u
Distrib
Dir e
19.6 7 %
M a j o r R etail
9 . 2 3 %
7
Customer Segments by Value
Consumer Direct 2.9%
Other 1.2%
Food Service
6.3%
tor &
ents
%
4
.
3
2
u
b
i
r
t
s
i
d
n
e
p
e
d
D
n
I
Direct
R
e
t
a
i
l
4
1
.
3
%
E
x
port 24. 9 %
Customer Segments by Value
Food Service &
Consumer Direct 2%
Direct Retail 9%
utor
%
6
2
b
i
r
t
s
i
D
%
3
6
l
i
a
et
M ajor R
e l 2 4 %
%
hite La b
W
H
o
m
e
s
t
e
e
u
n
e
v
e
R
e
u
n
e
v
e
R
1
5
e
t
a
Lauds Plant-Based
Foods Review
n P
m a nia
FY21
FY20
FY20
FY21
T a
s
a
d 25%
M a j o r R etail
M a j o r R etail
9 . 2 3 %
9 . 2 3 %
7
7
Acquired 100% February 2021
Woodbridge
Woodbridge
Customer Segments by Value
Customer Segments by Value
90% Growth
90% Growth
Lauds Plant-Based Foods is a Tasmanian-based creator of a range of dairy and cheese
alternatives made from plants - predominantly nuts and oats. Its products help
consumers to “feed their kindness”, relating either to themselves, their community
or their planet through creating products that are delicious, nutritious, socially and
environmentally sustainable and cruelty free.
e
u
n
e
v
e
R
tor &
ents
ents
d
%
%
n
4
4
e
.
.
3
3
p
2
2
e
d
n
Food Service
Food Service
6.3%
6.3%
Consumer Direct 2.9%
Consumer Direct 2.9%
e
u
n
e
v
e
R
d
u
n
b
e
i
p
r
t
e
s
d
n
$2.02m
$2.02m
tor &
u
b
i
r
t
s
D
D
i
i
I
I
$1.06m
$1.06m
Direct
Direct
R
R
e
e
t
t
a
a
i
i
l
l
4
1
.
3
%
4
1
.
3
%
Other 1.2%
Other 1.2%
Lauds was established in 2017 by three
passionate Tasmanians – Dani Wheatley,
Pia Palmer and Simon Paul. It was a
common ideology that bonded the three
and culminated in the journey to establish
and build a plant-based business.
FY21
FY21
Lauds operates with a strong social
conscience. The founders are motivated
by a love of food, a love of the planet,
Daly Potato
Daly Potato
the ethical treatment of animals and the
growth of sustainable food production
processes.
Sales Break-up by Brand
FY20
FY20
PFT was pleased to announce the
acquisition of Lauds Plant-Based Foods Pty
Ltd (“Lauds”) in February 2021.
$2,290,386
$2,290,386
White Label 5.8%
110% Growth
110% Growth
$511,386
$511,386
$1,779,000
Prior to acquisition, Lauds provided all
e
products for PFT’s recently launched
$1,779,000
u
n
New Pastures range, in which the mutual
e
v
benefits of this successful partnership
e
R
led to discussions that culminated in the
agreement to acquire Lauds to support
further growth and product development.
aly Potatio C o
e
u
n
e
v
e
R
4 .2 %
9
FY21
FY21
D
$2,088,000
$2,088,000
utor
utor
b
i
r
t
s
%
b
6
i
r
2
t
s
%
6
2
i
i
D
D
FY20
FY20
e l 2 4 %
e l 2 4 %
hite La b
hite La b
W
W
H
H
o
o
m
m
e
e
s
s
t
t
e
e
a
a
d 25%
d 25%
T a
s
T a
s
%
%
1
1
5
5
e
t
a
e
t
a
n P
n P
m a nia
m a nia
D
D
aly Potatio C o
aly Potatio C o
9
9
4 .2 %
4 .2 %
E
E
x
x
port 24. 9 %
port 24. 9 %
Customer Segments by Value
Customer Segments by Value
Sales Break-up by Brand
Sales Break-up by Brand
Food Service &
Food Service &
Consumer Direct 2%
Consumer Direct 2%
Direct Retail 9%
Direct Retail 9%
White Label 5.8%
White Label 5.8%
Lauds
Customer Segments by Value
Sales Break-up by Brand
Lauds
Lauds
Revenue Growth
Customer Segment by Value
Customer Segments by Value
Customer Segments by Value
Sales Break-up by Brand
Sales Break-up by Brand
Sales Break-up by Brand
Direct R
e
t
a
il
3
1
%
Dist
ri
b
u
t
o
r
s
&
I
n
d
e
p
endents 5 9 %
Food
Service 8%
Consumer Direct
& Other 2%
N e w
s
a
P
t u r e s
2 %
1
%
8
8
s
d
d Foo
L
a
u
ds Plant - B a s
e
78% Growth
$396k
e
u
n
e
v
e
R
Dist
Dist
ri
b
u
t
o
ri
b
u
t
o
$222k
r
r
s
s
&
&
I
I
n
n
d
d
Direct R
Direct R
e
e
t
a
t
a
il
il
N e w
N e w
t u r e s
t u r e s
s
s
a
a
P
2 %
2 %
1
1
P
3
3
1
1
%
%
Food
Food
Service 8%
Service 8%
Consumer Direct
Consumer Direct
& Other 2%
& Other 2%
%
8
8
s
d
%
8
8
s
d
L
L
a
u
a
d Foo
ds Plant - B a s
ds Plant - B a s
u
e
e
d Foo
e
e
p
p
endents 5 9 %
endents 5 9 %
FY21
FY20
%
3
6
l
i
a
et
%
3
6
l
i
a
et
M ajor R
M ajor R
78% Growth
78% Growth
$396k
$396k
e
u
n
e
v
e
R
e
u
n
e
v
e
R
$222k
$222k
FY21
FY21
FY20
FY20
23
PFT Operations ReviewPFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual Report
PFT Operations Review
Lauds Plant-Based Foods Review continued…
24
PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportPFT Operations Review Lauds Plant-Based Foods Review continued…
The Lauds brand works alongside New Pastures, with
Lauds targeting a more traditional lifestyle motivated
plant-based market, and New Pastures targeting a
broader mass consumer market.
Founders Simon and Dani have remained within the
business and have provided value to the broader PFT
group through their knowledge of the plant-based
market, and new product development.
The addition of Lauds into the PFT portfolio was well
received by the PFT sales team who have been able to
service existing and new customers through the plant-
based offering. PFT has been working with several
other distribution partners to help extend the brand
distribution in FY22.
Along with a new website and brand re-fresh, the
marketing team has launched a new online store
specific to the Lauds brand in June. The aim of the
direct online store is to service customers who are
unable to source product from their local area, and
to offer exclusive product such as bulk sizing or new
product development.
The Lauds team has been working hard on new
product development and aims to launch new sliced
cheese and cream cheese ranges in H1 FY22 to further
extend the product range.
Operational focus for the entity since acquisition has
been around forecasting production demand and
capacity and exploring the necessary investment in
required machinery to meet such demand. This has
been done in partnership with external parties, and
we expect to see developments occurring as a result in
FY22.
Laud’s entrance into the PFT group has created
operational benefits, including the cohesion and
consolidation of administration and distribution within
PFT’s existing departments.
Dark Mofo Winter Feast Activation
Lauds used its annual stall at Dark Mofo Winter Feast
as an opportunity for an “advanced screening” of
the new sliced cheese product with an American
Cheeseburger using V2 Meat Pattie.
The Cashew Creamery also collaborated with
the plant-based Diner to show off vegan
ice cream sandwiches.
Feedback was 5 stars all around with
many stating “best cheeseburger”
they had ever tasted!
25
PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPFT Operations Review 26
PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Revenue by Country
Australian Revenue by State
Revenue by Country
Australian Revenue by State
Hong Kong
2.10%
Singapore 3.41%
WA 3.30%
Hong Kong
2.10%
Singapore 3.41%
WA 3.30%
VIC
15.78%
The Cashew
Creamery Review
TAS
18.70%
NSW
53.23%
Acquired 100% April 2021
SA 1.55%
Australia
94.49%
Australia
94.49%
QLD 1.92%
The Cashew Creamery is a Tasmanian-based creator of a range of non-dairy
ice cream products made from raw cashews. Wherever possible, its products
are made from local and organic ingredients. The cashew ice cream is made
in small batches using only the highest quality of ingredients. The Cashew
Creamery products are packaged in home compostable or recyclable packaging
to minimise the environmental impact of the company.
Revenue by Brand
Revenue by Country
Revenue by Country
Finishing off PFT's acquisitions for the Financial Year, was the purchase of
The Cashew Creamery Pty Ltd (‘TCC’) in April 2021. The Cashew Creamery was
established in 2016 by Jen Bruyn Schmidt and Matt Schmidt and produces
Woodbridge
Smokehouse
non-dairy cashew-based ice cream. Jen has remained in the business as the
22%
production manager for the brand.
White
Label
14%
Distributor
&
Independents
22%
Distributor
&
Independents
22%
Major
Retail
56%
Internal Sales
& Other 0.1%
Direct
Retail
12%
Daly
Potato Co
22%
The acquisition of The Cashew Creamery leverages PFT’s existing relationship
with Lauds Plant-Based Foods with both Lauds and The Cashew Creamery
operating in the plant-based markets. The businesses having an established
Tasmanian
Pate
relationship and working partnership including co-purchase agreements for
26%
ingredients – a cost saving which will further benefit from the consolidation of
both businesses within PFT.
Cashew Creamery
New Pastures
Pure Tas Seafood
Other* 1%
Lauds 2%
0.5%
Direct
Retail
12%
Export 6%
Business End-Users 2%
Homestead
Pate
13%
Major
Retail
56%
Internal Sales
& Other 0.1%
Consumer Direct 2%
Export 6%
Business End-Users 2%
Consumer Direct 2%
The first project for the PFT team after the acquisition, was the development of
multi-bar take home packs, to assist in the ranging into retail-based customers
and to strategically compete with the larger ice cream brands. The 5 single
flavour packs and 2 multi-flavour packs joined the existing range of single bars,
473ml tubs and 5L food service tubs.
Year on Year Revenue Growth
73% increase vs FY20
73% increase vs FY20
Year on Year Revenue Growth
)
s
n
o
i
l
l
i
m
$
A
(
e
u
n
e
v
e
R
8
7
6
5
4
3
2
1
0
FY17
FY18
FY19
FY20
The Cashew Creamery has created sales success within its short period in
the company, with 80% ranging achieved within the Tasmanian customer
base. PFT has also secured national distribution of The Cashew Creamery into
independent retailers, launching in market in October 2021, through its existing
partnership with Monde Nissin Australia. This is a great achievement prior to
the key summer season.
m
$
A
)
s
n
o
i
l
l
i
7
6
4
5
Operationally, the focus since the acquisition has been in the preparation for
moving the production facility from Moonah to Mornington, to join Tasmanian
Pate, Lauds and PFT head office. The move was completed in August 2021 and
allows The Cashew Creamery to expand. The facility also allows for efficiencies
FY21
through cooperation with neighbours, Lauds, and reducing the distance
between the production facility and the PFT Distribution Centre and head office.
FY19
FY17
FY18
1
2
0
FY20
FY21
8
3
(
e
u
n
e
v
e
R
Cashew Creamery
Customer Segments by Value
Revenue Growth
& Indep e n
%
4
3
s
r
o
t
u
b
i
r
t
s
i
D
Other 1%
e n t s
d
%
3
6
c t R etail
e
r
D i
21% Growth
$153k
$126k
e
u
n
e
v
e
R
Cashew Creamery
E-Commerce
Customer Segments by Value
Value by state
Customer Segment by Value
Other 1%
WA 3%
ACT 1%
e n t s
d
VIC
31%
& Indep e n
%
4
3
s
r
o
t
u
b
i
r
t
s
i
D
TAS
D i
13%
r
e
%
3
6
c t R etail
21% Growth
$153k
$126k
NSW
31%
e
u
n
e
v
e
R
NT 1%
QLD
17%
TAS
13%
QLD
17%
NT 1%
FY21
FY20
FY21
FY20
SA 2%
SA 2%
27
VIC
15.78%
TAS
18.70%
SA 1.55%
QLD 1.92%
NSW
53.23%
Revenue by Brand
Woodbridge
Smokehouse
22%
White
Label
14%
Daly
Potato Co
22%
Homestead
Pate
13%
Lauds 2%
Tasmanian
Pate
26%
Cashew Creamery
New Pastures
0.5%
Pure Tas Seafood
Other* 1%
E-Commerce
Value by state
WA 3%
ACT 1%
VIC
31%
NSW
31%
PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual Report
The Cashew Creamery Review continued…
Stockists
Australia Wide
PFT has also begun to invest in state-of-the-art
machinery to increase capacity within FY22, to meet
the increasing current and forecasted demand. The
machinery is expected to be commissioned in Q3 FY22,
with the facility recently moving to double shifts to
meet current demand in the interim.
Managing Director, Michael Cooper said, “This is very
exciting for PFT shareholders. The acquisition of The
Cashew Creamery further strengthens our footprint in
plant-based foods. The Cashew Creamery has a very
unique product that as far as we are aware is a first
for the Australian market with a base ingredient of
cashews as opposed to competitors who use coconut.
We can’t wait to get The Cashew Creamery out through
our distribution channels in both Australia and through
our export markets.”
Top 5 Flavours by Value:
1. Chocolate Cashew Bar
2. Strawberry Cashew Bar
3. Mint Chocolate Cashew Bar
4. Vanilla Cashew Bar
5. Coffee Cashew Bar
28
PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report The Cashew Creamery has a very unique product
that as far as we are aware is a first for the
Australian market with a base ingredient of cashews
as opposed to competitors who use coconut
29
The Cashew Creamery Review continued…PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual Report 30
PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Pure Tasmanian
Seafood Review
In November 2020, PFT launched a new brand, Pure Tasmanian Seafood, to distribute
fresh seafood contract packed or produced by Woodbridge Smokehouse.
The initial launch was with a fresh un-shucked oyster product which was sold through
PFT’s online store, and delivered to customers’ doors in Tasmania, Victoria, New South
Wales and Queensland. This online based product has been highly successful, being the
4th best selling product online in FY21.
PFT also launched a new to market product in February 2021 under the Pure Tasmanian
Seafood brand.
The Frozen Fresh Organic Oysters provide a convenient option for enjoying premium
Tasmanian oysters all year round. With 6 months shelf life, the oysters can be thawed
in under 5 minutes in room temperature water and are ready to enjoy as fresh as they
were the day they were shucked.
The launch into the local Tasmanian Independent market has been well received with
17 stores showcasing the product on shelf. The product is best suited for customers in
regional areas where fresh oysters all year round are hard to obtain.
The Pure Tasmanian Seafood range will be expanded in FY22 into new segments and
will be a focus for growth.
Online Store Reviews
“2nd time ordering them. Just the
freshest and yummiest oysters ever.
I am now an expert at shucking! And
the shells get smashed up and put in
the garden. No waste at all.”
– Anna A
“These oysters were huge, fresh and
tasty! Restaurant quality at home and
so much better than any I can buy at
a local fish shop. The packing kept
them cold for two days after they were
delivered so that I didn’t have to eat
them all at once. I will be buying these
regularly“
– Elissa O
Delivered in Tasmania,
Victoria, New South
Wales & Queensland
through the online store
Fresh Tasmanian Oysters
- Two Dozen Un-Shucked
4th Best Selling
Product Online
31
PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual Report
Strong Growth in
E-Commerce Sales
332% compared to FY20
32
PFT Operations ReviewPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Revenue by Country
Australian Revenue by State
Hong Kong
Singapore 3.41%
2.10%
WA 3.30%
VIC
15.78%
TAS
18.70%
SA 1.55%
QLD 1.92%
NSW
53.23%
Australia
94.49%
Revenue by Country
Revenue by Brand
Major
Retail
56%
Distributor
&
Independents
22%
Direct
Retail
12%
Export 6%
Internal Sales
& Other 0.1%
Business End-Users 2%
Consumer Direct 2%
Woodbridge
Smokehouse
22%
White
Label
14%
Daly
Potato Co
22%
Homestead
Pate
13%
Lauds 2%
Tasmanian
Pate
26%
Cashew Creamery
New Pastures
Pure Tas Seafood
0.5%
Other* 1%
Year on Year Revenue Growth
73% increase vs FY20
E-Commerce
)
s
n
o
i
l
l
i
m
$
A
(
e
u
n
e
v
e
R
8
7
6
5
4
3
2
1
0
FY17
FY18
FY19
FY20
FY21
PFT’s growth for FY21 was further underpinned by the introduction
of the e-commerce strategy, a cornerstone of the group’s future
growth trajectory and operations. Providing an expanded customer
base, the digital sales routes and online store was launched
in August 2020. This has driven increased brand awareness,
increased traffic and higher conversion rates. PFT anticipates
significant levels of growth over the coming periods within the
digital sales channels that will improve the performance of the
group across all key business metrics.
“Our e-commerce platform continues to grow, with sales up
over 300% during the year. We will continue to invest in our
e-commerce platform and see this channel as a high growth,
high value distribution opportunity.”
Michael Cooper, Managing Director
Cashew Creamery
Customer Segments by Value
& Indep e n
4
%
3
s
r
o
t
u
b
i
r
t
s
i
D
Other 1%
e n t s
d
%
3
6
c t R etail
e
r
D i
21% Growth
$153k
e
u
n
e
v
e
R
$126k
Online Orders
sent to
747
suburbs
around Australia, including as far as
Ciccone NT, Pt Douglas QLD, Flinders Is
TAS, and Port Hedland WA
FY21
FY20
E-Commerce
State Break-up of Online Orders
Value by state
by Value
WA 3%
ACT 1%
VIC
31%
NSW
31%
TAS
13%
QLD
17%
NT 1%
SA 2%
One of the hampers sold on the online store throughout the year
33
E-CommercePure Foods Tasmania Pty Ltd | 2021 Annual Report
What's Ahead for PFT?
PFT is well balanced to deliver strategic growth in its
core business and is expanding in the right categories
that will allow us to continue to deliver strong returns
to shareholders. Its core values include:
½ Investment in brands and marketing will support
existing products along with future New Product
development
½ We will partner or acquire to ensure PFT is
operating in growth categories to support our
consumers with products that they will buy,
consume and enjoy
½ Continue to drive cost efficiencies across all
business units
½ Innovate to always have a point of difference
The Company remains well positioned to continue
to grow the business via product innovation and
acquisition and continues to build a strong culture
across the business. Over the course of FY21, PFT
entered the highly lucrative meal solutions segment
and identified the convenience segment as further
growth opportunities in the coming periods. The new
distribution agreements with Monde Nissin Australia
and Tas’Mania Fresh will drive increased sales in
the Woodbridge Smokehouse range. The Company
remains well positioned to continue to drive revenue
growth into FY22 and beyond.
Lauds Greek Almond Feta served
34
What's Ahead for PFT?Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Our People
PFT is a proud employer within the Greater Hobart
area, and we have been delighted to be able to offer
a variety of roles to new employees through the
last 12 months to assist with our rapid growth. The
employment of new employees included the expansion
of the administration and corporate team, growth of
production teams to meet increasing demands and the
establishment of new operational departments, such
as our Distribution Centre.
For various reasons, Woodbridge Smokehouse, Daly
Potato Co and Tasmanian Pate experienced changes
in management during FY21 which saw internal
promotions. PFT is proud to show the available
growth for employees within the company and the
progression of employees aligns with the PFT values.
Throughout the financial year, PFT onboarded 96 new
employees in all areas of the company, through either
new roles or acquisitions.
People
We have also converted 6 casual employees by
offering permanent work within FY21.
Employees by Operating Entity
Employees by Operating Entity
49.5
Full-time
Employees
Daly Potato Co 26%
Tasmanian Pate 25%
Lauds Plant-Based Foods 42%
The Cashew Creamery 2%
Woodbridge Smokehouse 10%
Pure Foods Tasmania Holdings 16%
Employee Spotlights
Abhishek Shrestha
Distribution Centre Team Leader
Sarah Wade
Production Worker
Jess van Engen
Finance Officer
Abhishek (Abhi) joined the PFT team in
November 2020 as a process worker.
His previous role was working in the
food and beverage industry, at Utas
accommodation, Pepper’s. He is the
perfect fit for working at PFT.
Abhi’s role has
adapted to the
growing market
and demand
and is now a
Distribution
Centre Team
Leader. With
stepping into
this more senior role, he has hit
the ground running to ensure all
daily tasks are met and has and will
continue to do an amazing job. He
has taken on more responsibility and
oversees dispatch as well as assisting
teams in other areas.
Abhi says that he loves that his job is
challenging, and that there is always
a surprise (the good kind!) every
morning, ‘everyday is a new day’.
In his spare time, Abhi loves to
catch up with friends, and going
out for dinner. One of his favourite
restaurants is Mr Korea in Sandy Bay.
Sarah joined PFT in June this year and
works with The Cashew Creamery
team. Prior to joining the team, she
worked doing a bit of everything! She
has worked as a retail and customer
service manager, events manager,
and was a cook
and barista at a
vegetarian café.
She has a keen
interest in plant-
based foods,
which drew her to
this job.
At The Cashew
Creamery, Sarah mixes and makes
cashew ice cream, following the
delicious recipes to create the
indulgent treat so many people love.
She hand pours and hand dips the
cashew ice cream, which involves
good concentration and skill. It’s a
very delicious job! Sarah loves that
she is able to work in a plant-based
environment and her job allows her to
learn new skills. Being a plant-based
lover, she believes in the product and
brand, and wants to get more people
eating cashew-based ice cream!
In her spare time, you’ll find Sarah
practising yoga, as she is a qualified
yoga teacher. She also loves to read,
cycle, and walk her dog.
Jess has been with PFT for 7 months,
and previously worked in finance and
administration at Woolworths and at
schools. She has great experience and
knowledge that assists in her role at PFT
and is an asset to the corporate team.
Jess was employed
for Administration
& Customer
Support, where
she helped the
sales team,
assisted with
customer queries
and accounts
receivable. Recently Jess has been
promoted to Finance Officer and
the whole team at PFT congratulate
her for this promotion. She is very
well deserving of this role. She will
be looking after accounts payable
and receivable. Jess says ‘having a
background in accounts payable I’m
excited to be able to jump straight
in and help find efficiencies with
processes while also building on my
own knowledge and skills’.
In her spare time, find Jess at the gym;
she is a big gym junkie! She also loves
brunching around Hobart. The perfect
mix!
35
Our PeoplePure Foods Tasmania Pty Ltd | 2021 Annual Report
Corporate Governance
In recognising the need for the highest standards of corporate behaviour and accountability, the Board supports
the principles of good corporate governance. The Company follows the best recommendations as set out in the
ASX Corporate Governance Council. Where the Company has not followed the best practice recommendations, an
explanation is given in the Corporate Governance Statement which is available on the Company’s website at
www.purefoodstas.com/investors/corporate-governance.
Board of
Directors
Malcolm McAully
Non-Executive Chairman
Michael Cooper
Managing Director
Malcolm McAully is an experienced
Company Director having held roles
over a diverse range of industry
backgrounds including financial
services, energy generation,
waste management, agribusiness,
technology manufacturing,
human resource management,
property development and food
manufacturing.
Malcolm was the Chairman of ASX
Listed Pinnacle VRB (ASX: PCE)
from 2004 to 2005 and remained
Chairman when the company
(following an acquisition) changed
its name to Cougar Energy
Limited (ASX: CXY) until 2013
when he resigned. Malcolm is
also Chairman of Chaucer Energy
Limited and several privately
owned companies.
Malcolm has held various executive
management positions including
National Manager of MLC Life when
owned by the Lend Lease Group. He
holds an MBA and qualifications in
accounting, business management,
mediation, turn around
management and GAICD.
Michael is the Managing Director
of PFT. Michael has over 30 years’
experience in senior executive
roles in the food and beverage
industry. He was the CEO and
later Managing Director of Juicy
Isle Pty Ltd ( JI) and recently
sold his family interest to Myer
Family Investments. JI was the
largest supplier of organic juice
in Australia to Woolworths, Coles
and Costco.
He was also a Director (2012 to
2017) of Ausfec Ltd, a $550M
revenue business. Ausfec was the
major route to market distribution
channel for global brands such as
Cadbury, Nestle, Mars, Wrigley,
Smith and SBA Snack Foods,
Red Bull and V energy drinks.
Michael is also a director of Brand
Tasmania, a Tasmanian State
Authority created under the Brand
Tasmania Act 2018. Michael joined
the PFT Board in February 2017
and was appointed Managing
Director on a part time basis in
October 2018 and full time from
April 2019.
Michael is also a Board Member
of Tas Oyster Company, Hutchins
School and Managing Director of
Willar Pty Ltd.
36
Corporate GovernanceCorporate GovernancePure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Alexander
“Sandy” Beard
Non-Executive Director
Sandy is the Chairman of HGL
Limited (ASX.HNG), FOS Capital
Limited (ASX:FOS), and Director
of Centrepoint Alliance Limited
(ASX:CVC).
He has been a Director of the
following Companies in the last
3 years: CVC Limited (ASX: CVC)
Eildon Capital Limited (ASX:EDC),
Probiotec Limited (ASX:PBP),
US Residential Fund (ASX:USF),
Lantern Hotel Group (ASX:LTN). He
is also Chairman of the unlisted
public company Tasmanian Oyster
Company Limited.
Sandy is the former Chief Executive
Officer of CVC Limited (ASX:CVC)
(between 1991-2019). He has
extensive experience with investee
businesses, both in providing
advice and in direct management
roles, especially bringing
management expertise to early-
stage businesses.
Ken Fleming
Non-Executive Director
Justin Hill
Company Secretary
Ken has extensive experience in
capital markets and has held senior
roles at Deutsche Bank, James
Capel Australia and Tricom. He has
also worked in the Australian public
service and at KPMG.
Ken is a Director of Tasmanian
Oyster Company (nee Shellfish
Culture Limited), Castray Capital
and TasmaNet (ICT company).
He holds an honours degree in
economics and post graduate
qualifications in economics and
finance and is also a Fellow of
the Financial Services Institute of
Australasia (FFIN).
Justin is a Principal and Director
at Page Seager Lawyers. He
specialises in governance, mergers
and acquisitions, and corporate
structures and restructures. Justin
also has significant experience in
finance and advising companies on
raising capital by way of equity and
debt. He also provides advice to
companies on the ASX listing rules.
Justin has a first-class honours
degree in Commerce, a Masters
in Law from the University of
Melbourne and a Graduate
Diploma in Applied Finance and
Investment. Before joining Page
Seager, Justin worked as in-
house counsel for the investment
banking division of Deutsche Bank
in Sydney. Prior to working with
Deutsche Bank, he was principal
counsel in the institutional
markets and investment division
of National Australia Bank. He
also worked for a number of years
in the mergers and acquisitions
team of Mallesons Stephen Jaques
(now King & Wood Mallesons).
37
Corporate GovernanceCorporate GovernancePure Foods Tasmania Pty Ltd | 2021 Annual Report 38
Directors’ ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Directors’ Report
Pure Foods Tasmania Limited and its controlled entities.
Your directors present their report on the consolidated entity (referred to herein as the Group) consisting of
Pure Foods Limited and its controlled entities for the financial year ended 30 June 2021. The information in the
preceding operating and financial review forms part of this directors’ report for the financial year ended 30 June
2021 and is to be read in conjunction with the following information:
General Information
Directors
The following persons were directors of the Group
during or since the end of the financial year up to the
date of this report:
Malcolm McAully .................. Non-executive Chairman
Michael Cooper .................... Managing Director
Alexander “Sandy” Beard .... Non-executive Director
Ken Fleming .......................... Non-executive Director
Dividends Paid or Recommended
No dividends were paid or declared during the
financial year.
Indemnifying Officers or Auditor
During the financial year, the consolidated entity
paid a premium in respect of a contract insuring the
Directors of the Group, the Company Secretary and
all executive officers of the entity and any related
body corporate against a liability incurred as a
Director, Secretary or executive officer to the extent
permitted by the Corporations Act 2001. The contract
of insurance prohibits disclosure of the nature of the
liability and the amount of the premium.
The Group has not otherwise, during or since the
financial year, indemnified or agreed to indemnify
an officer or auditor of the Group or of any related
corporate against a liability incurred as an officer
or auditor.
Proceedings on Behalf of the Company
No person has applied for leave of court to bring
proceedings on behalf of the Group or intervene in any
proceedings to which the Company is a party for the
purpose of taking responsibility on behalf of the Group
for all or any part of those proceedings.
The Group was not a party to any such proceedings
during the year.
Non-Audit Services
The Board of Directors, in accordance with advice from
the audit committee, is satisfied that the provision of
non-audit services during the year is compatible with
the general standard of independence for auditors
imposed by the Corporations Act 2001. The directors
are satisfied that the services disclosed below did not
compromise the external auditor’s independence for
the following reasons:
The following fees were paid or payable to WLF
Accounting & Advisory for non-audit services provided
during the year ended 30 June 2021:
Advisory taxation services
Accounting assistance
$
80,000
55,000
135,000
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the
year ended 30 June 2021 has been received and can be
found on page 44 of the financial report.
At the date of this report, the unissued ordinary shares
of the Group under option are as follows:
Grant date
28 April
2020
28 April
2020
Date of
expiry
30 April
2023
Exercise
price ($)
Number
under
option
0.40
2,800,000
8 November
2021
0.30
7,674,096
Option holders do not have any rights to participate in
any issues of shares or other interests of the Group or
any other entity.
There have been no options granted over unissued
shares or interests of any controlled entity within the
Group during or since the end of the reporting period.
For details of options issued to directors
and executives as remuneration, refer to the
"Remuneration Report" on page 42.
During the year ended 30 June 2021, no ordinary
shares of the Group were issued on the exercise of
options granted. No further shares have been issued
since year-end. No amounts are unpaid on any of the
shares.
No person entitled to exercise the option had or has
any right by virtue of the option to participate in any
share issue of any other body corporate.
39
Directors’ ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report
Information Relating to Directors and Company Secretary
Malcolm McAully
Non-Executive Chairman
Alexander Beard
Non-Executive Director
Details and Experience
Malcolm McAully is an experienced Company Director
having held roles over a diverse range of industry
backgrounds including financial services, energy
generation, waste management, agribusiness,
technology manufacturing, human resource
management, property development and food
manufacturing.
Malcolm was the Chairman of ASX Listed Pinnacle VRB
(ASX: PCE) from 2004 to 2005 and remained Chairman
when the company (following an acquisition) changed
its name to Cougar Energy Limited (ASX: CXY) until
2013 when he resigned. Malcolm is also Chairman of
Chaucer Energy Limited and several privately owned
companies.
Malcolm has held various executive management
positions including National Manager of MLC Life when
owned by the Lend Lease Group. He holds an MBA and
qualifications in accounting, business management,
mediation, turn around management and GAICD.
Michael Cooper
Managing Director
Details and Experience
Michael is the Managing Director of PFT. Michael has
over 30 years’ experience in senior executive roles
in the food and beverage industry. He was the CEO
and later Managing Director of Juicy Isle Pty Ltd ( JI)
and recently sold his family interest to Myer Family
Investments. JI was the largest supplier of organic
juice in Australia to Woolworths, Coles and Costco.
He was also a Director (2012 to 2017) of Ausfec Ltd, a
$550M revenue business. Ausfec was the major route
to market distribution channel for global brands such
as Cadbury, Nestle, Mars, Wrigley, Smith and SBA
Snack Foods, Red Bull and V energy drinks. Michael is
also a director of Brand Tasmania, a Tasmanian State
Authority created under the Brand Tasmania Act
2018. Michael joined the PFT Board in February 2017
and was appointed Managing Director on a part time
basis in October 2018 and full time from April 2019.
Michael is also a Board Member of Tas Oyster
Company, Hutchins School and Managing Director of
Willar Pty Ltd.
Details and Experience
Sandy is the Chairman of HGL Limited (ASX.HNG), FOS
Capital Limited (ASX:FOS), and Director of Centrepoint
Alliance Limited (ASX:CVC).
He has been a Director of the following Companies in
the last 3 years: CVC Limited (ASX: CVC) Eildon Capital
Limited (ASX:EDC), Probiotec Limited (ASX:PBP), US
Residential Fund (ASX:USF), Lantern Hotel Group
(ASX:LTN). He is also Chairman of the unlisted public
company Tasmanian Oyster Company Limited.
Sandy is the former Chief Executive Officer of CVC
Limited (ASX:CVC) (between 1991-2019). He has
extensive experience with investee businesses, both
in providing advice and in direct management roles,
especially bringing management expertise to early-
stage businesses.
Ken Fleming
Non-Executive Director
Details and Experience
Ken has extensive experience in capital markets and
has held senior roles at Deutsche Bank, James Capel
Australia and Tricom. He has also worked in the
Australian public service and at KPMG.
Ken is a Director of Tasmanian Oyster Company
(nee Shellfish Culture Limited), Castray Capital and
TasmaNet (ICT company). He holds an honours degree
in economics and post graduate qualifications in
economics and finance and is also a Fellow of the
Financial Services Institute of Australasia (FFIN).
Justin Hill
Non-Executive Director
Details and Experience
Justin is a Principal and Director at Page Seager
Lawyers. He specialises in governance, mergers
and acquisitions, and corporate structures and
restructures. Justin also has significant experience in
finance and advising companies on raising capital by
way of equity and debt. He also provides advice to
companies on the ASX listing rules.
Justin has a first-class honours degree in Commerce,
a Masters in Law from the University of Melbourne
and a Graduate Diploma in Applied Finance and
Investment. Before joining Page Seager, Justin
worked as in-house counsel for the investment
banking division of Deutsche Bank in Sydney. Prior
to working with Deutsche Bank, he was principal
counsel in the institutional markets and investment
division of National Australia Bank. He also
worked for a number of years in the mergers and
acquisitions team of Mallesons Stephen Jaques (now
King & Wood Mallesons).
40
Directors’ ReportDirectors’ ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Meetings of Directors
During the financial year, 11 meetings of directors (including committees of directors) were held.
Attendance by each director during the year was as follows:
Directors’ meetings
No. of meetings
eligible to attend
Attended
11
11
11
11
11
11
11
11
Events Subsequent to
Balance Date
There were no matters or circumstances arising since
the end of the reporting period that have significantly
affected or may significantly affect the operations of
the Group and the results of those operations or the
state of the affairs of the Group in the financial period
subsequent to 30 June 2021.
On behalf of the Directors
Michael Cooper
Managing Director
21 September 2021
Malcom McAully
Michael Cooper
Alexander Beard
Ken Fleming
Remuneration of Directors and
Senior Management
Information about the remuneration of Directors and
senior management is set out in the "Remuneration
Report" on page 42.
Review of Operations and
Principal Activities
The Group's principal activities at the commence of
the financial year are outlined in the Chairman's report
and listed in the Events Subsequent to Balance Date.
Operating Results
The profit/(loss) after tax of the Group for the financial
year attributable to the members of Pure Foods
Tasmania Limited was ($716,309) (2020: ($196,480)).
State of Affairs and Likely
Developments
In the opinion of the Directors there were no
significant changes in the state of affairs of the
Company and its controlled entities that occurred
during the financial year under review not otherwise
disclosed in this report or the accompanying financial
report. Reference should be made to the subsequent
events note for changes in the state of affairs after
balance date.
41
Directors’ ReportDirectors’ ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report
Remuneration Report
Remuneration Policy
The remuneration policy of the Group has been
designed to align key management personnel (KMP)
objectives with shareholder and business objectives
by providing a fixed remuneration component and
offering specific long-term incentives based on key
performance areas affecting the Consolidated Group’s
financial results. The Board of the Group believes the
remuneration policy to be appropriate and effective in
its ability to attract and retain high-quality KMP to run
and manage the Consolidated Group, as well as create
goal congruence between directors, executives and
shareholders.
The Board’s policy for determining the nature and
amount of remuneration for KMP of the Consolidated
Group is based on the following:
½ The remuneration policy is to be developed by the
remuneration committee and approved by the
Board after professional advice is sought from
independent external consultants.
½ All KMP receive a base salary (which is based on
factors such as length of service and experience),
superannuation, fringe benefits, options and
performance incentives.
½ Performance incentives are generally only paid
once predetermined key performance indicators
(KPIs) have been met.
½ Incentives paid in the form of options or rights
are intended to align the interests of the directors
and company with those of the shareholders. In
this regard, KMP are prohibited from limiting risk
attached to those instruments by use of derivatives
or other means.
½ The remuneration committee reviews KMP
packages annually by reference to the
Consolidated Group’s performance, executive
performance and comparable information from
industry sectors.
The performance of KMP is measured against
criteria agreed biannually with each executive and is
based predominantly on the forecast growth of the
Consolidated Group’s profits and shareholders’ value.
All bonuses and incentives must be linked to
predetermined performance criteria. The Board may,
however, exercise its discretion in relation to approving
incentives, bonuses and options, and can recommend
changes to the committee’s recommendations. Any
change must be justified by reference to measurable
performance criteria. The policy is designed to attract
the highest calibre of executives and reward them for
performance results leading to long-term growth in
shareholder wealth.
KMP receive, at a minimum, a superannuation
guarantee contribution required by the government,
which is currently 10% of the individual’s average
weekly ordinary time earnings (AWOTE). Some
individuals, however, have chosen to sacrifice
part of their salary to increase payments towards
superannuation.
All remuneration paid to KMP is valued at the cost to
the Company and expensed.
Performance-based Remuneration
KPIs are set annually, with a certain level of
consultation with KMP. The measures are specifically
tailored to the area each individual is involved in
and has a level of control over. The KPIs target areas
the Board believes hold greater potential for Group
expansion and profit, covering financial and non-
financial as well as short and long-term goals. The level
set for each KPI is based on budgeted figures for the
Group and respective industry standards.
Performance Conditions Linked
to Remuneration
The Group seeks to emphasise reward incentives
for results and continued commitment to the Group
through the provision of various cash bonus reward
schemes, specifically the incorporation of incentive
payments based on the achievement of revenue
targets, return on equity ratios and continued
employment with the Group.
Employment Details of Members of Key Management Personnel
The term Key Management Personnel refers to those persons having the authority and responsibility for planning,
directing and controlling activities of the Group, directly or indirectly, and includes any director of the Group
(whether executive of otherwise).
The KMP of the Group for the year ended 30 June 2021 were:
Malcolm McAully
Michael Cooper
Alexander Beard
Ken Fleming
42
Role
Appointment Date
Non-Executive Chairman
1 September 2017
Managing Director
1 September 2017
Non-Executive Director
1 May 2020
Non-Executive Director
29 July 2015
Remuneration ReportRemuneration ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Remuneration Expense Details for the Year Ended 30 June 2021
Short-term Benefits
e
v
a
e
l
d
n
a
s
e
e
f
,
y
r
a
a
S
l
$
s
e
s
u
n
o
b
d
n
a
e
r
a
h
s
t
fi
o
r
P
$
y
r
a
t
e
n
o
m
-
n
o
N
$
Executive
Michael Cooper
2021 253,615
2020 233,513
Non-executive
Malcom McAully
Alexander Beard
Ken Fleming
Total KMP
2021
50,000
2020
14,585
2021
36,000
2020
6,000
2021
36,000
2020
12,250
2021 375,615
-
-
-
-
-
-
-
-
-
2020 272,598
-
-
-
-
-
-
-
-
-
-
-
Post-
employment
benefits
n
o
i
t
a
u
n
n
a
r
e
p
u
s
d
n
a
n
o
i
s
n
e
P
r
e
h
t
O
$
23,995
20,881
4,750
1,385
3,420
570
3,420
1,164
35,585
24,594
$
-
-
-
-
-
-
-
-
-
-
Long-term
benefits
Equity-settled
share-based
payments
s
t
i
n
u
/
s
e
r
a
h
S
$
s
t
h
g
i
r
/
s
n
o
i
t
p
O
$
-
3,750
-
9,374
-
-
-
5,624
-
-
-
-
-
-
-
-
-
-
24,998
-
L
S
L
$
-
-
-
-
-
-
-
-
-
-
e
v
i
t
n
e
c
n
I
$
s
n
a
p
l
-
-
-
-
-
-
-
-
-
-
s
t
n
e
m
y
a
p
d
e
s
a
b
-
e
r
a
h
s
d
e
l
t
t
e
s
-
h
s
a
C
$
-
-
-
-
-
-
-
-
-
-
s
t
fi
e
n
e
b
n
o
i
t
a
n
m
r
e
T
i
$
-
-
-
-
-
-
-
-
-
Total
$
277,610
258,144
54,750
25,344
39,420
6,570
39,420
19,038
411,200
-
322,190
Securities Received that Are Not Performance-related
No members of KMP are entitled to receive securities that are not performance-based as part of their
remuneration package.
Cash Bonuses, Performance-related Bonuses and Share-based Payments
The terms and conditions relating to options and bonuses granted as remuneration during the year to KMP
are as follows:
Grant Date
Number
Granted
Percentage
vested/paid
during the
year
Percentage
forfeited
during the
year
Percentage
remaining
as unvested
Expiry date
for vesting
or payment
Percentage
of Grant
forfeited
Michael Cooper
28/04/2020
1,300,000
Malcom McAully 28/04/2020
500,000
Alexander Beard 28/04/2020
500,000
Ken Fleming
28/04/2020
500,000
Total
2,800,000
-
-
-
-
-
-
-
-
100
100
100
100
30/04/2023
30/04/2023
30/04/2023
30/04/2023
-
-
-
-
KMP Shareholdings
The number of ordinary shares held by each KMP of the Group during the financial year is as follows:
Balance at
beginning of year
Granted as
remuneration
during the year
Issued on
exercise of
options during
the year
Other changes
during the year
Balance at
end of year
Malcom McAully
1,521,238
Michael Cooper
2,158,377
Alexander Beard
1,000,000
Ken Fleming
1,595,789
-
-
-
-
-
-
-
-
-
520,043
-
-
1,521,238
2,678,420
1,000,000
1,595,789
43
Remuneration ReportRemuneration ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report
Other Equity-related
KMP Transactions
There have been no other transactions involving equity
instruments apart from those described in the tables
above relating to options, rights and shareholdings.
Other Transactions with KMP and/
or their Related Parties
There were no other transactions conducted between
the Group and KMP or their related parties, apart
from those disclosed above relating to equity,
compensation and loans, that were conducted other
than in accordance with normal employee, customer
or supplier relationships on terms no more favourable
than those reasonably expected under arm’s length
dealings with unrelated persons.
This directors’ report, incorporating the remuneration
report, is signed in accordance with a resolution of the
Board of Directors:
On behalf of the Directors
Michael Cooper
Managing Director
21 September 2021
Auditor’s Independence
Declaration
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration
of independence to the directors of Pure Foods Tasmania Limited. As the lead audit partner for the audit of the
financial report of Pure Foods Tasmania Limited for the year ended 30 June 2021, I declare that, to the best of my
knowledge and belief, there have been no contraventions of:
i. the auditor independence requirements of the
Corporations Act 2001 in relation to the audit; and
ii. any applicable code of professional conduct in
relation to the audit.
Nick Carter
Partner
Wise Lord & Ferguson
21 September 2021
44
Remuneration ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportFinancial Statements Consolidated Statement of Profit or Loss
and Other Comprehensive Income
for the year ended 30 June 2021
Note
2021
$
Revenue
Revenue from operations
Other income
Total Revenue
Expenses
Cost of goods sold
Employment expenses
Occupancy, electricity and telephone costs
Bad debts
Depreciation and amortisation
ASX listing fees and expenses
Finance costs
Insurance
Legal and professional fees
Marketing expenses
Motor vehicle expenses
Repairs and maintenance
Research, development and quality
Other expenses
Total Expenses
Net Profit/(Loss) Before Income Tax
Income Tax Benefit/(Expense)
Net Profit/(Loss) After Tax for the Year
Other Comprehensive Income
Other comprehensive loss net of tax
Total Comprehensive Income
Net profit for the period attributable to:
Non-controlling interest
Owners of Pure Foods Tasmania Limited
Total comprehensive income for the year is attributable to:
Non-controlling interest
Owners of Pure Foods Tasmania Limited
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
6
7
8
4
4
2020
$
4,279,764
255,041
4,534,805
2,992,479
673,732
127,677
30,129
193,087
193,861
46,644
81,292
129,365
33,476
20,090
65,905
37,300
106,248
4,731,285
(196,480)
(6,924)
(203,404)
7,341,482
487,922
7,829,404
5,627,393
1,072,568
128,786
-
405,744
64,374
85,662
157,508
313,642
407,137
45,159
108,044
169,694
186,311
8,772,022
(942,618)
226,309
(716,309)
-
-
(716,309)
(203,404)
-
(716,309)
(716,309)
-
(716,309)
(716,309)
(0.013)
(0.013)
-
(203,404)
(203,404)
-
(203,404)
(203,404)
(0.002)
(0.002)
The above statement should be read in conjunction with the accompanying notes.
45
Remuneration ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportFinancial Statements Consolidated Statement of
Financial Position
As at 30 June 2021
Note
2021
$
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventory
Other assets
Total Current Assets
Non-Current Assets
Property, plant and equipment
Right of use assets
Intangible assets
Deferred tax assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Lease liabilities
Provisions
Borrowings
Total Current Liabilities
Non-Current Liabilities
Lease liabilities
Provisions
Borrowings
Deferred tax liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Accumulated profits/(losses)
Total Equity
18
9
10
11
12
13
8
14
12
15
16
12
15
16
8
17
1,624,116
1,098,324
1,001,235
339,833
4,063,508
4,530,534
696,951
2,447,102
1,239,971
8,914,558
12,978,066
1,769,479
196,139
159,692
724,920
2,850,230
529,716
29,192
872,303
842,412
2,273,623
5,123,853
7,854,213
9,402,889
(1,548,676)
7,854,213
The above statement should be read in conjunction with the accompanying notes.
46
2020
$
4,134,867
482,929
312,965
147,244
5,078,005
1,310,986
430,941
738,837
380,300
2,861,064
7,939,069
541,251
89,107
85,732
164,165
880,255
356,224
20,749
419,156
222,942
1,019,071
1,899,236
6,039,743
6,872,110
(832,367)
6,039,743
Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportFinancial StatementsFinancial Statements Consolidated Statement of
Changes in Equity
For the year ended 30 June 2021
At 1 July 2020
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Issue of shares
Share issue costs
Reverse listing
As at 30 June 2020
At 1 July 2020
Loss for the year
Other comprehensive income
Total comprehensive income for the year
Issue of shares
As at 30 June 2021
Contributed Equity
Accumulated
Profits/(Losses)
$
3,535,898
-
-
3,535,898
4,043,498
(707,286)
-
6,872,110
6,872,110
-
-
6,872,110
2,530,779
9,402,889
$
(671,723)
(203,404)
-
(875,127)
-
-
42,760
(832,367)
(832,367)
(716,309)
-
(1,548,676)
-
(1,548,676)
Total
$
2,864,175
(203,404)
-
2,660,771
4,043,498
(707,286)
42,760
6,039,743
6,039,743
(716,309)
-
5,323,434
2,530,779
7,854,213
The above statement should be read in conjunction with the accompanying notes.
47
Pure Foods Tasmania Pty Ltd | 2021 Annual ReportFinancial Statements Statement of Cash Flows
For the year ended 30 June 2021
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
Income taxes received/paid
Note
2021
$
2020
$
6,981,995
4,457,757
(7,582,765)
(4,482,374)
29,142
(75,698)
-
18,327
(21,182)
-
Net cash used in operating activities
18
(647,326)
(27,469)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for business acquisitions and intangibles
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from borrowings
Principle elements for lease payments
Net cash provided by financing activities
Net (decrease)/increase in cash held
Cash and cash equivalents at the beginning of the year
(3,520,128)
(1,708,265)
(866,613)
-
(5,228,393)
(866,613)
2,544,670
1,003,931
(183,633)
3,364,968
(2,510,751)
4,134,867
3,298,661
387,9226
(46,440)
3,640,143
2,746,061
1,388,806
4,134,867
Cash and cash equivalents at the end of the year
18
1,624,116
The above statement should be read in conjunction with the accompanying notes.
48
Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Financial Statements Notes to the Financial Statements
For the year ended 30 June 2020
Note 1. General Information
The consolidated financial statements and notes represent those of Pure Foods Tasmania Limited and its
Controlled Entities. Pure Foods Tasmania is a company incorporated in Australia, and whose shares are publicly
traded on the Australian Securities Exchange (ASX).
Note 2. Significant Changes in the Current Reporting Period
During the financial year the Group acquired the
following businesses to continue to expand the Group’s
product and brand range:
½ The Cashew Creamery
½ Daly Potato Company
½ Lauds Plant-Based Foods
Note 3. Segment Information
The operating segments are based upon the units
identified in the operating reports reviewed by the
Board and executive management, and are used
to make strategic decisions, in conjunction with
the quantitative thresholds established by AASB
8 Operating Segments. As such, there are five
identifiable and reportable segments:
½ Tasmanian Pate
½ Woodbridge Smokehouse
½ Daly Potato Company
½ Lauds Plant-Based Foods
½ The Cashew Creamery
½ The Corporate and other segment, which
comprises corporate costs that are not directly
attributable to the operational business units.
Management measures the performance of the segments identified at the ‘net profit before tax’ level.
Tasmanian
Pate
Woodbridge
Smokehouse
Daly Potato
Company
Lauds Plant-
Based Foods
The Cashew
Creamery
Corporate
and other
Consolidated 2021
$
$
$
$
$
Revenue
Total segment sales
3,508,932
2,039,186
1,660,147
120,367
12,850
$
-
Total
$
7,341,482
Other income
169,020
27,389
-
-
-
291,513
487,922
Segment profit/(loss)
525,507
(32,628)
(118,970)
99,425
17,941
(1,433,893)
(942,618)
Profit/(loss) before income tax
Income tax (expense)/benefit
Profit/(loss) after income tax
Assets
(942,618)
226,309
(716,309)
Segment assets
2,520,467
1,858,945
3,038,913
418,704
224,699
4,916,338
12,978,066
Total Assets
2,520,467
1,858,945
3,038,913
418,704
224,699
4,916,338
12,978,066
Liabilities
Segment liabilities
1,057,240
1,066,226
795,193
193,167
66,092
1,945,935
5,123,853
Total liabilities
1,057,240
1,066,226
795,193
193,167
66,092
1,945,935
5,123,853
49
Pure Foods Tasmania Pty Ltd | 2021 Annual Report Note 3: Segment Information continued…
Tasmanian
Pate
Woodbridge
Smokehouse
Daly Potato
Company
Lauds
Plant-Based
Foods
The Cashew
Creamery
Corporate
and other
Consolidated 2021
$
$
$
$
$
$
Total
$
Revenue
Total segment sales
3,190,689
1,089,075
Other income
153,462
34,874
Segment profit/(loss)
682,450
(128,875)
Profit/(loss) before income tax
Income tax (expense)/benefit
Profit/(loss) after income tax
Assets
Segment assets
3,327,821
709,102
Total Assets
3,327,821
709,102
Liabilities
Segment liabilities
1,119,161
2,331,584
Total liabilities
1,119,161
2,331,584
Note 4. Earnings Per Share
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Basic earnings per share
Diluted earnings per share
Basic
-
-
-
-
-
-
-
-
4,279,764
66,705
255,041
(750,055)
(196,480)
(196,480)
(6,924)
(203,404)
3,902,146
7,939,069
3,902,146
7,939,069
(1,551,419)
1,899,326
(1,551,419)
1,899,326
2021
$
(0.013)
(0.013)
2020
$
(0.002)
(0.002)
Weighted average number of ordinary shares outstanding during the
period used in the calculation of basic earnings per share
54,217,347
44,406,577
Diluted
Weighted average number of ordinary shares and convertible redeemable
preference shares outstanding and performance rights during the period
used in the calculation of basic earnings per share
54,217,347
44,406,577
Note 5. Dividends to Shareholders
No dividends have been paid or declared during the year ended 30 June 2021 (30 June 2020: nil).
Note 6. Revenue
Revenue from continuing operations:
Sales
Other Income:
Interest received
Sundry income
Subsidies and grants
Total revenue
50
2021
$
2020
$
7,341,482
4,279,764
29,142
215,089
243,691
18,327
6,178
230,536
7,829,404
4,534,805
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Recognition and Measurement
The sale of goods is measured at the fair value of the
consideration received net of any trade discounts and
volume rebates allowed. The sale of goods represents
a single performance obligation and accordingly,
revenue is recognised in respect of these sales of
goods at the point in time when control over the
corresponding goods are transferred to the customer
(i.e. at a point in time for sale of goods when the goods
are delivered to the customer or transferred to the
freight forwarder).
Delivery occurs when the products have been shipped
to the customer, the risks of obsolescence and loss
have been transferred to the customer, and either the
customer has accepted the products, the acceptance
provisions have lapsed, or the Group has objective
evidence that all the criteria for acceptance have been
satisfied. All revenue is stated net of the amount of
goods and services tax (GST) where applicable.
Interest Revenue
Interest revenue is recognised on a proportional basis
using the effective interest rate method.
Note 7. Expenses
2021
$
2020
$
Profit before income tax expense includes
the following expenses:
Cost of goods sold
5,627,393
2,992,479
Salaries and wages
Share based payments
733,343
6,985
520,601
37,551
Total expenses
6,367,721
3,550,631
Note 6: Revenue continued…
Note 8. Income Tax Expense
2021
$
2020
$
Income tax recognised in profit or loss:
Tax expense/(benefit)
comprises:
Current tax (benefit)/
expense
Deferred tax
movements
-
-
(226,309)
6,924
(226,309)
6,924
Deferred income tax (benefit)/expenses included in
income tax expense comprises:
(Increase)/decrease in
deferred tax assets
Increase/(decrease) in
deferred tax liabilities
(845,779)
(206,381)
619,470
213,305
(226,309)
6,924
Reconciliation of income tax expenses to prima facie
tax on accounting profit:
Profit/(loss) before
income tax expense
Tax at 26% tax rate
(prior year 27.5%)
Tax effect of amounts
which are not
deductable
Under/overs in respect
of prior year
Listing costs recognised
in equity
Reset cost bases due to
consolidation
Change in tax rate
impact to deferred
taxes
(942,618)
(196,480)
(245,081)
(54,032)
(16,434)
(28,423)
42,947
-
5,288
(23,072)
(20,997)
112,451
7,968
-
226,309
(6,924)
51
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 8: Income Tax Expense continued…
Deferred tax
Gross deferred tax assets:
Provisions
Trade and other payables
Right of use leases
Share issue expenses
Tax losses
Gross deferred tax liabilities
Prepayments
Fixed assets
Trading Stock
Goodwill & Trademarks
Business acquisition costs
Opening balance
$
Charged to
income
$
29,284
7,308
3,957
23,731
316,020
380,300
12,241
105,140
18,541
87,020
-
19,827
14,374
3,558
(21,903)
829,924
845,780
12,356
594,267
(4,486)
3,287
14,046
Net deferred tax asset/(liability)
222,942
619,470
Charged to equity
Closing balance
$
-
-
-
-
$
49,111
21,682
7,515
1,828
13,891
13,891
1,159,835
1,239,971
-
-
-
-
-
-
24,597
699,407
14,055
90,307
14,046
842,412
The income tax expense (income) for the year
comprises current income tax expense (income) and
deferred tax expense (income).
Current income tax expense charged to profit or loss
is the tax payable on taxable income for the current
period. Current tax liabilities (assets) are measured at
the amounts expected to be paid to (recovered from)
the relevant taxation authority using tax rates (and tax
laws) that have been enacted or substantively enacted
by the end of the reporting period.
Deferred tax expense reflects movements in deferred
tax asset and deferred tax liability balances during the
year as well as unused tax losses.
Current and deferred income tax expense (income) is
charged or credited outside profit or loss when the tax
relates to items that are recognised outside profit or
loss or arising from a business combination.
A deferred tax liability shall be recognised for all
taxable temporary differences, except to the extent
that the deferred tax liability arises from: (a) the initial
recognition of goodwill; or (b) the initial recognition
of an asset or liability in a transaction which: (i) is
not a business combination; and (ii) at the time of
the transaction, affects neither accounting profit nor
taxable profit (tax loss).
Deferred tax assets and liabilities are calculated at
the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled
and their measurement also reflects the manner in
which management expects to recover or settle the
carrying amount of the related asset or liability. With
respect to non-depreciable items of property, plant
and equipment measured at fair value and items
of investment property measured at fair value, the
related deferred tax liability or deferred tax asset is
measured on the basis that the carrying amount of the
asset will be recovered entirely through sale.
When an investment property that is depreciable is
held by the entity in a business model whose objective
is to consume substantially all of the economic
benefits embodied in the property through use over
time (rather than through sale), the related deferred
tax liability or deferred tax asset is measured on the
basis that the carrying amount of such property will be
recovered entirely through use.
Deferred tax assets relating to temporary differences
and unused tax losses are recognised only to the
extent that it is probable that future taxable profit will
be available against which the benefits of the deferred
tax asset can be utilised, unless the deferred tax asset
relating to temporary differences arises from the initial
recognition of an asset or liability in a transaction that:
½ is not a business combination; and
½ at the time of the transaction, affects neither
accounting profit nor taxable profit (tax loss).
Where temporary differences exist in relation to
investments in subsidiaries, branches, associates
and joint ventures, deferred tax assets and liabilities
are not recognised where the timing of the reversal
of the temporary difference can be controlled and
it is not probable that the reversal will occur in the
foreseeable future.
Current tax assets and liabilities are offset where
a legally enforceable right of set-off exists and it
is intended that net settlement or simultaneous
realisation and settlement of the respective asset and
liability will occur. Deferred tax assets and liabilities are
offset where: (i) a legally enforceable right of set-off
exists; and (ii) the deferred tax assets and liabilities
relate to income taxes levied by the same taxation
authority on either the same taxable entity or different
taxable entities where it is intended that net settlement
or simultaneous realisation and settlement of the
52
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 8: Income Tax Expense continued…
respective asset and liability will occur in future periods
in which significant amounts of deferred tax assets or
liabilities are expected to be recovered or settled.
approach by reference to the carrying amounts in the
separate financial statements of each entity and the
tax values applying under tax consolidation.
Tax Consolidation
The company and its wholly-owned Australian resident
entities have formed a tax-consolidated Group and are
therefore taxed as a single entity from that date. The
head entity within the tax-consolidated Group is PFT
Limited. Tax expense/income, deferred tax liabilities
and deferred tax assets arising from temporary
differences of the members of the tax-consolidated
Group are recognised in the separate financial
statements of the members of the tax-consolidated
Group using the “separate taxpayer within group”
Current tax liabilities and assets and deferred tax
assets arising from unused tax losses and relevant tax
credits of the members of the tax-consolidated Group
are recognised by the Company (as head entity in the
tax-consolidated Group). Due to the existence of a tax
funding arrangement between the entities in the tax-
consolidated Group, amounts are recognised as payable
to or receivable by the Company and each member of
the Group in relation to the tax contribution amounts
paid or payable between the Parent Entity and the other
members of the tax-consolidated Group in accordance
with the arrangement.
Note 9. Trade and Other Receivables
Trade receivables
Less loss allowance
Other receivables
Total trade and other receivables
Loss allowance
Movements in loss allowance are as follows:
Carrying value at beginning of the year
Increase/(decrease) in loss allowance
Receivables written off as uncollectable
Unused amount reversed
Total loss allowance
Trade receivables past due but not impaired
Under one month
One to three months
Over three months
Total trade receivables past due but not impaired
2021
$
2020
$
807,529
482,929
-
290,795
1,098,324
-
-
-
-
-
632,880
130,874
43,775
807,529
-
-
482,929
-
29,269
(29,269)
-
-
323,490
151,290
8,149
482,929
53
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 9: Trade and Other Receivables continued…
Recognition and Measurement
The Group applies the simplified approach to providing for expected credit losses prescribed by AASB 9, which
permits the use of the lifetime expected loss provision for all trade receivables. To measure the expected credit
losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The
loss allowance provision as at 30 June 2021 is determined as follows; the expected credit losses also incorporate
forward-looking information.
The “amounts written off” are all due to customers declaring bankruptcy, or term receivables that have now
become unrecoverable.
Trade receivables Gross carrying amount
632,880
125,879
30 June 2021
Expected loss rate
Loss allowance
30 June 2020
Expected loss rate
Current
30 days
60 days
90+ days
Total
0%
0%
-
-
0%
4,995
-
0%
43,775
807,529
-
-
Current
30 days
60 days
90+ days
Total
0%
0%
0%
0%
8,149
-
482,929
-
Trade receivables Gross carrying amount
323,490
68,971
82,319
Loss allowance
-
-
-
Note 10. Inventory
2021
$
2020
$
Stock on hand
1,001,235
312,965
Total inventory
1,001,235
312,965
Inventories are measured at the lower of cost and
net realisable value. The cost of manufactured
products includes direct materials, direct labour
and an appropriate proportion of variable and fixed
overheads.
Fair Value of Trade and Other Receivables
Due to the short-term nature of the current
receivables, their carrying amount is approximate to
fair value.
Credit Risk
The Group has no significant concentration of credit
risk with respect to any single counterparty or group of
counterparties other than those receivables specifically
provided for and mentioned within the loss allowance.
The class of assets described as “trade and other
receivables” is considered to be the main source of
credit risk related to the Group. On a geographical
basis, the Group has significant credit risk exposures in
Australia.
The Group always measures the loss allowance for
trade receivables at an amount equal to lifetime
expected credit loss. The expected credit losses on
trade receivables are estimated using a provision
matrix by reference to past default experience of the
debtor and an analysis of the debtor’s current financial
position, adjusted for factors that are specific to the
debtor, general economic conditions of the industry in
which the debtor operates and an assessment of both
the current and the forecast direction of conditions at
the reporting date.
There has been no change in the estimation
techniques used or significant assumptions made
during the current reporting period.
The Group writes off a trade receivable when there
is information indicating that the debtor is in severe
financial difficulty and there is no realistic prospect
of recovery; for example, when the debtor has
been placed under liquidation or has entered into
bankruptcy proceedings, or when the trade receivables
are over two years past due, whichever occurs earlier.
None of the trade receivables that have been written
off are subject to enforcement activities.
54
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 11. Property, Plant and Equipment
Buildings at cost
Less accumulated depreciation
Plant and equipment at cost
Less accumulated depreciation
Total property, plant and equipment
2021
$
1,728,817
(70,679)
1,658,138
3,609,038
(736,642)
2,872,396
4,530,534
2020
$
876,794
(37,145)
839,649
940,933
(469,596)
471,337
1,310,986
Reconciliations
Reconciliations of the carrying amounts of each class of plant and equipment at the beginning and end of the
financial year set out below:
Carrying Value
As at 1 July 2019
Additions
Disposals
Depreciation expense
Balance as at 30 June 2020
As at 1 July 2020
Additions
Disposals
Depreciation expense
Balance as at 30 June 2021
Buildings at cost
Plant & equipment
at cost
$
308,035
550,211
-
(18,597)
839,649
839,649
852,023
-
(33,534)
1,658,138
$
248,401
316,402
-
(93,466)
471,337
471,337
2,668,105
-
(267,046)
2,872,396
Total
$
556,436
866,613
-
(112,063)
1,310,986
1,310,986
3,520,128
-
(300,580)
4,530,534
Recognition and Measurement
Each class of plant and equipment is carried at cost
or fair value as indicated less, where applicable, any
accumulated depreciation and impairment losses.
Plant and equipment are measured on the cost
basis and therefore carried at cost less accumulated
depreciation and any accumulated impairment. In the
event the carrying amount of plant and equipment is
greater than the estimated recoverable amount, the
carrying amount is written down immediately to the
estimated recoverable amount and impairment losses
are recognised in profit or loss. A formal assessment
of recoverable amount is made when impairment
indicators are present.
The carrying amount of plant and equipment is
reviewed annually by directors to ensure it is not in
excess of the recoverable amount from these assets.
The recoverable amount is assessed on the basis of
the expected net cash flows that will be received from
the asset’s employment and subsequent disposal. The
expected net cash flows have been discounted to their
present values in determining recoverable amounts.
Depreciation
The depreciable amount of all fixed assets including
buildings and capitalised leased assets, but excluding
freehold land, is depreciated on a straight-line basis
over the asset’s useful life to the Consolidated Group
commencing from the time the asset is held ready for
use. Leasehold improvements are depreciated over the
shorter of either the unexpired period of the lease or
the estimated useful lives of the improvements.
The depreciation rates used for each class of
depreciable assets are:
Class of Fixed Asset
Depreciation Rate
Buildings
Plant and equipment
2%
5–33%
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
55
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 11: Property, Plant & Equipment continued…
carrying amount is greater than its estimated
recoverable amount.
Lease payments included in the measurement of the
lease liability are as follows:
Gains and losses on disposals are determined by
comparing proceeds with the carrying amount. These
gains and losses are recognised in profit or loss in the
period in which they arise. Gains shall not be classified
as revenue. When revalued assets are sold, amounts
included in the revaluation surplus relating to that
asset are transferred to retained earnings.
½ fixed lease payments less any lease incentives;
½ variable lease payments that depend on an index
or rate, initially measured using the index or rate
at the commencement date;
½ the amount expected to be payable by the lessee
under residual value guarantees;
Note 12. Right of Use Assets and
Lease Liabilities
2021
$
2020
$
Right of use assets
Buildings
696,951
430,941
Total right of use assets
696,951
430,941
Set out below are the carrying amounts of the Group’s
right of use assets and the movements during the
period:
Carrying value
Buildings
Total
$
$
As at 1 July 2020
430,941
430,941
Additions
371,174
371,174
Depreciation expense
(105,164)
(105,164)
Balance as at 30 June 2021
696,951
696,951
½ the exercise price of purchase options, if the lessee
is reasonably certain to exercise the options;
½ lease payments under extension options if lessee
is reasonably certain to exercise the options; and
½ payments of penalties for terminating the lease, if
the lease term reflects the exercise of an option to
terminate the lease.
The right-of-use assets comprise the initial
measurement of the corresponding lease liability
as mentioned above, any lease payments made at
or before the commencement date as well as any
initial direct costs. The subsequent measurement of
the right-of-use assets is at cost less accumulated
depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term
or useful life of the underlying asset whichever is the
shortest.
Where a lease transfers ownership of the underlying
asset or the cost of the right-of-use asset reflects that
the Group anticipates to exercise a purchase option,
the specific asset is depreciated over the useful life of
the underlying asset.
Lease liabilities
Current
Non-current
2021
$
2020
$
196,139
89,107
529,716
356,224
Note 13. Intangible Assets
Intangibles
2,447,102
738,837
2021
$
2020
$
Total lease liabilities
725,855
445,331
Total intangible assets
2,447,102
738,837
At inception of a contract, the Group assesses if the
contract contains or is a lease. If there is a lease
present, a right-of-use asset and a corresponding lease
liability is recognised by the Group where the Group is
a lessee.
However, all contracts that are classified as short-term
leases (lease with remaining lease term of 12 months
or less) and leases of low value assets are recognised
as an operating expense on a straight-line basis over
the term of the lease.
Initially the lease liability is measured at the present
value of the lease payments still to be paid at
commencement date. The lease payments are
discounted at the interest rate implicit in the lease. If
this rate cannot be readily determined, the Group uses
the incremental borrowing rate.
Carrying value
Buildings
Total
$
$
As at 1 July 2020
738,837
738,837
Goodwill
1,218,269
1,218,269
Other intangibles
489,996
489,996
Disposals
-
-
Balance as at 30 June 2021
2,447,102
2,447,102
Goodwill relates to the acquisition of the assets of
Tasmanian Pate, Daly Potato Company, The Cashew
Creamery and Lauds Plant-Based Foods.
56
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 13: Intagible Assets continued…
Recognition and Measurement
Goodwill
Goodwill is not amortised but is tested annually for
impairment or more frequently if events or changes
in circumstances indicate that it might be impaired.
Goodwill is carried at cost less any accumulated
impairment losses. Goodwill is calculated as the excess
of the sum of:
½ the consideration transferred at fair value;
½ any non-controlling interest (determined under
either the fair value or proportionate interest
method); and
½ the acquisition date fair value of any previously
held equity interest;
over the acquisition date fair value of any identifiable
assets acquired and liabilities assumed.
The acquisition date fair value of the consideration
transferred for a business combination plus the
acquisition date fair value of any previously held equity
interest shall form the cost of the investment in the
separate financial statements.
Changes in the Group’s ownership interests in
subsidiaries that do not result in the Group losing
control over the subsidiaries are accounted for as
equity transactions. The carrying amounts of the
Group’s interests and the non-controlling interests
are adjusted to reflect the changes in their relative
interests in the subsidiaries. Any difference between
the amount by which the noncontrolling interests are
adjusted and the fair value of the consideration paid or
received is recognised directly in equity and attributed
to owners of the Company.
When the Group loses control of a subsidiary, a gain
or loss is recognised in profit or loss and is calculated
as the difference between (i) the aggregate of the fair
value of the consideration received and the fair value
of any retained interest and (ii) the previous carrying
amount of the assets (including goodwill), and liabilities
of the subsidiary and any non-controlling interests.
All amounts previously recognised in other
comprehensive income in relation to that subsidiary
are accounted for as if the Group had directly disposed
of the related assets or liabilities of the subsidiary (ie
reclassified to profit or loss or transferred to another
category of equity as specified/permitted by applicable
Accounting Standards). The fair value of any investment
retained in the former subsidiary at the date when
control is lost is regarded as the fair value on initial
recognition for subsequent accounting under AASB 139:
Financial Instruments: Recognition and Measurement,
when applicable, the cost on initial recognition of an
investment in an associate or a joint venture.
Goodwill is tested for impairment annually and is
allocated to the Group’s cash-generating units or groups
of cash-generating units, representing the lowest level
at which goodwill is monitored and not larger than an
operating segment. Gains and losses on the disposal
of an entity include the carrying amount of goodwill
related to the entity disposed of.
Impairment losses for goodwill are not subsequently
reversed.
Recoverable Amount of Goodwill
Impairment testing has been undertaken at 30 June
2021 for all groups of cash generating units (CGU) for
goodwill or where there is an indication of impairment.
The Group has 4 CGU’s for which impairment testing
has been completed for goodwill which are as follows.
The recoverable amount for each of the CGU’s has
been determined based on a value-in-use calculation
which uses cash flow projections based on financial
budgets and forecasts approved by management. Key
assumptions used in the value-is-use calculations for
each CGU is:
Growth
Rate
Discount
Rate
Tasmanian Pate
Daly Potato Company
The Cashew Creamery
3%
2% - 3%
2% - 3%
Lauds Plant-Based Foods
2% – 3%
9.00%
9.00%
9.00%
9.00%
Management has based the value-in-use calculations
on budgets for each reporting segment. These
budgets use historical weighted average growth rates
to project revenue. Costs are calculated taking into
account historical gross margins as well as estimated
weighted average inflation rates over the period,
which are consistent with inflation rates applicable to
the locations in which the segments operate. Discount
rates are pre-tax and are adjusted to incorporate risks
associated with a particular segment.
The three recently acquired businesses being
Daly Potato Company, The Cashew Creamery and
Lauds Plant-Based Foods have been operating for
only a small period of time under the PFT Group.
As management and the Board gain further
traction of these operations, greater level of clarity
and understanding of the performance of these
operations will be understood in terms of supply chain
management and customer influences. This will enable
future forecasting and budgeting to become more
robust to inform of any impairment.
Other Intangible Assets
Intangible assets acquired separately are capitalised
at cost. Following initial recognition, the cost model
is applied to the class of intangible assets. The useful
lives of these intangible assets are assessed to be
either finite or indefinite.
Where amortisation is charged on assets with finite
lives, this expense is taken to the statement of
comprehensive income. Intangible assets, excluding
development costs, created within the business are
not capitalised and expenditure is charged against
profits in the year in which the expenditure is incurred.
Intangible assets are tested for impairment where
an indicator of impairment exists, and in the case of
indefinite lived intangibles annually, either individually
or at the cash generating unit level. Useful lives are
also examined on an annual basis and adjustments,
where applicable, are made on a prospective basis.
57
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 13: Intagible Assets continued…
Research and Development costs
Research Costs are expensed as incurred.
Note 15. Provisions
Development expenditure incurred on an individual
project is carried forward when its future recoverability
can reasonably be regarded as assured.
An entity shall assess whether the useful life of an
intangible asset is finite or indefinite and, if finite, the
length of, or number of production or similar units
constituting, that useful life. An intangible asset shall
be regarded by the entity as having an indefinite useful
life when, based on the analysis of all of the relevant
factors, there is no foreseeable limit to the period
over which the asset is expected to generate net cash
inflows for the entity.
The carrying value of development costs is reviewed
for impairment annually when the asset is not yet
in use, or more frequently when an indicator of
impairment arises during the reporting year indicating
that the carrying value may not be recoverable.
Note 14. Trade and Other
Liabilities
2021
$
2020
$
Trade and other payables
1,769,479
541,251
Total trade and other liabilities
1,769,479
541,251
Recognition and Measurement
Trade and other payables represent liabilities for
goods and services received by the Group which
remain unpaid at the end of the reporting period.
The balance is recognised as a current liability with
amounts paid in accordance with supplier trading
terms. Due to the short-term nature of trade and other
payables, the carrying value is reflective of fair value.
Current
Employee benefits
Non-current
Employee benefits
2021
$
2020
$
159,692
159,692
85,732
85,732
29,192
29,192
20,749
20,749
Total provisions
188,884
106,481
Recognition and Measurement
Provision is made for the Group’s obligation for short-
term employee benefits. Short-term employee benefits
are benefits (other than termination benefits) that
are expected to be settled wholly before 12 months
after the end of the annual reporting period in which
the employees render the related service, including
wages, salaries and sick leave. Short-term employee
benefits are measured at the (undiscounted) amounts
expected to be paid when the obligation is settled. The
Group’s obligations for short-term employee benefits
such as wages, salaries and sick leave are recognised
as part of current trade and other payables in the
statement of financial position. The Group’s obligations
for employees’ annual leave and long service leave
entitlements are recognised as provisions in the
statement of financial position.
Provision is made for employees’ long service leave
and annual leave entitlements not expected to be
settled wholly within 12 months after the end of the
annual reporting period in which the employees
render the related service. Other long-term employee
benefits are measured at the present value of the
expected future payments to be made to employees.
Expected future payments incorporate anticipated
future wage and salary levels, durations of service
and employee departures and are discounted at rates
determined by reference to market yields at the end
of the reporting period on government bonds that
have maturity dates that approximate the terms of
the obligations. Any remeasurements for changes
in assumptions of obligations for other long-term
employee benefits are recognised in profit or loss in
the periods in which the changes occur.
The Group’s obligations for long-term employee
benefits are presented as non-current provisions in
its statement of financial position, except where the
Group does not have an unconditional right to defer
settlement for at least 12 months after the end of the
reporting period, in which case the obligations are
presented as current provisions.
58
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 16. Borrowings
Current
Borrowings
Non-current
Borrowings
Total borrowings
2021
$
724,920
724,920
872,303
872,303
1,597,223
2020
$
164,165
164,165
419,156
419,156
583,321
Note 17. Issued Capital
2021
2020
Number of
shares
$
Number of
shares
$
Fully paid ordinary shares (post-consolidation)
54,217374
9,402,889
44,406,577
6,872,110
Movements in ordinary share capital
Date
Details
Ordinary shares
Price
1 July 2020
Balance at beginning of period
44,406,577
Issue of shares
9,810,797
54,217,374
$
6,872,110
2,530,779
9,402,889
Terms and Conditions of Issued Capital
Ordinary shares entitle the holder to participate in
dividends and the proceeds on winding up of the
Company in proportion to the number of shares held.
Share Options and Performance Rights
Share options and performance rights do not entitle
the holder to participate in dividends and the proceeds
on winding up the Company. The holder is not entitled
to vote at General Meetings.
There were 7,674,096 share options issued as at 30
June 2021.
Number of Options
2021
2020
12,800,000
-
-
12,800,000
Movement in Options:
Balance at beginning
of year
Options granted to
raise capital
Options redeemed/lapsed
(5,125,904)
-
Balance at end of year
7,674,096
12,800,000
Recognition and Measurement
Ordinary shares are classified as equity, with ordinary
share capital being recognised at fair value of
the consideration received by the Company. Any
transaction costs arising on the issue of ordinary
shares are recognised directly in equity as a reduction
of the share proceeds received. Ordinary share capital
bears to special terms of conditions affecting income
or capital entitlements of the shareholders.
59
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 18. Cash Flow Reconciliation
2021
$
2020
$
Cash and cash equivalents 1,624,116
4,134,867
Total cash and cash
equivalents
1,624,116
4,134,867
Profit/(loss) after tax
Adjustments for non-cash items
Depreciation
Share based payment
Interest on leased assets
Changes in assets/liabilities
(Increase)/Decrease in trade & other receivables
(Increase)/Decrease in inventories
(Increase)/Decrease in deferred taxes
Increase/(Decrease) in trade payables & other liabilities
Net Cash provided by (used in) Operating Activities
Recognition and Measurement
Cash and cash equivalents include cash on hand and
at banks and short-term deposits with an original
maturity of three months or less held at call with
financial institutions.
(a) Reconciliation of cash and cash equivalents to the
statement of cash flows:
For the purposes of the statement of cash flows,
cash and cash equivalents includes cash on hand
and in banks and short-term deposits at call, net
of outstanding bank overdrafts. Cash and cash
equivalents as at the end of the financial year as
shown in the statement of cash flows is reconciled to
the related items in the statement of financial position
as follows:
2021
$
2020
$
(716,309)
(203,404)
455,124
6,985
29,089
(804,376)
(688,270)
(240,200)
1,310,631
(647,326)
193,087
37,551
23,220
(99,729)
(131,830)
6,924
146,712
(27,469)
Note 19. Financial Risk Management
The Group’s principal financial instruments comprise
receivables, payables, cash and short-term deposits.
The Group manages its exposure to key financial
risks in accordance with the Group’s financial risk
management policy. The objective of the policy is to
support the delivery of the Group’s financial targets
whilst protecting future financial security.
The main risks arising from the Group’s financial
instruments are price risk, credit risk and liquidity risk.
The Group uses different methods to measure and
manage different types of risk to which it is exposed.
These include monitoring levels of exposure to interest
rate and foreign exchange risk and assessments
of market forecasts for commodity prices. Ageing
analyses and monitoring of specific credit allowances
are undertaken to manage credit risk, liquidity risk is
monitored through the development of future rolling
cash flow forecasts.
under the authority of the Board. The Board reviews
and agrees policies for managing each of the risks
identified below, including, interest rate risk, credit
allowances, and future cash flow forecast projections.
The carrying amounts of the Group’s financial assets
and liabilities at balance date were equal to their
fair value.
Recognition and Measurement
Classification
The Group classifies its financial instruments in the
following categories: financial assets at fair value
through profit or loss, loans and receivables, held-to-
maturity investments, and available-for-sale financial
assets. The classification depends on the purpose for
which the investments were acquired. Management
determines the classification of its financial
instruments at the time of initial recognition.
The Board reviews and agrees policies for managing
each of these risks as summarised in the following.
Primary responsibility for identification and control
of financial risks rests with the Managing Director
Financial Assets at Fair Value through Profit or Loss
Upon initial recognition a financial asset or financial
liability is designated as at fair value through profit or
loss when:
60
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 19: Financial Risk Management continued…
½ An entire contract containing one or more
embedded derivatives is designated as a financial
asset or financial liability at fair value through
profit and loss.
The Group regularly analyses its interest rate
opportunity and exposure. Within this analysis
consideration is given to existing positions and
alternative arrangements for its deposits.
½ Doing so results in more relevant information,
because either:
i. It eliminates or significantly reduces a
measurement or recognition inconsistency that
would otherwise arise from measuring assets or
liabilities or recognising gains or losses on them
on different bases.
ii. A group of financial assets, financial liabilities
or both is managed and its performance is
evaluated on a fair value basis, in accordance
with a documented risk management or
investment strategy, and information about the
group is provided internally on that basis to key
management personnel.
Investments in equity instruments that do not have
a quoted market price in an active market, and
whose fair value cannot be reliably measured are not
designated as at fair value through profit or loss.
Present investment strategy is to keep assets in a
highly liquid state and almost all of the investment
assets are held in cash.
A gain or loss arising from a change in the fair value
of a financial asset or financial liability classified as at
fair value through profit or loss is recognised in the
consolidated statement of profit or loss and other
comprehensive income.
Non-listed investments, for which fair value cannot be
reliably measured, are carried at cost and tested for
impairment.
Loans and Receivables
Loan and receivables are measured at fair value at
inception and subsequently at amortised cost using
the effective interest rate method.
Financial Liabilities
Financial liabilities include trade payables, other
creditors and loans from third parties including inter-
company balances and loans from or other amounts
due to Director-related entities.
Non-derivative financial liabilities are recognised at
amortised cost, comprising original debt less principle
payments and amortisation.
Risk Exposures and Responses
Interest Rate Risk
The Group’s exposure to market interest rates is related
primarily to the Group’s cash deposits. At balance sheet
date, the Group had the following mix of financial
assets exposed to Australian and variable interest rate
risks that are not designated as cash flow hedges:
2021
$
2020
$
Financial assets
1,098,324
482,929
Cash and cash equivalents 1,624,116
4,134,867
Net exposure
2,722,440
4,617,796
The following sensitivity analysis is based on the
interest rate opportunity/risk relating to cash deposits
at balance date.
At 30 June 2021, 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 affected as follows:
2021
$
2020
$
Judgements of reasonably possible movements
+ 0.5% (50 basis points)
4,700
20,673
- 0.5% (50 basis points)
(4,700)
(20,673)
Liquidity Risk
Liquidity Risk is the risk that the Group, although
balance sheet solvent, cannot meet or generate
sufficient cash resources to meet its payment
obligations in full as they fall due, or can only do
so at materially disadvantageous terms. Ultimate
responsibility for liquidity risk management rests with
the Board of Directors, which has built an appropriate
liquidity risk management framework for the
management of the Group’s short, medium and long-
term funding and liquidity management requirements.
The Group manages liquidity risk by maintaining
adequate reserves and by continuously monitoring
forecast and actual cash flows and matching the
maturity profiles of financial assets and liabilities.
All current liabilities fall due within normal trade terms,
which are generally 30 days.
Credit Risk
Credit risk arises from the financial assets of the Group,
which comprise cash and cash equivalents and trade
and other receivables. The Group’s exposure to credit
risk arises from potential default of the counter party,
with maximum exposure equal to the carrying amount
of these instruments. Exposure at balance date is
addressed in each applicable note. The Group does not
hold any credit derivatives to offset its credit exposure.
The Group trades only with recognised, creditworthy
third parties, and as such collateral is not requested
nor is it the Group’s policy to securitize its trade and
other receivables.
It is the Group’s policy that all customers who
wish to trade on credit terms are subject to credit
verification procedures including an assessment of
their independent credit rating, financial position,
past experience and industry reputation. The risks are
regularly monitored.
The Group applies the AASB 9 simplified approach to
measuring expected credit losses as disclosed in "Note
09" on page 53.
Receivables balances are monitored on an ongoing
basis with the result that the Group’s exposure to bad
debts is not significant.
61
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 19: Financial Risk Management continued…
Fair Value
The method for estimating fair value is outlined in
the relevant notes to the financial statements. All
financial assets held at fair value are valued based
on the principles outlined in AASB 7 in relation to
Level 1 of the hierarchy of fair values, being quoted
prices (unadjusted) in active markets for identical
assets or liabilities that the entity can access at the
measurement date.
Note 21. Parent Entity Information
Note 20. Capital Management
When managing capital, management’s objective is
to ensure the entity continues as a going concern as
well as to maintain optimal returns to shareholders
and benefits for other stakeholders. Management also
aims to maintain a capital structure that ensures the
lowest cost of capital available to the entity.
Management are constantly adjusting the capital
structure to take advantage of favourable costs of
capital or high returns on assets. As the market is
constantly changing, the Board may change the
amount of dividends to be paid to shareholders, return
capital to shareholders, issue new shares or sell assets
to reduce debt.
Financial Position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Contributed equity
Financial Performance
Total revenue
Profit/(loss) for the period
2021
$
2020
$
1,341,832
4,352,596
5,694,428
314,300
4,470,690
4,784,990
909,438
909,438
3,630,677
1,548,051
5,680,484
61,994
3,444,125
3,506,119
2,174,365
2,174,365
173,812
(1,494,596)
159,620
(487,294)
Capital Commitments
There were no non-cancellable capital expenditure contracted for but not in the financial statements.
Contingent Liabilities
Pure Foods Tasmania Ltd is not subject to any liabilities that are considered contingent upon events known at
balance sheet date.
Note 22. Subsidiaries
Entity
PFT Holdings Pty Ltd
PFT No 1 Pty Ltd
PFT No 2 Pty Ltd
PFT No 3 Pty Ltd
The Cashew Creamery Pty Ltd
Lauds Plant-Based Foods Pty Ltd
62
Equity holding
Country of
incorporation
Australia
Australia
Australia
Australia
Australia
Australia
2021
100%
100%
100%
100%
100%
100%
2020
100%
100%
100%
100%
-
-
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 23.
Contingent Liabilities and Assets
There are no matters which the Group consider would
result in a contingent liability as at the date of this report.
Note 24.
Commitments for Expenditure
Capital Commitments – Capital
Expenditure Projects
There were no non-cancellable capital expenditure
contracted for but not in the financial statements.
Other Commitments – Operating Expenditure
Operating expenditure contracted but not included in
the financial statements:
2021
$
2020
$
Payable
Not longer than one year
longer than one year but
no longer than five years
Longer than five years
Total payable
-
-
-
-
-
-
-
-
Note 25. Events Occurring
After Balance Date
The Board is not aware of any matter or circumstance
not otherwise dealt within these financial statements
that has significantly or may significantly affect
the operation of the Group, the results of those
operations, or the state of affairs of the Group in
subsequent financial years.
Note 26.
Related Party Transactions
Key management personnel compensation
The aggregate compensation of the key management
personnel of the entity is set out below:
2021
$
2020
$
Short term benefits
253,615
233,513
Post-employment benefits
23,995
Share based payment
-
20,881
3,750
Total key management
personnel compensation
277,610
258,144
Transactions with related parties
The Group acquired the following goods and services
as follows:
Ken Fleming for
consultancy services
Total transactions with
related parties
2021
$
2020
$
25,000
25,000
25,000
25,000
Note 27. Auditor’s Remuneration
2021
$
2020
$
Auditors of the parent entity
42,000
18,000
Other assurance services
-
-
Total auditor’s
remuneration
42,000
18,000
Note 28.
Employee Securities Incentive Plan
The Company has adopted an Employee Securities
Incentive Plan (Plan), to commence upon Admission.
The Plan may be inspected at the registered office
of the Company during normal business hours. The
purpose of the Plan is to:
i. assist in the reward, retention and motivation of
Eligible Participants;
ii. link the reward of Eligible Participants to
Shareholder value creation; and
iii. align the interests of Eligible Participants with
shareholders of the Group (being the Company
and each of its Associated Bodies Corporate), by
providing an opportunity to Eligible Participants
to receive an equity interest in the Company in the
form of Securities.
63
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual Report
Note 28: Employee Securities Incentive Plan continued…
Eligible Participant’ means a person that:
i. is an ‘eligible participant’ (as that term is defined
in ASIC Class Order 14/1000) in relation to the
Company or an ‘Associated Body Corporate’ (as that
term is defined in ASIC Class Order 14/1000); and
ii. has been determined by the Board to be eligible to
participate in the Plan from time to time.
Directors are ‘Eligible Participants’. Any issue of
Securities to Directors under the Plan will be subject to
the receipt of prior Shareholder approval.
Plan Administration
The Plan will be administered by the Board. The Board
may exercise any power or discretion conferred on it
by the Plan rules in its sole and absolute discretion.
The Board may delegate its powers and discretion.
There are no options for performance rights of the
Company, held directly, indirectly or beneficially,
by each Director and key management personnel,
outstanding as at 30 June 2021.
Share options granted
Share options outstanding at 30 June 2021 are as follows:
Grant date
Expiry date
28/04/2020
30/04/2023
28/04/2020
08/11/2021
Exercise
price
$
0.40
0.30
Balance at
start of year
Granted
Exercised
Expired
-
-
-
-
-
-
-
-
Balance at
end of year
2,800,000
7,674,096
10,474,096
The options hold no voting or dividend rights and are not transferable.
In addition to the above, as at 30 June 2021 the Company entered into the PFT Employee Securities Incentive Plan
(Plan). The Invitation is for 1,000,000 Performance Rights in the Company. Each Performance Right that ultimately
vests and is exercised in accordance with the Plan Rules will entitle you to be issued one Share in the Company for
nil consideration.
The Invitation
In accordance with rule 3.2 of the Plan Rules, the terms of the Invitation are set out below:
Number of performance rights
1,000,000
Grant date
Fee (if any)
Performance criteria (if any)
Vesting conditions (if any)
February 2021
Nil
Nil
Tranche
1
2
3
Total
Vesting Condition
Number of Rights
30 consecutive day VWAP (30 Day VWAP) of at least $1.50 at any time during
the 2021 calendar year.
30 Day VWAP of at least $1.50 at any time during the 2022 calendar year.
30 Day VWAP of at least $1.50 during the 2023 calendar year.
333,333
333,333
333,334
1,000,000
The acent of the Vesting Conditions will be measured during each calendar year for the period from 1 January 2021 to 31
December 2023 (Measurement Period)
Continued service by Michael Cooper with the Company (or a related by corporate) at all times until 31 December 2023 is
also a requirement for the Performance Rights to vest, subject to terms of the Plan Rules.
64
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Measurement of vesting
Tranche 1: 2021 Calendar Year
% vesting
100%
Stretch: 30 Day VWAP of at least $2.00 at any time during the calendar year.
Performance
Pro rata basis between
50% and 100%
Between Target and Stretch: 30 Day VWAP of at least $1.50 but not reaching
$2.00 at any time during the calendar year.
50%
0%
Target: 30 Day VWAP of a least $1.50 at any time during the calendar year.
Below Target: The maximum 30 Day VWAP at any time during the calendar year
is below $1.50.
Tranche 2: 2022 Calendar Year
% vesting
100%
Stretch: 30 Day VWAP of at least $2.00 at any time during the calendar year.
Performance
Pro rata basis between 50%
and 100%
Between Target and Stretch: 30 Day VWAP of at least $1.50 but not reaching $2.00
at any time during the calendar year.
50%
0%
Target: 30 Day VWAP of a least $1.50 at any time during the calendar year.
Below Target: The maximum 30 Day VWAP at any time during the calendar year is
below $1.50.
Tranche 3: 2023 Calendar Year
% vesting
100%
Stretch: 30 Day VWAP of at least $2.00 at any time during the calendar year
Performance
Pro rata basis between 50%
and 100%
Between Target and Stretch: 30 Day VWAP of at least $1.50 but not reaching $2.00
at any time during the calendar year.
50%
0%
Target: 30 Day VWAP of a least $1.50 at any time during the calendar year.
Below Target: The maximum 30 Day VWAP at any time during the calendar year is
below $1.50.
In accordance with the Plan Rules, the Board retains discretion to modify vesting in the case that the circumstances
that prevailed over the Measurement Period materially differed from those expected at the time the vesting scale was
determined, which is intended to be used when the application of the vesting scale would lead to an outcome that may
be viewed as inappropriate.
Other terms
The other rights and obligations which apply to the Performance Rights,
including in relation to vesting, disposal and forfeiture, are specified in the
Plan Rules. The Plan Rules govern the Performance Rights that are issued to
the Managing Director.
Recognition and Measurement
The Group provides benefits to the Directors and
the Managing Director in the form of share-based
payment, whereby services are rendered in exchange
for rights over shares (performance rights) or options.
The fair value of the performance rights and options
is recognised as an employee benefits expense, with
a corresponding increase in equity. The total amount
to be expensed is determined by reference to the fair
value of the performance rights or options granted.
The total expense is recognised over the period in
which the performance and/or service conditions are
fulfilled (the vesting period), ending on the date on
which the relevant employees become fully entitled to
the award (the vesting date).
65
Notes to the Financial StatementsNotes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual Report Note 29. Business Acquisitions
Consideration transferred:
Cash
Total consideration
Daly Potato
Company
$
The Cashew
Creamery
Lauds Plant-Based
Foods
$
$
1,568,113
1,568,113
305,794
305,794
452,867
452,867
Fair value of assets acquired and liabilities assumed at date of acquisition:
Current assets
Stock
Trade debtors
Other assets
Non-current assets
Plant & Equipment
Other assets
Current liabilities
Trade and other payables
Leave provisions
Non-current liabilities
Loans
Total assets acquired and liabilities assumed
Goodwill arising
Total goodwill arising
85,477
-
-
1,300,000
4,684
(161,607)
(17,364)
(298,511)
912,679
655,434
1,218,269
29,870
29,953
14,544
70,420
2,641
(2)
-
(129,986)
17,440
288,354
47,323
43,083
12,462
87,076
4,926
(16,484)
-
-
178,386
274,481
Note 30. Summary of Significant Accounting Policies
(a) Basis of Preparation
These financial statements are general purpose
financial statements that have been prepared in
accordance with Australian Accounting Standards,
Australian Accounting Interpretations and the
Corporations Act 2001, as appropriate for-profit
oriented entities.
The financial statements cover the Company and its
controlled entities as a group for the financial year
ended 30 June 2021. The Company is a company
limited by shares, incorporated, and domiciled in
Australia.
Separate financial statements for the Company as
an individual entity are no longer presented as a
consequence of a change to the Corporations Act
2001, however limited financial information for the
Company as an individual entity is included in "Note
22" on page 62.
The following is a summary of material accounting
policies adopted by the Group in the preparation and
presentation of the financial statements not elsewhere
disclosed. The accounting policies have been
consistently applied, unless otherwise stated.
(b) Compliance with IFRS
The financial statements comply with International
Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
(c) Historical Cost Convention
The financial statements have been prepared under
the historical cost convention. All amounts are
presented in Australian dollars unless otherwise noted.
(d) Principles of Consolidation
The consolidated financial statements are those
of the Group, comprising the parent entity and its
controlled entities as defined in Accounting Standard
AASB 10 ‘Consolidated Financial Statements’. Control is
achieved when the Company:
½ is exposed, or has rights, to variable returns from
its involvement with the investee; and
½ has the ability to use its power to affect its returns.
The Company reassess whether or not it controls an
investee if facts and circumstances indicate that there
are changes to one or more of the three elements of
control listed above.
66
Notes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Details of the Controlled Entities are Contained in
"Note 23" on page 63.
Financial statements for controlled entities are
prepared for the same reporting period as the parent
entity. Controlled entities are fully consolidated from
the date on which control is transferred to the Group
and cease to be consolidated from the date on which
control is transferred out of the Group. Adjustments
are made to bring into line any dissimilar accounting
policies, which may exist.
All inter-company balances and transactions, including
any unrealised profits or losses have been eliminated
on consolidation.
Non-controlling interests in the equity and results of
the entities that are controlled are shown separately in
the consolidated financial statements.
The preparation of the financial statements of the
Group requires the use of accounting estimates which,
by definition, will seldom equal the actual results.
Management also needs to exercise judgement in
applying the Group’s accounting policies.
Areas within the financial report which contain a
higher degree of judgement or complexity, and items
which are more likely to be materially adjusted due to
estimates and assumptions turning out to be incorrect.
Detailed information about each of these estimates and
judgements are included in the notes to the financial
statements together with the basis of calculation.
The areas involving significant estimates or
judgements are:
½ Estimated value in use calculations for the
assessment of the recoverable amount of goodwill.
Estimates and judgements are continually evaluated.
They are based on historical experience, information,
and other factors, including expectations of future
events that may have a financial impact on the entity
and that are believed to be reasonable under the
circumstances.
(f) Comparatives
Where necessary, comparative information has been
reclassified and repositioned for consistency with
current year disclosures.
(g) New Standards and interpretations not
yet adopted
Certain new accounting standards and interpretations
have been published that are not mandatory for 30
June 2021 reporting periods and have not yet been
adopted by the Group. There are no standards that
are not yet effective and that would be expected to
have a material impact on the Group in the current or
future reporting periods and on foreseeable future
transactions.
Note 30: Summary of significant Accounting Policies continued…
Note 31. Going Concern
These financial statements have been prepared on
the basis of going concern, which contemplates
the continuity of normal business activities and the
realisation of assets and settlement of liabilities in the
ordinary course of business. The director’s assessment
is based on forecasted growth in sales, which the
Group expects to continue over the next 12 months.
In preparing the financial report, the Group has
adopted a going concern basis of preparation, as the
Directors believe they have reasonable grounds to
expect that they will have sufficient funds to settle the
Group’s liabilities and meets its debts as an when they
fall due.
In accordance with a resolution of the directors of Pure
Foods Tasmania Limited, the directors of the Company
declare that:
1. The financial statements and notes, as set out
on pages 14 to 45, are in accordance with the
Corporations Act 2001 and:
a. Comply with Australian Accounting Standards
applicable to the Consolidated Group, which,
as stated in the accounting policies to the
financial statements, constitutes compliance with
International Financial Reporting Standards; and
b. Give a true and fair view of the financial position
as at 30 June 2021 and of the performance for the
year ended on that date of the Consolidated Group;
2. In the directors’ opinion there are reasonable
grounds to believe that the Company will be able
to pay its debts as and when they become due and
payable; and
3. The directors have been given the declaration
required by section 295A of the Corporations
Act 2001 from the Chief Executive Officer for the
financial year ended 30 June 2021.
Signed in accordance with a resolution of the Directors
made pursuant to section 295(5) of the Corporations
Act 2001. This declaration is made in accordance with a
resolution of the Directors.
Michael Cooper
Managing Director
21 September 2021
67
Notes to the Financial StatementsPure Foods Tasmania Pty Ltd | 2021 Annual Report 68
Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Independent Audit Report
For the year ended 30 June 2021
Independent Auditor’s Report to the Members of
Pure Foods Tasmania Limited
Opinion
We have audited the financial report of Pure Foods
Tasmania Limited (the Company and its controlled
entities (the Group)), which comprises the consolidated
statement of financial position as at 30 June 2021, the
consolidated statement of comprehensive income, the
consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then
ended, and notes to the financial statements, including
a summary of significant accounting policies, and the
directors’ declaration.
In our opinion, the accompanying financial report of
the company is in accordance with the Corporations
Act 2001, including:
i giving a true and fair view of the consolidated
financial position of the company as at 30 June 2021
and of its consolidated financial performance for
the year then ended on that date; and
ii complying with Australian Accounting Standards
and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian
Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Report
section of our report. We are independent of the
company in accordance with the auditor independence
requirements of the Corporations Act 2001 and the
ethical requirements of the Accounting Professional
and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (the Code) that are
relevant to our audit of the financial report in Australia.
We have also fulfilled our other ethical responsibilities
in accordance with the Code.
We confirm that the independence declaration
required by the Corporations Act 2001, which has been
given to the directors of the company, would be in the
same terms if given to the directors as at the time of
this auditor’s report.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgement, were of the most significance
in our audit of the financial report for the year ended
30 June 2021. These matters were addressed in the
context of our audit of the financial report as a whole,
and forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Valuation of Goodwill
Refer to "Note 13" on page 56 in the financial report.
The Group hold goodwill assets totalling $1,957,106
as at 30 June 2021. Under Australian Accounting
Standards, the Group is required to assess goodwill for
impairment at least annually.
The Group performed an impairment assessment
for the Tasmanian Pate cash generating unit (CGU),
calculating the value in use of the net assets in the CGU.
The valuation model used by the Group to perform
the impairment assessment are based on budget
forecasts.
The Group did not identify any impairment for the CGU.
How our Audit Addressed the Key Audit Matter
We assessed whether the Group’s determination of
CGU was consistent with our understanding of the
nature of the Group’s operations and internal Group
reporting. We assessed management’s conclusions
around allocating Tasmanian Pate as a CGU.
We tested the mathematical accuracy and integrity of
the calculation in the model.
To evaluate the model we performed the following
procedures, amongst others:
½ Compared model inputs to the FY21 budget;
½ Assessed historical performance of the CGU; and
½ Assessed forecast growth assumptions.
We assessed the discount rate used in the impairment
assessment by comparing to comparable companies.
We performed sensitivity analysis which highlighted
that the CGU’s are sensitivity to changes in key
assumptions. We recalculated the change in growth
rates and discount rates which would result in an
impairment and also evaluated the adequacy of the
disclosures in "Note 13" in light of the requirements of
Australian Accounting Standards.
69
Pure Foods Tasmania Pty Ltd | 2021 Annual Report Business Acquisitions
Refer to "Note 30" on page 66 in the financial report.
During the financial year, the Group acquired the
following businesses Lauds Plant-Based Foods, Cashew
Creamery and Daly Potato Company. Accounting
for business acquisitions is complex and involves a
number of judgements and estimates.
How our Audit Addressed the Key Audit Matter
Our procedures included, but were not limited to:
½ Reading the purchase and sale agreements to
understand the terms and conditions of each
transactions;
½ Assessing whether the purchase price has been
correctly determined;
½ Assessing the determination of the fair value of
assets acquired
½ Assessing the appropriateness of the disclosure of
each transaction in the financial statements.
Going Concern
Refer to "Note 31" on page 67 of the financial report.
Assessing the appropriateness of the Group’s basis
of preparation for the financial report was a key audit
matter due to its importance to the financial report
and the level of judgment involved in assessing the
future funding and operational status of the Group.
How our Audit Addressed the Key Audit Matter
In assessing the appropriateness of the going concern
basis of preparation for the financial report, we
performed a number of procedures including the
following:
½ Reviewing managements assessment of going
concern and cash flow forecast to assess whether
current cash levels and forecast revenue can be
sustainable for a period of at least 12 months from
the proposed date of signing.
½ Assessing the Group’s current level of income and
expenditure against management’s forecast for
consistency and relationship with historical results
and our understanding of the business.
½ Performing sensitivity analysis on the forecast cash
flows; and
½ Reviewing disclosures to be included in the
financial report for appropriateness.
Other Information
The directors are responsible for the other
information. The other information comprises the
information included in the company’s annual report
for the year ended 30 June 2021 but does not include
the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover
the other information and accordingly we do not
express any form of assurance conclusion thereon. In
connection with our audit of the financial report, our
responsibility is to read the other information and, in
doing so, consider whether the other information is
materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears
to be materially misstated.
If, based on the work we have performed, we conclude
that there is a material misstatement of this other
information, we are required to report that fact. We
have nothing to report in this regard.
Responsibilities of the Directors
for the Financial Report
The directors of the company are responsible for the
preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary
to enable the preparation of the financial report that
gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are
responsible for assessing the ability of the company to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless the directors
either intend to liquidate the company or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the
Audit of the Financial Report
Our objectives are to obtain reasonable assurance
about whether the financial report as a whole is free
from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in
the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of this financial report.
70
Independent Audit ReportIndependent Audit ReportPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that
we have complied with relevant ethical requirements
regarding independence, and to communicate with
them all relationships and other matters that may
reasonably be thought to bear on our independence,
and where applicable, related safeguards.
Report on the
Remuneration Report
We have audited the remuneration report included
in pages 6 to 10 of the directors’ report for the year
ended 30 June 2021.
In our opinion, the remuneration report of Pure Foods
Tasmania Limited for the year ended 30 June 2021
complies with s 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the
preparation and presentation of the remuneration
report in accordance with s 300A of the Corporations
Act 2001. Our responsibility is to express an opinion
on the remuneration report, based on our audit
conducted in accordance with Australian Auditing
Standards.
Nick Carter
Partner
Wise Lord & Ferguson
21 September 2021
As part of an audit in accordance with the Australian
Auditing Standards, we exercise professional
judgement and maintain professional scepticism
throughout the audit. We also:
½ Identify and assess the risks of material
misstatement of the financial report, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
½ Obtain an understanding of internal control
relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the
Entity’s internal control.
½ Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by management.
½ Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Entity’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report
to the related disclosures in the financial report or,
if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s
report. However, future events or conditions may
cause the Entity to cease to continue as a going
concern.
½ Evaluate the overall presentation, structure and
content of the financial report, including the
disclosures, and whether the financial report
represents the underlying transactions and events
in a manner that achieves fair presentation.
½ Obtain sufficient appropriate audit evidence
regarding the financial information of the entities
or business activities within the company to
express an opinion on the financial report. We
are responsible for the direction, supervision and
performance of the company audit. We remain
solely responsible for our audit opinion.
71
Independent Audit ReportIndependent Audit ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Lauds Plant-Based Foods Founders, Dani & Simon, with PFT Managing Director, Michael Cooper (right)
72
Pure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report Shareholder Information
1. Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
Holding Range
Holders
Total Units
% Issued Share
Capital
Above 0 up to and including 1,000
Above 1,000 up to and including 5,000
Above 5,000 up to and including 10,000
Above 10,000 up to and including 100,000
Above 100,000
Totals
669
900
338
475
69
342,510
2,408,883
2,691,640
13,941,628
34,832,713
2,451
54,217,374
0.63
4.44
4.96
25.71
64.25
100.00
2. Equity Security Holders
The names of the twenty largest holders of quoted equity securities are listed below (some are grouped
where the holdings are deemed to be controlled by the same entity):
n
o
i
t
i
s
o
P
1 Willar Pty Ltd
Shareholder Name
2
3
4
5
6
7
8
9
Sanlam Private Wealth Pty Ltd
Daly Potato Company Pty Ltd
Ilwella Pty Ltd
Quality Life Pty Ltd
Mr Timothy Tulloch Brock Lewis & Mrs Catherine Anne Lewis
Rottcodd Pty Ltd
BFADM Pty Ltd
Tonnic 2 Pty Ltd
10 Bensam Investments Pty Ltd
11
Jaf Capital Pty Ltd
12 Mr Craig Mccourtie
13 Clement Holdings Pty Ltd
Holding
2,678,420
2,500,000
2,279,608
2,253,849
1,881,789
1,841,751
1,595,789
1,521,238
1,185,000
1,130,255
1,065,001
1,000,952
1,000,951
14 Mr Alexander David Beard & Mrs Marie Pascale Beard
1,000,000
15 Radiata Investments Pty Ltd
16 HSBC Custody Nominees (Australia) Limited
17
Suetone Pty Ltd
18 Boman Asset Pty Ltd
19
20
Kore Management Services Pty Ltd
Fairisle Holdings Pty Limited
712,202
671,586
633,794
606,452
600,000
590,799
% Issued
Share
Capital
4.94
4.61
4.20
4.16
3.47
3.40
2.94
2.81
2.19
2.08
1.96
1.85
1.85
1.84
1.31
1.24
1.17
1.12
1.11
1.09
Totals
Total Issued Capital
26,749,436
49.34
54,217,374
100.00
3. Voting Rights
The voting rights attached to ordinary shares are
set out below:
On a show of hands every member present at a
meeting in person or by proxy shall have one vote
and upon a poll each share shall have one vote.
4. Use Of Cash
Cash and assets readily convertible to cash
held by the Company for the reporting period
were used in a way consistent with its business
strategy and objectives.
73
Pure Foods Tasmania Pty Ltd | 2021 Annual Report
Corporate Directory
Malcolm McAully
Non-Executive
Chairman
Michael Cooper
Managing Director
and CEO
Alexander
“Sandy” Beard
Non-Executive Director
Ken Fleming
Non-Executive Director
Justin Hill
Company Secretary
Board of Directors
Registered Office
Share Registry
Solicitors
2/179 Murray Street
Hobart Tasmania 7000 Australia
Automic Registry Services
Level 2, 267 St Georges Terrace
Perth Western Australia 6000
Australia
Postal Address
Auditor
100-104 Morninton Road
Mornington, Tasmania 7018
Australia
Wise Lord & Ferguson
160 Collins Street
Hobart Tasmania 7000 Australia
Page Seager
2/179 Murray Street
Hobart Tasmania 7000 Australia
Groom Kennedy Lawyers
and Advisers
Level 1, 47 Sandy Bay Road
Hobart Tasmania 7000 Australia
Corporate Office
Bankers
Stock Exchange Listing
100-104 Mornington Road
Mornington, Tasmania 7018
Tel: +61 (3) 6231 4233
National Australia Bank
Commonwealth Bank
of Australia
Pure Foods Tasmania Limited shares
are listed on the Australian Securities
Exchange, code PFT.
Company Website
www.purefoodstas.com
74
Corporate DirectoryPure Foods Tasmania Pty Ltd | 2021 Annual ReportPure Foods Tasmania Pty Ltd | 2021 Annual Report 75
Corporate DirectoryPure Foods Tasmania Pty Ltd | 2021 Annual Report Woodbridge, Tasmania
Pure Foods Tasmania Pty Ltd
Level 2 / 179 Murray Street,
Hobart, Tasmania 7000
Phone: +61 (3) 6231 4233
Email: office@purefoodstas.com
www.purefoodstas.com