2020
ANNUAL REPORT
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1
CORPORATE DIRECTORY
BOARD OF DIRECTORS
Craig Treasure - Non-Executive Chair
Jane Bennett - Managing Director and CEO
Roger McBain - Non-Executive Director
Ben Swain - Non-Executive Director
COMPANY SECRETARY
Janelle O’Reilly
REGISTERED OFFICE
52-54 Tamar Street
Launceston Tasmania 7250 Australia
Telephone:
Facsimile:
Website:
+ 61 3 6331 6983
+ 61 3 6256 9251
www.tasfoods.com.au
POSTAL ADDRESS
Po Box 425
Launceston Tasmania 7250 Australia
SHARE REGISTRY
Link Market Services
Level 12, 680 George Street
Sydney New South Wales 2000 Australia
Telephone: + 61 2 8280 7100
+ 61 2 9287 0303
Facsimile:
TasFoods Limited
ACN 084 800 902
AUDITOR
PricewaterhouseCoopers
2 Riverside Quay
Southbank Boulevard
Southbank Victoria 3006 Australia
SOLICITORS
HWL Ebsworth
Level 26, 530 Collins Street
Melbourne Victoria 3000 Australia
Groom Kennedy Lawyers and Advisers
Level 1, 47 Sandy Bay Road
Hobart Tasmania 7000 Australia
BANKERS
Australia and New Zealand Banking Group
Bendigo Bank
STOCK EXCHANGE LISTING
TasFoods Limited shares are listed on the Australian
Securities Exchange, code TFL
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 2
tasfoods.com.au
CONTENT
Corporate Directory
Who We Are
Chairman’s Report
Managing Director & CEO Report
Operating & Financial Review
• Poultry Division
• Dairy Division
• Corporate Division
• 2021 Outlook
• Risk
Board of Directors
Executive Team
Directors’ Report
02
04
08
10
14
15
18
21
23
25
28
29
30
50
Financial Report
• Consolidated Statement of Profit & Loss
and Other Comprehensive Income
51
• Consolidated Statement of Financial Position 52
• Consolidated Statement of Changes In Equity 53
• Consolidated Statement of Cash Flows
54
• Notes to Financial Statements
• Directors’ Declaration
• Independent Auditor’s Report
Shareholder Information
101
94
93
55
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 3
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 3
We believe
life is better
accompanied
by great tasting
food sourced
with authentic
provenance
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 4
We are building
a portfolio of
leading food and
beverage brands
that leverage
the natural
advantages of
Tasmania and
its reputation
for fine food
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 5
We deliver
the essence
of Tasmania
to the table
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 6
Our diverse
customer
base enables
us to deliver
the essence
of Tasmania
to where our
consumers
choose to
shop and eat
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 7
CHAIRMAN’S
REPORT
On behalf of the Board of Directors and
Management of TasFoods Ltd, I am pleased
to present to you the Annual Report for the
financial year ended 31 December 2020.
Despite a very challenging year for TasFoods,
we ended the year with a strong cash balance
and achieved earnings growth since August.
This mid-year turn-around reflected the rapid
response of our team to dramatically changing
production, sales and distribution conditions, and
provides the momentum required to successfully
implement our new strategic plan in 2021.
The COVID pandemic created a difficult trading
environment, particularly from April until July,
with significant volatility in market demand that
negatively impacted poultry gross margins, cheese
and wasabi sales. Poultry sales stabilised and
gross margins returned to pre-COVID levels from
August, contributing to an overall sales growth of
more than 10 per cent in the second half of the
year compared to the same period in 2019.
The economic uncertainty experienced in the first half
of 2020 led the company to recognise an impairment
expense of $3.5 million, comprising goodwill
impairment of $2 million in the poultry division
and $1.5 million in the dairy division. Due to market
uncertainty at the time, we adopted a conservative
approach to the underlying impairment calculations.
The write-down was a statutory accounting
adjustment only and does not impact the company’s
future trading potential, nor its cashflow position.
“Despite a very challenging year for TasFoods,
we ended the year with a strong cash balance
and achieved earnings growth since August.”
CRAIG TREASURE NON-EXECUTIVE CHAIRMAN
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 8
CHAIRMAN’S
REPORT CONT.
During the first half of the year, we also recorded
a decrease of $1.18 million in the fair value of the
wasabi crop. This write-down was due to the
COVID-induced closure of premium restaurants
and the corporate event catering sector of the
food service market, directly impacting the sale
of fresh wasabi products, which made up 73% of
total wasabi sales. The write-down did not impact
the company’s cash position, nor did it impact the
biomass of the crop available for future sales.
The Board of Directors was renewed in 2020,
with two new directors appointed on 4 June - Ben
Swain as Non-Executive Director and me in the
position of Chair. Previous Executive Chairman
Shane Noble resigned from the Board in July
and Non-Executive Director Alexander (Sandy)
Beard resigned in October. I would like to thank
both Shane and Sandy for their contribution to
TasFoods during the years of their directorships.
With a refreshed Board in place, and with our
management team, we developed a new strategic plan
for the company, which was released in December.
We remain committed to our strategic vision – to
build a portfolio of leading food and beverage
brands that leverage the natural advantages of
Tasmania and its reputation for fine food. Our focus
for growth in 2021 is to accelerate sales growth of
our Super Premium and Luxury Everyday brands,
particularly through distribution expansion into
interstate markets and new product development.
In August 2020 we announced an equity raising
which raised $4.1 million, before costs, from the issue
of 48.6 million fully paid ordinary shares, through a
combination of a Placement and Entitlement Offer.
The equity raising was completed in October
2020. Proceeds from the equity raising will be
used to support initiatives identified in the new
strategic plan, including strategic acquisitions.
A further equity injection of $3.0 million to support
the company’s strategic growth objectives for
its poultry and dairy operations was received in
November 2020 through the issue of 30 million
new shares to AgFood Opportunities Fund, a
fund managed by AgFood Fund Pty Ltd.
I would like to thank the management team for its
rapid response to the pandemic outbreak and for
implementing COVID-safe practices across the
business operations that supported full operational
activity within our two largest poultry and dairy
processing operations during the four-week hard
lockdown of North West Tasmania in April/May.
Our business operations have rebounded from
the initial challenges of the COVID-influenced
market volatility. Monthly operating EBITDA has
been positive for every month since August and
we expect this positive trading position to continue
into 2021. The equity injections of 2020 will
support the company in implementing initiatives
identified in the new strategic plan, adopted in
December, which will support sales revenue growth
and improvements to gross margins in 2021.
Craig Treasure. Non-Executive Chair
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 9
MANAGING DIRECTOR
& CEO REPORT
2020 was a challenging year for the business and
for our people as the COVID pandemic impacted
both the economy and the physical movement
of people and products. TasFoods experienced
significant disruption in the second quarter of
the year with the COVID-influenced closure of
the Pyengana Dairy Café, a significant reduction
in wasabi and cheese sales as a result of the
closure of food service markets, and volatility
in market demand for chicken products.
I am very proud of the way our team responded
to the many challenges of 2020 and particularly
their implementation of a COVID-safe work
environment. Our two largest processing operations,
Nichols Poultry and Betta Milk, are located in
North West Tasmania, which entered Australia’s
first community Stage 4 lockdown on 12 April
for four weeks. Our teams rapidly developed an
extensive range of safe work practices and reporting
processes that enabled our sites to remain fully
operational, delivering perishable, short shelf-life
food to all our customers, in full and on time.
We have maintained our COVID-safe work
environment, which has created some additional
costs for operations as a result of new daily
cleaning and sanitation processes, the purchase
of personal protective clothing, and rental
costs associated with hiring demountable
buildings to provide additional lunch rooms and
portable toilet facilities that have supported the
segregation of work groups on our largest sites.
“Our brands embody the pyramid of consumer needs and
reflect a relevant essence of Tasmania at each level.”
JANE BENNETT MANAGING DIRECTOR & CEO
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1 0
MANAGING DIRECTOR
& CEO REPORT CONT.
FINANCIAL PERFORMANCE
FY 2020
FY 2019
Dairy
$’000
Poultry
$’000
Corporate
and Other
$’000
Total
$’000
Dairy
$’000
Poultry
$’000
Corporate
and Other
$’000
Total
$’000
Change
$’000
Change
%
29,617
37,311
508
67,436
15,415
35,176
514
51,105
16,331
(28,247)
(38,344)
(6,105)
(72,696)
(14,392)
(32,901)
(4,969)
(52,262)
(20,434)
32%
39%
1,370
(1,033)
(5,597)
(5,260)
1,023
2,275
(4,455)
(1,157)
(4,102)
-354%
Revenue
Expenditure
EBITDA
Less Non-operating Items:
Acquisition Costs
Movement in Fair Value
-
(38)
-
(15)
(15)
(107)
( 1,154 )
(1,300)
Impairment Expense
(1,500)
(2,000)
-
(3,500)
Operating EBITDA
2,908
1,074
(4,427)
(445)
GP Margin
NPAT
35%
20%
27%
(6,407)
Government responses to the emerging COVID
pandemic from March resulted in the closure of
segments of our market during the second quarter.
The business responded quickly to the changed
market conditions at this time, working closely
with customers to pivot sales to emerging markets.
The changes made in this period helped generate
a strong second-half financial performance,
achieving a Group operating EBITDA of $0.677
million. This enabled the Group to report a $1.384
million, or 76%, improvement in operating EBITDA
for the full year over FY 2019, lifting the result
to negative $0.445 million. Positive operating
EBITDA was reported for each quarter except Q2
2020, which was negatively impacted by market
volatility associated with the COVID pandemic.
-
37
-
986
34%
-
439
-
(497)
692
-
(497)
1,169
-
482
97%
1,835
(4,650)
(1,829)
1,384
22%
25%
(3,459)
76%
2%
The impairment expense of $3.5 million plus the
decline of $1.2 million in the fair value of the wasabi
crop, both recognised in June, contributed to the
full-year financial result of a net loss of $6.41 million.
The impairment of goodwill and the write-down of the
wasabi biological asset value did not affect the cash
position of the company, which was boosted by two
equity injections, totalling $7.1 million, in the second
half of the year. We ended 2020 in a strong cash
position with cash holdings of $7.24 million and total
available funds of $9.10 million.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1 1
MANAGING DIRECTOR
& CEO REPORT CONT.
TOTAL REVENUE ($’000)
REVENUE BY DIVISION
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
2016
2017
2018
2019
2020
Sales revenue for 2020 grew to $66.911 million,
which was 32% up on the 2019 revenue of $50.69
million. This represented a 10% organic growth
after adjusting for Betta Milk, which was acquired
on 31 July 2019. Our two major operating divisions
both achieved sales revenue growth, but the
poultry division revenue was subdued by COVID-
influenced market volatility in the second quarter.
Poultry sales represented 55% of total sales
revenue, down from 69% of total sale revenue
in 2019. Dairy sales revenue grew to 44% of total
sales revenue after the first full year of Betta Milk
ownership, up from 30% of sales in 2019.
Sales to interstate markets grew by 25% for
the year through a combination of increased
volume to existing customers, reflecting the
introduction to market of new product ranges
and the acquisition of new customers. Growth in
interstate markets will remain a focus in 2021.
1%
44%
55%
Poultry
Dairy
Wasabi & Other
STRATEGY
We released a new strategic plan in December,
continuing our commitment to our strategic vision
to build a portfolio of leading food and beverage
brands that leverage the natural advantages of
Tasmania and its reputation for fine food, to deliver
the essence of Tasmania to the table. Our ‘house
of brands’ strategy ensures that every brand we
develop or acquire is able to deliver a relevant element
of Tasmania’s essence to meet the expectations
of a variety of consumers. In recognition of our
diverse customer base, our strategy aims to
enable the essence of Tasmania to be delivered to
where our consumers choose to shop and eat.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1 2
MANAGING DIRECTOR
& CEO REPORT CONT.
DIVERSIFIED BRAND & CHANNELS TO MARKET
Our brands embody the pyramid of consumer needs and reflect a relevant essence of Tasmania
at each level. Our diversified customer base enables us to deliver the essence of Tasmania
to where consumers choose to shop and eat.
SUPER
PREMIUM
EVERYDAY
LUXURY
CORE EVERYDAY
VALUE
Brands that reflect artisan provenance and
Tasmanian heritage, targeted at food lovers
seeking provenance behind the product.
Brands that provide a piece of Tasmanian
indulgence for everyday life, targeted at
national retail and export markets.
Brands that support loyal Tasmanian markets
with local products providing profitable
volume to underpin the operations.
Brands that utilise waste streams
or generate inputs to high value brands,
targeted at value customers.
TASSIE TASTE
RETAIL
Retail is a core channel
to consumers as it
remains the most
convenient format to
purchase food for
home consumption
DISTRIBUTORS
Distributors are an
important link in the
supply chain for
perishable goods,
particularly for
interstate markets
FOOD SERVICE
Direct supply to
businesses preparing
and selling food supports
deeper understanding
of products and their
attributes
CONSUMER DIRECT
Direct engagement with
consumers provides
unique customer insights
and builds relationships
that foster brand
champions
MARKETING
To support the growing demand for online purchasing,
we redeveloped our online stores and websites
to improve the shopping experience and better
reflect the range of brands and products. These
changes, combined with an increased digital media
spend that focused on promoting special event
purchasing opportunities, resulted in a growth of
308% in online sales for the second half of the year.
We have redeveloped the TasFoods logo and brand
identity to support our vision and purpose. The new
branding is being launched with this annual report.
Jane Bennett. Managing Director & CEO
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1 3
OPERATING
& FINANCIAL
REVIEW
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1 4
POULTRY
DIVISION
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1 5
POULTRY DIVISION
Sales revenue for the poultry division grew by
6% in 2020 to $37.03 million. Both revenue
and gross margin were impacted throughout
the second quarter by a national oversupply
of fresh chicken, stemming from Government
restrictions that limited the operations of quick-
service restaurants and closed much of the
food-service sector from March to June.
The unprecedented volatility in fresh chicken
demand nationally during this period, combined
with a significant temporary drop in pricing and
higher operating costs, resulted in a decline of
2% in full-year gross margin, and in operating
EBITDA for the poultry division from $1.84
million in 2019 to $1.07 million in 2020.
POULTRY SALES REVENUE ($’000)
NICHOLS POULTRY
WAS ESTABLISHED
IN THE EARLY 1980S.
THE BUSINESS HAS
GROWN TO BECOME ONE
OF THE MOST TRUSTED
AND RESPECTED MEAT
BRANDS IN TASMANIA.
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$
2016
2017
2018
2019
2020
2016
2017
2018
2019
2020
$400
To minimise exposure to COVID-influenced market
volatility, our poultry division reduced field inventory
in the second quarter, which reduced the volume of
product processed during the second half of the year.
This limited revenue growth for the second half to
only 5% above revenue in the previous corresponding
period, down from 7% revenue growth in the first half
of 2020. A return to more stable market demand in
the second half resulted in a 21% improvement in the
EBITDA contribution of the poultry division over the
first half and a 2% improvement in gross margin.
$200
$300
$250
$350
$150
$100
$50
$
2016
2017
2018
2019
2020
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1 6
POULTRY DIVISION CONT.
The safety of our employees is a key priority for
TasFoods. As a meat processing facility, our poultry
division responded quickly to the COVID pandemic
situation in March. COVID management plans were
implemented across the business and these remain
in place and are being improved as new information
emerges. On-going measures implemented at
Nichols Poultry are designed to ensure COVID-safe
work practices are maintained while mitigating
supply chain disruption. These include:
•
•
•
•
•
•
•
•
Removal of all non-essential employees
from site to work from home
Non-essential visitors not permitted on site
Provision of protective equipment to employees
Temperature testing of employees during
any period of community transmission
Payment of all employees awaiting
COVID test results
COVID-specific daily cleaning
and sanitation programs
Additional staff facilities to allow
for isolation of work groups
Identification of social and commuting
groups within the workforce to ensure
employees likely to have contact outside of
work remain in contained work groups.
We have worked closely with customers and suppliers
throughout the year to manage supply-chain risks
and to implement improved procedures as new
information emerges. To date, we have no employees
who have tested positive to COVID-19 and our
operations have been able to remain fully operational.
Sales of premium chicken under the Nichols Ethical
Free-Range brand continued to increase throughout
2020, achieving 14% growth over 2019. Markets for
premium chicken prior to COVID were primarily
premium interstate restaurants that we reached
through distribution partners. Our sales team worked
closely with our distribution partners to redevelop
the premium product offering to suit emerging online
sales platforms being developed by customers.
Growth in the premium chicken offering
contributed to a 45% increase in poultry
sales to interstate markets in 2019.
A range of new ready-to-cook products were released
during the second half of 2020 to meet the growing
consumer preference for convenience. The new
products contributed to a 19% increase in sales value
for the Nichols Kitchen ready-to-cook range in 2020.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1 7
DAIRY
DIVISION
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1 8
DAIRY DIVISION
Our dairy division established its position as a
key pillar of profitability in 2020, reporting a
strong financial contribution at both the revenue
and EBITDA levels. Sales revenue for the dairy
division grew by 92% to $29.50 million, up
from $15.38 million in 2019. Organic growth,
after adjusting for the acquisition of Betta Milk
on 31 July 2019, was 17%, with revenue growth
achieved across each of the dairy brands.
$40,000
$35,000
2016
2017
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$
$400
$350
$300
$250
$200
$150
$100
$50
$
2018
2019
2020
THE DAIRY DIVISION
HAS THREE CENTRES
OF EXCELLENCE;
• BETTA MILK BURNIE –
FRESH MILK BOTTLING
• KINGS MEADOWS DAIRY –
SPECIALTY CREAMS,
BUTTER AND FRESH
FERMENTED PRODUCTS
• PYENGANA DAIRY –
CHEESE AND
TOURISM CAFE
2016
2017
2018
2019
2020
The dairy division achieved an EBITDA contribution
of $2.91 million, which was a 195% increase on $0.99
million in 2019. The synergies delivered through
the acquisition of Betta Milk and a 9% drop in
farmgate milk pricing in the second half-year were
the major contributors to the improved result.
DAIRY SALES REVENUE ($’000)
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$
2016
2017
2018
2019
2020
The strategy to streamline our dairy processing
sites into individual Centres of Excellence was
delayed by COVID-related issues until June. The
Kings Meadows facility now focuses on producing
premium creams, butter and fresh, cultured
dairy products. The Betta Milk facility in Burnie
now bottles all fresh milk across the brands. Our
cheese-making site remains the Pyengana Dairy
facility in North East Tasmania. Milk and cream
supplies are shared across the sites as required.
The concentration of milk bottling into the Betta
Milk Burnie site, and growth in sales across
the brands, has resulted in a 50% increase in
the volume of milk being processed there.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1 9
DAIRY DIVISION CONT.
This has been achieved through a move to five day-
a-week processing and a staffing increase of one
processing operator. A number of small capital
investments were made on the site to increase milk
storage capability and improve operational efficiency.
Changes made to the dairy distribution and logistics
operations to accommodate the 50% increase
in volume of milk being distributed through the
network have resulted in improved efficiencies
and reduced costs.
Pyengana Dairy cheese sales were significantly
impacted in the second quarter when restaurant
customers were closed and home consumption of
premium cheese reduced due to a lack of entertaining
opportunities. We worked closely with customers to
develop alternative sales options for cheese products
and saw significant growth in cheese sales during
the second half, reflecting sales to new outlets that
included emerging online cheese stores and our own
online store.
Sales revenue for the Pyengana Dairy Café was 29%
down from 2019 results. Government responses to
the COVID outbreak in March led to the closure of the
café from mid-March to July. When it reopened in July,
we operated with reduced opening hours owing to
lower regional visitation while the Tasmanian border
remained closed.
It is anticipated that the café will continue to
experience lower sales revenue until national and
international travel and tourism fully resumes.
Cheese sales through the online store have increased
dramatically, particularly since mid-year.
Sales for the Meander Valley Dairy cream range grew
significantly during the second half-year following
the introduction of three new product lines in 150
premium Woolworths stores. Two flavoured creams
were released for Christmas, available from 850
Woolworths stores and independent retail outlets
nationally. These contributed to interstate sales
growth of 22% during the second half of the year.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 2 0
CORPORATE
DIVISION
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 2 1
CORPORATE DIVISION
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$
2016
2017
2018
2019
2020
2016
2017
2018
2019
2020
WASABI SALES REVENUE ($’000)
$400
$350
$300
$250
$200
$150
$100
$50
$
2016
2017
2018
2019
2020
The change in market conditions since the start of
COVID and the resulting change in product sales
mix necessitated a review of the crop valuation at
the half year in June, which resulted in a decrease
in fair value of the wasabi biological assets of $1.2
million. This write-down did not impact the biomass
of the wasabi crop available for future sale.
A number of industrial powdered wasabi customers
temporarily ceased operations during the middle
of the year but resumed purchasing wasabi powder
in the last few months. Strong sales through
our online wasabi shop were experienced in the
second half-year and have continued into 2021.
Operating EBITDA for the corporate division
improved by 5% to negative $4.43 million.
The corporate division includes all of the corporate
costs along with the shared service functions of
the business such as finance, sales and marketing,
HR and WHS management. Employment costs
in the Corporate Division for 2020 remained
consistent with 2019 levels. A strong focus on cost
control throughout the year across the division
contained expenditure to essential services and
activities that would deliver short term outcomes.
SHIMA WASABI
Wasabi sales were badly impacted by the COVID
pandemic. Sales for Shima Wasabi have historically
comprised 73% fresh wasabi, made up of the various
components of the plant, including stem, leaves
and flowers. These products have been sold across
Australia, predominantly to high-end restaurants
and food service catering for corporate events.
These markets were closed nationally during the
second quarter and have remained volatile in
capital cities with the occurrence of further COVID
outbreaks. The corporate catering market will
not return until mass gatherings are permitted.
Overall, wasabi sales declined by 17% for 2020
after dropping by 28% in the first half. The business
worked with customers from April to redirect sales
to retail and online markets, with a strong focus
on fresh stems and powdered product. A unique,
new, ready-to-use wasabi paste made from real
wasabi was launched into retail markets in the
fourth quarter to provide a user-friendly option for
customers seeking an authentic wasabi flavour.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 2 2
2021
OUTLOOK
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 2 3
2021 OUTLOOK
The performance of the business in the second
half of 2020 demonstrated that TasFoods has
a strong foundation in the operating divisions of
dairy and poultry. Expanded product-ranging
achieved in the second half, and the launch
of new dairy and poultry product offerings in
2021, will support ongoing sales growth that
contributes to the profitability of the business.
Despite COVID-influenced border closures
throughout the year, the Tasmanian economy
continues to show resilience, and we anticipate
that Tasmanian consumers will continue to
support locally owned brands that they know
and trust. TasFoods’ stable of brands are known
and trusted by Tasmanian consumers and we
continue to see market growth from that loyalty.
Our focus for the poultry division in 2021 is to
continue to meet growing consumer demand for
convenience through additional ready-to-cook
products and the launch of a ready-to-eat range
of chicken products. New product development
work continues for these products, which will
be presented for retail review in 2021.
We are strengthening our Super Premium chicken
offering by investing in the continuing expansion
of capacity for our premium free-range offering.
This growth is targeted at meeting interstate
market demand for premium free-range poultry.
We will undertake a carbon audit of our poultry
operations during 2021 to identify areas of focus to
work towards producing a carbon neutral chicken.
Growth in demand for online sales is anticipated
to continue, with dairy and wasabi sales
dominating online purchases. A Digital Commerce
Manager will be employed in 2021 to further
expand the online offering and drive sales
growth through increased gifting events.
Our strategic focus for the dairy division in 2021
will be the continued growth of our Super Premium
and Everyday Luxury brands through new product
development and expanded distribution into
interstate and export markets. New products will be
presented to all retail category reviews for 2021.
The Board believes that the new strategy adopted
in December will support the long-term profitability
of TasFoods. The company has started 2021 with a
strong cash position that will support the execution
of the corporate strategy over the coming years.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 2 4
RISK
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 2 5
RISK CONT.
TasFoods is committed to the effective management
of risk to reduce uncertainty in the Group’s business
outcomes and to protect and enhance shareholder
value. There are various internal and external risks
that may have a material impact on the Group’s future
financial performance and economic sustainability.
The Company has a formalised Risk Management
Policy and Framework which operates across the
Group. The Policy provides high level direction,
establishes key principles and allocates responsibilities
to ensure TasFoods has an effective and efficient
system and process that will facilitate the identification,
assessment, evaluation and treatment of risks in order
to achieve strategic and performance objectives.
A copy of the Risk Management Policy can be
located on the Company’s website at http://
www.tasfoods.com.au/document_category/
corporate_governance/#investor_nav
During 2020 the Group complied with its Risk
Management Policy and Framework, ensuring all
risks were regularly reviewed and risk registers were
updated for new risks and changes to existing risk
profiles. Identified risks remain relatively stable, with
no expectation of increases or decreases in the
foreseeable future unless specifically noted below.
The material business risks which may have an effect
on the financial performance of the Group are:
SUPPLY RISK
Ensuring our input supply is secure, stable and reliable.
TasFoods is reliant on a number of key suppliers for
inputs such as hatchlings, milk, cream and chicken
feed. We have strong relationships and contracts
with our suppliers to ensure that quality, quantity
and price are stable. Where appropriate and able,
TasFoods is diversifying supply channels to reduce
risk levels and dependence on key suppliers.
PANDEMIC RISK
Ensuring the safety of our employees,
contractors and customers in a pandemic
environment as well as securing input supplies
and managing the impact of market volatility.
TasFoods operates on a number of different sites
with varying levels of pandemic impact risk. The
Group has developed site-specific multi-scenario
pandemic plans for each operational location that
respond to updated health, Government and industry
advice as well as emerging market conditions.
Each site plan prioritises the health and safety
of employees, site visitors and customers,
follows recommended advice from
Government and Health Officials relating to
pandemic safety measures including;
•
Removal of all non-essential employees
from sites to work from home;
•
•
•
•
•
•
•
Non-essential visitors not permitted
on processing sites;
Provision of relevant protective
equipment to employees;
Temperature testing of employees;
Payment of standard wages to all employees
awaiting COVID or other relevant test results;
Pandemic/COVID-specific daily
cleaning and sanitation programs;
Additional staff facilities provided on large work
sites to allow for isolation of work groups;
Identification of social and commuting
groups within the workforce to ensure
employees likely to have contact outside of
work remain in contained work groups.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 2 6
RISK CONT.
MARKET RISK
SAFETY RISK
Delivering on our customer promises
and growing our customer base.
Ensuring our products are safe for customers
and our staff are safe at work.
TasFoods has a number of large key customers and
the loss of one or more would have a detrimental
impact on the Group. TasFoods mitigates this
risk by investing in the quality of its relationships
with key customers, and ensuring we manufacture
product in accordance with our customer’s required
specifications and standards. The company continues
to grow and diversify its customer base.
In addition, TasFoods responds to changing customer
compliance requirements through the upgrading
of its facilities and operating processes. TasFoods
has also developed a point of difference in our
products which reduces the risk of substitution.
BIOSECURITY RISK
Minimising the risk of disease and infection impacting
our animals, manufacturing facilities and inputs.
Careful site management, biosecurity measures
and good animal husbandry and agricultural
management are used to manage TasFoods’ risk of
exposure to disease, infection and contamination.
Significant disease outbreaks may result in mass
mortality of livestock or loss of plants, having a
significant impact on saleable goods. Suppliers
undergo an approval process to ensure inputs
comply with product specifications. These are
internally and, where appropriate, externally
audited and monitored for compliance.
Food safety and workplace health and safety are
risks that must be managed by TasFoods at all times.
We have built strong quality and safety assurance
systems which are externally audited against
relevant standards., These systems are overseen
by highly skilled staff within a culture committed
to food and people safety. In addition, TasFoods
holds relevant insurances to further mitigate food
safety and workplace health and safety risks.
CLIMATE RISK
Minimising the risks to the business from
a changing climate that is contributing to
increased extreme weather events.
TasFoods operations are geographically dispersed
across Northern Tasmania which mitigates the impact
of any one climatic influenced event on its production
capabilities. Business continuity plans have been
established for each business operation that include
policies and procedures to manage biological assets in
extreme weather events to minimise the risk of losses.
Investment in irrigation infrastructure across
the Tasmanian agricultural landscape provides
certainty for crop inputs such as grain and dairy.
Drought or extreme weather events in other
regions of Australia may impact commodity
pricing for inputs to TasFoods operations.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 2 7
BOARD OF
DIRECTORS
TasFoods’ Board and Management Team is responsible for the strategic direction of the company.
Overseeing the company’s operations, the team works closely to ensure that TasFoods meets not
only the demands of its shareholders, but provides a positive, innovative, and exciting working
environment for employees. To get in touch with any of the Management Team, you can reach them
via the contact page.
CRAIG TREASURE NON-EXECUTIVE CHAIR
Craig has had over 35 years experience in business and property development. His most recent
executive role was as CEO and Managing Director of ASX listed Villa World Limited (VLW). He is an
experienced ASX Director and has had many roles in private and public sectors as a business owner
and director. He is a Member of the Australian Institute of Company Directors and a Fellow of the Urban
Development Institute of Australia. He was appointed Non-Executive Chair on 4 June 2020.
ROGER MCBAIN NON-EXECUTIVE DIRECTOR
Roger led a Tasmanian based Chartered Accounting firm as a partner for 25 years, ultimately leading
the successful merging of the practice into Deloitte in 2010. Continuing as a partner at Deloitte for
a further five years, Roger delivered strong results to the Tasmanian practice, through his extensive
experience in a broad range of businesses with particular expertise in FMCG, agribusiness and mining
services. Roger currently pursues a number of private business interests including a water remediation
technology company, property development, tourism, hospitality and retail investments.
BEN SWAIN NON-EXECUTIVE DIRECTOR
Ben is a partner of Tasmanian law firm Murdoch Clarke. His practice areas include corporate advice, transactional
mergers and acquisitions, real property and private client matters. Ben is a director of various Pty Ltd companies
and trusts including the Elsie Cameron Foundation which has investment in entities including TasFoods Limited.
With a passion for Tasmania’s finest foods and produce and the companies that grow and produce them, Ben
gets great fulfilment from assisting, in his professional capacity, various Tasmanian food and agriculture business
to achieve their goals. He was appointed to the Board as a Non-Executive Director on 4 June 2020.
JANE BENNETT MANAGING DIRECTOR/CEO
Jane has over 20 year’s of experience as a senior executive in vertically integrated dairy businesses in Tasmania
and the UK. She has extensive past experience in regional provenance branding as Chair of the Tasmanian Food
Industry Council, Board Member of the Brand Tasmania Council and Nuffield Scholar studying Place of Origin
Branding. Jane has previously served on the Boards of Australian Broadcasting Corporation, CSIRO, and Food
Innovation Australia Ltd. She is a Fellow of the Australian Institute of Company Directors. Jane was named
2010 Tasmanian Telstra Business Woman of the Year and 1997 Australian ABC Rural Woman of the Year.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 2 8
BOARD OF
DIRECTORS CONT.
JANELLE O’REILLY COMPANY SECRETARY & GENERAL COUNSEL
Janelle is an expert in commercial law and corporate governance. She previously held the positions of
Company Secretary & General Counsel for ASX listed companies Crane Group Limited and Ruralco
Holdings Limited and was the General Manager of Governance for Tasmanian State owned Aurora
Energy Pty Ltd. Janelle is a Fellow of the Governance Institute of Australia and a graduate member of the
Australian Institute of Company Directors. She is a Director of not for profit association Colony 47.
EXECUTIVE TEAM
DONNA WILSON CHIEF FINANCIAL OFFICER
Donna is a qualified finance executive with over 20 years of experience working within public practice at
KPMG, ASX listed companies and at an executive level in statutory government authorities. Donna holds a
Masters of Business Administration in Corporate Governance and a Bachelor of Commerce. She is a member
of Chartered Accountants Australia and New Zealand and a graduate member of the Australian Institute of
Company Directors. Donna serves on the Finance Committee of the Scotch Oakburn College School Board.
DAVID BENNETT CHIEF SALES OFFICER
David has extensive experience in national sales, distribution and marketing of fast moving consumer
goods, specialising in premium dairy products. David holds a Bachelor of Laws (Honours) and
Bachelor of Commerce and has completed a Graduate Diploma in Legal Practice. He previously
served as Inaugural Chair of the North West Tasmanian Tourism, Cradle to Coast Tasting Trail.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 2 9
DIRECTORS’
REPORT
The Directors of TasFoods Limited (the Company) present the financial report on the Company and its controlled entities (the Group) for the
year ended 31 December 2020.
In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows:
DIRECTORS
Craig Treasure
Experience and qualifications
Non-Executive Chair
Craig joined the Board on 4 June 2020 and was appointed by the
Board as Non-Executive Chair on this date. Craig is a member of
the Audit and Risk Committee and Chair of the Nomination and
Remuneration Committee.
Craig has over 35 years experience in business and property
development. Craig’s most recent role was as the CEO and Managing
Director of ASX listed Villa World Limited. Craig is an experienced
ASX Director and has had many roles in the public and private
sectors as a business owner and director. He is a member of the
Australian Institute of Company Directors and a Fellow of the Urban
Development Institute of Australia.
Other Directorships in listed entities:
Eildon Capital Limited
Former Directorships in listed entities in the last 3 years:
Villa World Limited
Interest in shares and options:
721,861 Ordinary Shares
Jane Bennett
Chief Executive Officer (CEO) and Managing Director
Experience and qualifications
Jane was promoted to the position of CEO and Director on 18
February 2016, having previously been the Company’s Head of
Strategic Development and General Manager of Dairy. Jane was
appointed to build TasFoods into a successful branded food business
based on the unique attributes of Tasmania and its produce.
Jane has extensive experience in the premium branded food industry
in Tasmania, including as the former Managing Director of Ashgrove
Cheese, one of Australia’s leading premium dairy brands. Jane
also chaired the Tasmanian Food Industry Council for 8 years and
was a board member of the Brand Tasmania Council for 10 years.
Jane spent 4 years working as a non-executive director in a diverse
portfolio of companies including the CSIRO, Australian Broadcasting
Corporation and Tasmanian Ports Corporation. Jane is a fellow of the
Australian Institute of Company Directors.
Other Directorships in listed entities:
Former Directorships in listed entities in the last 3 years:
Nil
Nil
Interest in shares and options:
3,309,087 Ordinary Shares
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 3 0
DIRECTORS’
REPORT CONT.
Roger McBain
Non-Executive Director
Experience and qualifications
Roger was appointed to the Board as an Executive Director on 3
September 2015 and transitioned to a Non-Executive Director role on
1 July 2016. Roger is the Chair of the Audit and Risk Committee and is
a member of the Nomination and Remuneration Committee.
Roger led a Tasmanian based Chartered Accounting firm as a partner
for 25 years ultimately leading the successfully merging of the practice
into Deloitte in 2010 and continued as partner in Deloitte Private
until June 2015. With particular expertise in FMCG, agribusiness and
mining services, he delivered strong results to the Tasmanian practice.
Roger currently pursues a number of private business interests
including a water remediation technology company, property
development, tourism, hospitality and retail investments.
Other Directorships in listed entities:
Former Directorships in listed entities in the last 3 years:
Nil
Nil
Interest in shares and options:
3,271,026 Ordinary Shares
Ben Swain
Non-Executive Director
Experience and qualifications
Ben was appointed to the Board as a Non-Executive Director on 4
June 2020. Ben is a member of the Audit and Risk Committee and
the Nomination and Remuneration Committee.
Ben is a partner of Tasmanian law firm Murdoch Clarke. His
practice areas include corporate advice, transactional mergers and
acquisitions, real property and private client matters. Ben is a director
of various private companies and trusts including the Elsie Cameron
Foundation Pty Ltd which has an investment in entities including
TasFoods Limited.
Other Directorships in listed entities:
Former Directorships in listed entities in the last 3 years:
Nil
Nil
Interest in shares and options:
1,150,000 Ordinary Shares
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 3 1
DIRECTORS’
REPORT CONT.
Shane Noble
Experience and qualifications
Executive Chair 1 January 2020 to 4 June 2020
Non-Executive Director 4 June 2020 to 8 July 2020
Shane joined the Board on 30 November 2017 and became Chair
of the Board on 1 February 2018. On 4 June 2020 Shane became a
Non-Executive Director until 8 July 2020 when he resigned from the
Board. Shane was a member of both the Audit and Risk Committee
and the Nomination and Remuneration Committee.
Shane has extensive experience in the consumer foods and
agribusiness industries. In his most recent prior role, Shane was
the Executive Chair and Chief Executive Officer of Green’s Foods
Holdings which he successfully transformed through an integrated
plan of profit improvement initiatives and strategic acquisitions.
Other Directorships in listed entities:
Former Directorships in listed entities in the last 3 years:
Nil
Nil
Interest in shares and options:
3,968,055 Ordinary Shares (at time of resignation)
5,000,000 Share Options exercisable at $0.1884 by 30 November 2021
Alexander (Sandy) Beard
Non-Executive Director until 30 September 2020
Experience and qualifications:
Other Directorships in listed entities:
Former Directorships in listed entities in the last 3 years:
Sandy was appointed to the Board as a Non-Executive Director on 13
March 2018 and served until his resignation on 30 September 2020.
Sandy was the Chair of the Nomination and Remuneration
Committee and a member of the Audit and Risk Committee.
Sandy has over 20 years experience as a Director and investor
in assisting the growth of public and private companies. He was
previously the Managing Director and CEO of CVC Limited and has
extensive experience in a broad range of businesses with particular
expertise in food manufacturing. Sandy is an experienced Board
Director and has played important roles in delivering value to
shareholders over the past 20 years across a broad spectrum of
industries and stages of company growth. Sandy is a Fellow of the
Chartered Accountants Australia and New Zealand and is a Member
of the Institute of Company Directors.
Probiotec Limited (since 2018)
Centrepoint Alliance Limited (since 2020)
Pure Foods Tasmania (listed in 2020)
CVC Limited (1999 – 2019)
Eildon Capital Limited (1999 – 2019)
US Residential Fund (2017 – 2019)
Lantern Hotel Group (2018 – 2019)
Interest in shares and options:
500,000 Ordinary Shares (at time of resignation)
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 3 2
DIRECTORS’
REPORT CONT.
COMPANY SECRETARY
Janelle O’Reilly
Experience and qualifications
Company Secretary and General Counsel
Janelle joined TasFoods on 9 September 2016.
Janelle is an expert in commercial law and corporate governance.
She previously held the positions of Company Secretary & General
Counsel for ASX listed companies Crane Group Limited and Ruralco
Holdings Limited and was the General Manager of Governance for
Tasmanian State-owned Aurora Energy Pty Ltd where she was the
responsible for legal services, company secretariat, risk, compliance
and information management. She is a Director of Tasmanian not
for profit association Colony 47. She is a fellow of the Governance
Institute of Australia and a Graduate Member of the Australian
Institute of Company Directors.
MEETING OF DIRECTORS
The following table sets out the number of meetings of the Company’s Directors during the year ended 31 December 2020 and the number of
meetings attended by each Director during that time. Board Meetings were held in addition to the Company’s Annual General Meeting held on
23 July 2020.
Director#
Board Meeting
Audit And Risk Committee
Nomination & Remuneration
Committee
C Treasure
R McBain
B Swain
J Bennett *
A Beard
S Noble
Held during
time on Board
Attended
Held during
time on Board
Attended
Held during
time on Board
Attended
10
17
10
17
12
9
10
17
10
17
12
5^
5
9
5
9
9
4
5
9
5
9
9
4
0
5
0
5
5
5
0
5
0
5
5
4’
# Mr McBain and Ms Bennett were on the Board for the entire financial year. Mr C Treasure and Mr B Swain joined the Board on 4 June 2020
and Mr C Treasure became the Non-Executive Chair. Mr S Noble resigned from the Board effective 8 July 2020. Mr A Beard resigned from the
Board effective 30 September 2020.
^ Mr Noble was on a leave of absence for two Board meetings, ill for one and unable to attend one Board meeting.
’ Mr Noble was on a leave of absence for one N&RC Meeting.
* Ms Bennett is not a member of the Audit and Risk Committee or the Nomination and Remuneration Committee however attends the meetings
as an invitee.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 3 3
DIRECTORS’
REPORT CONT.
PRINCIPAL ACTIVITIES
The principal activities of the Group are the processing, manufacture and sale of Tasmanian-made food products.
OPERATING RESULTS AND FINANCIAL POSITION
A comprehensive review of operations is set out in Operating and Financial Review section of this Annual Report.
SIGNIFICANT CHANGE IN STATE OF AFFAIRS
In August 2020, the Company announced an equity raising to raise up to $4.13 million (before costs) via a placement and an entitlement offer of
3 new fully paid ordinary shares for every 20 existing fully paid shares at $0.085 per share. The equity raising was completed in October 2020.
In November 2020, the Company announced and completed an equity placement to the AgFood Opportunities Fund, a fund managed by
AgFood Fund Pty Ltd through the issuing of 30 million new shares at a price of $0.10 per share to raise $3.0 million.
The proceeds from both equity raisings were to support the implementation of the Company’s new strategic direction including funding
investment in equipment and infrastructure to support and grow new products, market support for new product launches, reducing the
Company’s overdraft facility and general working capital support.
There were no other significant changes in the state of affairs of the Group during the financial year, other than those outlined in the Operating
and Financial Review.
AFTER BALANCE DATE EVENTS
There are no matters or circumstances that have arisen since 31 December 2020, which have significantly affected the Group’s operations,
results or state of affairs, or may do so in future years.
REMUNERATION REPORT (AUDITED)
The Directors of TasFoods Limited present the Remuneration Report for the Company and its controlled entities for the financial year ended 31
December 2020, prepared in accordance with the requirements of the Corporations Act 2001 and its regulations.
This report outlines the remuneration arrangements in place for the Key Management Personnel (KMP) of the Group, which comprises all
Directors (executive and non-executive) and those other members of the TasFoods Executive who have authority and responsibility for planning,
directing and controlling the activities of the Group.
In 2020 the Company’s main activity related to developing Tasmanian branded food businesses (including Nichols Poultry, Betta Milk, Meander
Valley Dairy, Pyengana Dairy and Shima Wasabi), therefore, the details of KMP remuneration for 2020 relate to those activities and the current
remuneration structure.
This report has been prepared in accordance with section 300A of the Corporations Act 2001.
The Report has been set out as follows:
1.
Key management personnel
2. Role of the Nomination and Remuneration Committee
3.
Engagement of remuneration consultants
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 3 4
DIRECTORS’
REPORT CONT.
4. Remuneration strategy and framework
4.1. Executive remuneration schedule
4.2. Remuneration mix and linking pay to performance
4.3. 2020 fixed remuneration
4.4. 2020 short-term incentive arrangements
4.5. 2020 long-term incentive arrangements
4.6. KMPs 2020 short-term incentive arrangement results
4.7. Company financial performance
5.
Executive contracts
6. Non-executive directors’ remuneration structure
6.1. Current fee levels and fee pool
7.
Restrictions on long-term incentive plan shares prior to vesting
8. Remuneration tables – Directors and KMP executives
1. KEY MANAGEMENT PERSONNEL
The term Key Management Personnel refers to those persons having the authority and responsibility for planning, directing and controlling the
activities of the Consolidated entity, directly or indirectly, and includes any director of the Group (whether executive or otherwise).
The KMP of TasFoods for the year ended 31 December 2020 were:
Current Non-Executive Directors
Role
Appointment Date
Non-Executive Chair
4 June 2020
Non-Executive Director
3 September 2015
Non-Executive Director
4 June 2020
End Date
Former Executive and Non-Executive Directors
Role
Shane Noble 1
Alexander Beard
Executive Chair & Non-Executive Director
8 July 2020
Non-Executive Director
30 September 2020
Current KMP Executives
Role
Chief Executive Officer
Chief Financial Officer
27 June 2016
Appointment Date
3 September 2015
Craig Treasure
Roger McBain
Ben Swain
Jane Bennett
Donna Wilson
1 Shane Noble was Chair of the Board for the period 1 January 2020 until 4 June 2020 and a Non-Executive Director during the period
4 June 2020 to 8 July 2020.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 3 5
DIRECTORS’
REPORT CONT.
2. ROLE OF THE NOMINATION AND REMUNERATION COMMITTEE
The Committee has the responsibility for proposing candidates for consideration by the Board to fill casual vacancies or additions to the Board
and for devising criteria for Board membership and for reviewing membership of the Board, including:
• Assessment of necessary and desirable competencies of Board members;
• Review of Board succession plans to maintain an appropriate balance of skills, experience and expertise;
• As requested by the Board, evaluation of the Board’s performance and, as appropriate, developing and implementing a plan for identifying,
assessing and enhancing Director competencies; and
• Recommendations for the appointment or replacement of Directors.
Additional responsibilities of the Committee include reviewing and reporting to the Board on:
• Remuneration arrangements for the directors and senior executives of the Company (including, without limitation, incentive, equity and other
benefit plans and service contracts) to ensure remuneration suitably motivates executives to pursue the success of the Company through the
identification and profitable integration of growth opportunities;
• The review of the Audited Remuneration Report to be included in the annual report;
• Remuneration policies and practices for the Company generally;
• Superannuation arrangements;
• Board remuneration; and
• Such other matters as the Board may refer to the Committee from time to time.
3. ENGAGEMENT OF REMUNERATION CONSULTANTS
The Nomination and Remuneration Committee periodically engages independent external consultants to advise and assess KMP
remuneration arrangements. No advice was sought or provided by external advisors regarding the remuneration structure during the year
ended 31 December 2020.
4. REMUNERATION STRATEGY AND FRAMEWORK
The remuneration strategy sets the direction for the remuneration framework and drives the design and application of remuneration policies for
executives of TasFoods (including KMP).
TasFoods remuneration strategy and framework aims to attract and retain the best available people to run and manage TasFoods and align their
interests with our shareholders. The Board is committed to having a remuneration strategy and framework that rewards, motivates, and retains
executives, to achieve our business objectives and deliver shareholder returns.
TasFoods seeks to create alignment between the interests of its executives and shareholders. In the case of executives, by providing a fixed
remuneration component together with specific short-term and long-term incentives based on key performance areas affecting TasFoods
financial results.
In the case of non-executive directors, their remuneration does not contain performance-based or ‘at risk’ components. Non-executive directors
are paid fees and are encouraged to hold shares in TasFoods.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 3 6
DIRECTORS’
REPORT CONT.
4.1. Executive remuneration structure
The performance of the Company depends upon the quality of its executives. To prosper, the Company must attract, motivate and retain
highly skilled executives. To that end, the Company embodies the following principles in its remuneration framework:
• Provide competitive rewards to attract high calibre executives;
• Focus on creating sustained shareholder value;
• Place a portion of executive remuneration at risk by linking reward with the strategic goals and performance of the Company;
• Differentiate individual rewards commensurate with contribution to overall results and according to individual accountability,
performance and potential; and
• Ensure total remuneration is competitive by market standards.
Executives’ total remuneration package may be comprised of the following elements:
• Total Fixed Remuneration (base salary and superannuation)
• At-Risk Remuneration:
- Short-Term Incentive (STI)
- Long-Term Incentive (LTI)
Performance Condition
Remuneration Strategy/ Performance Link
Total Fixed
Remuneration (TFR)
• salary
• statutory
superannuation
Executive remuneration levels are market-aligned by
comparison to similar roles in ASX-listed companies
that have comparable market capitalisation,
revenues, and financial metrics relevant to the
executive’s role, executive’s knowledge, skills and
experience, and individual performance
Fixed remuneration is set to attract, motivate
and retain executives to ensure they can deliver
on TasFoods business strategy and contribute to
the TasFoods ongoing financial performance.
Short Term
Incentive (STI)
Annual incentive
opportunity
delivered in cash
Performance is measured against:
• Financial Group performance (i.e. sales revenue,
gross profit margin and EBITDA); and
• Non-Financial KPIs (i.e. WH&S (LTIFR)).
The STI plan applies more broadly beyond the KMP and
KPI’s vary depending on the executive’s level and role.
The STI plan is designed to encourage and reward
high performance and for this reason it places a
significant proportion of the executives’ remuneration
at-risk against targets linked to the Company’s
annual performance objectives and therefore
supports the alignment between the interests of
the executive, TasFoods and our shareholders.
Non-Financial KPIs also vary and depend on the
executive’s individual role and responsibilities.
Details of the specific measures and results
for 2020 can be found in section 4.6.
A combination of financial and non-financial
KPIs are used because the Board believes that
there should be a balance between short term
financial measures and more strategic non-
financial measures which in the medium to longer
term will support the growth of TasFoods.
The Board believes the STI provides the right measures
and appropriately challenging targets for participants.
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DIRECTORS’
REPORT CONT.
Performance Condition
Remuneration Strategy/ Performance Link
Long Term
Incentive (LTI)
LTI awards for grants are provided under the LTIP
approved by shareholders at the 2017 AGM.
An award of rights
with performance
assessed over 3 years
A three-year performance period provides a reasonable
period to align reward with shareholder return and
also acts as a vehicle to help retain the KMP, align the
business planning cycle, and provide sufficient time
for the longer-term performance to be achieved.
Due to the importance that the Board places
on an improvement in share price a single
measure based on share price growth share
price growth is chosen for rights granted.
4.2. Remuneration mix and linking pay to performance
The purpose of the LTI is to focus the executives’
efforts on the achievement of sustainable
long-term shareholder value creation and the
long-term financial success of TasFoods.
The provision of LTIP awards via performance rights
for ordinary shares in TasFoods encourages long-term
share exposure for the executives and, therefore, aligns
the long-term interests of executives and shareholders.
The Board recognises that each executive needs a significant portion of their remuneration to be at-risk and be linked to TasFoods annual
business objectives and actual performance.
Remuneration is linked to performance by:
• Requiring a proportion of the executives’ remuneration to vary with the short-term and long-term performance of TasFoods;
• Setting clear expectations on target and stretch performance objectives required for STI payments to ensure quality results; and
• Assessment of long-term performance through multiple measures to provide a complete picture of TasFoods performance and the increase in
shareholder value.
In addition, STI and LTI outcomes are not driven by a purely formulaic approach. The Nomination and Remuneration Committee holds
discretion to determine that awards are not to be provided or vested in circumstances where it would be inappropriate or would provide
unintended outcomes.
The relative weighting of fixed and variable components for target performance is set according to the scope of the executive’s role. For the KMP
the ‘at risk’ components for 2020 were as follows:
TFR
Short Term
Incentive
(At-Target)1
Short Term
Incentive
(Stretch)2
Long Term
Incentive
(Target
Opportunity)3
Long Term
Incentive
(Maximum
Opportunity)
Current KMP Executives
Jane Bennett
Donna Wilson
$262,800
$219,000
30.0%
25.0%
37.5%
31.3%
20.0%
17.5%
40.0%
35.0%
1. The short-term incentive is the total payment at-target as a % of TFR
2. KMP executives’ STIs have a stretch component that is designed to encourage above at-target performance as a % of TFR.
3. The long-term incentive refers to the value, of any grant as a % of TFR.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 3 8
DIRECTORS’
REPORT CONT.
14%
20%
66%
11%
18%
71%
TFR
STI
LTI
TFR
STI
LTI
Jane Bennett
Donna Wilson
4.3. 2020 fixed remuneration
TasFoods uses a total fixed remuneration (base salary and superannuation) for the purposes of calculating STI and/or LTI amounts.
Details of KMP executives’ total fixed remuneration for the year ended 31 December 2020 (and 31 December 2019) can be found in the
‘Remuneration Tables’ section of this report.
4.4. 2020 short-term incentive arrangements
The TasFoods Short Term Incentive Plan (STIP) rewards the CEO and those executives reporting to the CEO (including the KMP executives) for
performance against a pre-determined scorecard of measures linked to TasFoods short-term business performance (12 months) and individual
performance. The specific performance measures may vary from year to year depending on the business’s objectives but are chosen on the
basis that they will increase financial performance, market share and shareholder returns.
The relative weighting of fixed and variable components for target performance is set according to the scope of the executive’s role.
The key performance indicators and other targets against which performance can be measured for determining the proportion of ‘at-risk’
remuneration, are generally as follows:
• Financial – actual results compared to budgeted results for items including EBITDA, Sales Revenue, and Gross Profit Margin.
• Business growth – NPAT, earnings per share, price earnings ratio, new order value, acquisitions and new customers.
• Business management – cash generation, capital management, number of days sales outstanding in debtors, inventory turnover,
cost/revenue ratios, and staff utilisation.
• Strategy – development, approval, implementation, and achievement.
• People – Workplace Health and Safety (LTIFR).
Performance for each measure is assessed on a range from Target to Stretch. Stretch is set by the Board for each measure at a level that ensures
maximum STI is payable only where performance has truly and substantially exceeded expectations.
Details of the STI performance measures and targets for 2020 are set out in section 4.6.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 3 9
DIRECTORS’
REPORT CONT.
4.5. 2020 long-term incentive arrangements
Executive remuneration is determined by the Board, having consideration to relevant market practices and the circumstances of the Company
on an annual basis. It is the view of the Board that it is in the interests of Shareholders for selected Executives (the Participants) to receive part
of their total remuneration package (TRP) in the form of at-risk equity that will vest based on performance against indicators that are linked
to Shareholder benefit (refer to details in respect of the Vesting Conditions following) during a defined Measurement Period. This is also
considered best practice with regards to evident market practices. It should therefore be considered appropriate to provide some equity-based
remuneration to Executives of the Company instead of cash only.
The TasFoods Limited Rights Plan (TFLRP) was designed to form a significant component of at-risk remuneration and to create alignment
between Shareholder value creation and the remuneration of selected Executives. Grants under the TFLRP will facilitate the Company providing
appropriate, competitive and performance-linked remuneration to its Executives. The Board seeks to ensure that grants to Executives are made
at a level that will appropriately position their TRPs in the market, in accordance with the Company’s remuneration policies.
The key elements of the LTI plan are:
Participants: the CEO, executive KMP, and provision for additional participants but noting that the terms of their grants may be varied as
considered appropriate by the Board.
Instrument: The TFLRP uses Rights which are an entitlement to the value of a Share which may be settled either in the form of cash or a Share/
Restricted Share (a Share which is subject to disposal restrictions). Generally, it is expected that vested Rights will be satisfied in Restricted
Shares.
Maximum number of Performance Rights: The maximum number of Performance Rights is calculated by multiplying the total fixed
remuneration (TFR) of the Participant at the beginning of the financial year by the maximum LTI % and then dividing that figure by a 10-day
volume weighted average share price (VWAP) related to the time of calculation.
Measurement Period: The Measurement Period is the three financial years from 1 January.
Vesting Conditions: In order for Performance Rights to vest, the Participant must remain employed by the Company during the Measurement
Period (except in the case of a “Good Leaver”) and the performance conditions must be satisfied.
Retesting: Retesting is not permitted under the proposed terms of the Invitations.
Exercise Price: No amount will be payable by the Participant to exercise a Performance Right that has vested.
Cessation of Employment: Unless the Board determines otherwise, if a TFLRP Participant ceases employment and is classified as a “Bad Leaver”
(dismissal for cause, termination for poor performance or otherwise as determined by the Board), all unvested Performance Rights held by the
Participant will lapse. Unless the Board determines otherwise, if a Participant ceases employment for any other reason, including by reason of
death, disability, redundancy or retirement (“Good Leaver”), Performance Rights that were granted to the Participant during the financial year in
which the termination occurred will be forfeited in the same proportion as the remainder of the financial year bears to the full year. All remaining
Performance Rights for which Vesting Conditions have not been satisfied as at the date of cessation of employment will then remain “on foot”,
subject to the original Vesting Conditions. In the circumstances of any termination, any Restricted Shares that flow from the exercising of the
Rights would cease to be subject to disposal restrictions unless otherwise specified in the Invitation.
4.6. KMPs 2020 short-term incentive arrangement results
The measures and targets for the 2020 STI were set by the Board in March 2020 and were based on the priorities for 2020. The key
performance indicators were based upon stretch targets, with operating EBITDA set as a hurdle requirement for payment of the 2020 STI.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 4 0
DIRECTORS’
REPORT CONT.
The following table shows the Company’s 2020 STI performance measures and weightings as applied to KMP.
Performance Measure
Description
Weighting
Comment
Sales Revenue
Statutory gross sales revenue
Gross Profit Margin
Statutory gross profit margin excluding
biological asset movements
Operating EBITDA
WHS - Lost time injury
frequency rate (LTIFR)
Statutory EBITDA adjusted for
acquisition costs, capital raising
costs and incentive payments
LTIFR are the number of lost time
injuries within a given year relative to
the total number of hours worked in
the same period multiplied by 1 million
20%
20%
40%
20%
Growth in sales revenue is key to improved
performance and sustainability of the Group
The gross profit margin is seen as a
key outcome of sales effectiveness
and operational efficiency
EBITDA is seen as a key factor of trading
performance and operational sustainability.
Operating EBITDA is a hurdle
requirement for STI payments
Employees are a key asset to TasFoods and
their safety is paramount. A reduction in the
LTIFR is a key outcome of the WHS program
As a part of the COVID-19 budget review completed in April 2020, Management elected to forfeit any STI which may become payable
with respect to the 2020 financial year. Management’s decision to forfeit any STI payable in respect of 2020 was approved by the Board
in April 2020.
4.7. Company financial performance
The following table shows the relationship between KMP executives’ at-risk remuneration and TasFoods overall financial performance:
Financial Year Ended 31 December
Revenue ($000)
Net (loss)/profit before tax ($'000)
Net (loss)/profit after tax ($'000)
Share price at start of year
Share price at end of year
Share price growth
Dividends
Basic (loss)/earnings per share (cents)
Diluted (loss)/earnings per share (cents)
Average STI payout as a % at-target
for eligible KMP executives
2020
$67,436
($7,709)
($6,407)
$0.120
$0.120
0.00%
$0.00
(2.21)
(2.21)
N/A
2019
$51,105
($3,202)
($3,459)
$0.135
$0.120
-11.11%
$0.00
(1.48)
(1.48)
0%
2018
$38,920
($2,273)
($1,358)
$0.190
$0.135
-28.95%
$0.00
(0.67)
(0.67)
0%
2017
$31,112
($6,639)
($6,808)
$0.180
$0.190
5.56%
$0.00
(4.14)
(4.14)
20%
2016
$16,139
($2,611)
($2,577)
$0.410
$0.180
-56.10%
$0.00
(2.33)
(2.33)
0%
The average STI payout as a % of the at-target for eligible KMP executives is not applicable for the 2020 financial year as in April 2020
Management elected to forfeit any STI which may become payable with respect to the 2020 financial year. Managements decision to forfeit any
STI payable in respect of 2020 was approved by the Board in April 2020.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 4 1
DIRECTORS’
REPORT CONT.
5. EXECUTIVE CONTRACTS
The remuneration and other terms of employment for the executives are covered in formal employment contracts that have no fixed terms.
TasFoods may terminate an executive immediately for cause, in which case the executive is not entitled to any payment other than the value of
total fixed remuneration (and accrued entitlements) up to the termination date.
Name
KMP - Executive Director
Notice Period
by TasFoods
Notice Period
by Executive
Termination / Redundancy Payment
Jane Bennett
6 months
6 months
KMP Executives
Donna Wilson
6 months
6 months
The Company has discretion to make a payment
in lieu of all or part of the notice period.
If the CEO’s employment is terminated in circumstances where there has
been a fundamental change to her role, or if she is made redundant then
she is entitled to a severance payment equivalent to 12 months’ salary.
The Company has discretion to make a payment
in lieu of all or part of the notice period.
If the CFO’s employment is terminated in circumstances where there has
been a fundamental change to her role, or if she is made redundant then
she is entitled to a severance payment equivalent to 12 months’ salary.
6. NON-EXECUTIVE DIRECTORS’ REMUNERATION STRUCTURE
TasFoods’ remuneration policy for executive and non-executive directors aims to ensure that TasFoods can attract and retain suitably qualified
and experienced directors having regard to:
• the level of fees paid to executive and non-executive directors of other comparable Australian listed companies;
• the growing size and complexity of TasFoods operations;
• the responsibilities and work requirements of Board members; and
• the skills and diversity of Board members.
6.1. Current fee levels and pool
Within the aggregate amount of $400,000, non-executive director and the former Executive Chair’s directors’ fees are reviewed periodically
and determined by the Nomination and Remuneration Committee and the Board with reference to other ASX-listed companies that have
comparable market capitalisation.
A review of NED fees was undertaken in November 2017, based on the benchmark data of a market capitalisation comparator group. During the
2020 financial year non-executive and the former Executive Chair’s directors’ fees (inclusive of superannuation) were:
Director
Craig Treasure
Roger McBain
Ben Swain
Former Directors
Shane Noble
Alexander (Sandy) Beard
Base Fee
Committee Chair Fee
Total
70,000
45,000
45,000
250,000
45,000
-
-
-
-
-
70,000
45,000
45,000
250,000
45,000
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 4 2
DIRECTORS’
REPORT CONT.
As a result of the macroeconomic conditions affecting the Company’s businesses from COVID-19, the Directors resolved to reduce director fee
payments for the period 1 April 2020 to 30 June 2020 to 75% of the Base Fee.
Shane Noble’s Base Fee included an amount for working on acquisitions.
Directors may also be reimbursed for travel and other expenses incurred in attending to TasFoods affairs.
A non-executive director may be paid such additional or special remuneration as the Board decides is appropriate where a director performs
extra work or services. During 2020 Roger McBain was paid additional remuneration for performing the duties of Acting Chair while the
Executive Chair was taking a leave of absence. During this time Director McBain’s base fee increased from $45,000 per annum to $75,000 per
annum reflective of the additional Chair responsibilities undertaken during the period.
There are no retirement benefit schemes for directors other than statutory superannuation contributions, and executive chair and non-executive
directors’ remuneration must not include a commission on, or a percentage of, the profits or income of TasFoods.
7. RESTRICTIONS ON LTIP SHARES PRIOR TO VESTING
The Company prohibits executives from entering into arrangements to protect the value of unvested Long-Term Incentive awards. This includes
entering into contracts to hedge their exposure to performance rights over shares granted as part of their remuneration package. Adherence
to this policy is monitored informally on an annual basis where such awards exist by the Nomination and Remuneration Committee requesting
confirmation from each of the executives that no such activity has occurred.
The Company treats compliance with this policy as a serious issue and takes appropriate measures to ensure policy adherence.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 4 3
DIRECTORS’
REPORT CONT.
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TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 4 4
DIRECTORS’
REPORT CONT.
8. REMUNERATION TABLES – DIRECTORS AND KMP EXECUTIVES, CONT.
Table B: Shareholdings
Current Non-Executive
Directors
Craig Treasure
Roger McBain
Ben Swain
Former Executive Chair and
Non-Executive Directors
Shane Noble^
Alexander Beard^
Current KMP Executives
Jane Bennett
Donna Wilson
Year
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
Shares
held at
Start of Year
No.
-
2,844,370
2,199,000
-
3,968,055
3,000,000
-
-
2,877,466
2,175,472
-
-
Issued as
Remuneration
Share Buyback
Net other
changes
Shares
held at
End of Year
No.
721,861
721,861
No.
-
Not applicable
-
-
-
426,656
3,271,026
645,370
2,844,370
1,150,000
1,150,000
Not applicable
-
-
-
-
-
-
-
-
-
3,968,055
968,055
3,968,055
500,000
500,000
-
-
431,621
3,309,087
701,994
2,877,466
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
^ number of shares disclosed as being held at end of year is reflective of the number of shares held at the time of resignation.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 4 5
DIRECTORS’
REPORT CONT.
8. REMUNERATION TABLES – DIRECTORS AND KMP EXECUTIVES, CONT.
Table C: Movements during 2020 in performance rights or options over shares in the Company held, directly, indirectly or beneficially, by each
KMP, including their related parties.
Granted as
remuneration
Vested and
exercisable
Exercised
during the
reporting
period
Forfeited
Performance
Rights or
Options
held at
End of Year
Current Non-
Executive Directors
Craig Treasure
Roger McBain
Ben Swain
Former Executive
Chair and Non-
Executive Directors
Shane Noble
Alexander Beard
Current KMP
Executives
Jane Bennett
Donna Wilson
Year
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
Performance
Rights or
Options
held at
Start of Year
No.
-
-
2,500,000
-
-
5,000,000
-
-
-
-
-
-
-
-
2,775,913
-
4,502,972
772,941
1,509,718
-
967,250
542,468
No.
-
No.
-
Not Applicable
-
-
-
-
-
-
Not Applicable
No.
-
-
(2,500,000)
-
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,000,000
-
(2,002,972)
772,941
(2,500,000)
2,775,913
(967,250)
542,468
-
1,509,718
As a part of the COVID-19 budget review completed in April 2020, Management elected to forfeit the right to have performance rights granted
under the LTI plan in 2020. Management’s decision to forfeit performance rights to be granted under the LTI plan in 2020 was approved by the
Board in April 2020.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 4 6
DIRECTORS’
REPORT CONT.
8. REMUNERATION TABLES – DIRECTORS AND KMP EXECUTIVES, CONT.
Table D: Share-based payments granted as remuneration to KMP.
Year
Grant Date
Number
Granted
Value of
Performance
Rights or
Options Granted
Number
Vested
Percentage
of Grant
Forfeited
Current KMP Executives
Jane Bennett
Donna Wilson
2020
2019
2020
2019
Not Applicable
24-Oct-19
772,941
32,464
24-Oct-19
542,468
22,784
Not Applicable
-
-
0%
0%
As a part of the COVID-19 budget review completed in April 2020, Management elected to forfeit the right to any performance rights to
be granted under the LTI plan in 2020. Management’s decision to forfeit performance rights to be granted under the LTI plan in 2020 was
approved by the Board in April 2020.
INDEMNITY AND INSURANCE OF OFFICERS
The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director or executive, for
which they may be held personally liable, except where there is a lack of good faith. During the financial year, the Company paid a premium in
respect of a contract to insure the directors and officers of the Company against a liability to the extent permitted by the Corporations Act 2001.
The contract of insurance prohibits disclosure of the nature of liability and the amount of the premium.
INDEMNITY AND INSURANCE OF AUDITOR
The Company has not, during or since the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity
against a liability incurred by the auditor. During the financial year, the Company has not paid a premium in respect of a contract to insure the
auditor of the Company or any related entity.
ENVIRONMENTAL REGULATIONS
The Company is subject to usual Federal and State environmental regulations. TasFoods manufacturing sites are licenced with Council
and State authorities. The licences stipulate performance standards for all emissions (noise, air, odour, waste water etc), from the sites
as well as the frequency and method of assessment of emissions. The Company’s activities are in full compliance with all prescribed
environmental regulations.
SHARES OPTIONS AND PERFORMANCE RIGHTS
No share options or performance rights were granted during the financial year. Further details regarding performance rights and options granted
are contained within the Remuneration Report and in note 30.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of the Court under Section 237 of the Corporations Act 2001 to bring proceedings on behalf of the Company
or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any
part of those proceedings. The Company was not a party to any proceedings during the year.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 4 7
DIRECTORS’
REPORT CONT.
NON-AUDIT SERVICES
The Group may decide to engage its auditor on assignments additional to their statutory audit duties where the auditor’s expertise and
experience with the Group are important. Where auditors are engaged to perform non-audit services, the Directors are satisfied that the
provision of these non-audit services by the auditor (or by another person or firm on the auditor’s behalf ) is compatible with the general standard
of independence for auditors imposed by the Corporations Act 2001.
Details of amounts paid or payable to the Group’s auditor for audit and non-audit services provided during the year are set out below.
Auditors of the parent entity:
Auditing the financial report
Other assurance services
2020
$
178,900
-
178,900
2019
$
168,175
-
168,175
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is included at page 49 of the
Annual Report.
AUDITOR
PricewaterhouseCoopers continues in accordance with section 327 of the Corporations Act 2001. There are no officers of the Company who
are former audit partners of PricewaterhouseCoopers.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors support the principles of good
corporate governance. The Group continued to follow best practice recommendations as set out by the ASX Corporate Governance Council.
Where the Group has not followed best practice for any recommendation, explanation is given in the Corporate Governance Statement which is
available on the Company’s website at http://www.tasfoods.com.au/document_category/corporate_governance/#investor_nav
ROUNDING OF AMOUNTS
The amounts contained in this report and in the financial report have been rounded to the nearest thousand (where rounding is applicable)
under the option available to the company under ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. The
company is an entity to which the Class Order applies. Amounts in the directors’ report have been rounded off in accordance with the Class
Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.
Signed in accordance with a resolution of the Directors made pursuant to section 298(2) of the Corporations Act 2001.
On behalf of the Directors
Craig Treasure
Non-Executive Chair
26 February 2021
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 4 8
Auditor’s Independence Declaration
As lead auditor for the audit of TasFoods Limited for the year ended 31 December 2020, I declare that
to the best of my knowledge and belief, there have been:
(a)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b)
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of TasFoods Limited and the entities it controlled during the period.
Alison Tait
Partner
PricewaterhouseCoopers
Melbourne
26 February 2021
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
FINANCIAL
REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
50
Financial Report
• Consolidated Statement of Profit & Loss
and Other Comprehensive Income
51
• Consolidated Statement of Financial Position 52
• Consolidated Statement of Changes In Equity 53
• Consolidated Statement of Cash Flows
54
• Notes to Financial Statements
• Directors’ Declaration
• Independent Auditor’s Report
Shareholder Information
101
94
93
55
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 5 0
CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020
Revenue from operations
Other income
Fair value adjustment of biological assets
Impairment of goodwill
Raw materials used
Employment and contractor expense
Freight
Occupancy costs
Depreciation and amortisation
Finance costs
Travel and accommodation
Legal and professional fees
Marketing and event expenses
Repairs and maintenance
Research and development
Investment expenses
Other expenses
Loss before income tax
Income tax benefit/(expense)
Net Loss after tax for the year from continuing operations
Net profit after tax for the year from discontinued operations
Net Loss after tax for the year
Other comprehensive income
Items that may be reclassified to profit or loss in the future:
Other comprehensive loss net of tax
Total comprehensive income
Net profit for the period attributable to:
Non-controlling interest
Owners of TasFoods Limited
Total comprehensive income for the year is attributable to:
Non-controlling interest
Owners of TasFoods Limited
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Basic loss per share from continuing operations (cents per share)
Diluted loss per share from continuing operations (cents per share)
The above statement should be read in conjunction with the accompanying notes
Note
6
6
10
8
4
4
4
4
2020
$’000
66,911
526
(1,300)
(3,500)
(39,193)
(17,487)
(4,516)
(1,446)
(2,107)
(346)
(71)
(472)
(514)
(889)
(25)
(15)
(3,265)
(7,709)
1,302
(6,407)
-
(6,407)
2019
$’000
50,690
416
1,169
-
(29,224)
(15,264)
(3,385)
(971)
(1,839)
(261)
(147)
(292)
(396)
(638)
(29)
(497)
(2,533)
(3,202)
(256)
(3,459)
-
(3,459)
-
(6,407)
-
(3,459)
-
(6,407)
(6,407)
-
(6,407)
(6,407)
(2.21)
(2.21)
(2.21)
(2.21)
-
(3,459)
(3,459)
-
(3,459)
(3,459)
(1.48)
(1.48)
(1.48)
(1.48)
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 5 1
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
Current Assets
Cash and cash equivalents
Trade and other receivables
Biological assets
Inventory
Prepayments
Total Current Assets
Non-Current Assets
Property, plant and equipment
Right of use assets
Intangible assets
Biological assets
Deferred tax assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Borrowings
Lease Liabilities
Provisions
Total Current Liabilities
Non-Current Liabilities
Borrowings
Lease Liabilities
Provisions
Deferred tax liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed Equity
Reserves
Accumulated Losses
Total Equity
The above statement should be read in conjunction with the accompanying notes
Note
2020
$’000
2019
$’000
19
9
10
11
12a
12b
13
10
8
14
15
12b
16
15
12b
16
8
17
18
7,635
4,493
2,338
4,504
905
19,877
25,308
968
10,953
38
-
37,267
57,144
9,175
539
327
1,172
11,214
5,278
1,258
153
-
6,688
17,903
2,209
4,394
2,729
4,123
699
14,155
25,048
1,081
14,013
1,170
-
41,313
55,466
8,628
765
423
976
10,793
4,500
1,477
220
-
6,197
16,990
39,241
38,477
61,053
594
(22,407)
39,241
53,982
493
(15,998)
38,477
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 5 2
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
Contributed
Equity
$’000
Reserves
$’000
Accumulated
Losses
$’000
At 1 January 2019
Loss for the year
Other comprehensive income
Total comprehensive income for the year
Issue of shares
Share issue costs
Share-based payment expense
Adoption of AASB 16 Leases
As at 31 December 2019
At 1 January 2020
Loss for the year
Other comprehensive income
Total comprehensive income for the year
Issue of shares
Share issue costs
Share-based payment expense
As at 31 December 2020
46,354
-
-
-
8,000
(372)
-
-
53,982
53,982
-
-
-
7,134
(64)
-
61,054
390
-
-
-
-
-
103
-
493
493
-
-
-
-
-
101
594
Total
$’000
34,267
(3,459)
-
(3,459)
8,000
(372)
103
(63)
(12,477)
(3,459)
-
(3,459)
-
-
-
(63)
(15,998)
38,476
(15,998)
(6,407)
-
(6,407)
-
-
-
38,476
(6,407)
-
(6,407)
7,134
(64)
101
(22,406)
39,241
The above statement should be read in conjunction with the accompanying notes
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 5 3
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Interest paid
Expenditure incurred in the pursuit of acquisitions and investment opportunities
Income taxes received
Other
Net cash used in operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for other non-current assets
Proceeds from disposal of property, plant, and equipment
Net cash used in business combination
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Cost of issuing shares
Proceeds from borrowings and leases
Principal elements of lease payments
Transaction costs related to borrowings
Net cash provided by financing activities
Net (decrease)/increase in cash held
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Note
2020
$’000
2019
$’000
19
67,342
(68,225)
2
(339)
(15)
-
712
(523)
(1,082)
(16)
23
-
(1,075)
7,134
(125)
1,123
(732)
(1)
7,399
49,533
(50,030)
60
(252)
(498)
-
282
(904)
(3,357)
(28)
20
(11,423)
(14,788)
8,000
(531)
4,645
(954)
(1)
11,159
5,801
(4,533)
19
1,444
7,245
5,977
1,444
The above statement should be read in conjunction with the accompanying notes
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 5 4
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS
1.
GENERAL INFORMATION
The consolidated financial statements and notes represent those of TasFoods Limited and its Controlled Entities. TasFoods Limited is a
company incorporated in Australia, and whose shares are publicly traded on the Australian Securities Exchange (ASX).
The financial statements were authorised for issue on 26 February 2021 by the Directors of the Company.
All press releases and other information are available on our website www.tasfoods.com.au.
2.
SIGNIFICANT CHANGES IN THE CURRENT REPORTING PERIOD
In August 2020, the Company announced an equity raising to raise up to $4.13 million (before costs) via a placement and an entitlement offer of
3 new fully paid ordinary shares for every 20 existing fully paid shares at $0.085 per share. The equity raising was completed in October 2020.
In November 2020, the Company announced and completed an equity placement to the AgFood Opportunities Fund, a fund managed by
AgFood Fund Pty Ltd through the issuing of 30 million new shares at a price of $0.10 per share to raise $3.0 million.
The proceeds from both equity raisings were to support the implementation of the Company’s new strategic direction including funding
investment in equipment and infrastructure to support and grow new products, market support for new product launches, reducing the
Company’s overdraft facility and general working capital support.
There were no other significant changes in the state of affairs of the Group during the financial year.
A detailed discussion of the Group’s financial performance and position is included in the Operating and Financial Review on pages 14 to 27 at the
start of this Annual Report.
There have been no changes in accounting policies since the previous financial report at 31 December 2020.
3.
SEGMENT INFORMATION
The operating segments are based upon the units identified in the operating reports reviewed by the Board and executive management, and that
are used to make strategic decisions, in conjunction with the quantitative thresholds established by AASB 8 Operating Segments. As such, there
are three identifiable and reportable segments each of which are outlined below:
• The Dairy segment incorporates the Meander Valley Dairy, Pyengana Dairy and Betta Milk (Van Diemen’s Land Dairy) businesses, the assets
of which were acquired in September 2015, October 2017 and July 2019, respectively. In addition, the Dairy segment includes goat farming
operations which were acquired in June 2016. The Dairy segment primarily derives revenue from dairy processing activities including the
manufacture of premium fresh milk, cheese, cream and butter products. These products are sold under the Meander Valley Dairy, Pyengana
Dairy, Real Milk, Robur Farm Dairy, Betta Milk and Tassie Taste brands.
• The Poultry segment incorporates the net assets and business operations of Nichols Poultry Pty Ltd, which was acquired in June 2016. Revenue
is primarily derived by the poultry segment from the sale of poultry meat products sold under the Nichols Poultry, Nichols Ethical Free Range
and Nichols Kitchen brands.
• The Corporate and Other segment, which comprise:
- Corporate costs that are not directly attributable to operational business units, including Shared Service teams, which provide
administrative support to the operational production units in the areas of financial management, human resources, sales, marketing, brand
management, route to market, quality assurance and food safety, and work health and safety; and
- The net assets and business operations of Shima Wasabi Pty Ltd, which were acquired in June 2016.
Management measures the performance of the segments identified at the ‘net profit before tax’ level.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 5 5
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
3.
SEGMENT INFORMATION, CONT.
Consolidated - 2020
Revenue
Total segment sales revenue
Other income
Segment profit/(loss)
Profit after tax from discontinued operation
Loss before income tax expense
Income tax (expense)/benefit
Loss after income tax expense
Assets
Segment assets
Unallocated assets from continuing operations:
Total Assets
Total assets include:
Goodwill on acquisition of net assets
Liabilities
Segment liabilities
Deferred tax liability/(asset)
Total liabilities
Dairy
$’000
Poultry
$’000
Corporate
and Other
$’000
29,502
115
29,617
37,030
281
37,311
378
130
508
379
(2,272)
(5,816)
24,116
25,098
7,931
Total
$’000
66,911
526
67,436
(7,709)
-
(7,709)
1,302
(6,407)
57,145
-
57,145
2,770
1,137
-
3,907
5,109
11,061
1,732
17,903
-
17,903
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 5 6
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
3.
SEGMENT INFORMATION, CONT.
Consolidated - 2019
Revenue
Total segment sales revenue
Other income
Segment profit/(loss)
Loss before income tax expense
Income tax (expense)/benefit
Loss after income tax expense
Assets
Segment assets
Unallocated assets from continuing operations:
Total Assets
Total assets include:
Goodwill on acquisition of net assets
Liabilities
Segment liabilities
Deferred tax liability/(asset)
Total liabilities
Dairy
$’000
Poultry
$’000
Corporate
and Other
$’000
15,375
40
15,415
34,942
234
35,176
373
141
514
227
1,211
(4,640)
24,488
25,622
5,358
Total
$’000
50,690
416
51,105
(3,202)
(3,202)
(256)
(3,459)
55,467
-
55,467
3,820
3,137
-
6,957
5,370
10,130
1,490
16,990
-
16,990
Refer to note 13 and 24 for further detail regarding movement in goodwill on acquisition of net assets between 2019 and 2020 financial years.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 5 7
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
SHAREHOLDER RETURNS
4.
EARNINGS PER SHARE
Basic loss per share
Diluted loss per share
Net (loss)/profit from continuing operations attributable to the shareholders of TasFoods Limited
used in calculation of basic and diluted earnings per share for:
All operations
Basic
Weighted average number of ordinary shares outstanding during the period used
in the calculation of basic earnings per share
2020
Cents
(2.21)
(2.21)
2020
$’000
2019
Cents
(1.48)
(1.48)
2019
$’000
(6,407)
(3,459)
2020
Number
2019
Number
290,119,774
233,882,763
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
290,119,774
233,882,763
INFORMATION CONCERNING THE CLASSIFICATION OF SECURITIES
Potential ordinary shares:
(a) There were no options (other than those referred to in note 30) or other forms of potential shares on issue at 31 December 2020
(31 December 2019: Nil).
(b) Options granted (as referred to in note 30) are not included in the calculation of diluted earnings per share as the share price as at 31 December
2020 was lower than the exercise price. If the share price were to increase above the exercise price, any options exercised would have a dilutive
impact on the earnings per share.
RECOGNITION AND MEASUREMENT
Basic earnings per share is calculated as net profit attributable to shareholders, adjusted to exclude any costs of servicing equity (other than dividends) and
preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable shareholders, adjusted for:
• Costs of servicing equity (other than dividends) and preference share dividends;
• The after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and
• Other non-discretionary changes in revenues or expenses during the year that would result from the dilution of potential ordinary shares; divided by the
weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.
5.
DIVIDENDS TO SHAREHOLDERS
No dividends have been paid or declared during the year ended 31 December 2020 (31 December 2019: Nil).
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 5 8
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
PROFIT AND LOSS INFORMATION
6.
REVENUE
Revenue from continuing operations
Sales revenue
Other income
Interest received
Sundry income
RECOGNITION AND MEASUREMENT
Sales revenue
Accounting for wholesale sales of dairy, poultry and wasabi goods
2020
$’000
2019
$’000
66,911
50,690
2
524
526
53
363
416
The sale of dairy, poultry and wasabi goods is measured at the fair value of consideration received net of any trade discounts and volume rebates allowed.
The sale of dairy, poultry and wasabi goods represents a single performance obligation and accordingly, revenue is recognised in respect of the sale of
these goods at the point in time when control over the corresponding goods and services is 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).
Revenue is recognised when control of the goods transfer to the customer i.e when the goods have been delivered to a customer pursuant to a sales order.
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 criteria for acceptance
have been satisfied.
While such arrangements are rare, if an arrangement with a wholesale customer includes multiple performance obligations, the total revenues are allocated to
the separate elements of the contract, at the appropriate transaction price. In such cases, revenue will be recognised once each performance obligation is met.
Interest revenue
Interest revenue is recognised on a proportional basis using the effective interest rate method.
7. EXPENSES
Profit before income tax expenses includes the following specific expenses:
Employee benefits expense:
Salaries and wages
Temporary employees
Share based payments
Superannuation expenses (defined contribution)
Total employee benefits
Investment expense
2020
$’000
2019
$’000
15,510
595
101
1,281
17,487
15
13,845
280
103
1,036
15,264
497
Investment expense arises from costs relating to the identification of, and pursuit of investment and acquisition opportunities. This includes non-refundable
contractual payments to secure rights to exclusive periods of negotiation with third parties and associated costs.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 5 9
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
8.
INCOME TAX
(a) Income tax recognised in profit or loss:
Tax expense/(benefit) comprises:
Current tax (benefit)/expense
Deferred tax movements
Deferred income tax (benefit)/expense included in income tax expense comprises:
(Increase)/decrease in deferred tax assets
Increase/(decrease) in deferred tax liabilities
2020
$’000
2019
$’000
-
(1,302)
(1,302)
(981)
(321)
(1,302)
-
256
256
(179)
436
256
Reconciliation of income tax expense to proforma facie tax on accounting profit:
Loss before income tax expense
(7,709)
(3,202)
Tax benefit at Australian tax rate of 30% (2019: 30%)
Tax effect of amounts which are not deductible in calculating taxable income
Derecognition/(recognition) of prior year tax losses
Deferred taxes not recognised
Income tax (benefit)/expense for the period
(b) Income tax benefit recognised directly in equity during the period
Deferred tax arising from share issue costs
-
(2,313)
1,069
(58)
(1,302)
-
(1,302)
(38)
(38)
(961)
36
1,181
256
256
(159)
(159)
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 6 0
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
8.
INCOME TAX, CONT.
(c) Deferred tax balances
Taxable and deductible temporary differences arise from the following:
Gross deferred tax assets:
Provisions
Trade and other payables
Share issue expenses
Trade and other receivables
Property, plant and equipment
Intangibles
Tax Losses
Interest bearing liabilities
Acquisition costs
Lease liability
Gross deferred tax liabilities:
Biological assets
Inventory
Property, plant and equipment
Intangibles
Other
Net deferred tax asset/(liability)
Adjustment
Opening recognised for
prior period
Balance
$000
$000
Charged to
Income
$000
Charged
to Equity
$000
Closing
Balance
$000
375
41
370
6
(311)
22
1,345
351
-
-
2,200
(995)
(313)
-
(873)
(18)
17
-
-
-
-
-
24
-
-
-
41
-
-
(214)
(1,167)
-
23
(6)
(254)
(2)
27
(2)
1,129
(37)
96
7
981
465
21
(167)
-
2
-
-
38
-
-
-
-
-
-
-
38
-
-
-
-
-
416
35
153
4
(284)
20
2,498
314
96
7
3,260
(531)
(292)
(381)
(2,040)
(16)
(2,200)
-
(1,381)
(1,339)
320
1,302
-
38
(3,260)
-
(d) Tax losses
Unused tax losses for which no deferred tax asset has been recognised:
Capital losses
Revenue losses
Potential tax benefit at 30%
2020
$’000
-
27,622
27,622
2019
$’000
-
27,173
27,173
8,287
8,152
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 6 1
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
UNUSED TAX LOSSES
The Group has recognised tax losses in the year ended 31 December 2020 only to the extent of the Group’s taxable temporary differences.
After recognition of these losses the Group had a further $27.622 million of carry forward tax losses for which no deferred tax asset has been
recognised (31 December 2019: $27.173 million). The losses relate to both Group’s current operations and losses incurred by the loyalty, rewards
and payments business previously operated by the Group. Prior to recognising the carry forward tax losses transferred into and incurred by the
loyalty, rewards and payments business, the Group will finalise the application of the continuity of ownership and continuity of business tests.
RECOGNITION AND MEASUREMENT
Current income tax expense or revenue is the tax payable on the current year’s taxable income based on the applicable income tax rate adjusted
by changes in deferred tax assets and liabilities.
A balance sheet approach is adopted, under which deferred tax assets and liabilities are recognised for temporary differences between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. No deferred tax asset or liability is recognised if it arose in a
transaction, other than a business combination, that at the time of the transaction did not affect either accounting or taxable profit or loss.
Deferred tax assets are recognised for temporary differences and unused tax losses only when it is probable that future taxable amounts will be
available to utilise those temporary differences and losses. Current and deferred tax balances attributable to amounts recognised directly in
equity are also recognised directly in equity.
TAX CONSOLIDATION
The Company and its wholly owned Australian controlled entities have formed an income tax consolidated group effective 1 July 2010 under tax
consolidation legislation. Each entity in the Group recognises its own deferred tax assets and liabilities arising from temporary differences. Such
taxes are measured using the ‘stand-alone taxpayer’ approach. Current tax liabilities or assets and deferred tax assets arising from unused tax
losses and tax credits in the controlled entities are immediately transferred to the head entity which is the Parent entity. No tax sharing or funding
arrangements are presently in place.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 6 2
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
CURRENT ASSETS
9. TRADE AND OTHER RECEIVABLES
Trade Receivables
Loss allowance
Other receivables
Loss Allowance
Movements in the loss allowance were as follows:
Carrying value at the beginning of the year
Increase/(decrease) in loss allowance recognised
Receivables written off as uncollectable
Unused amount reversed
Carrying value at the end of the year
Trade receivables past due but not impaired
Under one month
One to three months
Over three months
RECOGNITION AND MEASUREMENT
2020
$’000
3,610
(13)
897
4,493
19
(7)
-
-
13
224
14
25
264
2019
$’000
3,907
(20)
508
4,394
26
(7)
-
-
19
462
38
36
536
Trade receivables include amounts due from customers for goods sold and services performed in the ordinary course of business. Receivables
expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as
non-current assets.
Trade receivables are initially recognised at fair value and subsequently recognised less any expected loss allowance. The Group applies the
AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To
measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the number of days
outstanding. The expected loss rates applied are based upon the payment sales profiles over a 12-month period and the historical credit losses
experienced in this period. Historical loss rates are adjusted to reflect current and forward-looking information including macroeconomic factors
affecting the ability of the customers to settle the receivables.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 6 3
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
9. TRADE AND OTHER RECEIVABLES, CONT.
The loss allowance is determined as follows for trade receivables:
31 December 2020
Expected Loss Rate
Trade Receivables Gross Carrying Amount ($’000)
Loss Allowance ($’000)
31 December 2019
Expected Loss Rate
Trade Receivables Gross Carrying Amount ($’000)
Loss Allowance ($’000)
Current
30 days
60 days
90+ days
Total
0%
3,347
-
0%
3,369
-
0%
224
-
0%
462
-
0%
14
-
0%
38
-
51%
25
13
51%
38
19
3,610
13
3,907
19
The amount of the impairment loss is recognised in the consolidated statement of profit and loss within other expenses. When a trade receivable
for which an impairment allowance has been recognised becomes uncollectable in a subsequent period, it is written off against the provision
account. Subsequent recoveries of amounts previously written off are credited against other expenses.
FAIR VALUES OF TRADE AND OTHER RECEIVABLES
Due to the short-term nature of the current receivables, their carrying amount is approximated 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 within the loss allowance. The main source of credit risk to the Group is considered to relate to the class of
assets described as ‘trade and other receivables’.
The above table details the Group’s trade and other receivables exposed to credit risk (prior to collateral and other credit enhancements) with
ageing analysis and impairment provided thereon. Amounts are considered as ‘past due’ when the debt has not been settled within the terms
and conditions agreed between the Group and the customer or counterparty to the transaction. Receivables that are past due are assessed for
impairment by ascertaining the solvency of the debtors and are provided for where there are specific circumstances that the debt may not be
fully repaid to the Group.
The balances of receivables that remain within initial trading terms are considered to be of low credit risk.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 6 4
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
10. BIOLOGICAL ASSETS
Balance as at 1 January 2019
Increases due to purchases and production
Decreases due to sales/processing/mortality (i)
Movement in fair value as a result of physical and/or price changes (ii)
Balance as at 31 December 2019
Current
Non-current
Balance as at 1 January 2020
Increases due to purchases and production
Decreases due to sales/processing/mortality (i)
Movement in fair value as a result of physical and/or price changes (ii)
Balance as at 31 December 2020
Current
Non-current
Poultry
$000
Goats
$000
Wasabi
Plants
$000
1,446
1,724
(1,446)
512
2,235
2,235
-
2,235
2,235
2,144
(2,235)
(107)
2,037
2,037
-
2,037
284
-
(68)
37
253
-
253
253
253
-
(48)
(38)
167
167
-
167
977
9
(267)
692
1,412
494
918
1,412
1,412
13
(99)
(1,154)
172
134
38
172
Total
$000
2,708
1,733
(1,781)
1,241
3,900
2,729
1,170
3,900
3,900
2,157
(2,382)
(1,300)
2,376
2,338
38
2,376
(i) includes biological assets reclassified as inventory at the point of harvest and/or processing.
(ii) includes physical changes as a result of biological transformation such as growth, degeneration and procreation.
RECOGNITION AND MEASUREMENT
Biological assets of the Group include poultry, goats and wasabi plants and are measured at fair value less costs to sell in accordance with
AASB 141 Agriculture. Where fair value cannot be reliably measured or little or no biological transformation has taken place biological assets are
measured at cost less impairment losses.
Market prices are derived from observable market prices and achieved sales prices and are reduced for costs associated with
bringing the finished product to market including incremental selling costs and harvesting and production costs to process the biological
asset into a saleable form.
The change in estimated fair value is charged to the income statement on a separate line item as fair value adjustment of biological assets.
This line item includes movements in fair value as a result of both physical and price changes.
Biological assets are reclassified as inventory at the point of harvesting or processing.
As at 31 December 2020, the Group held 557,537 live poultry (2019: 531,280), 575 goats (2019: 585) and 3,780 mature wasabi plants
(2019: 6,576) and 4,923 immature wasabi plants (2019: 549) that are less than 12 months of age and not suitable for harvest.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 6 5
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
10. BIOLOGICAL ASSETS, CONT.
POULTRY
For live poultry with an estimated dressed weight of below 1kg (which is consistent with independent poultry performance guidelines for meat
chicken) the carrying amount is a reasonable approximation of fair value. Live poultry with an estimated dressed weight of greater than 1kg are
measured at fair value less costs to sell and the measurement is categorised into Level 2 in the fair value hierarchy.
The valuation is completed at the whole dressed bird stage for each batch of live poultry as there is no effective market for live poultry produced
by the Group. The valuation methodology takes into consideration estimated growth rates, feed intake and carcass yield per independent
performance guidelines.
Based on market prices and weights utilised at 31 December 2020, with all other variables held constant, the Group’s net profit/(loss) for the
period would have been impacted by $84,346 (2019: $103,334) by a pricing or dressed weight increase/decrease of 5%.
GOATS
Goats are measured at fair value less costs to sell, based on market prices of similar age, breed and genetic merit. As these prices are observable,
they are deemed to be Level 2 in the fair value hierarchy.
The value of goats, comprised of mature does, weaned doelings and breeding bucks, is determined by independent valuation with reference to
prices received from sales of milking goat stock similar to the Group’s herd with direct references made to recent sales evidence in relevant dairy
goat markets. Prices of the Group’s goats are reflective of current market conditions.
WASABI PLANTS
Wasabi plants which are greater than twelve months of age are considered mature and ready for harvest, as such plants which are greater than
twelve months of age are disclosed as a current asset. On 31 December 2020 the Group’s wasabi plants were an average of 20 months of age
(31 December 2019: 24 months) and at various stages of growth post-harvest, as such wasabi plants are valued at fair value less estimated point
of sale costs. The valuation methodology is deemed to be Level 3 in the fair value hierarchy as it contains unobservable inputs due to the rare
nature of the crop.
The fair value of the wasabi plants is determined using the estimated yield per plant in kilograms which has been determined through collection
of historical growth rate and harvest data for mature wasabi plants within the crop. Notable variations and fluctuations in the fair value of wasabi
plants may occur as a result of factors including plant variety, the timing of cultivation, plant maturity, timing of harvest, seasonal growth patterns
and weather conditions.
AASB 141 Agriculture applies to all biological assets (excluding bearer plants) and agricultural produce at the point of sale and is applied to the
valuation of the wasabi crop (the biological asset) as well as harvested material. Changes in market conditions due to COVID-19 and the resulting
change in product sales mix necessitated a review of the crop valuation focused on fair value less costs to sell in June 2020. This review resulted
in a reduction in fair value of biological assets of $1.179 million (recorded in 30 June 2020), primarily driven by a reduction in the selling price per
kilogram as the Company transitions from high value fresh wasabi sales towards industrial and ingredient powder commodity markets.
The write-down was non-cash in nature and did not impact the biomass of the wasabi crop available for future use.
Based on market prices and estimated yields utilised within the valuation methodology at 31 December 2020, with all other variables held
constant, the Group’s net profit/(loss) for the period would have been impacted by $8,272 (31 December 2019: $93,585) by a price increase/
decrease of 5%.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 6 6
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
10. BIOLOGICAL ASSETS, CONT.
FAIR VALUE MEASUREMENT
Recurring fair value measurements
- Poultry
- Goats
- Wasabi plants
Total biological assets recognised at fair value
Recurring fair value measurements
- Poultry
- Goats
- Wasabi plants
Total biological assets recognised at fair value
2020
Level 1
$000
Level 2
$000
Level 3
$000
-
-
-
-
2,037
167
-
2,204
-
-
172
172
2019
Level 1
$000
Level 2
$000
Level 3
$000
Total
$000
2,037
167
172
2,376
Total
$000
-
-
-
-
2,235
253
-
2,488
-
-
1,412
1,412
2,235
253
1,412
3,900
Fair value measurements using significant unobservable inputs
The following table summarises the quantitative information about the significant unobservable inputs used in Level 3 fair value measurements:
Description
Wasabi plant biological assets at fair value:
Unobservable inputs
Relationship to unobservable inputs to fair value
Average yield per wasabi plant used in fair value measurement:
0.36 kilograms (31 December 2019: 0.46 kilograms)
An increase/decrease in yield would result in a direct
increase/decrease in the fair value
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 6 7
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
11. INVENTORY
Finished goods
Raw materials and packaging
Other
RECOGNITION AND MEASUREMENT
2020
$’000
1,983
1,656
865
4,504
2019
$’000
2,025
1,550
548
4,123
Inventories are measured at the lower of cost and net realisable value and are assigned on a weighted average cost basis. Net realisable value is
the estimated selling price in the ordinary course of business, less estimated costs of completion and costs to sell.
Inventories are accounted for in the following manner:
• Finished goods: cost includes direct materials, direct labour and an appropriate proportion of manufacturing variable and fixed overheads
based on normal operating capacity but excluding any borrowing costs.
• Biological assets reclassified as inventory: the initial cost assigned to agricultural produce is the fair value less costs to sell at the point of
harvesting or processing in accordance with AASB 141.
• Raw materials and packaging: purchase cost.
NON-CURRENT ASSETS
12. PROPERTY, PLANT AND EQUIPMENT
(a) Property, Plant and Equipment
Land and buildings - at cost
Less accumulated depreciation
Plant and equipment - at cost
Less accumulated depreciation
Office equipment - at cost
Less accumulated depreciation
Motor vehicles - at cost
Less accumulated depreciation
Capital Work in Progress - at cost
Total Property, Plant and Equipment
2020
$’000
2019
$’000
14,273
(1,087)
13,186
15,484
(4,496)
10,987
233
(173)
60
810
(275)
535
539
13,334
(747)
12,586
14,751
(3,039)
11,712
221
(153)
68
787
(183)
603
78
25,308
25,048
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 6 8
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
12. PROPERTY, PLANT AND EQUIPMENT, CONT.
RECONCILIATIONS
Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the financial year are set out below:
Land and
buildings
$000
Plant and
equipment
$000
Office
equipment
$000
Motor
vehicles
$000
Capital
work in
progress
$000$
7,769
2,328
2,760
-
-
(264)
12,593
12,593
27
913
-
-
(347)
13,186
7,031
3,095
2,885
-
(30)
(1,272)
11,710
11,710
729
-
-
-
(1,452)
10,987
50
4
36
-
-
(21)
69
69
12
-
-
-
(21)
61
387
89
214
-
-
(92)
598
598
53
-
-
(14)
(103)
535
2,220
-
-
(2,142)
-
-
78
78
461
-
-
-
-
539
Total
$000
17,458
5,517
5,894
(2,142)
(30)
(1,649)
25,048
25,048
1,283
913
-
(14)
(1,921)
25,308
Carrying value
As at 1 January 2019
Additions
Additions as a part of a business combination
Capitalisation to asset categories
Disposals
Depreciation expense
Balance as at 31 December 2019
As at 1 January 2020
Additions
Additions as a part of a business combination
Capitalisation to asset categories
Disposals
Depreciation expense
Balance as at 31 December 2020
RECOGNITION AND MEASUREMENT
Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the
acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Group and that the cost of the item can be measured reliably.
Repairs and maintenance expenditure is charged to the profit and loss during the period in which the expenditure is incurred.
The average depreciation rates for each class of fixed assets are:
Class of fixed asset
Buildings
Leasehold improvements
Plant and equipment
Office equipment
Motor vehicles
Average depreciation rates
2-5%
10-12%
8-20%
40-50%
15-20%
The assets’ residual values and useful lives are reviewed and adjusted if appropriate at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated
recoverable amount.
Assets are derecognised when sold or replaced with gains and losses on disposals determined by comparing proceeds with the carrying amount.
These gains or losses are recognised in the consolidated income statement when the item is derecognised.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 6 9
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
12. PROPERTY, PLANT AND EQUIPMENT, CONT.
(b) Right of Use Assets and Lease Liabilities
Right of Use Assets
Recognised right-of-use assets relate to the following types of assets:
Right of use assets
Land and buildings
Motor vehicles
Total right-of-use assets
Set out below are the carrying amounts of the Group’s right-of-use assets and the movements during the period:
2020
$’000
968
-
968
2019
$’000
1,075
5
1,081
Balance at 1 January
Additions
Depreciation expense
Net carrying amount at 31 December 2020
Lease Liabilities
Current
Non-Current
Right-of-use assets
Land and buildings
$’000
Motor vehicles
$’000
Total
$’000
1,075
68
(175)
968
5
-
(5)
-
2020
$’000
327
1,258
1,585
1,081
68
(180)
968
2019
$’000
423
1,477
1,901
RECOGNITION AND MEASUREMENT
The Group leases property. Rental contracts are typically made for periods of 24 months to 5 years but may have options to extend
as described below.
Contracts made contain both lease and non-lease components. The Group allocated consideration in the contract to the lease and non-lease com-
ponents based on their relative stand-alone prices. However, for leases of real estate for which the Group is a lessee, it has elected not to separate
lease and non-lease components, instead accounts for these as a single lease component.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 7 0
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
12. PROPERTY, PLANT AND EQUIPMENT, CONT.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not
impose any covenants other than security interests in the leased assets that are held by the lessor. Leased assets may not be used as security
for borrowing purposes.
Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use
by the Group.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the
following lease payments:
• Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• Variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date;
• Amounts expected to be payable by the Group under residual guarantees;
• The exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
• Payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally
the case for leases in the Group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to
borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms,
security and conditions.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit and loss over the lease period so as to
produce a constant periodic rate of interest on the remaining balance of the liability each period.
Right-of-use assets are measured at cost comprising the following:
• The amount of the initial measurement of the lease liability;
• Any lease payments made at or before the commencement date less any lease incentives received;
• Any initial indirect costs; and
• Restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. If the Group is
reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s life.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss.
Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture.
Extension and termination options are included in a number of property leases of the Group. These are used to maximise operational flexibility
in terms of managing the assets used in the Group’s operations. The majority of extension and termination options held are exercisable only by
the Group and not by the respective lessor.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 7 1
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
13. INTANGIBLE ASSETS
Goodwill
Brands and trademarks
Other
Gross carrying value
At cost
Accumulated impairment and amortisation
Total net carrying amounts
Reconciliations
Carrying amount at beginning
Transfers from other asset classes as a result of finalisation of accounting for business combinations
Additions
Business combinations during the year
Impairment and amortisation during the year
Carrying amount at end
2020
$’000
3,907
6,835
211
10,953
17,181
(6,228)
10,953
14,013
451
-
-
(3,511)
10,953
2019
$’000
6,957
6,835
222
14,013
16,731
(2,717)
14,013
8,673
-
28
5,312
-
14,013
Goodwill relates to the acquisition of the assets of Meander Valley Dairy in 2015, Pyengana Dairy in 2017 and Betta Milk in 2019.
Goodwill is also attributable to the acquisition of the wholly owned controlled entities Nichols Poultry Pty Ltd and Shima Wasabi Pty Ltd
acquired in the 2016 year.
Brands and trademarks are predominantly associated with the Nichols Poultry brand acquired in 2016 and the Betta Milk brand acquired in 2019.
Other intangible assets include water rights and intellectual property.
Goodwill and intangibles assessed as having an indefinite useful life are allocated to the Group’s cash generating units (CGUs) as follows:
2020
2019
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Dairy
Poultry
Corporate and Other
Goodwill
Brands &
Trademarks
2,770
1,137
-
3,925
2,910
-
Total
3,907
6,835
Other
Total
Goodwill
6,705
4,241
7
3,820
3,137
-
10
194
7
211
10,953
6,957
6,835
Brands &
Trademarks
3,925
2,910
-
Other
20
194
9
222
Total
7,764
6,241
9
14,013
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NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
13. INTANGIBLE ASSETS, CONT.
RECOGNITION AND MEASUREMENT
Intangible assets are initially recognised and recorded at cost where it is probable that future economic benefits attributable to the asset will flow
to the Group and the cost can be measured reliably. Subsequently, intangible assets are carried at cost less any impairment losses.
Indefinite life assets
Assets with an indefinite useful life are not amortised but are tested annually for impairment. Assets subject to annual depreciation or
amortisation are reviewed for impairment whenever events or circumstances arise that indicate that the carrying amount of the asset may be
impaired.
Management has determined that the brand name associated with the Poultry and Dairy CGU’s have an indefinite useful life. This assessment
was based on factors including independent expert advice, historical business growth rates and performance and future strategy associated with
the brands.
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 accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s
cash generating units, or groups of cash generating units, that are expected to benefit from the synergies of the combination, irrespective of
whether other assets or liabilities of the Group are assigned to those units or group of units. Each unit or group of units to which the goodwill is
so allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes.
Impairment is determined by assessing the recoverable amount of the cash generating unit (group of cash generating units) to which the
goodwill relates. When the recoverable amount of the cash generating unit (group of cash generating units) is less than the carrying amount, an
impairment loss is recognised.
When goodwill forms part of a cash generating unit (group of cash generating units) and part of the operation within that unit is disposed of, the
goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on
disposal of the operation. Goodwill disposed of in this manner is measured based on the relative values of the operation disposed of and the
portion of the cash generating unit retained.
Impairment losses recognised for goodwill are not subsequently reversed.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
RECOVERABLE AMOUNT OF GOODWILL AND INDEFINITE LIFE INTANGIBLES
30 June 2020
In accordance with the Company’s accounting policy, impairment testing was completed at 30 June 2020 in accordance with AASB 136
Impairment. The impact of COVID-19 on both the Company and the Australian economy, in addition to the market capitalisation deficiency
of the Company were considered as indicators of impairment requiring full impairment testing to be conducted.
The impairment testing process completed at 30 June 2020 identified impairment charges totalling $3.5 million, $1.5 million for the Dairy CGU
and $2.0 million for the Poultry CGU which were recorded in the financial statements for the half-year ended 30 June 2020.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 7 3
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
13. INTANGIBLE ASSETS, CONT.
The key assumptions used in the 30 June 2020 value-in-use calculations for the Dairy and Poultry CGUs are outlined in further detail below.
31 December 2020
In accordance with the Company’s accounting policy, impairment testing has been undertaken at 31 December 2020 in accordance with
AASB 136 Impairment for all groups of cash generating units (CGUs) for goodwill and indefinite life intangibles or where there is an indication of
impairment.
The Company has two CGUs for which impairment testing has been completed for goodwill and indefinite life intangibles, which are as follows:
Dairy CGU
The recoverable amount of the Dairy CGU has been determined based on a value-in-use calculation which uses cash flow projections based on
financial budgets and forecasts approved by management covering a five-year period before any fair value adjustments for biological assets.
Key assumptions used in the value-in-use calculations for the dairy CGU include:
Sales Growth Rate (5 year avg)
Production Costs (5 year avg)
Indirect Cost Growth Rate per annum
Long-term Growth Rate
Pre-tax Discount Rate
31 December
2020
8.1%
69.0%
5.0%
2.0%
15.4%
30 June
2020
5.2%
69.0%
5.0%
2.0%
15.4%
31 December
2019
9.2%
72.0%
5.0%
2.5%
13.5%
Based on the above assumptions the recoverable amount of the CGU at 31 December 2020 is estimated to be $23.97 million, which exceeds
the CGU’s carrying amount by $5.904 million.
Poultry CGU
The recoverable amount of the Poultry CGU has been determined based on a value-in-use calculation which uses cash flow projections based on
financial budgets and forecasts approved by management covering a five-year period before any fair value adjustments for biological assets.
Key assumptions used in the value-in-use calculations for the Poultry CGU include:
Sales Growth Rate (5 year avg)
Production Costs (5 year avg)
Indirect Cost Growth Rate per annum
Long-term Growth Rate
Pre-tax Discount Rate
31 December
2020
8.1%
80.0%
5.0%
2.0%
15.4%
30 June
2020
6.6%
79.0%
5.0%
2.0%
15.4%
31 December
2019
9.2%
77.0%
5.0%
2.5%
13.5%
Based on the above assumptions the recoverable amount of the CGU at 31 December 2020 is estimated to be $20.979 million, which exceeds
the CGU’s carrying amount by $1.033 million.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 7 4
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
13. INTANGIBLE ASSETS, CONT.
Changes to Key Inputs
Changes to key inputs within the value-in-use calculations include:
• Sales Growth Rate – Whilst the Poultry and Dairy CGUs continue to report year on year growth higher than market growth rates, future market
growth rates have a higher degree of volatility. Sales growth rates were reduced at 30 June 2020 to market growth rates rather than historical
CGU growth rates achieved. Due to market recovery and actual sales growth achieved in 2020 the five-year average sales growth rates as at
31 December 2020 have been increased to reflect anticipated growth in FY2021 which has provided a higher base for market growth rates to
be applied to in FY2022 onwards.
• Long-term Growth Rate – Was reduced to 2% which is in line with the Reserve Bank of Australia’s economic outlook.
• Pre-tax Discount Rate – Was increased as a result of the inclusion of a risk premium due to the heightened risk associated with economic
conditions resulting from COVID-19 and its ongoing impact on the economy.
The recoverable amount of the CGUs would equal its carrying amount if the key assumptions were to change as follows:
Sales Growth Rate (5 year avg)
Production Costs (5 year avg)
Pre-tax discount rate
LIABILITIES
14. TRADE AND OTHER PAYABLES
Trade and other payables
RECOGNITION AND MEASUREMENT
Dairy
Poultry
Reduction from 8.1% to 6.5%
Reduction from 8.1% to 7.7%
Increase from 69.2% of revenue to 75%
Increase from 79.7% of revenue to 80.5%
Increase from 15.4% to 19.6%
Increase from 15.4% to 16.0%
2020
$’000
9,175
9,175
2019
$’000
8,628
8,628
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.
FAIR VALUE OF TRADE AND OTHER PAYABLES
Due to the short-term nature of trade and other payables, the carrying value is reflective of fair value.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 75
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
15. BORROWINGS
Current
Bank Overdraft
Bank Loans
Non-Current
Bank Loans
Total borrowings
2020
$’000
2019
$’000
391
148
539
5,278
5,278
765
-
765
4,500
4,500
5,817
5,265
FINANCING ARRANGEMENTS
Commitments in relation to financing arrangements are payable as follows:
At 31 December 2020
Non-derivatives
Trade payables
Bank Overdraft
Bank Loans
At 31 December 2019
Non-derivatives
Trade payables
Bank Overdraft
Bank Loans
Less than 12
months
$’000
Between 1
and 5 years
$’000
Over 5 years
$’000
Total
contracted
cash flows
$’000
Carrying
Amount
$’000
9,175
391
148
9,715
8,628
765
-
9,394
-
-
5,278
5,278
-
-
4,500
4,500
-
-
-
-
-
-
-
-
9,175
391
5,426
14,992
8,628
765
4,500
13,894
9,175
391
5,426
14,992
8,628
765
4,500
13,894
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 7 6
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
15. BORROWINGS, CONT.
Available facilities:
Bank Bill Facility
Bank Loan Facilities
Bank Overdraft
2020
$’000
2019
$’000
Limit
2,000
3,426
2,250
7,676
Undrawn
Balance
-
-
1,859
1,859
Limit
2,000
2,500
2,000
6,500
Undrawn
Balance
-
-
1,235
1,235
RECOGNITION AND MEASUREMENT
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost.
Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the consolidated income statement
over the period of the borrowings using the effective interest method.
Borrowings are removed from the balance sheet of the Group when the terms and obligations specified in the contract are discharged, cancelled
or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party, and the
consideration paid is recognised in the consolidated income statement as other income or finance costs.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months
after the reporting period.
Borrowing costs, including transaction fees, are recognised in the consolidated income statement in the period in which they are incurred.
SECURED LIABILITIES AND ASSETS PLEDGED AS SECURITY
In March 2020, the Company renewed its finance facilities across the Group with Australia and New Zealand Banking Group Limited (ANZ)
to include the Company and all subsidiaries. This renewal included restructuring the Nichols Poultry overdraft facility and entering into a $1.0
million variable rate business loan.
The Group has a number of finance facilities with ANZ which were renewed during the reporting period. Available facilities include overdrafts,
a bank bill and bank loan facilities which are secured by mortgage over the property and water rights owned by Nichols Poultry Pty Ltd and
property owned by Van Diemen’s Land Dairy Pty Ltd. The facilities are also secured by a general security agreement over the property of Nichols
Poultry Pty Ltd and Van Diemen’s Land Dairy Pty Ltd not otherwise secured.
FINANCIAL COVENANTS
The renewed financing arrangements with ANZ resulted in a change to the financial covenants applicable to the Company. Under the terms of
the renewed financing arrangements the Group is required to comply with an interest cover ratio financial covenant.
The first assessment date for the covenant is 30 June 2021.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 7 7
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
16. PROVISIONS
Current
Employee benefits
Non-current
Employee benefits
2020
$’000
2019
$’000
1,172
1,172
153
153
976
976
220
220
RECOGNITION AND MEASUREMENT
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group
will be required to settle the obligation, and a reliable estimate can be made of the quantum of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date,
taking into consideration the risks and uncertainties surrounding the obligation. If the effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects the time value of money and the risks specific to the liability.
EMPLOYEE BENEFITS
A provision is made for employee benefits arising at the end of the reporting period. Employee benefit obligations are presented as current
liabilities in the consolidated balance sheet if the Group does not have an unconditional right to defer settlement for at least 12 months after the
reporting period, regardless of when the actual settlement is expected to occur.
Employee benefits that are expected to be settled within one year from the reporting date have been measured at amounts expected to be paid
when the liability is settled. Employee benefits payable later than one year have been measured at present value of the estimated future cash
outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increments and the probability that
the employee may satisfy any vesting requirements. Those cash flows are discounted using market yields on Australian corporate bond rates
with terms to maturity that match the expected timing of cash flows attributable to those employees.
Provision has been made in the financial statements for benefits accruing to employees up to the reporting date such as annual leave, long
service leave and bonuses (where applicable). No provision is made for non-vesting sick leave as the anticipated patterns of future sick
leave indicates that accumulated non-vesting sick leave will not be paid. Annual leave provisions are measured at nominal values using the
remuneration rates expected to apply at the time of settlement. Long service leave provisions are measured as the present value of expected
future payments to be made in respect of services provided to employees up to reporting date. Expected future payments are discounted using
market yields at reporting date on Australian corporate bonds with terms to maturity that match the estimated future cash flows.
On-costs, such as superannuation and payroll tax are included in the determination of employee benefits provisions.
The net change in the obligation for employee benefits provisions are recognised in the consolidated income statement as a part of employee
benefits expense.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 7 8
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
EQUITY
17. CONTRIBUTED EQUITY
Commitments in relation to financing arrangements are payable as follows:
Number of Shares
Share Capital
Ordinary shares - fully paid (no par value)
351,902,660
273,265,740
Total share capital
2020
2019
2020
$'000
61,053
61,053
Movements in ordinary share capital:
Date
Details
1/01/20
Balance at beginning of period
31/8/20
Issue of shares - accelerated rights issue and placement
2/10/20
Issue of shares - rights issue
9/10/20
Issue of shares - shortfall placement
27/11/20
Issue of shares - placement
Issue costs - net of tax
TERMS AND CONDITIONS OF ISSUED CAPITAL
Ordinary Shares
Ordinary Shares
Price
273,265,740
23,751,833
19,790,929
5,094,158
30,000,000
351,902,660
$0.085
$0.085
$0.085
$0.100
2019
$'000
53,983
53,983
$’000
53,983
2,019
1,682
433
3,000
(64)
61,053
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. On a show of hands each holder of ordinary shares present at a meeting in person or by proxy is entitled to one vote, and upon a
poll each share is entitled to one vote.
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 of the Company. The
holder is not entitled to vote at General Meetings.
There were 5,000,000 share options on issue and 1,653,571 performance rights granted as at 31 December 2020 (2019: 6,500,000 share
options and 5,149,822 performance rights).
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 7 9
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
17. CONTRIBUTED EQUITY, CONT.
RECOGNITION AND MEASUREMENT
Ordinary shares are classified as equity, with ordinary share capital being recognised at the 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 no special terms or conditions affecting income or capital entitlements of the shareholders.
Where the Company purchases the Company’s equity instruments, for example as the result of a share buy-back or a share-based payment plan,
the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from the equity attributable to the
owners of TasFoods Limited as ordinary share capital until the shares are cancelled or reissued. Where such ordinary shares are subsequently
reissued, any consideration received, net of any directly attributable incremental transactions costs and the related income tax effects, is
included in the equity attributable to the owners of TasFoods Limited.
18. RESERVES
Employee share option reserve
NATURE AND PURPOSE OF RESERVES
Employee share option reserve
2020
$’000
2019
$’000
594
594
493
493
The reserve is used to record the value of equity instruments issued to employees and directors as part of their remuneration, and other parties
as part of compensation for their services. Details of the employee share option payments are contained in note 30.
Balance at start of year
Net Movement during the year
Balance at end of year
OTHER NOTES
19. ADDITIONAL CASH FLOW INFORMATION
Cash and cash equivalents
2020
$’000
2019
$’000
493
101
594
390
103
493
2020
$’000
2019
$’000
7,635
2,209
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 8 0
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
19. ADDITIONAL CASH FLOW INFORMATION, CONT.
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:
Cash and cash equivalents
Bank overdraft
(b) Reconciliation of operating profit after income tax to net cash flows from operating activities:
Net loss after income tax
Depreciation and amortisation
Goodwill impairment
Movement in fair value of biological assets
Share based payments
Interest on leased assets
Other
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
(Increase)/decrease in inventories
(Increase)/decrease in prepayments
(Increase)/decrease in deferred taxes
(Decrease)/Increase in trade and other payables
Increase/(decrease) in provisions
Net cash (outflow)/inflow from operating activities
(c) Non-cash activities
There were no non-cash financing activities.
2020
$’000
2019
$’000
7,635
(391)
7,245
2,209
(765)
1,444
2020
$’000
2019
$’000
(6,407)
(3,459)
2,107
3,500
1,300
101
48
141
(99)
(381)
(206)
(1,302)
547
129
(523)
1,839
-
(1,169)
103
53
267
(1,785)
(974)
(145)
256
4,072
37
(905)
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 8 1
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
20. 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, including interest rate and currency risk 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 interest rate risk, foreign currency risk, 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 interest rate, foreign exchange and 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.
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 Chief Financial Officer under the authority of the Board.
The Board reviews and agrees policies for managing each of the risks identified below, including any hedging cover of foreign currency, 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.
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 principal payments and amortisation.
RISK EXPOSURES AND RESPONSES
Interest Rate Risk
The Group’s exposure to market interest rate 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 overseas variable interest rate risks that are not designated as cash flow hedges:
Financial Assets
Cash and cash equivalents
2020
$’000
2019
$’000
7,635
7,635
2,209
2,209
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 8 2
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
20. FINANCIAL RISK MANAGEMENT, CONT
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.
The following sensitivity analysis is based on the interest rate opportunity/risk relating to cash deposits at balance date.
At 31 December 2020, 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:
Judgements of reasonably possible movements
+ 0.5% (50 basis points)
- 0.5% (50 basis points)
2020
$’000
2019
$’000
38
(38)
11
(11)
The movement in profits are due to higher/lower interest received. As the Group does not have any derivative instruments the movements in equity are
those of profit only. A movement of + and – 0.5% is selected because this historically is within a range of rate movements.
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.
The Group has Total Liabilities of $17.903 million (2019: $16.990 million) of which $11.214 million (2019: $10.793 million) is recorded as current
liabilities and Total Current Assets of $19.877 million (2019: $14.155 million) of which $7.635 million (2019: $2.209 million) consists of cash or cash
equivalents providing the Board with comfort that the Group is solvent and can meet its payment obligations in full as they fall due.
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 9. Receivables balances are
monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 8 3
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
20. FINANCIAL RISK MANAGEMENT, CONT.
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.
21. 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.
Borrowings
Trade and other payables
Total debt
Less cash and cash equivalents
Net (cash)/debt
Total equity
Total capital
2020
$’000
5,817
9,175
14,992
(7,635)
7,357
39,241
61,053
2019
$’000
5,265
8,628
13,894
(2,209)
11,685
38,477
53,982
Gearing ratio (total debt / total equity)
38.2%
36.1%
The Group is not subject to any externally imposed capital requirements, other than those referred to in note 15.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 8 4
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
GROUP MANAGEMENT
22. PARENT ENTITY SUPPLEMENTARY INFORMATION
Information relating to TasFoods Limited:
Financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Contributed equity
Reserves
Accumulated losses
Total equity
Financial performance
Total revenue
Loss for the period
Comprehensive loss for the period
Deed of Cross Guarantee
2020
$’000
2019
$’000
32,614
7,053
39,667
2,648
275
2,923
36,743
61,053
594
(24,904)
36,743
6,655
(5,075)
(5,075)
28,356
12,599
40,955
2,699
386
3,085
37,869
53,983
493
(16,606)
37,869
6,028
(5,679)
(5,679)
The wholly owned subsidiaries disclosed in note 23 are parties to a deed of cross guarantee under which each company guarantees the debts
of the others. By entering into the deed, the wholly owned entities have been relieved from any requirement to prepare a financial report and
directors’ report that might otherwise apply under Instrument 2016/785 issued by the Australian Securities and Investments Commission.
The closed group financial information for 2020 is identical to the financial information included in the consolidated financial statements.
The wholly owned subsidiaries became a party to the deed of cross guarantee dated 23 October 2017.
The companies disclosed in note 23 represent a ‘closed group’ for the purposes of the Instrument, and as there are no other parties to the deed
of cross guarantee that are controlled by TasFoods Limited, they also represent the ‘extended closed group’.
Capital Commitments
There was no non-cancellable capital expenditure contracted for but not in the financial statements.
Contingent Liabilities
TasFoods Limited is not subject to any liabilities that are considered contingent upon events known at balance sheet date.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 8 5
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
23. SUBSIDIARIES
Country of Incorporation
Principal Activity
Equity Holding
Van Diemen's Land Dairy Pty Ltd
Nichols Poultry Pty Ltd
Shima Wasabi Pty Ltd
Tasmanian Food Co Dairy Pty Ltd
Australia
Australia
Australia
Australia
Dairy
Poultry
Wasabi
Dairy
24. BUSINESS COMBINATIONS
Finalisation of Prior Year Acquisition - Betta Milk
2020
%
100%
100%
100%
100%
2019
%
100%
100%
100%
100%
On 31 July 2019, the Company acquired via its subsidiary Van Diemen’s Land Dairy Pty Ltd, the milk processing assets, distribution assets
and brands of the Betta Milk Co-operative Society Ltd business based in Tasmania. The acquisition was completed for cash consideration
of $11.423 million.
In the financial statements for the year ended 31 December 2019, the net asset valuation and allocation of the purchase price to acquired assets
and fair values assigned to intangible assets were preliminary. In accordance with the Company’s accounting policy, the accounting for the
acquisition of the Betta Milk processing and distribution assets and brands was finalised during the current period and the preliminary balances
updated accordingly.
The final fair value of the assets arising from the acquisition is as follows:
Land and Buildings
Plant and equipment
Motor vehicles
Brand name
Inventory on hand
Deferred tax asset/(liability)
Provisions
Net identifiable assets acquired
Add: Goodwill
Consideration paid
Preliminary Fair Value
as presented at
31 December 2019
$’000
Final Fair Value
as presented at
31 December 2020
$’000
2,762
2,920
214
3,890
498
97
(380)
10,001
1,422
11,423
3,675
2,920
214
3,890
498
(1,267)
(380)
9,550
1,873
11,423
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 8 6
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
24. BUSINESS COMBINATIONS, CONT.
RECOGNITION AND MEASUREMENT
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured
at fair value, which is calculated as the sum of the acquisition-date fair values of assets transferred by the Group, liabilities incurred by the Group
to the former owners of the acquiree, and the equity instruments issued by the Group in exchange for control of the acquiree.
Acquisition-related costs are expensed as incurred.
At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised at their fair value.
Goodwill is measured as the excess of the sum of the consideration transferred and the fair value of the acquirer’s previously held equity
interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If,
after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the
consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest
in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the
Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the
measurement period, or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that
existed as of the acquisition date that, if known, would have affected the amounts recognised as of that date.
UNRECOGNISED ITEMS
25. 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.
26. COMMITMENTS FOR EXPENDITURE
Capital Commitments – Capital Expenditure Projects
There was 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:
Payable:
- Not longer than one year
- Longer than one year and not longer than five years
- Longer than five years
2020
$’000
2019
$’000
33
-
-
33
33
33
-
65
27.
EVENTS OCCURRING AFTER REPORTING DATE
The Board is not aware of any matter or circumstance not otherwise dealt with in 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.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 8 7
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
OTHER INFORMATION
28. RELATED PARTY TRANSACTIONS
Key Management Personnel Compensation
The aggregate compensation of the key management personnel of the entity is set out below:
Short term benefits
Post-employment benefits
Share based payments
Termination payments
29. AUDITOR’S REMUNERATION
Remuneration for audit and review of the financial reports of the parent entity or any entity in the Group:
Auditors of the parent entity:
Auditing the financial report
Other assurance services
30. SHARE BASED PAYMENTS
Performance Rights
(a) Share based payment arrangements
2020
$
2019
$
687,056
63,030
97,803
-
847,889
951,164
86,370
90,264
-
1,127,798
2020
$
2019
$
178,900
-
178,900
168,175
-
168,175
TasFoods Limited offers the Chief Executive Officer and senior management the opportunity to participate in the Long-Term Incentive Plan
(LTIP), which involves performance rights to receive shares in TasFoods Limited. The LTIP is designed to:
• Assist in the motivation, retention and reward of employees, including the Chief Executive Officer and members of senior management; and
• Align the interests of employees participating in the LTIP more closely with the interests of shareholders by providing an opportunity for those
employees to receive an equity interest in the TasFoods Limited Group through the granting of performance rights.
Under the LTIP, performance rights are issued to the Chief Executive Officer and managers of senior management as the LTI component of their
remuneration. Performance rights granted under the LTIP have a share price growth performance vesting condition.
Share Price will be determined by a ten-trading day volume weighted average share price ending on the date that is the end of the
Measurement Period.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 8 8
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
30. SHARE BASED PAYMENTS, CONT.
(b) Performance rights granted
Below is a summary of performance rights granted under the LTIP to current KMP.
2020
Performance Period
Grant Date
From
To
Balance at
start of Year
Granted
During Year
Forfeited
Vested
Balance at
End of Year
Fair Value
per Share
1/1/17
1/1/18
1/1/19
31/12/19
31/12/20
31/12/21
2,333,619
1,162,632
1,653,571
-
-
-
(2,333,619)
(1,162,632)
-
-
-
-
-
-
1,653,571
$0.068
$0.044
$0.042
17/7/17
26/7/18
24/10/19
2019
Performance Period
Grant Date
From
To
Balance at
start of Year
Granted
During Year
Forfeited
Vested
Balance at
End of Year
Fair Value
per Share
17/7/17
26/7/18
24/10/19
1/1/17
1/1/18
1/1/19
31/12/19
31/12/20
31/12/21
3,212,083
1,613,514
-
-
(878,464)
(450,882)
-
1,653,571
-
-
-
-
2,333,619
1,162,632
1,653,571
$0.068
$0.044
$0.042
The performance rights hold no voting or dividend rights and are not transferable.
There were no performance rights granted under the LTIP during the year ended 31 December 2020.
(c) Fair value of performance rights granted
As a part of the COVID-19 budget review completed in April 2020, Management elected to forfeit the right to have performance rights granted
under the LTI plan in 2020. Management’s decision to forfeit performance rights to be granted under the LTI plan in 2020 was approved by the
Board in April 2020.
With respect to prior year rights issues, the fair value of the performance rights granted under the LTIP was calculated by an independent expert
using a Monte-Carlo simulation.
The expense recognised in relation to the performance rights applicable to the Chief Executive Officer and senior management for the year
ended 31 December 2020 is nil (31 December 2018: $59,811).
SHARE OPTIONS
(a) Share based payment arrangements
On 30 November 2017 TasFoods Limited issued 5,000,000 share options to Shane Noble upon his appointment as a Director of the Company.
The options granted were for nil cash consideration and will entitle the option holder to acquire one ordinary share in the Company at an
exercise price of $0.1884 until 30 November 2021 (subject to any further adjustments to the number of underlying shares and/or exercise price
due to pro rata offers and other capital reorganisations and otherwise on and subject to usual option terms).
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 8 9
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
30. SHARE BASED PAYMENTS, CONT.
On 16 October 2019 TasFoods Limited issued 1,500,000 share options to Cathy Zeppieri upon her appointment as Chief Marketing Officer of
the Company. The options granted were for nil cash consideration and entitled the option holder to acquire one ordinary share in the Company
after meeting a three-year service requirement at an exercise price of $0.205 (subject to adjustments to the number of underlying shares and/
or exercise price due to pro rata offers and other capital reorganisations and otherwise on and subject to usual option terms). As Cathy Zeppieri
did not exercise the options within one month of her employment ending, the options granted expired after her departure in 2020.
(b) Share options granted
Share options outstanding at 31 December 2020 are as follows:
Grant Date
Expiry Date
Exercise Price
Balance at
start of Year
Granted
Exercised
Expired/
forfeited/ other
Balance at
End of Year
30/11/17
16/10/19
30/11/2021
24/10/2022
$0.1884
5,000,000
$0.2050
1,500,000
6,500,000
Weighted average exercise price
-
-
-
-
-
-
-
5,000,000
(1,500,000)
-
(1,500,000)
5,000,000
$0.1884
The options hold no voting or dividend rights and are not transferable.
(c) Fair value of share options granted
For share options granted during the 2017 and 2019 financial years, the fair value was measured at the grant date of 30 November 2017 and 16
October 2019, respectively.
The fair value of the performance rights granted under the LTIP was calculated by an independent expert using the Binomial method.
The expense recognised in relation to share options for the year ended 31 December 2020 is $81,250 (31 December 2019: $86,039).
(d) Share Options at 31 December 2020
Details of share options held by current or former Directors outstanding as at end of year:
Grant
Date
30/11/17
Exercisable
Date
30/11/21
Expiry
Date
30/11/21
Share Price at
Grant Date
Exercise
Price
Fair Value at Grant
Date
Balance at End
of Year
$0.1650
$0.1884
$0.0650
5,000,000
There are no performance hurdles or service conditions attached to the options granted.
RECOGNITION AND MEASUREMENT
The Group provides benefits to the Directors, the Chief Executive Officer and certain senior management 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).
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 9 0
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
31. 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 31 December 2020.
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.
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:
• has power over the investee;
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• 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.
Details of the controlled entities are contained in note 23.
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.
(e) Critical Accounting Estimates, Judgements and Errors
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.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 9 1
NOTES TO AND FORMING
PART OF THE FINANCIAL
STATEMENTS CONT.
31. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONT.
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:
• Estimated fair value of biological assets; and
• Estimated value in use calculations for the assessment of the recoverable amount of goodwill and indefinite life intangibles.
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 31 December 2020 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.
(h) Rounding Amounts
The company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 and in accordance
with that Class Order, amounts in the financial statements have been rounded off to the nearest thousand dollars, or in certain cases, to the
nearest dollar.
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 9 2
DIRECTORS’
DECLARATION
1. In the opinion of the Directors of TasFoods Limited (the “Company”):
a. The financial report and the Remuneration Report included in the Directors’ Report, designated as audited of the Group are
in accordance with the Corporations Act 2001, including:
i. Giving a true and fair view of the Group’s financial position as at 31 December 2020 and of its performance for the year ended
on that date; and
ii. Complying with the Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements;
b. At the date of this declaration, there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable;
2. The financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting
Standards Board, as described in the notes to the financial statements; and
3. This declaration has been made after receiving the declarations required by section 295A of the Corporations Act 2001 from the Chief
Executive Officer and the Chief Financial Officer for the financial year ended 31 December 2020.
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.
Craig Treasure
Non-Executive Chair
26 February 2021
Launceston
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 9 3
Independent auditor’s report
To the members of TasFoods Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of TasFoods Limited (the Company) and its controlled entities
(together the Group) is in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the Group's financial position as at 31 December 2020 and of its
financial performance for the year then ended
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The Group financial report comprises:
●
●
●
●
●
●
the consolidated statement of financial position as at 31 December 2020
the consolidated statement of profit or loss and other comprehensive income for the year then
ended
the consolidated statement of changes in equity for the year then ended
the consolidated statement of cash flows for the year then ended
the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information
the directors’ declaration.
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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (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.
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Materiality
Audit scope
Key audit matters
● Our audit focused on where
the Group made subjective
judgements; for example,
significant accounting
estimates involving
assumptions and inherently
uncertain future events.
● We performed an audit of
the most significant
operating business units of
the Group, being Poultry
and Dairy. We performed
specific risk focused audit
procedures over Wasabi and
the corporate head office.
● Amongst other relevant topics,
we communicated the following
key audit matters to the Audit
and Risk Committee:
− Valuation of goodwill and
indefinite lived intangible
assets
− Accounting for biological
assets
− Accounting for acquisition
of Betta Milk
● These are further described in
the Key audit matters section of
our report.
● For the purpose of our audit we
used overall Group materiality of
$660,000, which represents
approximately 1% of the Group’s
total revenue.
● We applied this threshold,
together with qualitative
considerations, to determine the
scope of our audit and the
nature, timing and extent of our
audit procedures and to evaluate
the effect of misstatements on
the financial report as a whole.
● We chose Group revenue as, in
our view, it is the benchmark
against which the performance of
the Group is most commonly
measured given the Group
remains in a growth and
acquisition phase.
● We utilised a 1% threshold based
on our professional judgement,
noting it is within the range of
commonly acceptable thresholds.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context.
Key audit matter
How our audit addressed the key audit matter
Valuation of goodwill and indefinite lived
intangible assets
(Refer to note 13 in the financial report)
We performed the following procedures, amongst
others, in respect of the Dairy and Poultry CGUs:
The Group holds indefinite lived intangible assets
totalling $10.7m as at 31 December 2020, across its
Dairy and Poultry Cash Generating Units (CGUs).
Under Australian Accounting Standards, the Group is
required to assess goodwill and indefinite life
intangibles for impairment at least annually.
At 30 June 2020, indicators of impairment of the
intangible assets were identified and as a result the
Group assessed the carrying value of the assets based
on financial models using forecast future cash flows,
discounted to present value. The impairment
assessment resulted in impairment losses of $1.5m for
the Dairy CGU and $2.0m for the Poultry CGU, as
disclosed in note 13.
The Group performed the annual impairment
assessment on the carrying value of the Dairy and
Poultry CGUs at 31 December 2020. The Group
prepared financial models based on forecast future
cash flows, discounted to present value. This
assessment did not identify a need for further
impairment for the CGUs.
This was a key audit matter due to the financial
significance of the goodwill and indefinite lived
intangibles and the significant judgements and
assumptions applied in estimating future cash flows
and the discount rate.
● Assessed whether the Group’s determination of
CGUs was consistent with our understanding of
the nature of the Group’s operations and internal
Group reporting.
● Assessed whether each CGU appropriately
included all directly attributable assets and
liabilities.
● Tested the mathematical accuracy of the
calculations in the financial models used to assess
impairment (“the models”) at 30 June 2020 and
31 December 2020.
● Considered the allocation of the impairment
charge recognised during the year against the
goodwill.
● Assessed whether the forecast cash flows in the
impairment assessments were appropriate by
performing the following procedures, amongst
others:
− Compared the 2021 forecasted cash flows
used in the models with the forecast formally
approved by the Board.
− Evaluated the historical accuracy of the
Group’s forecasts by comparing the forecasts
used in the prior year models to the actual
performance.
− Assessed the forecast growth assumptions
used in the models by reference to our
understanding of the key drivers for future
growth, with reference to third party
information.
− Compared the terminal growth rate used in
the models to external economic forecasts.
− With the assistance of PwC valuation experts,
assessed whether the discount rates used in
the models were appropriate by comparing
them to market data, comparable companies
and industry research.
● Evaluated the reasonableness of the disclosures
made in note 13, including key assumptions and
sensitivities to changes in such assumptions, in
light of the requirements of Australian Accounting
Standards.
Key audit matter
How our audit addressed the key audit matter
Accounting for biological assets
(Refer to note 10 in the financial report)
We performed the following procedures, amongst
others, on all biological assets:
The Group holds biological assets of $2.4m at
31 December 2020. The biological assets include live
poultry, wasabi plants and goats.
● Considered the appropriateness of the
valuation methodologies against the relevant
Australian Accounting Standard
Australian Accounting Standards require biological
assets to be measured at fair value less cost to sell or, in
the absence of a fair value, at cost less impairment.
We consider the valuation of biological assets to be a
key audit matter due to the significant judgement
involved in estimating:
●
the weight of poultry, based on the estimated
growth rates and yields
● market selling prices.
● Tested the mathematical accuracy of the
calculations in the valuation models
● On a sample basis, compared the fair value
recognised as at 31 December 2020 to the
actual selling price once biological assets were
reclassified into inventory
● Assessed the reasonableness of the disclosures
in note 10, in light of the requirements of
Australian Accounting Standards.
To assess the valuation of the poultry biological assets,
we performed the following procedures, amongst
others:
● Compared the conversion rate for poultry weight
used in the Group’s calculation as at 31 December
2020 to the industry valuation methodology
standard and the Group’s performance for such
biological assets to assess its appropriateness
● Compared the number and age of chickens
recognised as at 31 December 2020 based on a
sample of purchase information for chickens for
the December period and physical observation of
chickens as at 31 December 2020
● Agreed the cost of feed, grower and other costs to
sell used in the Group’s calculation as at
31 December 2020 using a sample of supplier
invoices.
To assess the valuation of the wasabi biological assets,
we performed the following procedures, amongst
others:
● Compared the market price used in the valuation
model to external market data to assess its
appropriateness.
Key audit matter
How our audit addressed the key audit matter
Accounting for acquisition of Betta Milk
(Refer to note 24 in the financial report)
We performed the following procedures for the
acquisition, amongst others:
● Agreed the purchase price to the sale and purchase
agreement and agreed the cash paid to banking
and accounting records
● Agreed the recognised fair value of the brand
name, land and buildings to third party valuation
reports, where available, and assessed the
appropriateness of the valuation methodology
used in the reports
● Testing, on a sampling basis, acquired net asset
balances to supporting documentation
● Tested the mathematical accuracy of the
calculation of the resultant goodwill
● Assessed the accuracy and completeness of
business combination disclosures in the financial
statements.
In July 2019, the Group acquired the milk processing
assets, distribution assets and brands of the Betta Milk
Co-operative Society Ltd business, for cash
consideration of $11.4m.
Under Australian Accounting Standards the Group is
required to identify all assets and liabilities acquired
and estimate the fair value of each item. Any excess
consideration that is not attributed to an asset or
liability is to be recognised as goodwill.
At 31 December 2020, the acquisition accounting by
the Group is final. The acquisition resulted in the
recognition of goodwill of $1.9m and an indefinite lived
brand of $3.9m.
We focused on the finalisation of accounting for the
acquisition of the Betta Milk business assets due to the:
● magnitude of the business acquisition transaction
●
significant judgement involved in identifying the
assets and liabilities acquired and determining
their fair value.
Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the year ended 31 December 2020, 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 on the other information that we obtained prior to the date of
this auditor’s report, 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 Group 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 Group or to cease
operations, or have 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 the financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of
our auditor's report.
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in pages 34 to 47 of the directors’ report for the
year ended 31 December 2020.
In our opinion, the remuneration report of TasFoods Limited for the year ended 31 December 2020
complies with section 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 section 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.
PricewaterhouseCoopers
Alison Tait
Partner
Melbourne
26 February 2021
SHAREHOLDER
INFORMATION
The shareholder information set out below was applicable as at 11 February 2021.
A. DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of equity security holders by size of holding:
HOLDING DISTRIBUTION
As at 11th February 2021
Range
100,001 and over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
Unmarketable Parcels
Securities
323,781,431
25,131,838
1,682,265
1,226,420
80,706
351,902,660
847,476
%
92.01
7.14
0.48
035
0.02
100.0
0.24
No of Holders
267
645
215
387
242
1,756
534
%
15.21
36.73
12.24
22.04
13.78
100.0
30.41
B. EQUITY SECURITY HOLDERS
Twenty largest quoted 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):
Rank
Name
Units
Percentage %
1
2
3
4
5
6
7
8
9
Janet H Cameron held via:
JBWere (NZ) Nominees Limited <50645 A/C>
JBWere (NZ) Nominees Limited <45230 A/C>
CVC Limited
Tasplan Superannuation Fund
Held Via National Nominees
Melbourne Securities Corporation
HSBC Custody Nominees (Australia) Limited
HSBC Custody Nominees (Australia) Limited - A/C 2
Includes Ellerston Capital Limited And Its Associates Shares
Mr Jimmy Thomas And Ms Ivy Ruth Ponniah < Thomas Super Fund A/C>
Nichols Investments Pty Ltd
And Trebor Slochin Pty Ltd
Buduva Pty Ltd
Helbern Investments Pty Ltd
10
Shane Alexander Noble
61,950,725
51,769,199
33,779,663
32,674,307
22,031,993
9,000,000
7,400,000
7,000,000
6,900,000
3,968,055
17.6
14.71
9.59
9.29
8.15
2.56
2.1
1.99
1.96
1.13
TA S F O O D S A N N U A L R E P O R T 2 0 2 0 | 1 0 1
SHAREHOLDER
INFORMATION CONT.
Rank
Name
Units
Percentage %
11
12
13
14
15
16
17
18
19
Jane Bennett held via:
Jane Frances Bennett
Chardon Lodge Pty Ltd
Ms Jane Frances Bennett
Roger McBain held via:
Vermilion 21 Pty Ltd Cerulean 37 Pty Ltd
Vermilion 21 Pty Ltd
Vermilion 21 Pty Ltd
Mr Darius Isaac
Budleaf Pty Ltd
Quality Life Pty Ltd
Ilwella Pty Ltd
J P Morgan Nominees Australia Pty Limited
Elphinstone Holdings Pty Ltd
Custodial Services Limited
(various private holders)
20
Bob Wilson