Ann: FY21 Results Investor Presentation, page-13

Hi,
First time, I had a look at this company.

Obviously, there are several interesting elements about it :
- FY 21 results which show a clear improvement at several levels : + 16 % for underlying EBITDA driven by their packaged feed and ingredient division, improvement of returns in their 2 divisions and large decrease of their debt (by 64 m in FY 21) thanks to free cash flow,
- the level of expectation for this company seems quite low, listening to what several fund managers are saying about them (source : Aus Biz),
- lastly, the valuation looks cheap based on free cash flow 2021 of around 40 m (corrected for lease and working capital), which corresponds to a high free cash flow yield of 8 % and even 9 % (if we consider the level of net debt at the end of August).

The main question for me is the sustainability of such a level of free cash flow.
Several fund managers indicate that it is a tough business due to competition and cyclicality.
I have no particular view about it and need to do more work on this company and the sector.