Financial Highlights• Total sales revenue up 233% to $A24.5...

Financial Highlights

• Total sales revenue up 233% to $A24.5 million for the six months ending 30 September 2 020

compared with $A7.4 million in the corresponding prior financial year to 30 September 2019

• Proprietary product growth increased by 141% to $A2.3 million compared with the prior

corresponding period, notwithstanding significant retail ranging was delayed due to COVID-19 and implemented only after 30 September 2020 and not reflected in the results to date

• Total sales in New Zealand of $A5.3m for 1H 2021, exceeding the 12-month full year sales result of $A5.0m for the period ending 31 March 2020

• Continued strong growth in the private label business, substantial increased forecasts

received from existing clients for calendar year 2021 and new contract wins across Australia

and New Zealand

• Underlying EBITDA profitability recorded in Australia and New Zealand businesses, being

$A440k and $A369k, respectively, before HeadCo costs

• Consolidated normalised EBITDA loss decreased 57% to $A900k compared with prior

corresponding period loss of $A2.1 million

• Operational Australian EBITDA negatively impacted by the initial retail rebates and promotions and marketing to establish brand awareness and achieve market penetration of new brands and products in key retail channels. This is expected to normalise over time

• A number of one-off cash costs in relation to the acquisition of AusConfec, the capital raise

and the proposed re-brand and name change have not been excluded from the normalised

EBITDA result

• Reduction in gross margin of 3 basis points compared to prior corresponding period as a

result of establishment and upfront support of new brands in retail channels through rebates

and promotions

• As at 30 September 2020, Keytone Dairy had a cash balance of A$9.0 million as outlined in

the Interim Report