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Business Plan Africa Investor-Ready Plans

Two Seasons Garlic Business Plan

Investor-ready two-season garlic business plan: R9.0m seed, 92 hectares, 910 t saleable and R52.8m FY2031 revenue at a 34% EBITDA margin.

Two Seasons Garlic — cured garlic bulbs of the kind graded for programme supply
Business Plan & Investment Proposal · South Africa

Garlic Farming Business Plan — South Africa

Two Seasons Garlic (Pty) Ltd · The Margin Lives Inside A Tariff Wall, And The Market Has A Ceiling.

A two-season garlic producer displacing imports at programme scale — 92 hectares across
two provinces by FY2031 on offset planting calendars, harvesting 1 086 tonnes of which 910 grade out as
saleable, and reaching 15.5 per cent of the national market. R9.0 million of seed equity now, followed by
R15.0 million Series A at month 14 and R11.0 million Series B at month 33, alongside a
R14.0 million agricultural term facility at 11.5 per cent with a 24-month capital grace.

R9.0mSeed equity
92 haBy FY2031
R52.8mFY2031 revenue
34.1%FY2031 EBITDA margin

Read the executive summary →

This plan opens by naming the two things that could undo it, which is rarer than it
should be. Its first sentence says a capital-light two-season garlic producer can displace imports at programme
scale and reach a 34 per cent EBITDA margin by FY2031 — but that the margin lives inside a tariff wall and
the market has a visible ceiling. Both sit outside management control. What management does control is grading: 1,086
tonnes are harvested at FY2031 and only 910 grade out as saleable, and lifting that share from 61 to
84 per cent through curing discipline is what turns a crop into a supply programme. The margin arithmetic
follows from scale rather than agronomy — gross margin swings from minus 3.2 per cent to 58.8 as the fixed
cost of establishing hectares spreads across a far larger saleable tonnage.

The plan at a glance

Six measures that determine whether this crop and its funding stand up.

R9.0mSeed equity nowFollowed by R15.0m Series A at month 14 and R11.0m Series B at month 33, alongside a R14.0m agricultural facility at 11.5%.
Tariff wallWhere the margin livesThe plan says so in its own first paragraph. A 58.8% gross margin against imported garlic depends on protection the business does not control.
61% → 84%Of harvest that grades saleable1,086 tonnes harvested and 910 saleable at FY2031. Curing and grading discipline is what converts tonnage into revenue.
15.5%Of the national market by FY2031From 1.3%. The plan also states the market has a visible ceiling — growth beyond this point is not simply more of the same.
34.1%FY2031 EBITDA marginFrom minus 150% in FY2027. Two loss-making seasons are funded before the crop base is large enough to carry establishment cost.
3.2x / 26%Seed money multiple and IRRAt a 6.5x EBITDA exit in FY2031 — the exit multiple is the assumption a seed investor should test hardest.

What the plan admits about itself

A strong margin, and the two conditions outside management control that it depends on.

34% marginWhat the plan deliversR18.0m of EBITDA on R52.8m of revenue by FY2031, displacing imported garlic at programme scale for retail and wholesale buyers.
but
Inside a tariff wallAnd under a ceilingThe plan states in its own opening paragraph that the margin depends on tariff protection and that the national market has a visible limit. Both are outside management control.

Five years of trading

Revenue and EBITDA on the base case. Saleable share and the garlic price are the two assumptions that matter most, and both are stressed in Section 28.

Revenue build — hectares and the saleable crop behind them

Hectares rise from 12 to 92 and yield from 9.5 to 11.8 t/ha, but the share of harvest that grades out as saleable climbing from 61% to 84% is what turns tonnage into revenue.

FY2027

R3.05m · 12 ha · 69 t saleable

FY2028

R10.43m · 28 ha · 214 t

FY2029

R21.96m · 48 ha · 416 t
FY2030

R36.61m · 70 ha · 658 t
FY2031

R52.80m · 92 ha · 910 t

EBITDA and margin, FY2029 onward

FY2027 and FY2028 run deficits of R4.58m and R1.35m while hectares are established. Gross margin swings from minus 3.2% to 58.8% as fixed establishment cost spreads across a larger crop.

FY2029

R3.06m · 14.0%

FY2030

R9.82m · 26.8%
FY2031

R18.01m · 34.1%

Why this plan works the way it does

1
The plan names its own two dependenciesIts opening sentence says the margin lives inside a tariff wall and the market has a visible ceiling. Both sit outside management control, and stating them first is more useful to an investor than any projection.
2
Grading, not tonnage, produces revenue1,086 tonnes are harvested at FY2031 and 910 are saleable. Lifting that share from 61% to 84% through curing and grading discipline is what converts a crop into a programme supply business.
3
Two seasons is the operating ideaPlanting across two provinces on offset calendars extends the supply window, which is what allows a retailer to list a local grower against imported garlic available year-round.
4
Fixed establishment cost needs scale to absorbGross margin swings from minus 3.2% in FY2027 to 58.8% by FY2031. Nothing about the crop changes; the cost of establishing hectares simply spreads across a much larger saleable tonnage.
5
Three rounds, and the exit multiple carries the returnR9.0m seed, R15.0m Series A and R11.0m Series B, returning 3.2x at a 6.5x EBITDA exit. That multiple assumption deserves more scrutiny than the operating numbers.

Financial snapshot

Four charts from the plan. The full set of twenty-four appears throughout the sections below.

EBITDA and margins across the five seasons
Figure 3. EBITDA and margins across the five seasons.
Market sizing: TAM, SAM and SOM
Figure 6. Market sizing: TAM, SAM and SOM.
Revenue by channel across the plan period
Figure 8. Revenue by channel across the plan period.
Funding need by component against sources
Figure 15. Funding need by component against sources.

Contents

Thirty sections and three appendices. Every page carries full navigation, a section outline and links to the sections either side of it.


!
Executive SummaryBasis of preparation, data sources and forward-looking statement caveats. Please read first.

Appendices
Confidential. This document is provided for the purpose of evaluating an
investment in Two Seasons Garlic (Pty) Ltd and may not be reproduced or distributed without written consent. Projections are
forward-looking statements based on the assumptions registered in Section 16 and are not guarantees of future
performance.