North West Egg Sales Business Plan — Executive Summary
A 60,000-hen layer farm at Potchefstroom: R52.9m funding, 1.45m dozen eggs a year and a 16% base-case equity IRR.
Section 1 of 31
Executive Summary
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- 0. Executive Summary
- 1. Investment Thesis
- 2. Company Overview
- 3. Location
- 4. Problem and Value Proposition
- 5. Products and Pricing
- 6. Industry Analysis
- 7. Market Sizing
- 8. Customers and Channels
- 9. Competitive Landscape
- 10. Competitive Positioning
- 11. Business Model and Unit Economics
- 12. Go-to-Market Strategy
- 13. Operating Model
- 14. Farm Infrastructure and Capital Expenditure
- 15. Biosecurity and Animal Health
- 16. Management and Organisation
- 17. Strategic Plan
- 18. SWOT Analysis
- 19. Risk Analysis
- 20. ESG and Sustainability
- 21. Implementation Roadmap
- 22. Financial Plan: Key Assumptions
- 23. Financial Plan: Revenue Build
- 24. Financial Plan: Projected Income Statement
- 25. Financial Plan: Projected Cash Flow
- 26. Financial Plan: Projected Balance Sheet
- 27. Funding Requirement and Structure
- 28. Debt Serviceability and Break-Even
- 29. Returns, Scenarios and Sensitivity
- 30. Investment Case and Next Steps
A 60,000-hen Potchefstroom layer farm converts R52.9m of capital into R9.3m of EBITDA by Year 3
R52.9m
R42.5m
21.8%
16.0%
1.24x
Total funding: 45% equity, 55% debt
Year 3 revenue from 1.45m dozen eggs
Year 3 EBITDA margin after flock depletion
5-year equity IRR (2.1x MOIC)
Minimum reserve-smoothed DSCR
The opportunity
The numbers (R million)
Eggs are South Africa’s cheapest animal protein; demand is staple, year-round and recovering volume after the 2023 avian-influenza supply shock.
North West Egg Sales (NWES) will build three 20,000-bird climate-controlled houses and a grading packhouse on 28 ha outside Potchefstroom, in the maize belt and on the N12.
A three-flock, multi-age rotation gives customers 52-week supply; 70% of volume goes to regional retailers, spaza traders and farm-gate buyers that national brands under-serve.
First pullets are placed in July 2027; EBITDA turns positive in month 2 of operations and all houses are in lay by month 9.
| Y1 | Y2 | Y3 | Y4 | Y5 | |
|---|---|---|---|---|---|
| Revenue | 25.3 | 40.1 | 42.5 | 43.8 | 47.0 |
| EBITDA | 3.2 | 8.4 | 9.3 | 8.5 | 10.1 |
| EBITDA margin | 13% | 21% | 22% | 19% | 22% |
| Net profit | (1.6) | 2.1 | 2.4 | 2.0 | 3.3 |
| Closing cash | 3.9 | 5.6 | 8.4 | 7.7 | 10.6 |
| DSCR (smoothed) | n/a | 1.53x | 1.46x | 1.24x | 1.55x |
The honest read: this is a bankable, cash-generative farm, not a high-growth story. A 16% equity IRR sits below private-equity hurdles and the cushion is thin: realised egg prices need to stay above R25.20 a dozen (base R27.29) to cover debt service in Year 3. Feed cost, egg price and avian influenza are the three risks that decide the outcome.