North West Egg Sales Business Plan — Financial Plan: Projected Income Statement
Projected income statement: EBITDA settling at 20–22% of revenue with net profit positive from Year 2.
Section 25 of 31
Financial Plan: Projected Income Statement
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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
EBITDA margin settles at 20–22%; net profit is positive from Year 2 once all three houses are in lay
EBITDA and net profit (R million)
| Category | EBITDA | Net profit | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Y1 | 3.2 | -1.6 | ||||||||
| Y2 | 8.4 | 2.1 | ||||||||
| Y3 | 9.3 | 2.4 | ||||||||
| Y4 | 8.5 | 2.0 | ||||||||
| Y5 | 10.1 | 3.3 | R million (June year-end) | Y0 | Y1 | Y2 | Y3 | Y4 | Y5 | |
| Egg sales | 0.0 | 24.6 | 36.5 | 38.8 | 40.9 | 42.9 | ||||
| Seconds, cull hens and manure | 0.0 | 0.6 | 3.5 | 3.7 | 2.9 | 4.0 | ||||
| Revenue | 0.0 | 25.3 | 40.1 | 42.5 | 43.8 | 47.0 | ||||
| Feed | 0.0 | (10.5) | (15.7) | (16.5) | (17.6) | (18.2) | ||||
| Flock depletion | 0.0 | (3.6) | (5.6) | (5.9) | (6.2) | (6.5) | ||||
| Packaging and veterinary | (0.0) | (1.5) | (2.2) | (2.3) | (2.5) | (2.6) | ||||
| Gross profit | 0.0 | 9.6 | 16.5 | 17.8 | 17.6 | 19.7 | ||||
| Gross margin | n/a | 38.2% | 41.3% | 42.0% | 40.2% | 42.0% | ||||
| Payroll | (0.2) | (3.6) | (4.6) | (4.9) | (5.2) | (5.5) | ||||
| Energy, delivery and overheads | (0.1) | (2.9) | (3.4) | (3.7) | (3.9) | (4.1) | ||||
| EBITDA | (0.3) | 3.2 | 8.4 | 9.3 | 8.5 | 10.1 | ||||
| EBITDA margin | n/a | 12.6% | 21.1% | 21.8% | 19.5% | 21.5% | ||||
| Depreciation | 0.0 | (2.2) | (3.1) | (3.2) | (3.2) | (3.3) | ||||
| EBIT | (0.3) | 1.0 | 5.3 | 6.1 | 5.3 | 6.8 | ||||
| Finance costs | (0.1) | (2.6) | (3.2) | (2.9) | (2.6) | (2.3) | ||||
| Profit before tax | (0.4) | (1.6) | 2.1 | 3.2 | 2.7 | 4.6 | ||||
| Tax | 0.0 | 0.0 | (0.1) | (0.8) | (0.7) | (1.2) | ||||
| Net profit | (0.4) | (1.6) | 2.1 | 2.4 | 2.0 | 3.3 | ||||
| Net margin | n/a | -6.3% | 5.2% | 5.6% | 4.5% | 7.1% |
So what: Year 1 loses R1.6m while houses fill. Year 4 margin dips because three flocks are depleted in one year. Tax is low in Year 2 as R2.0m of start-up losses are used.