SA Best Peanut Butter Business Plan

Investor-ready peanut butter plant business plan: R74.12m funding, 2,150 tonnes at maturity, 7.8% of the national market and R161.72m Year 5 revenue.

SA Best Peanut Butter — finished peanut butter and the certified kernels it is made from

Business Plan & Investment Proposal · South Africa

Peanut Butter Manufacturing Business Plan — South Africa

SA Best Peanut Butter Manufacturing (Pty) Ltd · A Simple Product To Make, And A Difficult One To Make Safely.

A peanut butter manufacturing plant in Gauteng — capacity for 1 215 tonnes on
one shift and 2 248 on two, running certified batch-tested kernels at R27 900 a tonne across own-brand jars,
retailer private label, food service and industrial bulk, reaching 2 150 tonnes and about 7.8 per cent
of the national market. Total funding of R74 120 000: R33.12 million equity at 45 per cent, a
R16.00 million DFI facility and R25.00 million senior debt, plus a R26.00 million working capital
facility.

R74.12mTotal funding

2 150 tOutput at maturity

R161.72mYear 5 revenue

10.8%Year 5 EBITDA margin

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The most telling decision in this plan is structural: aflatoxin gets Section 2,
ahead of the market, the products and the pricing. That ordering is correct. Roasting, grinding and filling peanut
butter is straightforward and the equipment is available to anyone, so the process confers no advantage at all —
what separates a viable plant from a dangerous one is buying certified, batch-tested kernels at R27,900 a tonne and
running the testing regime that justifies the premium. A contaminated batch in this category is not a quality
problem; it is a recall and a delisting. The financial shape follows from being a converter: kernels are
45.4 per cent of Year 5 revenue, so R161.72 million of turnover yields R17.47 million of EBITDA at a
10.8 per cent margin, and own-brand rising from 30 to 49 per cent of volume is what lifts that above
contract-manufacturing economics.

The plan at a glance

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

R74.12mTotal funding requirementR33.12m equity at 45%, a R16.00m DFI facility and R25.00m senior debt, plus a R26.00m working capital facility.

R27 900Per tonne of certified kernelBatch-tested for aflatoxin. Kernels are 45.4% of Year 5 revenue — the input dominates the income statement and the risk register alike.

2 150 tOutput at maturityAbout 7.8% of the national market, from capacity of 1,215 tonnes on one shift and 2,248 on two.

30% → 49%Own-brand share of volumeThe margin story. Private label and industrial bulk fill the plant; own-brand jars are what lift the return.

1 161 tBreak-even volumeAgainst 2,150 planned — a margin of safety of roughly 46%, which is the most reassuring number in a thin-margin model.

10.8%Year 5 EBITDA marginOn R161.72m of revenue. A converter's margin: large turnover, modest earnings, and three loss-making years to reach it.

Why the hard part is not the manufacturing

What anyone can do against what almost no one does reliably — and why the plan puts the second one first.

Simple to makeRoast, grind, fillThe process itself is unremarkable and the equipment is available to anyone. Nothing about manufacturing peanut butter is a barrier to entry.

but

Hard to make safelyAflatoxinCertified batch-tested kernels at R27,900 a tonne, and a testing regime that gets its own section before the market is even discussed. That discipline is the actual moat.

Five years of trading

Revenue and EBITDA on the base case. Kernel price and volume are the two assumptions that matter most, and both are stressed in Section 10.

Revenue build — tonnes and the shift toward own-brand

Volume rises from 900 tonnes to 2,150, about 7.8% of the national market. Own-brand grows from 30% of volume to 49%, which is where the margin difference against private label sits.

Year 1

R50.5m · 900 t · 30% own-brand

Year 2

R84.1m · 1 380 t · 38%

Year 3

R112.9m · 1 720 t · 43%

Year 4

R139.8m · 1 990 t · 46%

Year 5

R161.7m · 2 150 t · 49%

EBITDA and margin, Year 2 onward

Year 1 runs an EBITDA deficit of R3.53m and a R19.34m loss after tax. Kernels alone cost R73.42m against R161.72m of Year 5 revenue, which is why the margin reaches only 10.8%.

Year 2

R1.26m · 1.5%

Year 3

R7.50m · 6.6%

Year 4

R13.13m · 9.4%

Year 5

R17.47m · 10.8%

Why this plan works the way it does

Aflatoxin is the business, not a risk lineThe plan gives it Section 2 — before the market, before the products. A contaminated batch is not a quality problem in this category; it is a recall, a delisting and a brand that does not recover.

The moat is procurement discipline, not processRoasting and grinding are unremarkable and the equipment is available to anyone. Certified batch-tested kernels at R27,900 a tonne and the testing regime around them are what a competitor cannot copy on Monday.

Kernels are 45.4% of revenueR73.42 million of R161.72 million. This is a converter: the input dominates the income statement, so kernel price movement passes almost directly to EBITDA.

Own-brand is where the margin isPrivate label and industrial bulk fill the plant and make it bankable; own-brand jars rising from 30% to 49% of volume are what lift the return above a contract manufacturer's.

Three funded loss years and a thin marginEBITDA is negative in Year 1 and profit after tax until Year 4, ending at a 10.8% margin. The reassurance is volume headroom — break-even at 1,161 tonnes against 2,150 planned.

Financial snapshot

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

Figure 10. Where a tonne of peanut butter goes.

Figure 11. Kernel cost and contribution per tonne.

Figure 18. Production against break-even.

Figure 22. EBITDA sensitivity at maturity.

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

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Important Notice and Basis of PreparationBasis 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 SA Best Peanut Butter Manufacturing (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.