SA Best Peanut Butter Business Plan — Key Performance Indicators
The volume, kernel cost, aflatoxin rejection and own-brand mix indicators reported per batch and weekly, with thresholds.
Key Performance Indicators
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Aflatoxin: The Question That Defines the Business
- 3. Market, Products and Pricing
- 4. Regulation and Food Safety
- 5. SWOT and Competitive Position
- 6. Operations
- 7. Financial Plan
- 8. Break-Even and Debt Service
- 9. Investment Analysis
- 10. Sensitivity and Scenario Analysis
- 11. Risk Analysis
- 12. Implementation Roadmap
- 13. Key Performance Indicators
- 14. Key Assumptions
- 15. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Volume, Kernel and Cost Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
The following are the operating measures on which this plant should be managed. Three of them — aflatoxin results, intake rejection and contribution per tonne — are reported to the board rather than within production, because each of the three can be improved in the short run by a decision that damages the business in the long run.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Aflatoxin results at intake and release |
Parts per billion, by lot and by batch |
Below 4 ppb internal limit |
The regulatory limit is 10 ppb. Operating at the legal limit means failing it regularly |
|
Intake rejection rate |
Certified deliveries rejected divided by deliveries received |
Below 3.8% |
A three-point movement is worth R4583800 of Year 5 EBITDA |
|
Contribution per tonne |
Gross profit divided by tonnes produced |
R13515 rising to R18723 |
The spread. Break-even is 1161 t on one shift |
|
Kernel cost per tonne of product |
Kernel spend divided by tonnes produced |
R26247 at Year 1 prices |
45.4% of revenue; contribution reaches zero at a purchase price of R42269 |
|
Own-brand share of volume |
Own-brand tonnes divided by total tonnes |
30% rising to 49% |
Own brand earns 29% contribution against 21% on private label |
|
Capacity utilisation |
Tonnes produced divided by installed capacity |
74% Year 1, 96% Year 5 |
One shift is 1 215 t; two shifts 2 248 t |
|
Batches held and released on time |
Batches cleared within the hold window |
Above 98% |
In-house testing is what keeps working capital from being tied up in held stock |
|
Working capital employed |
Receivables plus stock less payables |
Tracked monthly against the R26 000 000 facility |
Peaks at R25069516 — 15.5% of revenue |
|
Debt service cover |
EBITDA divided by interest and capital |
Above 1.30x |
Negative in Year 1. Covenants must be tested from Year 4 |
|
Retail listings held and lost |
Stock keeping units listed by chain |
Tracked quarterly |
Listings are bought, not won, and R3 600 000 is budgeted for them |