SA Premier Poultry Business Plan

Investor-ready poultry abattoir business plan: R100.24m funding, 14,000 birds a day on two shifts, 4,134 tonnes and R282.95m Year 5 revenue.

SA Premier Poultry Processors — dressed birds on the line at a registered abattoir

Business Plan & Investment Proposal · South Africa

Poultry Abattoir & Processing Business Plan — South Africa

SA Premier Poultry Processors (Pty) Ltd · A Spread, Not A Margin. Scale Is The Entry Condition.

A registered high-throughput poultry abattoir and processing plant under the Meat Safety
Act 40 of 2000 — 8 000 birds a day on one shift and 14 000 on two, reaching 3 570 000 birds and
4 134 tonnes of dressed product a year, with 82 per cent own-account processing and the balance contract
slaughter. Total funding of R100 240 000: R48.00 million equity, R24.24 million DFI quasi-equity
and R28.00 million senior debt, plus a R24.00 million working capital facility.

R100.24mTotal funding

4 134 tDressed product a year

R282.95mYear 5 revenue

13.7%Year 5 EBITDA margin

Read the executive summary →

The plan’s title is a warning about how to read its own numbers. SA Premier
turns over R282.95 million by Year 5, and R180.14 million of that goes straight back out to buy live
birds — 64 cents in every rand of revenue. A poultry abattoir is a converter: it buys a bird at R47.77 and earns
R18.88 of contribution turning it into dressed product. That spread is the whole business, and a spread that thin
only works multiplied by 3.57 million birds a year, which is why the plan calls scale the entry condition
rather than the ambition. The step that gets it there is the second shift in Year 4, taking throughput from
8,000 birds a day to 14,000 against a largely unchanged plant. The honest cost is stated too: an EBITDA deficit of
R4.17 million and a R21.24 million loss after tax in Year 1, with debt service cover at 0.91 and 1.00
times through the middle years.

The plan at a glance

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

R100.24mTotal funding requirementR48.00m equity, R24.24m DFI quasi-equity and R28.00m senior debt, plus a R24.00m working capital facility.

R18.88Contribution a birdAgainst a live bird costing R47.77. The plant earns the spread between what it buys and what it sells — not a margin on turnover.

14 000Birds a day at maturity8,000 on one shift, 14,000 on two. 3.57 million birds and 4,134 tonnes of dressed product a year.

64%Of revenue is live bird purchaseR180.14m of R282.95m. A processor is a converter, and the input dominates the income statement.

13.7%Year 5 EBITDA marginOn R282.95m of revenue. Turnover is large and the margin is thin — which is precisely why scale is the entry condition.

3.15xYear 5 debt service coverFrom negative in Year 1 and 1.00x in Year 3. The middle years are the tight ones and the working capital facility carries them.

Where the money goes before it arrives

What the plant pays for a bird against what it keeps — and why that gap only works at volume.

R47.77What a live bird costsLive bird purchases are R180.14m of R282.95m of Year 5 revenue — 64 cents in every rand. The plant does not create the value, it converts it.

leaving

R18.88Contribution a birdThat spread is the entire business, and it only works multiplied by 3.57 million birds a year. Scale is not an ambition here; it is the condition of entry.

Five years of trading

Revenue and EBITDA on the base case. Live bird cost and throughput are the two assumptions that matter most, and both are stressed in Section 10.

Revenue build — birds a day and the second shift

Throughput rises from 4,800 birds a day to 14,000, with the second shift added in Year 4. Dressed product goes from 1,072 tonnes a year to 4,134 through the same line.

Year 1

R61.4m · 4 800 birds · 1 shift

Year 2

R104.0m · 6 800 · 1

Year 3

R138.5m · 8 000 · 1

Year 4

R205.8m · 11 000 · 2

Year 5

R283.0m · 14 000 · 2

EBITDA and margin, Year 2 onward

Year 1 runs an EBITDA deficit of R4.17m and a R21.24m loss after tax. Live birds alone cost R180.14m against R282.95m of Year 5 revenue — which is why the margin reaches only 13.7%.

Year 2

R5.23m · 5.0%

Year 3

R12.39m · 8.9%

Year 4

R22.00m · 10.7%

Year 5

R38.87m · 13.7%

Why this plan works the way it does

A spread business, not a margin businessThe plant buys a live bird at R47.77 and earns R18.88 of contribution converting it. Live birds are 64% of revenue, so the income statement is dominated by an input the processor does not control.

Scale is the entry condition, not the ambitionA spread that thin only works multiplied by 3.57 million birds a year. A smaller plant does not earn a smaller profit on the same model — it does not clear its fixed cost base at all.

The second shift is the step changeCapacity is 8,000 birds a day on one shift and 14,000 on two. The second shift arrives in Year 4 and takes revenue from R138.5m to R282.95m against a largely unchanged plant.

Registration precedes tradingRegistration under the Meat Safety Act 40 of 2000, veterinary supervision and HACCP-aligned controls gate the opening date and the customer base. Retail will not buy without them.

Years 2 and 3 are the tight onesDebt service cover is 0.91x and 1.00x before recovering to 3.15x. The R24.00m working capital facility exists precisely because a converter funds its input before it is paid for the output.

Financial snapshot

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

Figure 6. Fixed cost per bird at four plant sizes.

Figure 8. Carcass split and product pricing.

Figure 17. Break-even against actual throughput by year.

Figure 18. Contribution against the fixed cost base.

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 Premier Poultry Processors (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.