Tarlton Beetroot Business Plan — Projected Income Statement

Five-year income statement: revenue to R25.80m, gross margin reaching 47% and EBITDA of R5.79m by Year 5.

Section 23 of 37

Projected Income Statement

Jump to section

Three loss-making years, a first EBITDA-positive month at month 36, and a first profitable year at Year 5.

Table 35 Projected income statement, R thousand, base case

R’000	Year 1 FY2028	Year 2 FY2029	Year 3 FY2030	Year 4 FY2031	Year 5 FY2032
Beetroot revenue	357	1 629	4 097	13 266	17 840
Rotation crop revenue	0	0	692	4 948	7 961
Total revenue	357	1 629	4 789	18 214	25 801
Cost of sales	(303)	(1 152)	(2 743)	(9 711)	(13 562)
Gross profit	54	477	2 046	8 503	12 239
Gross margin	15.0%	29.3%	42.7%	46.7%	47.4%
Operating expenses	(1 520)	(2 100)	(4 224)	(5 696)	(6 447)
EBITDA	(1 466)	(1 623)	(2 179)	2 807	5 792
EBITDA margin	-411.2%	-99.7%	-45.5%	15.4%	22.4%
Depreciation	(292)	(298)	(1 266)	(2 412)	(2 469)
EBIT	(1 758)	(1 921)	(3 444)	395	3 323
Net finance cost	(77)	(119)	(930)	(1 720)	(1 604)
Profit before tax	(1 836)	(2 040)	(4 374)	(1 325)	1 719
Tax expense (current and deferred)	(244)	(113)	(2 116)	(932)	(377)
Net profit after tax	(2 079)	(2 153)	(6 490)	(2 258)	1 342
Net margin	-583.1%	-132.2%	-135.5%	-12.4%	5.2%

Cash tax is nil in every year of the horizon. The tax expense shown is almost entirely deferred, arising because the First Schedule 50/30/20 farming allowance deducts capital expenditure faster than the accounts depreciate it. The deferred tax liability of R3.78 million at Year 5 is a real future obligation, not an accounting artefact.

Figure 1. Revenue and EBITDA by year, base case.

Figure 2. Gross, EBITDA and net margin progression.

Table 36 Operating expense detail, R thousand

R’000	Year 1 FY2028	Year 2 FY2029	Year 3 FY2030	Year 4 FY2031	Year 5 FY2032
Executive and management salaries	660	720	980	1 460	1 560
Technical and agronomy	0	0	210	360	385
Commercial and key accounts	0	90	300	400	425
Administration and finance	144	180	260	340	365
Security	60	108	216	252	264
Land and shed lease (Tarlton)	132	288	288	0	0
Insurance (assets and liability)	42	68	185	262	285
Professional fees and governance	105	145	265	320	340
Certification and food-safety audits	0	58	185	212	225
Vehicles, travel and fuel	84	132	248	330	355
Office, IT, ERP and communications	48	74	148	172	185
Repairs, maintenance and utilities	26	50	215	365	400
Rates, taxes and statutory charges	0	0	96	122	128
Marketing, trade and listing costs	34	72	178	215	228
Total operating expenses	1 520	2 100	4 224	5 696	6 447