Summary Highlights

  • 2014 production and sales completed -
    • 265 million seedlings produced and sold world-wide in the season
  • Aggressive US advanced loblolly pine genetics sales targets achieved
    • 55% y-o-y increase in the sales of advanced genetics products in the US
    • 45 million MCP and varietals sold in the US (2013: 29m; 2012: 16m)
    • US loblolly average selling price increased 15% y-o-y
  • Recovery underway in the US housing market which will lift forest harvesting and replanting levels
  • Total sales volumes of advanced genetics loblolly and Radiatapine (combined) increased to almost a quarter of the total volumes sold (2013: 20%) 
  • 2015 production and sales targets set -
    • Targeting 10% increase in total seedling volumes y-o-y
    • Targeting 20% increase in revenue y-o-y
    • Longer-term sales targets for the % of advanced seedling sales are in place
    • Resourcing of US commercial sales and product development team expanded
  • ‘Blended’ production techniques and orchard expansion being put in place, to -
    • Increase MCP seed supply
    • Lower the per-unit cost of US MCP and varietal pine products
    • Deliver on expanded sales targets
  • $26 million US bank facility extended out to August ‘15
  • Acquisition agenda established - 
    • NZ expansion plan concluded with acquisition of Edendale business
    • Extends ArborGen’s existing activities into South Island
    • North and South American targets to be evaluated
    • Targeting 5m-seedling sales p.a.
  • Brazil strategy in place -
    • Eucalyptus production plan operation alised
    • On-track to produce 5-10 million varietals in first 24 months of operation
    • Order book ‘sold out’ for current season
    • Expansion to take place once initial sales volumes are proven
  • Pine strategy planned to follow successful Eucalyptus introduction
  • Stretch target in place to be at an EBITDA1 positive ‘run-rate’ at the end of CY’15 (inclusive of the expensing of all research expenditure on future products)
  • Enhanced focus on commercialisation milestones for a successful liquidity event

 

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