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Armillary Private Capital
21-10-2010, 03:38 PM
Blue Sky Meats Ltd appoints marketer to board

With a view to continuing the companyís future development and growth, Chairman Graham Cooney announces the appointment of Sarah Ottrey to the Board of Southlandís Blue Sky Meats.


http://www.unlisted.co.nz/uPublic/unlisted.mt_announcement.showannouncement?p_announ cement_id=1781

Newman
17-03-2012, 03:52 PM
How is Blue Sky Meats doing? Any issues of concern, such as industrial actions, short of animals for processing, or meat price?

Sideshow Bob
18-03-2012, 02:47 PM
Lamb prices would be the big worry at present - markets are weak with low demand in Europe and prices decreasing fast after a big spike in the last 18 months, inventories higher, exchange rates making, and supply lumpy because of weather. They usually do alright because of the plant structure/high utilisation and benefitting from increased daiying in more calf numbers, which are processed at a time usually when have little/no lambs. SSB

Newman
31-05-2012, 09:27 AM
It looks that if you have Blue Sky Meats shares it is difficult to exit. Data from unlisted show that in the past 12 months only 67860 shares out of 11.5 million total were traded (i.e., 0.59%). At this percentage it would take 169 years for all shares be traded once. That is a big problem for shareholders who want to exit at some stage of their lives.

Newman
15-05-2013, 02:21 PM
The lamb-killing season has finished. Does anyoune have a clue on the financial performance of Blue Sky Meats to 31 March 2013?

I guess it would be another year of loss, possible bigger than last year, which was about half a million dollars.

No trading of BSM share occurred in last 9 months. It seems nobody wants to buy the shares.

Newman
04-07-2013, 12:58 PM
Blue Star Meats announced an after tax loss of $3,875,093 for the year ending 31 March 2013. No dividend.

Armillary Private Capital
04-07-2013, 04:59 PM
Blue Sky Meats annual report and media release can be found here:

http://www.unlisted.co.nz/uPublic/unlisted.mt_announcement.showannouncement?p_announ cement_id=2214

Armillary Private Capital
12-07-2013, 02:48 PM
New issuer profile has been posted:

http://www.unlisted.co.nz/uPublic/unlisted.mt_announcement.showannouncement?p_announ cement_id=2245

Sideshow Bob
19-12-2013, 10:41 AM
http://www.stuff.co.nz/southland-times/business/9533720/Blue-Sky-deal-may-still-see-light-of-day

Armillary Private Capital
20-12-2013, 08:22 AM
A letter to shareholders (http://www.unlisted.co.nz/uPublic/unlisted.mt_announcement.showannouncement?p_announ cement_id=2348)regarding the above.

Newman
05-03-2014, 01:45 AM
Does anyone has a clue to Bluesky Meats' business performance. I think lamb killing is close to the end this season. What was its share of the
1 million fewer lambs killed in the south island?

Armillary Private Capital
03-04-2014, 04:29 PM
A large off-market transfer for Blue Sky Meats has taken place. (http://www.unlisted.co.nz/uPublic/unlisted.mt_announcement.showannouncement?p_announ cement_id=2373)

Armillary Private Capital
24-06-2014, 11:55 AM
Annual results announced (http://www.unlisted.co.nz/uPublic/unlisted.mt_announcement.showannouncement?p_announ cement_id=2397).

Newman
24-06-2014, 01:25 PM
With an after tax profit of $1.95m and a divident of 10 cents a share, Bluesky Meats delivered normal results. It is a company better
than Sliver Ferm Farms in management. For example, senior managers at Bluesky Meats took a pay cut after the losses in last 2 years.
In contrast, the CEO of SFF has not shown a respect to shareholders. He can always blame external factors for years after years of bad
performance, and his renumeration goes only in one direction: up and up!

Armillary Private Capital
15-12-2014, 03:36 PM
Acquisition (http://www.unlisted.co.nz/uPublic/unlisted.mt_announcement.showannouncement?p_announ cement_id=2465)of Clover Export Limited.

Armillary Private Capital
30-06-2015, 11:52 AM
2015 results (http://www.unlisted.co.nz/uPublic/unlisted.mt_announcement.showannouncement?p_announ cement_id=2540) announced and annual report (http://www.unlisted.co.nz/uPublic/unlisted.mt_announcement.showannouncement?p_announ cement_id=2541) have been posted.

Sideshow Bob
10-11-2016, 12:32 PM
Proposed takeover in play. Interesting to see how it pans out. Also the fact that they've been looking for buyers so their long-term shareholders are dissatisfied?

http://www.unlisted.co.nz/uPublic/docs/bluesky/Takeover%20Letter%20to%20Shareholders.pdf
http://www.unlisted.co.nz/uPublic/docs/bluesky/Takeover%20Notice%20Letter_Bluesky.pdf

GTM 3442
10-11-2016, 09:05 PM
An offer at $2.20, current bid $1.00, last sale $1.30, sporadic dividends, what's not to like about that $2.20 offer, eh?

Sideshow Bob
11-11-2016, 03:19 PM
Maybe potential bidding war??

http://viewer.zmags.com/publication/f5249938#/f5249938/10

Armillary Private Capital
23-01-2017, 10:24 AM
The Shareholder meeting presentation from 20 January 2017 has been posted. Click here (https://www.unlisted.co.nz/Members/unlisted.mt_announcement.showannouncement?p_announ cement_id=2934) to view

GTM 3442
26-03-2017, 03:36 PM
Well, it's all called off. Due to rain, apparently. And no OIO approval by 20 March.

Sideshow Bob
27-03-2017, 02:40 PM
Well, it's all called off. Due to rain, apparently. And no OIO approval by 20 March.

Didn't really seem like a lot of time, especially as think took them a long time to get their first plant purchase through in Oamaru. But then again, have 1 plant, what is the difference to having two plants?

Sideshow Bob
05-07-2019, 07:31 AM
Record profit. Aside from all the corporate speak, shows also the benefit of throughput - up 25%. Must have declined over the years.

$25.4m for takeover might now seem cheap....

https://www.odt.co.nz/rural-life/red-meat/blue-sky-meats-hits-record-high

percy
05-07-2019, 08:56 AM
Certainly an incredible turn around,after years in the wilderness.
Wanting to spend $11mil of capital.?
Hopefully they will post an agm presentation, and some guidance.

GTM 3442
06-07-2019, 07:32 PM
Having the sale to the Chinese turned down certainly seems to have galvanized them!

Long may it continue!

Gerald
10-04-2020, 10:11 PM
Trading at a PE of 4, and around 60% of NTA. Dividend payout poor however.

Does anyone know much about this company, and why the capex/reinvestment costs are so high (they state most of it is just to maintain operations)?

percy
11-04-2020, 09:44 AM
Maybe the big capital expenditure is a concern,taking into account their market cap is currently under $15mil..?

The current plant capacity infrastructure at Morton Mains continues to constrain growth opportunities. However, additional throughput was still achieved, and an $11 million capital expenditure program is now underway to address constraints, increase efficiency, reduce physical hazards and improve environmental performance.

Sideshow Bob
12-04-2020, 11:08 AM
Trading at a PE of 4, and around 60% of NTA. Dividend payout poor however.

Does anyone know much about this company, and why the capex/reinvestment costs are so high (they state most of it is just to maintain operations)?

Probably have to look back over recent years why it is trading at PE of 4. Historically been a solid yet unspectacular performer through its history, but made losses of around $2m in 2016 & 2017, before returning to profitability the last couple of years. Turnover was circa $140m last FY, and made $3.6m net, which is a good effort but traditionally the industry runs on low-ish margins.

They've had a change of strategy, new CEO and new cornerstone (Chinese) shareholder - who at one stage made a takeover offer (at $2.20/share). There are 4 long-term main shareholders which hold circa 63%. Rest is small shareholders and would say likely farmers/suppliers - can be in the top 10 with only 60,000 shares/$80k worth.

Looks like last season they processed more lambs.....much greater efficiencies/lower cost of product. Without being privy to the figures, can see that their EU quota was well down (which is a 3-year rolling average of their share of the national production). With lamb numbers overall having decreased over the years, especially in Southland with dairy, then lower share of a declining market isn't a good place to be. Appears that they've arrested that in the time being - last annual report said that number of livestock processed was 742,000, up 25%.

A few years ago they bought an old plant in Gore, with the goal of processing beef - which I think was a bit of a lemon. Lost money, shut it down and now using for petfood. Probably only paid a couple of mil for it, now getting some revenue/benefit packing ingredients for petfood.

I wouldn't get hung up about NTA. A meat plant in the middle of nowhere in Southland wouldn't have the greatest residual value. Probably the land it sits on is the most value thing (ironically for dairying).

They say their capital expenditure programme is being funded out of cashflow. Some of it will be capital stuff, but expect some will have some payback out of it.

When the takeover was on 2-3 years ago, they stated that <1% of their production was sold chilled - which cannot stress enough that this was absolutely shocking and simply unbelievable!! (what were their sales staff doing??) Just a lost opportunity, and see they have stated some growth and looking at their latest AR would say they are up to about 9% chilled - so good progress but still some what to go. Basically doesn't cost them much more to produce - but sells at a higher price, better cashflow and missing that revenue. Back at the same time - they identified they had a yield 3% lower than the industry - again a lost opportunity, which hopefully they are addressing.

My guess is they probably had a reasonable first 6 months, but 2nd HY would be tougher - due to sales into China through February and now 2m separation rules in plant and the resulting inefficiencies through the lockdown. Expect inventory would be decreased this year, and FX would be a good tail wind.

SFF should report next week, so their result may give a little guide (apparently a pretty strong result), but their FY ended 31/12.

Gerald
12-04-2020, 11:45 AM
Probably have to look back over recent years why it is trading at PE of 4. Historically been a solid yet unspectacular performer through its history, but made losses of around $2m in 2016 & 2017, before returning to profitability the last couple of years. Turnover was circa $140m last FY, and made $3.6m net, which is a good effort but traditionally the industry runs on low-ish margins.

They've had a change of strategy, new CEO and new cornerstone (Chinese) shareholder - who at one stage made a takeover offer (at $2.20/share). There are 4 long-term main shareholders which hold circa 63%. Rest is small shareholders and would say likely farmers/suppliers - can be in the top 10 with only 60,000 shares/$80k worth.

Looks like last season they processed more lambs.....much greater efficiencies/lower cost of product. Without being privy to the figures, can see that their EU quota was well down (which is a 3-year rolling average of their share of the national production). With lamb numbers overall having decreased over the years, especially in Southland with dairy, then lower share of a declining market isn't a good place to be. Appears that they've arrested that in the time being - last annual report said that number of livestock processed was 742,000, up 25%.

A few years ago they bought an old plant in Gore, with the goal of processing beef - which I think was a bit of a lemon. Lost money, shut it down and now using for petfood. Probably only paid a couple of mil for it, now getting some revenue/benefit packing ingredients for petfood.

I wouldn't get hung up about NTA. A meat plant in the middle of nowhere in Southland wouldn't have the greatest residual value. Probably the land it sits on is the most value thing (ironically for dairying).

They say their capital expenditure programme is being funded out of cashflow. Some of it will be capital stuff, but expect some will have some payback out of it.

When the takeover was on 2-3 years ago, they stated that <1% of their production was sold chilled - which cannot stress enough that this was absolutely shocking and simply unbelievable!! (what were their sales staff doing??) Just a lost opportunity, and see they have stated some growth and looking at their latest AR would say they are up to about 9% chilled - so good progress but still some what to go. Basically doesn't cost them much more to produce - but sells at a higher price, better cashflow and missing that revenue. Back at the same time - they identified they had a yield 3% lower than the industry - again a lost opportunity, which hopefully they are addressing.

My guess is they probably had a reasonable first 6 months, but 2nd HY would be tougher - due to sales into China through February and now 2m separation rules in plant and the resulting inefficiencies through the lockdown. Expect inventory would be decreased this year, and FX would be a good tail wind.

SFF should report next week, so their result may give a little guide (apparently a pretty strong result), but their FY ended 31/12.

Thanks for that :)

percy
12-04-2020, 12:40 PM
Thanks for that :)

Yes thank you Sideshow Bob.

Sideshow Bob
12-04-2020, 03:46 PM
Furthermore....in terms of future (share) prospects....

Not sure on the potential for any future takeover. Binxi probably had their chance and didn't take it. In recent times they've had their own issues with their plant in Oamaru (exports to China suspended - now reinstated. Closed for a few months). Probably have some sort of relationship/influence over Chinese sales, so may not need takeover. Any further increase in Binxi SH would trigger a full takeover.

They largely failed in their foray into beef, with the purchase of the Gore plant, and then shut it down. Think the plant would have significant issues, and would need to spend some money on it. Also, at the same time Alliance is trying to expand their beef production. When it works, beef can be very profitable - but there is potentially room for a niche, well-run efficient operation to take on the bigger boys.

Otherwise the company has been around since about 1987 (I think). Shown no growth/expansion etc. Operating in a geographic area dominated by Alliance/SFF and potentially opportunities to take on the bigger boys - again as niche, operating efficient processor. It has been this for many years, having a better utilisation of their plant compared to others in the area. But seems like they have lost their way. One plus in the current environment, is if unemployment increases, may be better placed for labour - ensuring fully staffed and lower staff turnover.....

Their 2nd largest shareholder is Lowe Corp - Hawkes Bay-based renderers/skin company - so logically could be some connection/relationship there.

In terms of investing, I would be looking for them to be consistently profitable, livestock numbers on better levels (lower cost per unit), better returns out of rendering/petfoods, increasing chilled (more margin) and better operational stats (ie yield). Would also want to see the end of the capital expenditure programme and a return to dividends (given lack of growth). Shares are very illiquid, so would have to maybe wait for an entry point and be a long-term hold.

Sideshow Bob
03-08-2020, 01:41 PM
No FY result as yet - last year was the 4th of July.

Would just be interesting to see how they perform in comparison to other companies.

Sideshow Bob
11-08-2020, 10:10 AM
No FY result as yet - last year was the 4th of July.

Would just be interesting to see how they perform in comparison to other companies.

They've changed to end of June FY, so no result yet.....

Sideshow Bob
28-09-2020, 01:03 PM
Still waiting. Must be very soon, maybe before the end of the month??

iceman
29-09-2020, 09:16 AM
Midday business news on RNZ yesterday. Starts around 03:25 https://www.rnz.co.nz/audio/player?audio_id=2018765915

Sideshow Bob
29-09-2020, 10:32 AM
Midday business news on RNZ yesterday. Starts around 03:25 https://www.rnz.co.nz/audio/player?audio_id=2018765915

Thanks Iceman - well spotted.

Doesn't engender alot of confidence....

Sideshow Bob
12-10-2020, 08:15 AM
https://usx.co.nz/uploads/paperclip/documents/2120/original/Blue_Sky_Meats_%28NZ%29_Ltd__-_2020_Annual_Report.pdf?1602216037

Must have come out late Friday. Haven't had a chance to have much of a look as yet.

Can see why sneaked it out. While NPAT is marginally down on last year - 15 months rather than a 12 month period. The extra months of April-June would normally be some of their higher throughput/more profitable months I'd imagine. So hard to tell if procuring/processing more or just the addition of those months.

They champion their EBITA strategic plan gains - which is great but what would have happened without these gains?

One of the positive aspects is the capital expenditure of $8.5m, funded out of operating cashflow (and no long term debt). Hopefully are projects that generate income, rather than just cost of doing business.