Australian Dairy Nutritionals Group (AHF) 2024年年度報告「ASX」.pdf

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1、ANNUAL REPORT 2024AUSTRALIAN DAIRY NUTRITIONALS GROUPAUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 202402CORPORATE DIRECTORYBOARD OF DIRECTORSPeter Nathan Non-Executive ChairJason Dong Non-Executive DirectorScott Lai Non-Executive DirectorCOMPANY SECRETARYElizabeth Spooner Company SecretaryREGI

2、STERED OFFICE160 Depot Road Camperdown VIC 3260 Telephone:(03)8692 7284 Email:.au SHARE REGISTERLink Market Services LimitedLevel 21,10 Eagle Street Brisbane QLD 4000 Telephone:1300 554 474 Facsimile:(02)9287 0303 Email:.au Web:.auCORPORATE OFFICE160 Depot Road Camperdown VIC 3260 Telephone:(03)8692

3、 7284 Email:.au AUDITORNexia Brisbane Audit Pty LtdLevel 28,10 Eagle Street Brisbane QLD 4000 Telephone:(07)3229 2022 Facsimile:(07)3229 3277 Email:.au Web:.au STOCK EXCHANGE Australian Dairy Nutritionals Group is listed on the official List of the Australian Securities Exchange Limited(ASX).The ASX

4、 Code is“AHF”.WEBSITE.auAUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 202403CONTENTSCORPORATE DIRECTORY 02 CHAIR AND CEO REPORT 05DIRECTORS REPORT 07CORPORATE GOVERNANCE STATEMENT 22AUDITORS INDEPENDENCE DECLARATION 23CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 25CON

5、SOLIDATED STATEMENT OF FINANCIAL POSITION 26CONSOLIDATED STATEMENT OF CASH FLOWS 27CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 28NOTES TO THE FINANCIAL STATEMENTS 30CONSOLIDATED ENTITY DISCLOSURE STATEMENT 68DIRECTORS DECLARATION 69INDEPENDENT AUDITORS REPORT TO THE MEMBERS 70SHAREHOLDER INFORMATION

6、 7404AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024The Group is well placed to fundamentally change the trajectory of the business over the medium to long term with its change in strategic direction.AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 202405CHAIR AND CEOS REPORTFY24 WAS A CHA

7、LLENGING YEAR FOR THE BUSINESS AS ALTHOUGH REVENUE OF$6.26M IN FY24 EXCEEDED THE REVENUE IN FY23 OF$5.86M,IT WAS NONE THE LESS SUB-SCALE,AND THE NET LOSS IN FY24 OF$7.44M WAS UNFAVOURABLE COMPARED WITH THE LOSS OF$7.09M ACHIEVED IN FY23.THE LOSS WAS LARGELY ATTRIBUTED TO LOWER THAN FORECASTED INFANT

8、 FORMULA SALES FOR THE YEAR.The net assets of the Group at 30 June 2024 totalled$26.73m,a decrease of$6.79m from June 2023.The decrease in net assets was predominantly due to operating losses,ofset by the equity capital raising in July 2023.The Groups borrowings were$1.74m at 30 June 2024,however it

9、 is worth noting the loan from Gippsreal Limited was repaid 27 August 2024 to make the Group debt free at the date of this report.Cash closed at$6.11m in FY24 compared with$2.01m in FY23 due to the sale of the South Brucknell farm.The board and management has now completed a full strategic review of

10、 the business and have formulated a new strategic road map which it will begin to execute in FY25.It is planned to more fully utilise the unique assets and competitive advantage of the business.The business is in the process of developing key strategic partnerships and valuable brand assets which le

11、verage its competitive advantage.The current partnership with our Vietnam distributor Dunamex is progressing well,with a pleasing sales volume growth trajectory and consumer of-take in this attractive market opportunity.The Group is well placed to fundamentally change the trajectory of the business

12、over the medium to long term with its change in strategic direction.We look forward to informing the market of key initiatives as soon as details are finalised and negotiations completed.Over the next year the focus will be to ensure we maximise our production volumes at our Camperdown facility with

13、 the longer-term objective of achieving full plant capacity.Management and the board have conducted a complete cost review and have identified some areas of savings which will be realised in FY25.The new management team will continue to focus on efciency and cost control as a priority as well as del

14、ivering best in class product quality.We would like to express our thanks to all of our shareholders,staf,suppliers and customers for your continued support over the past 12 months.Peter NathanSundaranathan MahinthanChair CEO30 August 202430 August 2024Peter NathanChairSundaranathan MahinthanCEO$6.2

15、6mFY24 REVENUE$26.73mNET ASSETS$6.11mCASH AT FY24 CLOSINGAUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024Over the next year the focus will be to ensure we maximise our production volumes at our Camperdown facility with the longer-term objective of achieving full plant capacity.06AUSTRALIAN DA

16、IRY NUTRITIONALS GROUP /ANNUAL REPORT 202407DIRECTORS REPORTThe Board of directors of Australian Dairy Nutritionals Limited(the Company)submits to members the Annual Report of the Company and its controlled entities(the Group)for the financial year ended 30 June 2024.PRINCIPAL ACTIVITIES AND SIGNIFI

17、CANT CHANGES IN THE NATURE OF THOSE ACTIVITIES The principal activities of the Group during the year were:ownership of dairy farms via Regen Properties Pty Ltd(Regen Properties);operation of dairy farms and ownership of livestock through SW Dairy Farms Pty Ltd(SWD);manufacture of Ocean Road Dairies

18、Organic A2 infant formula base powders at 160 Depot Road,Camperdown,Victoria;and distribution of the Groups infant formula ranges through Organic Nutritionals Pty Ltd(Organic Nutritionals).There has been no significant changes in the nature of these activities during this year.BUSINESS MODEL AND OBJ

19、ECTIVES The infant formula category continues to remain a challenging but still commercially attractive market opportunity.Locally,a few large players dominate the category and significant investment is needed to gain meaningful consumer trial.Although the infant formula category in China has experi

20、enced recent volume and value decline,it remains the largest infant formula category in the world,with a retail value of approx.22 billion USD.It is also a highly fragmented market from both a brand and channel perspective,which still provides a very attractive opportunity for a successful brand ent

21、ry.Over the last year,the Group has established distribution of our Ocean Road Dairies infant formula range in JD.co.hk as a first step in entry to the China market.The recent data suggest that the English label products are growing in China post the Covid period,signalling that Chinese consumers ar

22、e looking for high quality overseas products at reasonable price.With the recent board and management changes,the Group has reviewed and subsequently significantly revised its strategy which it now intends to execute.The strategy intends to best use its assets in vertical integration,small run size

23、manufacturing assets,and brand building capability to succeed in the market.Going Concern The financial statements have been prepared using the going concern basis of preparation.During the year the Group incurred a loss of$7.44 million(2023:$9.39 million loss),has total accumulated losses of$53.46

24、million and had a net cash outflow from operations of$4.44 million(2023:$7.05 million outflow).The Groups cash and cash equivalent balance as at 30 June 2024 was$6.11 million and it has an unutilised 2-year loan facility of$1.22 million.The Board is satisfied the going concern basis of preparation r

25、emains appropriate,reaching such a conclusion after having regard to the circumstances which they consider reasonably likely to affect the Group during the period of at least one year from the date of this report.The Board has been closely monitoring working capital and cash flows throughout the yea

26、r while infant formula product sales build,and the Group works to gain access to international markets.The Board is confident in the Groups ability to continue as a going concern for the 12-month period based on its current cash and cash equivalents and forecasts for the next 12 months.In addition t

27、o the above,as a listed entity,the Group also has capital raising opportunities available to it from existing shareholders as well as sophisticated investors with strong alignment to the Groups strategy and future objectives.The Board are satisfied at the date of signing the financial report there a

28、re reasonable grounds to believe that the Group will be able to continue to meet its debts as and when they fall due and that it is appropriate for the financial statements to be prepared on a going concern basis.The financial report does not include any adjustments to the amounts or classifications

29、 of recorded assets or liabilities that might be necessary should the Group not continue as a going concern.AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 202408DIRECTORS REPORT,CONTINUED.OPERATING RESULTS The consolidated net loss attributed to members of the Group,after providing for income ta

30、x was$7,439,176(2023:$9,393,955).This result is comprised of the following results:net loss from the nutritional powders segment of$3,704,420(2023:$3,859,599).net loss from the dairy farm segment of$1,928,606(2023:$724,160).corporate costs of$1,806,150(2023:$2,504,559).loss from discontinued operati

31、ons in the 30 June 2023 comparative of$2,305,637.Total revenue for FY24 is$6,263,071,up 7%against the FY23 comparative period of$5,855,677.Below is a breakdown of total revenue by segment:total revenue and other income from the dairy farms segment of$5,594,894(2023:$5,442,236).total revenue from the

32、 nutritional powders segment of$668,177(2023:$413,441).The increase in dairy farms segment revenue of$152,658 in FY24 is largely attributable to an increase in livestock sales as a result of the Brucknell South farm sale,offset by a reduction in production volumes and milk sales associated with a de

33、crease in herd size following the sale.The nutritional powders segment revenue in FY24 increased by$254,736 compared to FY23,reflecting the sales launch in Vietnam in Q3 FY24.Although an increase,this is a disappointing result and demonstrates that domestic sales have been slower to build than antic

34、ipated due to the lack of brand traction achieved in a highly competitive and mature category.Total expenses from continuing operations for FY24 were$13,702,247,up 7%against the FY23 comparative period of$12,943,995.Below is a breakdown of total expenses by segment:total expenses from the dairy farm

35、s segment of$7,523,500(2023:$6,166,396).total expenses from the nutritional powders segment of$4,372,597(2023:$4,273,040).Total corporate expenses of$1,806,150(2023:$2,504,559)The dairy farms segment expenses increase of$1,357,104 on the 2023 comparative is largely attributable to an increase in the

36、 deemed cost of livestock sold and increased feed costs.The nutritional powders segment expenses increase of$99,557 on the 2023 comparative is largely attributable to an impairment expense for the write-down of the intangible asset associated with the Future brand of$244,592.The other operating cost

37、s are relatively flat and are reflective of operating the facility on limited production.The decrease in corporate expenses of$698,409 on the 2023 comparative is attributed to decreases in employment and consulting costs.FINANCIAL POSITION The net assets of the Group at 30 June 2024 total$26,726,569

38、,a$6,796,785 decrease from the June 2023 comparative of$33,523,354.The decrease is primarily driven by operating losses,offset by the equity capital raising in July 2023.The key assets and liabilities in the statement of financial position at 30 June 2024 are:cash and cash equivalents of$6,106,312(2

39、023:$2,007,429);inventories of$1,632,793(2023:$1,507,153);property,plant and equipment of$18,851,582(2023:$26,381,586);intangible assets of$393,707(2023:$635,732);biological assets of$1,873,697(2023:$3,535,686);and total borrowings of$1,739,957(2023:$nil).AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL

40、REPORT 202409DIRECTORS REPORT,CONTINUED.REVIEW OF OPERATIONS DAIRY FARM SEGMENT Regen Properties Pty Ltd(land owner)and SW Dairy Farms Pty Ltd(farm operator)Dairy farm segment performanceFor the first time in the last four years,seasonal conditions in Southwest Victoria have not been as favourable f

41、or dairy farming,with drier than normal conditions.The dairy farms segment net loss for the financial year was$1,928,606(2023:$724,160 loss).Included in the loss are non-cash costs for losses from changes to fair value of livestock of$346,132(2023:$238,913 loss)and the deemed cost of livestock sold$

42、1,554,415(2023:$641,606),which is materially above the 2023 comparative because of the herd restructure and reduction following the Brucknell South farm sale.After removing the impact of fair value movements of livestock and deemed cost of sales in both financial years,the dairy farm operating segme

43、nts financial performance is down on FY23 with an operational net loss of$28,059(2023:$156,359 profit).This is largely a result of increased feed costs for FY24 as a result of the drier conditions,offset by additional sales of livestock from the herd reduction.Livestock valuesLivestock values contin

44、ued to soften during the year as a result of a decline in the export market,softening milk price and unfavourable seasonal conditions.This has resulted in a loss from changes in fair value of livestock of$346,132(2023:$238,913 loss).Farm valuesRegistered valuers Preston Rowe Paterson completed an in

45、dependent valuation on the Yaringa farm for the year ended 30 June 2023.The basis of the valuation was As Is and In Use with vacant possession and the fair value of the farm was$8,400,000.The Board has reviewed the carrying amount at 30 June 2024 and are satisfied it is not impaired.The carrying amo

46、unt for the Yaringa farm of$8,544,216 represents the independent valuation from June 2023 plus capitalised costs from the valuation date,less depreciation(refer Note 13(a)(ii).FY25 Farmgate milk priceAfter a period of record prices in FY23,farmgate conventional milk prices have continued to soften.D

47、espite this,demand for organic farmgate milk has remained steady and SWD is contracted for all the excess organic milk produced by its farms at the same price as FY24.NUTRITIONAL POWDERS SEGMENTNutritional powders segment performanceThe nutritional powders segment net loss for the financial year was

48、$3,704,420(2023:$3,859,599).The operating costs are relatively flat and are reflective of operating the facility on limited production.The Ocean Road Dairies infant formula range has been available in Chemist Warehouse stores nationally since November 2022.The sales off-take has been below expectati

49、ons.The Group decided to discontinue the Future Gradulac Gentle infant formula range(Future)due to poor consumer sales.The Groups revised strategy intends to best use its assets and brand building capability to succeed in the market.In FY24,there is a write-down in relation to the short-dated discon

50、tinued Future range of$419,412(reported in the 31 December 2023 half-year)and a$192,786 write-down of short-dated Ocean Road Dairies infant formula and associated ingredients at 30 June 2024.There has also been an impairment for the write-down of the intangible assets associated with the Future rang

51、e of$244,592.Land and Buildings-Independent ValuationRegistered valuers IPN Valuers-Greater Geelong completed an independent valuation of the Depot&Old Geelong Road land and infant formula building for 30 June 2023.The basis of valuation was a cost approach using the summation of land and improvemen

52、ts,supported by comparable sales evidence and capitalisation of income.The combined fair value was assessed at$5,100,000 and an impairment expense of$149,769 was reflected in the profit and loss on 30 June 2023.At the 30 June 2024,with reference to the previous valuation,IPN Valuers completed an upd

53、ated assessment of the current fair value at$4,900,000 and an impairment expense of$111,630 is reflected in the profit and loss for 30 June 2024.10AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPORT,CONTINUED.Property,Plant and Equipment-Independent ValuationRegistered valuers Co

54、mpass Valuation&Asset Services completed an independent valuation of the infant formula property,plant and equipment for 30 June 2024.The basis of valuation was the market approach where possible,with the cost approach considered and employed where necessary and the fair value was assessed at$4,985,

55、020.Although the fair value exceeds the current carrying value,the property,plant and equipment is carried at cost so continues to be carried at$4,813,689.SIGNIFICANT CHANGES IN STATE OF AFFAIRS Farm SaleOn 22 December 2023 the Group announced to the ASX that it had entered into a binding contract o

56、f sale for the Brucknell South farm for$7,125,000 and the sale completed on 24 April 2024.Capital RaisingDuring the year,the Group has undertaken the following capital raising to support its cash flows as it works to establish distribution networks for its products:On 11 July 2023,a private placemen

57、t to specific sophisticated investors to raise$710k at a price of$0.022 per share.Loan FacilityOn 5 December 2023,the Group established a$3,000,000 secured loan facility with Gippsreal Limited.The facility is secured against the Groups Yaringa dairy farm as well as a first ranking security over the

58、assets of the borrower in connection with the property.The loan is for a period of 24 months and the lender has the right to review the terms and conditions of the loan on an annual basis.Interest is calculated on a variable interest rate at the Reserve Bank of Australia prevailing rate plus a margi

59、n of 5.4%per annum.At 30 June 2024 the Group had drawn down$1,780,000(2023:$nil)of the facility.On 27 August 2024,the Group repaid the drawn down$1,780,000 of its loan facility with Gippsreal Limited,net of prepaid interest.In the opinion of the directors,there are no other significant changes in th

60、e state of affairs of the Group that occurred during the year that are not disclosed elsewhere in this report or in the accompanying financial statements.EVENTS AFTER THE REPORTING PERIOD On 27 August 2024,the Group repaid the drawn down$1,780,000 of its loan facility with Gippsreal Limited,net of p

61、repaid interest.In the opinion of the directors there are no other material matters that have arisen since 30 June 2024 that have significantly affected or may significantly affect the Group,that are not disclosed elsewhere in this report or in the accompanying financial statements.ENVIRONMENTAL ISS

62、UES The Group is regulated by environmental obligations contained in the Environment Protection Act 1970(Cth)and is subject to water licensing restrictions under the Water Act 1989(Vic).The Group is also subject to a Trade Waste Agreement with Wannon Water which regulates effluent disposal from the

63、Depot Road manufacturing facility.The Group considers itself to be in compliance with its environmental obligations.FUTURE DEVELOPMENTS,PROSPECTS AND BUSINESS STRATEGIES After a significant period of investment in transitioning its dairy farms to organic A2 protein milk production and construction o

64、f the Groups infant formula manufacturing facility,the Groups s vertical integration strategy is now complete.In FY25 and beyond,the Group will focus on the following core areas:sale and distribution of its infant formula ranges and complementary products;increasing the capacity and efficiency of it

65、s manufacturing operations;refining its farming operations;and effective management of non-operational costs.BUSINESS RISK The Group consists of complementary businesses in dairy farming and manufacture and distribution of infant formula products.The Group is exposed to a range of strategic,financia

66、l,operational,environmental and related risks that are inherent when operating in agricultural and fast-moving consumer goods markets.The Group has an enterprise risk management framework which,together with corporate governance,provides a framework for managing the material uncertainties impacting

67、the Group.11AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPORT,CONTINUED.Below is a summary of some of the key risks impacting the Group but is not intended to be an exhaustive list:Milk Prices Milk prices are set by the Australian and global markets depending on the product typ

68、e,seasonal demand and tariffs.In recent years,competitive forces within Australia have influenced fresh milk pricing whereas the export market for milk product is determined by international supply and demand and global seasonal conditions.Changes in domestic and global milk pricing will affect the

69、revenue earned by the Group.Operating Risks The operation of processing factories,farms and other agricultural and manufacturing activities involves risks to employees,contractors,livestock and plant and equipment.This may include through accident,malfunction,acts of God,infectious disease,and other

70、 events which are not foreseeable,unable to be insured against or which the Group and management have little or no control or knowledge.Some events may cause considerable or even catastrophic damage to the Group and its assets.There can be no assurance that the Group can avoid or insure against such

71、 events.Environmental Risks Agricultural businesses are exposed to various environmental risks such as fire,flood,drought,unseasonal rain,wind,storms and similar events of nature which can have adverse or positive impacts on the operation of the business and financial performance.This could include

72、increased operational costs,disruption to operations or impact on the health and well-being of livestock.These risks are part of the operation of agricultural businesses and there may be limited avenues to mitigate such risks.Development Projects The Group may undertake new projects to build new fac

73、ilities and expand existing facilities,which may include installation of an additional dryer or installation of the high-speed canning line.There are risks associated with development projects,including trial and testing delays,cost overruns or,the development may not perform to its designed capacit

74、y initially or at all.This may result in delays in anticipated revenues flowing from the developments,all of which could have an adverse effect on the Groups revenues and costs.Access to Specialised Raw Materials As the Group moves to manufacture more complex nutritional products and organic product

75、s,it will need to source raw materials from a variety of domestic and international suppliers.Some of these raw materials have limited supply,long lead times and require forward commitments to secure supply.If the Group does not manage its inventory requirements of these raw materials it may experie

76、nce delays in production of its products and product outages.This may in turn cause issues with the Groups customers if customer supply arrangements are impacted.Customer/Supplier Contract Security The supply of the Groups products to major retailers in Australia are governed by limited supply agree

77、ments which include six-monthly reviews at which time products may be removed from sale in those retailers.Such reviews could reduce the number of the Groups products sold by this channel,adversely impacting the Groups revenues in the future.Food Safety/Quality While the Group maintains and follows

78、good industry quality and assurance practices there remains a risk of product contamination in supply,production and storage of the Groups products.A product contamination or threat of contamination may cause reputational damage to the Group and its brands from the perspective of suppliers,customers

79、,the general public and regulators.This may also result in significant product recall costs,compensation payments and penalties all of which have an adverse effect on the Groups revenue,profitability and reputation.Funding and Access to Capital In order to support large increases in demand for the G

80、roups products and increase inventory or,to expand the Groups infant formula plant capacity or install the high-speed blending and canning line,further capital may need to be raised.There is no guarantee that those funds will be able to be raised,or if they are raised,raised at a cost which is accep

81、table to the Group.Further,any equity capital raising may dilute existing shareholders in the Group.12AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPORT,CONTINUED.Marketing Investment and Competitive LandscapeThe infant formula and infant nutrition segment is highly competitive

82、and many large,long established businesses participate in the segment.These brands have very large marketing budgets to promote their products making it difficult for new brands to gain exposure in the market.There is no guarantee that the level of marketing investment available to the Group will be

83、 sufficient to increase brand or product awareness in the market or,that consumers will develop the required level of trust in the Groups brands/products to consider trying or switching to them.Furthermore,there is no guarantee that other participants in the segment wont introduce similar products t

84、o the Groups products potentially eroding the Groups competitive advantage.Inventory ManagementPredicting market and consumer demand for new products is very difficult.Furthermore,manufacturing facilities often require minimum production volumes to manufacture products or components of a product.The

85、re is a risk of large inventory write offs and/or brand damage if inventory of finished products(particularly products with shelf-life restrictions)or components of products materially exceed demand.Infectious Diseases and Export Risks An outbreak of COVID-19 or another infectious disease at the Gro

86、ups production plant could cause the temporary shutdown of that plant and standing down of staff,with a consequential effect on production and revenues.Furthermore,the discovery of infectious diseases affecting livestock in Australia may require isolation or even destruction of livestock or,restrict

87、ions on movement of livestock both domestically and internationally.This would have significant impact of the Groups farming operations and its raw milk production volumes.The Group is also exposed to the global dairy market and the availability of export opportunities of milk from Victoria.If count

88、ry borders are closed or imports or exports limited,then there is a risk that there will be excess local supply,attracting a lower price,and reducing the prices which the Group is able to obtain for its products.Global Climate Conditions Risk Changes in global and regional weather and climate condit

89、ions are not easily or reliably predicted and,can have a positive or negative effect on farm and manufacturing production which in turn affects revenues and costs.Domestic and international legislation,regulation and similar programs introduced to mitigate such climate change may have positive or ad

90、verse effects on Group financial performance and asset values over time.Regulatory/Compliance Risk Changes in relevant taxes,legal and administration regimes,accounting practice and government licensing and operations policies may adversely affect the financial performance of the Group.The sale of i

91、nfant formula products is highly regulated both domestically and in international markets.Failure to comply with these regulations may damage the reputation of the Group and its brands and impact the financial performance of the Group including access to international markets.In addition,in order to

92、 perform its activities the Group must comply with the environmental legislation of Federal,State and Local governments,which may include changes to the conditions of or further obligations under its environmental and water use licences and other regulated entitlements.Consumption Trends Vegan or pl

93、ant-based products are becoming more mainstream and as a result there is potential for future movement away from traditional dairy milk-based products,which could adversely impact the Groups revenues in the future.13AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPORT,CONTINUED.IN

94、FORMATION ON DIRECTORSThe following persons held office as directors of the Company during or since the end of the year.The names and details of the directors are:NamePositionPeter Nathan Non-Executive Director and Chair(appointed 3 June 2024)Zhao Hui(Jason)DongNon-Executive Director(appointed 15 Ap

95、ril 2021)Qing(Scott)LaiNon-Executive Director(appointed 7 August 2023)Peter SkeneExecutive Director(appointed 10 April 2024&resigned 14 June 2024)Bernard KavanaghNon-Executive Director(resigned 10 April 2024)Martin BryantNon-Executive Director(resigned 13 September 2023)Adrian RowleyNon-Executive Di

96、rector(resigned 27 July 2023)Peter NathanNon-Executive Director and Chair QualificationsBachelor of Business(Marketing),University of South AustraliaDirectorships held in other listed entities in the past 3 yearsNo other current or former directorships in listed entities.Interest in Group securities

97、&optionsNil.Mr Peter Nathan is an experienced corporate executive with strong financial acumen and pioneer in the infant formula business.Peter is the former CEO of Asia Pacific for the a2 Milk Company(ASX:A2M)and was instrumental in a2s success,leading its most profitable business segment and deliv

98、ering exceptional shareholder value and growing revenue from$7m to$1.3bn over his 14 year tenure.Jason DongNon-Executive DirectorQualificationsMaster of Commerce(University of Melbourne)Bachelor of Economics,Shanxi University of Finance and Economics,ChinaDirectorships held in other listed entities

99、in the past 3 yearsNo other current or former directorships in listed entities.Interest in Group securities&optionsA relevant interest in 500,000 shares at 30 June 2024.Jason Dong was appointed to the Board on 15 April 2021.Jason is a highly skilled executive with extensive experience working with A

100、ustralian and Chinese enterprises to promote trade and industry relationships.His previous roles include Industry Adviser and Research Fellow for the Centre of International Agricultural Research of the Chinese Academy of Agricultural Sciences and a member of the Industry Advisory Board for the Cent

101、re for Asian Business and Economics at the University of Melbourne.14AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPORT,CONTINUED.Scott LaiNon-Executive DirectorQualificationsBachelor of Commerce-Banking,Finance and Risk Management (Griffith University)Master of Commerce-Profess

102、ional Accounting(Griffith University)Directorships held in other listed entities in the past 3 yearsNo other current or former directorships in listed entities.Interest in Group securities&optionsA relevant interest in 49,064,135 shares at 30 June 2024.Scott Lai was appointed to the Board on 7 Augus

103、t 2023.Scott brings strong financial market knowledge and an exten-sive network of more than 1,000 corporate and high net worth investors to the Group.He also has a strong track record of establishing and growing innovative businesses in highly regulated sectors including financial services and ener

104、gy markets with demonstrated skills managing teams of more than 100 employees.In 2017 Mr Lai founded IJ Financial Services Pty Ltd and has grown this business to be a preeminent leader in the fund investment andmortgage loan industry in Queensland with a specific focus on the Chinese market.Mr Lai i

105、s also a director of IJ Funds Management Pty Ltd which has been a major shareholder in the Group since 2022.COMPANY SECRETARYMs Elizabeth Spooner serves as company secretary of the Company.She was appointed as the Company Secretary on 22 February 2024.Elizabeth Spooner is a Senior Company Secretary

106、and Corporate Lawyer at Confidant Partners,a corporate secretarial provider.Ms Spooner holds a Juris Doctor degree from the Australian National University,a Bachelor of Business Administration with Bachelor of Arts and a Graduate Diploma of Applied Corporate Governance from the Governance Institute.

107、Elizabeth Spooner is an experienced governance and compliance professional who works closely with a number of boards of both listed and unlisted public companies.Kate Palethorpe was Company Secretary and General Counsel during the year.She was appointed since 14 September 2018 and resigned effective

108、 31 January 2024 when she was replaced by Peter Skene as Company Secretary.Peter Skene resigned as Company Secretary on 22 February 2024 and was replaced by Elizabeth Spooner.Ms Palethorpe held a relevant interest in 1,000,000 shares as at 30 June 2024.MEETINGS OF DIRECTORSThe Board generally meets

109、on a monthly basis either in person or by telephone conference.Directors meet bi-annually with the Groups auditor to discuss relevant issues arising in relation to the half year review and annual audit.On matters of corporate governance,the Board retains a direct interest rather than through a separ

110、ate committee structure which at this stage is appropriate for a Board of this size and structure.At each Board meeting written reports in relation to operating strategies and activities are provided as well as risk and compliance matters with a particular focus on occupational health and safety,foo

111、d safety and quality and key strategic and emerging risks.Aside from formally constituted directors meetings,the directors and chair are in regular contact regarding the operation of the Group and particular issues of importance.15AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPO

112、RT,CONTINUED.The number of directors meetings and number of meetings attended by each of the Company directors during the financial year are set out in the table below:DirectorsMeetings eligible to attendMeetings attendedPeter Nathan22Jason Dong1514Scott Lai1413Peter Skene33Martin Bryant33Adrian Row

113、ley11Bernard Kavanagh109DIVIDENDS PAID OR RECOMMENDEDThe directors have not recommended or paid a dividend for the year ended 30 June 2024(2023:$nil)at the date of this report.INDEMNIFYING OFFICERS OR AUDITORDuring the financial year,the Company paid an insurance premium in respect of an insurance p

114、olicy insuring the directors,the company secretary and all executive ofcers of the Group against a liability incurred as a consequence of holding that ofce in the Group to the extent permitted by the Corporations Act 2001.The amount of the premium was$41,750(2023:$41,740)for all directors and ofcers

115、 for the year.The Company has not otherwise,during or since the end of the financial year,indemnified or agreed to indemnify an ofcer or auditor of the Company against a liability incurred as such by an ofcer or auditor.PROCEEDINGS ON BEHALF OF COMPANYNo person has applied for leave of a court to br

116、ing proceedings against or on behalf of the Group or to intervene in any significant proceedings to which any such entity is a party for the purpose of taking responsibility for all or any part of those proceedings.No proceeding has had or is likely to have a material impact on the financial positio

117、n of the Group.NON-AUDIT SERVICESThe Board is satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 and is satisfied that the services disclosed below did not compromise the externa

118、l auditors independence for the following reasons:i)all non-audit services are reviewed and approved by the Board prior to commencement to ensure they do not adversely afect the integrity and objectivity of the auditor;and,ii)the nature of the services provided do not compromise the general principl

119、es relating to auditor independence in accordance with APES 110:Code of Ethics for Professional Accountants set by the Accounting Professional Ethical Standards Board.During the year ended 30 June 2024 there was no payment to external auditors for non-audit services(2023:$nil).OPTIONS/PERFORMANCE SE

120、CURITIESAt the date of this report,there are no unissued ordinary shares of Australian Dairy Nutritionals Limited under option or right.A summary of movements in options and other performance securities is set out in Note 26.For details of options and performance securities issued to directors and e

121、xecutives as remuneration,refer to the Remuneration Report.AUDITORS INDEPENDENCE DECLARATIONThe auditors independence declaration for the year ended 30 June 2024 has been received and a copy can be foundat page 23.16AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPORT,CONTINUED.RE

122、MUNERATION REPORTRemuneration PolicyThe remuneration policy of Australian Dairy Nutritionals Limited has been designed to align key management personnel(KMP)objectives with shareholder and business objectives by providing a fixed remuneration component and ofering specific incentives based on achiev

123、ement of key operational and strategic objectives afecting the Groups performance.Whilst the Board acknowledges that the Group received a second strike in relation to the remuneration report for financial year ending 30 June 2023,the Board has acted on the message from shareholders to ensure the rem

124、uneration policy is appropriate and efective in its ability to attract and retain high-quality KMP to manage the Group,as well as create goal congruence between directors,executives and shareholders based on the performance of the Group.The Boards policy for determining the nature and amount of remu

125、neration for KMP of the Group is as follows:the remuneration policy is developed and approved by the Board.The Group does not have a remuneration committee due to the current size and nature of the Groups activities.Professional advice is sought by the Board from independent external consultants whe

126、n required;All KMP receive a base salary(which is based on factors such as role and experience,market comparison with equivalent roles,performance and length of service)plus superannuation;Performance incentives are based on the achievement of strategic and operational objectives by the KMP,which ar

127、e agreed in advance,typically shortly after the Groups budget and strategy for the relevant financial year is approved;Performance incentives are only paid if the Board determines the KMP has met the predetermined key performance indicators(KPIs);Incentives paid in the form of equity are intended to

128、 align the interests of the KMP with the Group and the shareholders.In this regard,KMP are prohibited from limiting risk attached to those instruments by use of derivatives or other means;and The Board reviews KMP packages annually by reference to the Groups performance,executive performance,and com

129、parable information from industry sectors.Performance of KMP is reviewed on an ongoing basis with a formal review conducted annually,typically after issue of the Groups audited result for the relevant financial year.This includes review of the relevant KMPs performance against agreed objectives and

130、award of incentives(if applicable).The remuneration policy is designed to attract a high caliber of executives and reward them for performance leading to long-term growth in shareholder value.KMP receive,at a minimum,a superannuation guarantee contribution in line with legislation,which is currently

131、 11.5%.Some individuals,however,may choose from time to time to sacrifice part of their salary to increase payments towards superannuation.There are currently no defined benefit superannuation entitlements to KMP and upon retirement KMP are paid employee benefit entitlements accrued to the date of r

132、etirement.Any options or rights not exercised before or on the date of termination will lapse(unless otherwise agreed by the Board).All remuneration paid to KMP is valued at the cost to the Group and expensed.The Boards policy is to remunerate non-executive directors at market rates for their time,c

133、ommitment,and responsibilities.The Chair determines payments to the directors and reviews their remuneration annually,based on performance,market practice,duties,and accountability.Independent external advice is sought when required.The maximum aggregate amount of fees that can be paid to directors

134、is subject to approval by shareholders at the annual general meeting.Directors and executives are entitled to participate in the Companys Long Term Incentive Plan(LTIP)to align their interests with shareholders interests.Given the second strike against the 2023 Remuneration Report,the Board elected

135、not to seek approval for any performance incentives in respect of financial year 2024.KMP or closely related parties of KMP are prohibited from entering hedge arrangements that would have the efect of limiting the risk exposure relating to their remuneration.In addition,the Boards remuneration polic

136、y prohibits directors and KMP from using Australian Dairy Nutritionals Limited shares as collateral in any financial transaction,including margin loan arrangements.17AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPORT,CONTINUED.Engagement Of Remuneration ConsultantsDuring the fin

137、ancial year,no consultants were engaged by the remuneration committee to review the elements of KMP remuneration and provide recommendations.As the size and nature of the Groups activities increase,this may become necessary.Performance-Based RemunerationPerformance incentives are set annually,in con

138、sultation with KMP and based on the Groups strategic and operational objectives,both short term and long term.For executives,a portion of the measures typically focus on the overall performance of the Group(measured by specific performance metrics)and a portion are tailored to the operational area e

139、ach individual is accountable for.The KPIs target areas the Board believes hold greatest potential for Group expansion and profit,covering financial and non-financial as well as short and long-term goals.Performance in relation to the KPIs is assessed annually,based on an assessment of the KMPs perf

140、ormance against the agreed KPIs.In determining whether a KPI has been achieved,the Group bases the assessment on audited figures;however,where the KPI involves comparison of the Group,or a division within the Group,to the market,independent reports may be obtained from other organisations.Following

141、the assessment,the KPIs are reviewed by the Board in light of the desired and actual outcomes,and the Board determines whether the relative attached KPI is approved.Relationship Between Remuneration Policy And Group PerformanceAs noted above,the remuneration policy provides for a fixed and variable

142、component of remuneration for KMPs of the Group.The fixed component of a KMPs remuneration is a contractual obligation and cannot be amended without the agreement of the relevant KMP or,termination of the KMP.The remuneration policy provides for a variable component of the KMPs remuneration which is

143、 at-risk and only granted to the KMP if pre-agreed performance conditions are achieved.The variable component of the KMPs remuneration is designed to reward the KMP only for performance which contributes to the performance of the Group thereby aligning the experience of the KMP with the experience o

144、f the shareholder.The issue of performance-based incentives to KMP pursuant to the Groups Long Term Incentive Plan is to align KMP and shareholder interests.The Group believes this policy to be efective in driving KMPs and other Group personnel to increase shareholder wealth in future years.Performa

145、nce Conditions Linked To Remuneration During this financial year,the Group did not issue any performance incentives to KMPs.Key Management Personnel(KMP)ShareholdingsThe number of ordinary shares held directly,indirectly,or beneficially by each KMP(or their related parties)of the Group during the fi

146、nancial year is as follows:30 June 2024Balance at 01/07/2023Initial InterestPurchased on MarketExpired Loan SecuritiesFinal InterestBalance at 30/06/2024Current KMP:Peter Nathan(i)-Jason Dong 500,000 -500,000 Scott Lai(ii)-43,264,120 5,800,015 -49,064,135 Sundaranathan Mahinthan(iii)-Former KMP:Adri

147、an Rowley(iv)1,911,000 -(1,911,000)-Martin Bryant(v)2,500,000 -(2,500,000)-Bernard Kavanagh(vi)-Peter Skene(vii)15,073,951 -(7,000,000)(8,073,951)-19,984,951 43,264,120 5,800,015 (7,000,000)(12,484,951)49,564,135(i)Appointed as the chariman 03 June 2024 (ii)Appointed as a director 07 August 2023 (ii

148、i)Appointed as CEO 18 June 2024 (iv)Resigned as a director 27 July 2023 (v)Resigned as chair 13 September 2023 (vi)Resigned as chair 10 April 2024(vii)Resigned as CEO 14 June 202418AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPORT,CONTINUED.Other Equity-Related KMP Transactions

149、There have been no other transactions involving equity instruments apart from those described in the tables above relating to options,rights and shareholdings.Changes In Directors And KMP Subsequent To Year-EndThere has been no change in directors or KMP subsequent to year end.Employment Details Of

150、Members Of Key Management PersonnelThe following table provides employment details of persons who were,during the financial year,members of KMP of the consolidated Group.The table also illustrates the proportion of remuneration that was performance and non-performance based.Proportions of Elements o

151、f Remuneration Related to Performance(Other than Options/Rights Issued)Proportions of Elements of Remuneration Not Related to PerformanceNon-salary Cash-based Incentives SecuritiesFixed SalaryNamePosition HeldContract Details%Peter Nathan Chair N/A -100Jason Dong Director N/A -100Scott Lai Director

152、N/A -100Sundaranathan Mahinthan Group CEO 3 months notice -100Former KMP:Martin Bryant Chair N/A -100Adrian Rowley Director N/A -100Bernard Kavanagh Director N/A -100Peter Skene Group CEO 3 months notice -100In the current year,no KMP received any performance-based remuneration.19AUSTRALIAN DAIRY NU

153、TRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPORT,CONTINUED.Remuneration Expense Details For The Year Ended 30 June 2024 The following table of benefits and payments represents the components of the current year and comparative year remuneration expenses for each member of KMP of the Group.Such a

154、mounts have been calculated in accordance with Australian Accounting Standards.Key Management Personnel(KMP)Short Term BenefitPost EmploymentLong-term BenefitTerminationBenefitsEquity-settled Share-based PaymentsTotalSalary/Directors FeesAnnual LeaveSuper ContributionsLSLTermination BenefitsPerforma

155、nce Rights$Current KMP:Peter Nathan-2024 6,250 -688 -6,938 Peter Nathan-2023-Scott Lai-2024 58,535 -6,439 -64,974 Scott Lai-2023-J Dong-2024 60,000 -6,600 -66,600 J Dong-2023(ii)202,497 -6,300 -2,500 211,297 Sundaranathan Mahinthan-2024 12,639 -1,453 -14,092 Sundaranathan Mahinthan-2023-Former KMP:A

156、 Rowley-2024 5,000 -550 -5,550 A Rowley-2023(i)63,450 -3,150 -66,600 M Bryant-2024 15,208 -1,673 -16,881 M Bryant-2023 75,000 -7,875 -82,875 B Kavanagh-2024 56,306 -6,194 -62,500 B Kavanagh-2023 78,000 -8,190 -2,500 88,690 P Skene-2024 336,221 140,751 36,275 99,411 102,500 -715,158 P Skene-2023 382,

157、404 16,197 25,000 9,211 -432,812 Total-2024 550,159 140,751 59,872 99,411 102,500 -952,693 Total-2023 801,351 16,197 50,515 9,211 -5,000 882,274(i)This includes directors fees and an amount paid in accordance with a contract arrangement with Watershed Funds Management Pty Ltd,an entity associated wi

158、th Adrian Rowley.(ii).This amount includes directors fees and an amount paid in accordance with a contract arrangement with Ozvic Victoria Pty Ltd,an entity associated with Jason Dong.20AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPORT,CONTINUED.Options And Rights Granted As Sh

159、are-Based PaymentsDuring the year ended 30 June 2024 are as follows:Grant DetailsExercisedExpiredBalance at 01/07/2023Issue DateNo.Value($)No.Value($)No.Value($)Balance at 30/06/2024P Skene7,000,000-(7,000,000)-Total7,000,000-(7,000,000)-During the year ended 30 June 2023 are as follows:Grant Detail

160、sExercisedForfeitedBalance at 01/07/2022Issue DateNo.Value($)No.Value($)No.Value($)Balance at 30/06/2023P Skene 7,500,000-(500,000)(9,000)-7,000,000M Bryant1-(500,000)(9,000)500,000-A Rowley-(500,000)(9,000)-500,000-J Dong24/11/20221,000,00029,000(500,000)(9,000)(1,000,000)(29,000)500,000-B Kavanagh

161、-24/11/20221,000,00029,000-(1,000,000)(29,000)-Total 9,000,000 2,000,000 58,000 (1,500,000)(27,000)(2,500,000)(67,000)7,000,0001.Martin Bryant was entitled to 500,000 director performance rights(TSR hurdle)at 30 June 2022.As announced to the ASX on 25 August 2022,he elected not to receive the securi

162、ties to which he is entitled and these have been cancelled.VestedUnvestedBalance at 30/06/2023No.No.P Skene17,000,0007,000,000 -7,000,0007,000,000 -1Loan Securities issued under the Companys Long Term Incentive Plan which were canceled and bought back on 19 January 2024 and are no longer on issue.21

163、AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024DIRECTORS REPORT,CONTINUED.Other Transactions With KMP And/Or Their Related PartiesAs set out in Note 24(b)of the financial statements,the Group had the following transactions with KMP:Adrian Rowley is a director of Watershed Funds Management Pt

164、y Ltd.During the comparative year ended 30 June 2023,Watershed Funds Management Pty Ltd was paid$33,450 for the provision of services by Adrian Rowley as director.There was no amounts due at 30 June 2023.Jason Dong is a director of OZVIC Group Pty Ltd.During the comparative year ended 30 June 2023,O

165、ZVIC Group Pty Ltd was paid$142,497 for the provision of consultancy services by Jason Dong.Second Strike-2023 AGMAt the Companys 2022 Annual General Meeting(AGM),more than 25%of the votes cast on the resolution to adopt the 2022 Remuneration Report were against the resolution and accordingly,the Co

166、mpany received a first strike on its Remuneration Report.At the Companys 2023 AGM,more than 25%of the votes cast on the resolution to adopt the 2023 Remuneration Report were against the resolution,which constituted the Companys second strike on its Remuneration Report.Having received two strikes,a B

167、oard spill resolution was put to shareholders to vote at the 2023 AGM.The spill resolution was not passed by shareholders and therefore a spill meeting was not convened within 90 days of the 2023 AGM.If the 2024 Remuneration Report receives a strike at the AGM,it will constitute a first strike for t

168、he purposes of section 250U of the Corporations Act and there will be no requirement to put a spill resolution to shareholders.Despite receiving a second strike at last years AGM,the Board recognises the significant support for our Remuneration Report which increased to over 60%from 49%a year before

169、.While the Board were naturally disappointed with the result,the directors were grateful at the overwhelming support for the board in relation to the spill resolution.The second strike against the adoption of the 2023 Remuneration Report was a serious message for the Board from shareholders.The Boar

170、d has taken the second strike seriously and taken the following measures to deliver greater transparency to shareholders in relation to Board and Executive remuneration and to ensure there is greater alignment between executive and shareholder experience whilst also honouring its contractual obligat

171、ions to its personnel:(a)the CEO and other Executives only received the fixed component of their remuneration for financial year 2024 and,neither the CEO or other Executives received variable performance-based remuneration in relation to financial year 2024;(b)any variable performance-based remunera

172、tion component for the CEO and other Executives in relation to financial year 2025 will be tied to performance hurdles determined by the Board.Peter Nathan Chair30 August 202422AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024CORPORATE GOVERNANCE STATEMENTThe Board is responsible for the overa

173、ll Corporate Governance of the Group.The Board monitors the operational and financial position and performance of the Group and oversees the business strategy,including approving the strategic goals of the Group and considering and approving its business plan and the associated farm,processing and c

174、orporate budgets.The Board is committed to maximising performance and growth and generating appropriate levels of shareholder value and returns.In conducting the Groups business,the Board strives to ensure the Group is properly managed to protect and enhance shareholder interests and that the Group

175、operates in an open and transparent corporate governance environment.In accordance with this,the Board has developed and adopted a framework of Corporate Governance systems,processes,policies and risk management practices and internal controls that it believes are appropriate for the Group.The ASX L

176、isting Rules require the Group to report on the extent to which it has followed the ASX Corporate Governance Councils Corporate Governance Principles and Recommendations(Fourth Edition)(ASX Principles and Recommendations)throughout the financial year ended 30 June 2024.The Groups Corporate Governanc

177、e Statement,which sets out the corporate governance practices that were in operation during the Reporting Period,and which is current as of 30 August 2024,was approved by the Board as part of the Annual Report and can be found on the Investor Centre page at https:/.au/investorcentreThe Corporate Gov

178、ernance Statement,which was lodged with this Annual Report,discloses the extent to which the Group will follow the recommendations taking into account the relatively small size of the Group in determining the extent of practical implementation.The principal governance related policies and practices

179、are as follows:Corporate Governance Statement Board Charter Securityholder Communication Policy Risk Management Policy Market Disclosure Policy Share Trading Policy Code of Conduct Board Skills MatrixDetails of the Groups key policies,charters for the Board and code of conduct are available on the G

180、roups website under the Investor Centre at .au.23AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024AUDITORS INDEPENDENCE DECLARATIONAuditors Independence Declarationunder section 307C of the Corporations Act 2001To the Directors of Australian Dairy Nutritionals LimitedAs lead auditor for the au

181、dit of the financial statements of Australian Dairy Nutritionals Group for the financial year ended 30 June 2024,I declare that,to the best of my knowledge and belief,there have been no contraventions of:i.the auditor independence requirements as set out in the Corporations Act 2001in relation to th

182、e audit;andii.any applicable code of professional conduct in relation to the audit.This declaration is in respect of Australian Dairy Nutritionals Limited and the entities it controlled during the year.Yours sincerelyNexia Brisbane Audit Pty LtdGavin RuddellDirectorDate:30 August 2024Gavin RuddellDi

183、rector24AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024FINANCIAL STATEMENTS 202425AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 202420242023Note$Continuing OperationsRevenue3(a)6,263,07

184、1 5,855,677 Administration and non-dairy related costs3(b)(v)(771,791)(916,179)Employment expenses3(b)(iv)(3,061,012)(3,352,074)Finance costs3(b)(i)(136,181)(56,748)Dairy farm related costs3(b)(ii)(4,141,911)(3,659,058)Infant formula product related costs3(b)(iii)(2,286,716)(3,176,790)Depreciation a

185、nd amortisation(1,047,867)(752,858)Deemed cost of livestock sold10(1,554,415)(641,606)Loss from changes in fair value of livestock10(346,132)(238,913)Impairment expenses3(b)(vi)(356,222)(149,769)Loss before income tax(7,439,176)(7,088,318)Income tax expense-Loss from continuing operations(7,439,176)

186、(7,088,318)Discontinued operationsLoss from discontinued operations after tax-(2,305,637)Loss for the period(7,439,176)(9,393,955)Other comprehensive incomeItems that will be reclassified subsequently to profit or loss-Items that will not be reclassified to profit or lossFair value movement on land

187、and buildings at fair value through other comprehensive income-1,208,691Other comprehensive loss for the year-1,208,691Total comprehensive loss for the year(7,439,176)(8,185,264)Loss attributable to:Company shareholders(7,356,460)(9,307,436)Trust unitholders-(21,730)Non-controlling interest(82,716)(

188、64,789)(7,439,176)(9,393,955)Total comprehensive loss attributable to:Company shareholders(7,356,460)(8,098,745)Trust unitholders-(21,730)Non-controlling interest(82,716)(64,789)(7,439,176)(8,185,264)Earnings per share from continuing and discontinued operations:Basic earning per share(cents)29(1.14

189、)(1.68)Diluted earnings per share(cents)29(1.14)(1.68)The accompanying notes form part of these financial statements.26AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 202420242023Note$ASSETSCurrent AssetsCash and cash equivalents6 6,10

190、6,312 2,007,429 Trade and other receivables7 598,073 660,390 Inventories8 1,623,793 1,507,153 Biological assets10 238,558 225,521 Other current assets9 384,093 276,267 Total Current Assets 8,950,829 4,676,760 Non-Current AssetsBiological assets10 1,635,139 3,535,686 Right of use assets11 515,340 1,0

191、09,996 Intangible assets12 393,707 635,732 Property,plant&equipment13 18,851,582 26,381,586 Total Non-Current Assets 21,395,768 31,563,000 Total Assets 30,346,597 36,239,760 LIABILITIESCurrent LiabilitiesTrade and other payables141,078,758 945,138 Lease liabilities11 464,215 555,605 Provisions15 268

192、,196 699,559 Borrowings16 1,739,957 -Total Current Liabilities3,551,126 2,200,302 Non-Current Liabilities Lease liabilities11 48,452 484,920 Provisions15 20,450 31,184 Total Non-Current Liabilities 68,902 516,104 Total Liabilities3,620,028 2,716,406 Net Assets26,726,569 33,523,354 EQUITYIssued capit

193、al17 76,733,411 76,091,020 Reserves183,604,7666,551,895Accumulated losses(53,463,264)(49,053,933)Equity attributable to shareholders26,874,913 33,588,982 Non-controlling interestsAccumulated losses(148,344)(65,628)Equity attributed to non-controlling interests(148,344)(65,628)Total Equity26,726,569

194、33,523,354 The accompanying notes form part of these financial statements.27AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 202420242023Note$Cash Flows from Operating ActivitiesReceipts from customers6,845,112 8,836,952 Payments t

195、o suppliers and employees(10,942,982)(15,814,031)Interest received 20,916 4,046 Finance costs(362,042)(78,153)Net operating cash flows6(b)(4,438,996)(7,051,186)Cash Flows from Investing ActivitiesPayment for property,plant&equipment13(b)(249,247)(825,881)Proceeds from sale of property,plant&equipmen

196、t 7,016,339 7,146,669 Payment for non-current assets held for sale-(30,900)Payment for intangible assets12(a)(32,342)(110,011)Cash on disposal of VFD-(2,937)Net investing cash flows 6,734,750 6,176,940 Cash Flows from Financing ActivitiesNet proceeds from issue of shares17(a)(i)642,391 1,434,032 Pro

197、ceeds from borrowings-unsecured 332,820 630,555 Repayment of borrowings-unsecured(297,915)(630,555)Proceeds from borrowings-secured 1,676,014 -Repayment of related party loan-(500,000)Repayment of lease principal(550,181)(484,053)Net financing cash flows 1,803,129 449,979 Net increase/(decrease)in c

198、ash held4,098,883(424,267)Cash at the beginning of the period 2,007,429 2,431,696 Cash at the end of the financial period6,106,312 2,007,429 The accompanying notes form part of these financial statements.28AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024CONSOLIDATED STATEMENT OF CHANGES IN EQ

199、UITYFOR THE YEAR ENDED 30 JUNE 2024Issued Capital Ordinary Asset Revaluation ReserveOption ReserveNon-controlling InterestsAccumulated LossesTotal$Balance at 1 July 2023 76,091,0206,477,280 74,615(65,628)(49,053,933)33,523,354Comprehensive income for the yearLoss attributable to company shareholders

200、 for the period-(7,356,460)(7,356,460)Non-controlling interests-(82,716)-(82,716)Total comprehensive loss for the period-(82,716)(7,356,460)(7,439,176)Transactions with equity holders in their capacity as equity holders and other transfersTransfer to retained earnings-(2,872,514)(74,615)-2,947,129-C

201、ontribution of equity,net of transaction costs 642,391-642,391 Total transactions with equity holders 642,391(2,872,514)(74,615)-2,947,129 642,391 Balance at 30 June 2024 76,733,411 3,604,766-(148,344)(53,463,264)26,726,569The accompanying notes form part of these financial statements.29AUSTRALIAN D

202、AIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024CONSOLIDATED STATEMENT OF CHANGES IN EQUITY,CONTINUED.FOR THE YEAR ENDED 30 JUNE 2023Issued Capital Ordinary Asset Revaluation ReserveOption ReserveNon-controlling InterestsAccumulated LossesTotal$Balance at 1 July 2022 43,563,897 7,160,545 866,364 23,899,4

203、17 (35,541,736)39,948,487Comprehensive incomeLoss attributable to company shareholders for the period-(21,730)(9,307,436)(9,329,166)Non-controlling interests-(64,789)-(64,789)Other comprehensive income for the period-1,208,691-1,208,691Total comprehensive loss for the period-1,208,691-(86,519)(9,307

204、,436)(8,185,264)Transactions with equity holders in their capacity as equity holders and other transfers:Contribution of equity,net of transaction costs 1,434,032-1,434,032 Director performance rights-5,000 -5,000 Share-based payments-shares.231,100-231,100 Share-based payment-supplier 90,000-90,000

205、 Transfer to retained earnings-(1,891,956)(769,749)-2,661,705-Transfer from NCI on de-stapling 30,744,991-(23,878,525)(6,866,466)-Shares issued on exercise of rights 27,000-(27,000)-Total transactions with equity holders 32,527,123(1,891,956)(791,749)(23,878,525)(4,204,761)1,760,132 Balance at 30 Ju

206、ne 2023 76,091,020 6,477,280 74,615 (65,628)(49,053,933)33,523,354 The accompanying notes form part of these financial statements.30AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2024NOTE 1:SUMMARY OF MATERIAL ACCOUNTING POLICIES(a)

207、Basis of PreparationThese general purpose consolidated financial statements have been prepared in accordance with the Corporations Act 2001,Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board and in compliance with International Financial Reporting Standa

208、rds as issued by the International Accounting Standards Board.The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently a

209、pplied unless stated otherwise.The financial statements were authorised for issue by the Board of Directors as at the date of signing the directors declaration.Except for cash flow information,the financial statements have been prepared on an accruals basis and are based on historical costs,modified

210、,where applicable,by the measurement at fair value of selected non-current assets,financial assets and financial liabilities.Going concernThe financial statements have been prepared using the going concern basis of preparation.During the year the Group incurred a loss of$7.44 million(2023:$9.39 mill

211、ion loss),has total accumulated losses of$53.46 million and had a net cash outflow from operations of$4.44 million(2023:$7.05 million outflow).The Groups cash and cash equivalent balance as at 30 June 2024 was$6.11 million and it has an unutilised 2-year loan facility of$1.22 million.The Board is sa

212、tisfied the going concern basis of preparation remains appropriate,reaching such a conclusion after having regard to the circumstances which they consider reasonably likely to affect the Group during the period of at least one year from the date of this report.The Board has been closely monitoring w

213、orking capital and cash flows throughout the year while infant formula product sales build,and the Group works to gain access to international markets.The Board is confident in the Groups ability to continue as a going concern for the 12-month period based on its current cash and cash equivalents an

214、d forecasts for the next 12 months.In addition to the above,as a listed entity,the Group also has capital raising opportunities available to it from existing shareholders as well as sophisticated investors with strong alignment to the Groups strategy and future objectives.The Board are satisfied at

215、the date of signing the financial report there are reasonable grounds to believe that the Group will be able to continue to meet its debts as and when they fall due and that it is appropriate for the financial statements to be prepared on a going concern basis.The financial report does not include a

216、ny adjustments to the amounts or classifications of recorded assets or liabilities that might be necessary should the Group not continue as a going concern.(b)Principles of ConsolidationSubsidiariesThe consolidated financial statements incorporate the assets,liabilities and results of the Company an

217、d all subsidiaries from the date on which control is obtained by the Company.Subsidiaries are entities controlled by the Company.Control exists when the Company is exposed to,or has rights to,variable returns from its involvement with the entity and has the ability to affect those returns through it

218、s power to direct the activities of the entity.The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.Inter-entity transactions,balances and unrealised gains on transactions between Compan

219、y entities are eliminated.Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Company.Non-controlling int

220、erests in the results and equity of subsidiaries are shown separately in the statement of comprehensive income and statement of financial position respectively.Investments in subsidiaries are accounted for at cost in the individual financial statements of the Company.A list of subsidiaries appears i

221、n Note 23 to the consolidated financial statements.31AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024NOTES TO THE FINANCIAL STATEMENTS,CONTINUED.FOR THE YEAR ENDED 30 JUNE 2024NOTE 1:SUMMARY OF MATERIAL ACCOUNTING POLICIES(contd)(c)Income taxUnder current income tax legislation,the Trust is n

222、ot liable to pay tax provided its taxable income and realised capital gains are distributed to unitholders.The liability for capital gains tax that may arise if the land and buildings were sold is not accounted for in this report.The Companys income tax expense for the period is the tax payable on t

223、he current periods taxable income adjusted by changes in de-ferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements and to unused tax losses.Deferred tax assets and liabilities are

224、recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled,based on those tax rates which are enacted or substantively enacted.The relevant tax rates are applied to cumula-tive amounts of deductible and taxable temporary differenc

225、es to measure the deferred tax asset or liability.An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability.No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction,other th

226、an a business combination,that at the time of the transaction did not affect either accounting profit or taxable profit or loss.Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilis

227、e those temporary differences and losses.Deferred tax liabilities and assets are not recognised for tempo-rary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary difference

228、s and it is probable that the differences will not reverse in the foreseeable future.Current and deferred tax balances attributable to amounts recognised in other comprehensive income or directly in equity are also rec-ognised in other comprehensive income or directly in equity.Tax consolidationThe

229、Company and its wholly owned entities(this excludes the Trust)have formed a tax-consolidated group with effect from 1 July 2014 and are,therefore,taxed as a single entity from that date.The head entity within the tax consolidated group is Australian Dairy Nutritionals Limited.Current tax expense/inc

230、ome,deferred tax liabilities and deferred tax assets arising from temporary differences of the members of the tax consolidated group are recognised in the separate financial statements of the members of the tax consolidated group,using the separate taxpayer within the group approach by reference to

231、carrying amounts of assets and liabilities in the separate financial statements of each entity and the tax values applying under tax consolidation.Any current tax liabilities or assets and deferred tax assets arising from unused tax losses of the subsidiaries are assumed by the head entity in the ta

232、x consolidated group and are recognised as amounts payable(receivable)to(from)other entities in the tax consolidated group in conjunction with any tax funding arrangement amounts referred to in the following section.Any difference between these amounts is recognised by the Company as an equity contr

233、ibution or distribution.The Company recognises deferred tax assets arising from unused tax losses of the tax consolidated group to the extent that it is probable that future taxable profits to the tax consolidated group will be available against which the asset can be utilised.Any subsequent period

234、adjustment to deferred tax assets arising from unused tax losses,as a result of revised assessments of the probability of recoverability,is recognised by the head entity only.32AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024NOTES TO THE FINANCIAL STATEMENTS,CONTINUED.FOR THE YEAR ENDED 30 JU

235、NE 2024NOTE 1:SUMMARY OF MATERIAL ACCOUNTING POLICIES(contd)(c)Income tax(contd)Tax funding arrangements and tax sharing arrangementsThe head entity,in conjunction with other members of the tax consolidate group,has entered into a tax funding arrangement,which sets out the funding obligations of mem

236、bers of the tax consolidated group in respect of tax amounts.The tax funding arrangements require payments to/from the head entity equal to the current tax liability(asset)assumed by the head entity and any tax-loss deferred tax asset assumed by the head entity,resulting in the head entity recognisi

237、ng an inter-entity receivable(payable)equal in amount to the tax liability(asset)assumed.The inter-entity receivable(payable)is at call.Contributions to fund the current tax liabilities are payable as per the tax funding arrangement and reflect the timing of the head entitys obligation to make payme

238、nts for tax liabilities to the relevant tax authorities.The head entity,in conjunction with other members of the tax consolidated group,has also entered into a tax sharing agreement.The tax sharing agreement provides for the determination of the allocation of income tax liabilities between the entit

239、ies should the head entity default on its tax payment obligations.No amounts have been recognised in the financial statements in respect of this agreement,as payment of any amounts under the tax sharing agreement is considered remote.(d)Fair value of assets and liabilitiesThe Group measures some of

240、its assets and liabilities at fair value on either a recurring or non-recurring basis,depending on the requirements of the applicable Accounting Standard.Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly(ie unforced)transactio

241、n between independent,knowledgeable and willing market participants at the measurement date.As fair value is a market-based measure,the closest equivalent observable market pricing information is used to determine fair value.Adjustments to market values may be made having regard to the characteristi

242、cs of the specific asset or liability.The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques.These valuation techniques maximise,to the extent possible,the use of observable market data.To the extent possible,market inf

243、ormation is extracted from either the principal market for the asset or liability(i.e.the market with the greatest volume and level of activity for the asset or liability)or,in the absence of such a market,the most advantageous market available to the entity at the end of the reporting period(i.e.th

244、e market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability,after taking into account transaction costs and transport costs).For non-financial assets,the fair value measurement also takes into account a market participants ability to use t

245、he asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.The fair value of liabilities and the entitys own equity instruments(excluding those related to share-based payment arrangements)may be valued,where there is no obser

246、vable market price in relation to the transfer of such financial instruments,by reference to observable market information where such instruments are held as assets.Where this information is not available,other valuation techniques are adopted and,where significant,are detailed in the respective not

247、e to the financial statements.(e)Inventories Inventories and consumables held for use in operations are valued at the lower of cost and net realisable value.Net realisable value is the estimated selling price in the ordinary course of business,less estimated costs of completion and the estimated cos

248、ts necessary to make the sale.The method used to determine costs for inventory categories are:Feedstocks,hay and silage:Purchase price of inventory and other direct costs for farm produced inventory.Packaging:Purchase price of packaging including transport costs.Raw materials:Purchase price of raw m

249、aterials including transport costs.Finished goods:Purchase price of raw materials,direct labour,other direct production costs and overheads.(f)Biological AssetsBiological assets are comprised of crops and livestock(dairy cattle).Biological assets are measured at fair value less costs to sell,with an

250、y change recognised in profit or loss.Costs to sell include all costs that would be necessary to sell the assets,including freight and direct selling costs.The Group,at each reporting date,appoints an external,independent valuer who having recent experience in the location and nature of cattle held

251、by the Group performs a valuation for the reporting date.Fair value is determined by reference to market values for cattle of similar age,weight,breed and genetic make-up.The fair value represents the estimated amount for which cattle could be sold on the date of valuation between a willing buyer an

252、d willing seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably,prudently and without compulsion.33AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024NOTES TO THE FINANCIAL STATEMENTS,CONTINUED.FOR THE YEAR ENDED 30 JUNE 2024NOTE 1:SUMMARY O

253、F MATERIAL ACCOUNTING POLICIES(contd)(f)Biological Assets(contd)In the event an independent valuer has not been appointed the Group determines whether an active or other effective market exists for a biological asset in its present location and condition,the quoted price in that market is the approp

254、riate basis for determining the fair value of that asset.If an active market does not exist then the directors use one of the following valuation methods,when available,in determining fair value:the most recent market transaction price,provided that there has not been a significant change in economi

255、c circumstances between the date of that transaction and the end of the reporting period;or market prices,in markets accessible to the entity,for similar assets with adjustments to reflect differences.(g)Financial instrumentsInitial recognition and measurementFinancial assets and financial liabiliti

256、es are recognised when the Group becomes a party to the contractual provisions to the instrument.For financial assets,this is the date that the Group commits itself to either the purchase or sale of the asset(i.e.trade date accounting is adopted).Financial instruments(except for trade receivables)ar

257、e initially measured at fair value plus transaction costs,except where the instrument is classified at fair value through profit or loss,in which case transaction costs are expensed to profit or loss immediately.Where available,quoted prices in an active market are used to determine fair value.In ot

258、her circumstances,valuation techniques are adopted.Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing component or if the practical expedient was applied as specified in AASB 15.63.Classification and subsequent measuremen

259、tFinancial liabilitiesAll of the Groups financial liabilities are subsequently measured at amortised cost using the effective interest method.The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in profit or loss over the

260、 relevant period.The effective interest rate is the internal rate of return of the financial asset or liability;that is,it is the rate that exactly discounts the estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition.The Group does n

261、ot have any financial liabilities classified as held for trading,designated as fair value through profit or loss or any financial guarantee contracts.A financial liability cannot be reclassified.Financial assetsFinancial assets are subsequently measured at:amortised cost;or fair value through other

262、comprehensive income,or through profit and loss.Measurement is on the basis of the two primary criteria:the contractual cash flow characteristics of the financial asset;and the business model for managing the financial assets.A financial asset is subsequently measured at amortised cost if it meets t

263、he following conditions:the financial asset is managed solely to collect contractual cash flows;and the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates.A financial asset is

264、subsequently measured at fair value through other comprehensive income if it meets the following conditions:the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates;and the busin

265、ess model for managing the financial asset comprises both contractual cash flows collection and the selling of the financial asset.By default,all other financial assets that do not meet the measurement conditions of amortised cost and fair value through other comprehensive income are subsequently me

266、asured at fair value through profit or loss.The Group does not have any financial assets classified at fair value through other comprehensive income or through profit and loss.34AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024NOTES TO THE FINANCIAL STATEMENTS,CONTINUED.FOR THE YEAR ENDED 30 J

267、UNE 2024NOTE 1:SUMMARY OF MATERIAL ACCOUNTING POLICIES(contd)(g)Financial instruments(contd)DerecognitionDerecognition refers to the removal of a previously recognised financial asset or financial liability from the statement of financial position.Derecognition of financial liabilitiesA liability is

268、 derecognised when it is extinguished(i.e.when the obligation in the contract is discharged,cancelled or expires).An exchange of an existing financial liability for a new one with substantially modified terms,or a substantial modification to the terms of a financial liability is treated as an exting

269、uishment of the existing liability and recognition of a new financial liability.The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable,including any non-cash assets transferred or liabilities assumed,is recognised in profit or loss.D

270、erecognition of financial assetsA financial asset is derecognised when the holders contractual rights to its cash flows expires,or the asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred.All of the following criteria need to be satisfied for d

271、erecognition of financial assets:the right to receive cash flows from the asset has expired or been transferred;all risk and rewards of ownership of the asset have been substantially transferred;and the Group no longer controls the asset(i.e.the Group has no practical ability to make a unilateral de

272、cision to sell the asset to a third party).On derecognition of a financial asset measured at amortised cost,the difference between the assets carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.On derecognition of an investment in equity which was

273、 elected to be classified as at fair value through other comprehensive income,the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified to profit or loss,but is transferred to retained earnings.ImpairmentThe Group recognises a loss allowance for ex

274、pected credit losses on:financial assets that are measured at amortised cost;Loss allowance is not recognised for:financial assets measured at fair value.Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial instrument.A credit loss is th

275、e difference between all contractual cash flows that are due and all cash flows expected to be received,all discounted at the original effective interest rate of the financial instrument.The Group uses the simplified approach to impairment,as applicable under AASB 9:Financial Instruments.Simplified

276、approachThe simplified approach does not require tracking of changes in credit risk at every reporting period,but instead requires the recognition of lifetime expected credit loss at all times.In measuring the expected credit loss,a provision matrix for trade receivables was used taking into conside

277、ration various data to get to an expected credit loss(i.e.diversity of customer base,appropriate groupings of historical loss experience,etc.).Recognition of expected credit losses in financial statementsAt each reporting date,the Group recognises the movement in the loss allowance as an impairment

278、gain or loss in the statement of profit or loss and other comprehensive income.The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.35AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024NOTES TO THE FINANCIAL STATEMENTS,CONTINUED.FO

279、R THE YEAR ENDED 30 JUNE 2024NOTE 1:SUMMARY OF MATERIAL ACCOUNTING POLICIES(contd)(h)Property,Plant and EquipmentEach class of property,plant and equipment is carried at cost or fair value as indicated less,where applicable,any accumulated depreciation and impairment losses.PropertyFreehold land and

280、 buildings are carried at their fair value(being the amount for which an asset could be exchanged between knowledgeable,willing parties in an arms length transaction),based on periodic,but at least triennial,valuations by external independent valuers,less accumulated impairment losses and accumulate

281、d depreciation for buildings.Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation surplus in equity.Decreases that offset previous increases of the same asset are recognised against revaluation surplus directly in equity;all other decreases are

282、recognised in profit or loss.Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.Plant and equipmentPlant and equipment are measured on the cost basis and therefore car

283、ried at cost less accumulated depreciation and any accumulated impairment.In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount,the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised

284、in profit or loss.A formal assessment of recoverable amount is made when impairment indicators are present(refer to Note 1(l)for details of impairment).The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these asse

285、ts.The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal.The expected net cash flows have been discounted to their present values in determining recoverable amounts.The cost of fixed assets constructed

286、within the Consolidated Group includes the cost of materials,direct labour,borrowing costs and an appropriate proportion of fixed and variable overheads.Subsequent costs are included in the assets carrying amount or recognised as a separate asset,as appropriate,only when it is probable that future e

287、conomic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.All other repairs and maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred.DepreciationThe depreciable amount of all fixed ass

288、ets,including buildings but excluding freehold land,is depreciated on a straight-line basis over the assets useful life to the Group commencing from the time the asset is available for use.Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the esti

289、mated useful lives of the improvements.The useful-life rates used for each class of depreciable assets are:The assets residual values and useful lives are reviewed and adjusted,if appropriate,at the end of each reporting period.An assets carrying amount is written down immediately to its recoverable

290、 amount if the assets carrying amount is greater than its estimated redeemable amount.Gains and losses on disposals are determined by comparing proceeds with the carrying amount.These gains or losses are included in the statement of profit or loss and other comprehensive income in the period which t

291、hey arise.When revalued assets are sold,amounts included in the revaluation surplus relating to that asset are transferred to retained earnings.Class of Fixed AssetsDepreciation Rate(years)Land Not depreciatedBuildings40 yearsFixed Improvements30 yearsPlant and equipment-owned3-10 yearsPlant and equ

292、ipment-leased2-5 yearsMotor Vehicles5 years36AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024NOTES TO THE FINANCIAL STATEMENTS,CONTINUED.FOR THE YEAR ENDED 30 JUNE 2024NOTE 1:SUMMARY OF MATERIAL ACCOUNTING POLICIES(contd)(i)Leases(the Group as lessee)At inception of a contract,the Group asses

293、ses if the contract contains or is a lease.If there is a lease present,a right-of-use asset and a corresponding lease liability is recognised by the Group where the Group is a lessee.However,all contracts that are classified as short-term leases(lease with remaining lease term of 12 months or less)a

294、nd leases of low value assets are recognised as an operating expense on a straight-line basis over the term of the lease.Initially the lease liability is measured at the present value of the lease payments still to be paid at commencement date.The lease payments are discounted at the interest rate i

295、mplicit in the lease.If this rate cannot be readily determined,the Group uses the incremental borrowing rate.Lease payments included in the measurement of the lease liability are as follows:fixed lease payments less any lease incentives;variable lease payments that depend on an index or rate,initial

296、ly measured using the index or rate at the commencement date;the amount expected to be payable by the lessee under residual value guarantees;the exercise price of purchase options,if the lessee is reasonably certain to exercise the options;lease payments under extension options if lessee is reasonab

297、ly certain to exercise the options;and payments of penalties for terminating the lease if the lease term reflects the exercise of an option to terminate the lease.The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned above,any lease payments made

298、at or before the commencement date as well as any initial direct costs.The subsequent measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.Right-of-use assets are depreciated over the lease term or useful life of the underlying asset whichever is the

299、shortest.Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group anticipates exercising a purchase option,the specific asset is depreciated over the useful life of the underlying asset.(j)Employee BenefitsShort-term employee benefitsPro

300、vision is made for the Groups obligation for short-term employee benefits.Short-term employee benefits are benefits(other than termination benefits)that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service,i

301、ncluding wages,salaries and sick leave.Short-term employee benefits are measured at the(undiscounted)amounts expected to be paid when the obligation is settled.The Groups obligations for short-term employee benefits such as wages,salaries and sick leave are recognised as a part of current trade and

302、other payables in the statement of financial position.The Groups obligations for employees annual leave and long service leave entitlements are recognised as provisions in the statement of financial position.Equity-settled paymentsShare-based payments to employees are measured at the fair value of t

303、he instruments issued and amortised over the vesting periods.Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued,if it is determined the fair value of the goods or services cannot be reliably measured,a

304、nd are recorded at the date the goods or services are received.The corresponding amount is recorded to equity.The fair value of options is determined using a binomial pricing model.The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such tha

305、t the amount recognised for services received as consideration for the equity instruments granted is based on the number of equity instruments that eventually vest.37AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024NOTES TO THE FINANCIAL STATEMENTS,CONTINUED.FOR THE YEAR ENDED 30 JUNE 2024NOTE

306、 1:SUMMARY OF MATERIAL ACCOUNTING POLICIES(contd)(k)Impairment of AssetsAt each reporting date,the Group reviews the carrying values of its tangible and intangible assets to determine whether there is any indica-tion that those assets have been impaired.If such an indication exists,the recoverable a

307、mount of the asset,being the higher of the assets fair value less costs to sell and value in use,is compared to the assets carrying value.Any excess of the assets carrying value over its recov-erable amount is recognised immediately in profit or loss.Impairment testing is performed annually for inta

308、ngible assets with indefinite lives.Where it is not possible to estimate the recoverable amount of an individual asset,the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.(l)Intangible Assets other than GoodwillRecipes,formulations,trademarks and patents

309、Recipes,formulations,trademarks and patents are recognised at cost of acquisition.They have an indefinite life and are tested annually for impairment and carried at cost less any accumulated impairment losses.Product developmentProduct development is recorded at cost,has a finite life and is carried

310、 at cost less accumulated amortisation and any impairment losses.Product development has an estimated useful life of between one and three years.(m)Cash and cash equivalentsCash and cash equivalents include cash on hand,deposits available on demand with banks,other short-term highly liquid investmen

311、ts with original maturities of three months or less.(n)Trade and other receivablesTrade and other receivables include amounts due from customers for goods sold and services performed in the ordinary course of business.Receivables expected to be collected within 12 months of the end of the reporting

312、period are classified as current assets.All other receiv-ables are classified as non-current assets.Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method,less any provision for impairment.Refer to Note 1(g)f

313、or further discussion on the determination of impairment losses.(o)Trade and other payablesTrade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Group during the reporting period which remains unpaid.The balance is reco

314、gnised as a current liability with the amount being normally paid within 30 days of recognition of the liability.(p)Goods and services tax(GST)Revenues,expenses and assets are recognised net of the amount of GST,except where the amount of GST incurred is not recoverable from the Australian Taxation

315、Office(ATO).Receivables and payables are stated inclusive of the amount of GST receivable or payable.The net amount of GST recoverable from,or payable to,the ATO is included with other receivables or payables in the statement of financial position.Cash flows are presented on a gross basis.The GST co

316、mponents of cash flows arising from investing or financing activities which are recov-erable from,or payable to,the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.(q)Revenue and Other IncomeRevenue recognition policies are as follows:The sale o

317、f dairy farm and nutritional powder segment products are measured at the fair value of consideration received net of any trade discounts and volume rebates allowed.38AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024NOTES TO THE FINANCIAL STATEMENTS,CONTINUED.FOR THE YEAR ENDED 30 JUNE 2024NOTE

318、 1:SUMMARY OF MATERIAL ACCOUNTING POLICIES(contd)(q)Revenue and Other Income(contd)The sale of nutritional powders represents a single performance obligation and accordingly,revenue will be recognised in respect of the sale of these goods at the point in time when control over the corresponding good

319、s and services is transferred to the customer(i.e.at a point in time for sale of goods when the goods are delivered to the customer or transfer to the freight forwarder).Dairy cattle fair value adjustments are determined at the end of each reporting date(refer Note 10).The amount of the net incremen

320、t or decrement in the fair value is recorded as either revenue or expense and is determined as:The difference between the total net fair value of dairy cattle recognised at the beginning of the financial year and the total fair value of dairy cattle recognised as at the reporting date;less Costs exp

321、ected to be incurred in realising the fair value(including freight and selling costs).Dairy cattle sales are recognised when:there has been a transfer of control to the customer(through the execution of a sales agreement at the time of delivery of the cattle to the customer);the quantity and quality

322、 of the cattle has been determined;and the price is fixed and generally title has passed.Interest revenue is recognised using the effective interest rate method,which,for floating rate financial assets,is the rate inherent in the instrument.(r)Critical Accounting Estimates and JudgmentsThe preparati

323、on of the financial statements requires directors to make judgements,estimates and assumptions that affect the reported amounts in the financial statements.The directors continually evaluate their judgements and estimates in relation to assets,liabilities,contingent liabilities,revenue and expenses.

324、Judgements and estimates are based on historical experience and on other various factors they believe are reasonable under the circumstances,the result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources.Accounting measurements fo

325、r which significant judgements,estimates and assumptions have been made are:-Carrying value determination of land and buildings,refer Note 13(a);-Carrying value determination of right of use assets,refer Note 11(a);-Carrying value determination of intangible assets,refer Note 12(a)(i);-Fair value de

326、termination of livestock,refer Note 10;-Share-based payments,refer Note 26;and-Income tax and other taxes,refer Note 5;Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future pe

327、riods.Further details of the nature of these assumptions and conditions may be found in the relevant notes to the financial statements.39AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024NOTES TO THE FINANCIAL STATEMENTS,CONTINUED.FOR THE YEAR ENDED 30 JUNE 2024NOTE 1:SUMMARY OF MATERIAL ACCOUN

328、TING POLICIES(contd)(s)Comparative figuresWhen required by Accounting Standards,comparative figures have been adjusted to conform to changes in presentation for the current financial year.Where the Group has retrospectively applied an accounting policy,made a retrospective restatement of items in th

329、e financial statements or reclassified items in its financial statements,an additional statement of financial position as at the beginning of the earliest comparative period will be disclosed.(t)New and Amended Accounting Standards and Interpretations Adopted by the GroupThe Australian Accounting St

330、andards Board(AASB)has issued a number of standards and amendments to standards that are mandatory for the first time in the reporting period commenced 1 July 2023.The Group has assessed and determined that there are no new or amended standards applicable for the first time for the financial report

331、for the year ended 30 June 2024,that materially affect the Groups accounting policies or any of the amounts recognised in the financial statements.40AUSTRALIAN DAIRY NUTRITIONALS GROUP /ANNUAL REPORT 2024NOTES TO THE FINANCIAL STATEMENTS,CONTINUED.FOR THE YEAR ENDED 30 JUNE 2024NOTE 2:PARENT ENTITYT

332、he following information has been extracted from the books and records of the parent and has been prepared in accordance with Accounting Standards.20242023$Statement of Financial PositionAssetsCurrent Assets 18,537,194 18,145,754 Non-current Assets 12,233,444 12,695,232 Total Assets 30,770,638 30,84

333、0,986 LiabilitiesCurrent Liabilities 1,751,585 757,466 Non-current Liabilities 2,434 64,614 Total Liabilities 1,754,019 822,080 EquityIssued capital 76,733,410 76,091,020 Reserves-74,615 Retained earnings(47,716,791)(46,146,729)Total Equity 29,016,619 30,018,906 Statement of Comprehensive IncomeTotal loss(1,644,679)(25,728,692)Total comprehensive loss(1,644,679)(25,728,692)Contingent liabilities a