Me Today results for the 12 Month Period Ended 30 June 2023
Audited results announcement for the 12 months ended 30 June 2023
Results for announcement to the market
Name of issuer Me Today Limited
Reporting Period 12 months to 30 June 2023
Previous Reporting Period 15 months to 30 June 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$7,883 (4.7)%
Total Revenue $7,883 (4.7)%
Net profit/(loss) from
continuing operations
$(12,974) 33.6%
Total net profit/(loss) $(12,974) 33.6%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend at this time
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.0051 $0.0114
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the audited financial statements and press release
that accompany this announcement.
Authority for this announcement
Name of person
authorised
to make this announcement
Stephen Sinclair
Contact person for this
announcement
Stephen Sinclair
Contact phone number 021 330 053
Contact email address stephen@metoday.com
Date of release through MAP
29 August 2023
Audited financial statements accompany this announcement.
---
Me Today Limited
Consolidated Financial Statements
For the year ended 30 June 2023
Me Today Limited
Consolidated Financial Statements
For the year ended 30 June 2023
Contents
Page
Consolidated Statement of Profit and Loss and Other Comprehensive Income 2
Consolidated Statement of Changes in Equity 3
Consolidated Statement of Financial Position 4
Consolidated Statement of Cash Flows 5
Notes to the Consolidated Financial Statements 6
Independent Auditor’s Report 35
Me Today Limited
Consolidated Statement of Profit and Loss and Other Comprehensive
Income
For the year ended 30 June 2023
The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.
2
30 Jun 2023 30 Jun 2022
Note(12 months)(15 months)
NZ$000NZ$000
Revenue before marketing services provided by a customer9,2018,811
Less marketing services provided by customers(1,318)(538)
Revenue57,8838,273
Changes in inventories of finished goods and work in progress(4,767)(5,132)
Selling and marketing expenses(2,968)(3,729)
Distribution expenses(861)(610)
Administrative and other operating expenses(4,881)(5,489)
Amortisation of customer relationship asset19(1,083)(1,084)
Finance income413
Finance expenses6(594)(641)
Acquisition related costs(115)(368)
Operating loss before tax, fair value adjustments,
restructuring and impairment costs6(7,382)(8,767)
Fair value loss on harvested honey14(2,223)(1,724)
Fair value loss on biological assets15(544)(720)
Restructuring costs(337)(494)
Write down of assets held for sale13(128)(543)
Impairment of goodwill19.1-(9,120)
Impairment of customer relationship asset19.1(2,360)(780)
Loss before income tax(12,974)(22,148)
Income tax (expense)/benefit8-2,604
Loss for the period attributable to owners of the company(12,974)(19,544)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations(69)-
Total comprehensive loss for the period attributable to
owners of the company
(13,043)(19,544)
Earnings (loss) per share:
Basic and diluted loss per share (NZ$)9(0.009)(0.029)
Me Today Limited
Consolidated Statement of Changes in Equity
For the year ended 30 June 2023
The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.
3
Share
Share based
paymentsAccumulated
Foreign
currency
translationTotal
Notecapitalreservelossesreserveequity
NZ$000NZ$000NZ$000NZ$000
At 1 April 202113,669110(7,887)-5,892
Total comprehensive income
Loss attributable to owners of the company--(19,544)-(19,544)
Transactions with owners
Shares issued during the period2228,733(177)--28,556
Less: share issue costs(975)---(975)
Shares issued on acquisition of subsidiaries10,000---10,000
Share options issued24-30--30
Share options expired23-(26)26--
Other share based payments23-140--140
At 30 June 202251,42777(27,405)-24,099
Total comprehensive income
Loss attributable to owners of the company--(12,974)-(12,974)
Exchange differences on translation foreign operations---(69)(69)
Transactions with owners
Shares issued during the period221,026(159)--867
Less: share issue costs(72)---(72)
Share options issued23-----
Share options expired23-(13)--(13)
Other share based payments23-95--95
At 30 June 202352,381-(40,379)(69)11,933
Me Today Limited
Consolidated Statement of Financial Position
As at 30 June 2023
The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.
4
These financial statements were approved by the Board on 29 August 2023.
Signed on behalf of the Board by:
Grant Baker Michael Kerr
Note
2023
2022
NZ$000
NZ$000
ASSETS
Current assets
Cash and cash equivalents
10
913
5,370
Trade and other receivables
11
2,443
1,199
Inventory
12
14,759
16,793
Biological work in progress
14
160
698
Taxation receivable
11
35
18,286
24,095
Assets classified as held for sale
13
93
1,063
Total current assets
18,379
25,158
Non-current assets
Biological assets
15
752
1,598
Property, plant and equipment
16
2,958
3,788
Right-of-use asset
17.1
770
1,387
Customer relationship asset
19
3,993
7,436
Intangible assets
19
98
89
Total non-current assets
8,571
14,298
Total assets
26,950
39,456
LIABILITIES
Current liabilities
Trade and other payables
20
1,777
1,766
Lease liabilities
17.2
334
316
Borrowings
21
7,248
942
Total current liabilities
9,359
3,024
Non-current liabilities
Lease liabilities
17.2
472
1,041
Borrowings
21
5,186
11,292
Total non-current liabilities
5,658
12,333
Total liabilities
15,017
15,357
Net assets
11,933
24,099
EQUITY
Share capital
22
52,381
51,427
Share based payments reserve
23
-
77
Accumulated losses
(40,379)
(27,405)
Foreign currency translation reserve
(69)
-
Total equity
11,933
24,099
Me Today Limited
Consolidated Statement of Cash Flows
For the year ended 30 June 2023
The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.
5
30 Jun 2023 30 Jun 2022
Note(12 months)(15 months)
NZ$000NZ$000
Cash flows from operating activities
Receipts from customers7,9498,270
Payments to suppliers and employees
(13,534)(19,998)
Interest received413
Income tax paid26(11)
Net cash used in operating activities25(5,555)(11,726)
Cash flows from investing activities
Proceeds from short term deposits-3,804
Acquisition of subsidiaries-(20,791)
Acquisition related costs(115)(368)
Payments for property, plant and equipment
(35)(327)
Proceeds from sale of property, plant and equipment
1,41097
Payments for intangibles
(11)126
Net cash used in investing activities1,249(17,459)
Cash flows from financing activities
Proceeds from issue of share capital
73927,983
Share capital issue costs
(72)(474)
Proceeds from bank borrowings26
-8,500
Repayment of principal on borrowings26
-(1,466)
Interest paid on borrowings26
(377)(379)
Payment of lease liabilities26
(355)(742)
Interest paid on lease liabilities26
(17)(62)
Net cash flows from financing activities(82)33,360
Net (decrease)/increase in cash and cash equivalents(4,388)4,175
Cash and cash equivalents at the beginning of the period5,3701,195
Effect of foreign exchange rates(69)-
Cash and cash equivalents at the end of the period
109135,370
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
6
1. General information
Me Today Limited (‘the Company’) is a limited liability company incorporated and domiciled in New
Zealand.
These financial statements are for Me Today Limited and its subsidiaries (together ‘the Group’). Details of
subsidiary companies and their principal activities are set out in note 27.
The Group:
• produces, sells, and markets health and wellbeing products or acts as an agent on behalf of other
health and wellbeing suppliers; and
• produces premium manuka honey.
In 2022 the Company changed its annual reporting date to 30 June and, as a result of the change, the
comparative amounts are for the 15 months ended 30 June 2022, unless otherwise stated.
2. Basis of preparation
2.1. Basis of measurement
The consolidated financial statements have been prepared on a historical cost basis, except for biological
assets which are measured at fair value less cost to sell. Historical cost is generally based on the fair
value of the consideration given in exchange for goods and services.
The consolidated financial statements are presented in New Zealand dollars which is the Company’s
functional and Group’s presentation currency, rounded to the nearest thousand dollars unless otherwise
stated.
2.2. Statement of compliance and reporting framework
The consolidated financial statements have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (‘NZ GAAP’). The Group is a for-profit entity for the purposes of
complying with NZ GAAP. The consolidated financial statements comply with New Zealand equivalents to
International Financial Reporting Standards (‘NZ IFRS’) and International Financial Reporting Standards
(‘IFRS’).
The Company is an FMC reporting entity under the Financial Markets Conduct Act 2013. These
consolidated financial statements have been prepared in accordance with the requirements of the
Financial Markets Conduct Act 2013 and the NZX Main Board Listing Rules.
3. Significant accounting policies
The principal accounting policies adopted are set out below. There have been no changes in accounting
policies since the previous reporting date unless otherwise stated.
3.1. Principles of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company. Control is achieved when the Company:
• has power over the investee;
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control listed above.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies into line with the Group's accounting policies.
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
7
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
3.2. Revenue recognition
The Group recognises revenue from the following major sources:
• sale of goods; and
• agency services.
Revenue is measured based on the consideration to which the Group expects to be entitled in a contract
with a customer and excludes amounts collected on behalf of third parties, such as goods and service tax
and customs duties.
3.2.1. Sale of goods
The Group sells goods such as health and wellbeing products, and honey products. The Group considers
the performance obligation is satisfied when control of the goods has transferred, being when the goods
have been delivered to the customer. Revenue derived from the sale of goods is recognised at the point in
time the performance obligation is satisfied. Marketing payments paid to a customer for the purchase of
health and wellbeing products, are treated as a reduction in revenue.
3.2.2. Agency services
For revenues derived from agency services, where the Group acts as a sales agent for other health and
wellness brands, the Group considers its performance obligations are satisfied over time, on the basis that
agency services are provided and consumed by the customer on a simultaneous basis, and so will
recognise the related revenue as the performance obligation is satisfied. Revenue is measured on an
output method basis.
3.3. Income Tax
Income tax expense comprises both current and deferred tax.
3.3.1. Current tax
The tax currently payable is based on taxable profit for the period. Taxable profit differs from ‘profit before
tax’ as reported in the statement of profit or loss and other comprehensive income because of items of
income or expense that are taxable or deductible in other periods and items that are never taxable or
deductible. The Group's current tax is calculated using tax rates that have been enacted or substantively
enacted by the end of the reporting period.
3.3.2. Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary differences except for the initial
recognition of goodwill and the initial recognition of an asset or liability in a transaction which is not a
business combination and at the time of the transaction affects neither accounting or taxable profit.
Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable
that taxable profits will be available against which those deductible temporary differences can be utilised.
Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial
recognition (other than in a business combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Group expects, at the end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
8
3.4. Goods and services tax
Revenue, expenses, assets and liabilities are recognised net of the amount of goods and services tax
(GST) except:
• where the amount of GST incurred is not recovered from the taxation authority, it is recognised as
part of the cost of acquisition of an asset or as part of an item of expense; or
• for receivables and payables, which are recognised inclusive of GST.
The net amount of GST recoverable or payable to the taxation authority is included as part of receivables
or payables.
3.5. Inventories
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on
a first-in-first-out basis. Net realisable value represents the estimated selling price for inventories less
estimated costs of completion and costs necessary to make the sale.
The deemed cost for the Group’s agricultural produce (honey) inventory is fair value at harvest less
estimated point-of-sale costs. Fair value is determined by reference to selling prices for honey. Point-of-
sale costs include all costs that would be necessary to sell the assets.
3.6. Biological assets
Biological assets consist of bees (including queens).
Biological assets are measured at fair value less point-of-sale costs, with any change therein recognised
in the profit or loss. Point-of-sale costs include all costs that would be necessary to sell the assets. The fair
value of biological assets is assessed on an annual basis post-harvest, which involves reviewing the
number of operational hives in use and referencing market prices for hives.
3.7. Biological work in progress
Biological work in progress consists of unharvested honey.
Biological assets are measured at fair value less point-of-sale costs, with any change therein recognised
in the profit or loss. Point-of-sale costs include all costs that would be necessary to sell the assets.
The growth in the biological work in progress in the period from harvest to 30 June cannot be reliably
measured at fair value due to the variables in hive growth and honey production between harvest and
reporting date. Therefore, as required under NZ IAS 41: Agriculture, the cost of agricultural activity
(beekeeping costs) in the period to 30 June has been capitalised as biological work in progress to account
for this growth.
Agricultural produce (honey) from biological assets is transferred to inventory at fair value, by reference to
market prices for honey less estimated point-of-sale costs, at the date of harvest. The biological work in
progress is transferred to inventory as part of this fair value recognition at each harvest, which occurs at
least annually. A fair value loss on honey harvest was recognised in the loss for the period (note 15).
3.8. Leasing
The Group assess whether a contract is or contains a lease, at inception of the contract. The Group
recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements
in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or
less) and lease of low value assets. For these leases, the Group recognises the lease payments as an
operating expense on a straight-line basis over the term of the lease unless another systematic basis is
more representative of the time pattern in which economic benefit from the leased assets are consumed.
The lease liability is initially measured at the present value of the future lease payments, discounted by
using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental
borrowing rate. The lease liability is measured at amortised cost using the using the effective interest
method. It is remeasured when there is a change in future lease payments arising from a change in an
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
9
index or rate or if the Group changes its assessment of whether it will exercise a purchase, extension of
termination option, with a corresponding adjustment made to the carrying value of the right-of-use asset.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease
payments made at or before the commencement date and any initial direct costs. They are subsequently
measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are
depreciated over the shorter period of lease term and the useful life of the underlying asset. The
depreciation starts at the commencement date of the lease.
The Group applies NZ IAS 36: Impairment of Assets to determine whether a right-of-use asset is impaired
and accounts for any identified impairment loss as described in the 'property, plant and equipment' policy.
3.9. Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values, over their useful
lives using the diminishing value method. The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period, with the effect of any changes in estimate
accounted for on a prospective basis.
The following depreciation rates are used in the calculation:
Plant, vehicles and equipment 6% - 67%
Office equipment and furniture 10% - 50%
Leasehold improvements 6% - 25%
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of property, plant and equipment is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
3.10. Assets held for sale
Biological assets held for sale are measured at fair value less costs to sell. Other non‑current assets
classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell.
Non‑current assets are classified as held for sale if their carrying amount will be recovered through a sale
transaction rather than through continuing use. This condition is regarded as met only when the sale is
highly probable and the asset is available for immediate sale in its present condition. The Group must be
committed to the sale which should be expected to qualify for recognition as a completed sale within one
year from the date of classification.
3.11. Intangible assets
Acquired intangible assets with finite useful lives are carried at cost less accumulated amortisation and
accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated
useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting
period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible
assets with indefinite useful lives that are acquired separately are carried at cost less accumulated
impairment losses.
The following amortisation rates are used in the calculation:
Customer relationship 12.5%
Website 50%
Trademarks & domains indefinite useful life
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
10
3.12. Financial instruments
Financial assets and financial liabilities are recognised in the Consolidated Statement of Financial Position
when the Group becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or
deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition.
3.13. Financial assets
Financial assets are measured at amortised cost on the basis that the Group’s business model for
managing financial assets and the contractual cash flow characteristics of the financial assets. The Group
classifies its financial assets as at amortised cost only if both of the following criteria are met:
• the asset is held within a business model whose objective is to collect the contractual cash flows: and
• the contractual terms give rise to cash flows that are solely payments of principal and interest.
Financial assets at amortised costs
The Group holds receivables with the objective to collect the contractual cash flows, the cash flows are
solely payments of principal and interest, and therefore measures them subsequently at amortised cost
using the effective interest method, less impairment provisions.
The Group’s financial assets at amortised cost include cash and cash equivalents, short term deposits and
trade receivables. Cash and cash equivalents include cash in hand and deposits held at call with banks.
Impairment of financial assets at amortised cost
The Group recognises a loss allowance for expected credit losses on trade receivables. The amount of
expected credit losses is updated at each reporting date to reflect changes in credit risk since initial
recognition of the respective financial instrument.
The Group recognises lifetime expected credit losses for trade receivables. The expected credit losses on
these financial assets are estimated using a provision matrix based on the Group’s historical credit loss
experience, adjusted for factors that are specific to the debtors, general economic conditions and an
assessment of both the current as well as the forecast direction of conditions at the reporting date,
including time value of money where appropriate.
3.14. Financial liabilities
Financial liabilities (including trade, other payables and borrowings) 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 financial liability and of allocating interest expense over the relevant period. The
effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees
and points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a
shorter period, to the net carrying amount on initial recognition.
3.15. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Board of Directors.
3.16. Foreign currency translation
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at
the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a
foreign currency are not retranslated.
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
11
Exchange differences on monetary items are recognised in the profit or loss in the period in which they
arise.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s
foreign operations are translated at exchange rates prevailing on the reporting date. Income and expense
items are translated at the average exchange rates for the period, unless exchange rates fluctuate
significantly during that period, in which case the exchange rates at the date of transactions are used.
Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in a
foreign exchange translation reserve.
3.17. Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
are shown in equity as a deduction, net of tax, from the proceeds.
3.18. Share based payment transactions
For equity-settled share-based payments where the goods or services acquired from non-employees can
be measured reliably, then the goods or services are measured directly at their fair value. If goods or
services cannot be measured reliably, or for transactions with employees, the goods or services are
measured indirectly, i.e. with reference to the fair value of equity instruments granted.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will
eventually vest, with a corresponding increase in equity.
At the end of each reporting period, the Group revises its estimate of the number of equity instruments
expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss
such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the
share-based payments reserve.
3.19. Borrowing costs
Borrowing costs are capitalised, net of interest received on cash drawn down yet to be expended when
they are directly attributable to the acquisition, contribution or production of an asset that necessarily takes
a substantial period of time to get ready for its intended use or sale.
3.20. Application of new and revised International Financial Reporting Standards
The Group has not early adopted any standards, interpretations or amendments that have been issued
but are not yet effective. Early adoption of these new standards, interpretations or amendments would not
have had a material impact on the financial result or financial position of the Group.
4. Critical accounting estimates and judgements
In the application of the Group’s accounting policies, which are described in note 3, the directors of the
Group are required to make judgements, estimates and assumptions about the carrying amounts of
assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future
periods. Below are the critical accounting judgements.
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
12
4.1. Going concern
The consolidated financial statements have been prepared on a going concern basis, which assumes that
the Group has the intention and ability to continue its operations for the foreseeable future.
The Group incurred an after-tax loss of $12.97 million in the year to 30 June 2023 (15 month period to
30 June 2022: $19.54 million loss). The Group’s net cash outflows from operating activities during the year
was $5.56 million (15 months to 30 June 2022: $11.73 million net cash outflow).
At the reporting date the Group had cash of $0.9 million (2022: $5.4 million), working capital of $9.0 million
(2022: $22.1 million) and net assets of $11.9 million (2022: $24.1 million).
As at 30 June 2023, the Group had bank loans of $7.0 million (2022: $7.0 million), and $5.4 million was
payable to the previous owners of King Honey under a subordinated note (2022: $5.2 million) which, as at
the reporting date, was due for payment to the previous owners of King Honey in June 2024.
The Group’s banker, Bank of New Zealand, has confirmed that it will keep the Group’s existing bank
facilities in place (refer note 21) subject to further review no later than 31 August 2024 in conjunction with
the FY24 audited financial statements and FY25 budget. The facilities include an unused overdraft of $5
million. The facilities will remain on an interest only basis until 31 August 2024. The requirement for an
amortisation programme will be considered at that time in conjunction with the FY25 budget. The bank
also confirmed the continued suspension of earnings-related covenants until 31 August 2024.
On 28 August 2023, the Jarvis Trust has agreed to extend the repayment date of the subordinated note
for nine months to 31 March 2025 (refer note 21). A condition of this extension is that the Group cannot
increase its indebtedness to the BNZ above $9.5 million without the consent of the Jarvis Trust.
The Directors are satisfied that based on their review of the Group’s current financial forecasts,
confirmation from the Group’s banker of the existing facilities, and the extension agreement with Jarvis
Trust, that, during the 12 months after the date of signing these consolidated financial statements, there
will be adequate cash flows available to meet the financial obligations of the Group as they arise. The
Directors acknowledge that whilst the Group continues to build commercial relationships with new and
existing customers future looking forecasts are inherently uncertain. The Directors consider the overdraft
facility available to the Group (as modified by the Jarvis Trust condition) provide it with sufficient headroom
should it be required if sales or cost forecasts are not achieved.
The considered view of the Board is that, after making due enquiries and considering relevant factors,
there is a reasonable expectation that the Group will have access to adequate resources and
commitments from its borrowers, that will enable it to meet its financial obligations for the foreseeable
future.
For this reason, the Board considers the adoption of the going concern basis in preparing the consolidated
financial statements for the year ended 30 June 2023 to be appropriate. The Board has reached this
conclusion having regard to circumstances which it considers likely to affect the Group during the period of
at least one year from the date of approval of these consolidated financial statements, and to
circumstances which it considers will occur after that date which will affect the validity of the going concern
basis.
4.2. Fair value of inventory at harvest
The deemed cost for the Group’s agricultural produce (honey) inventory is fair value at harvest less
estimated point-of-sale costs. Fair value is determined by reference to market prices for honey.
Judgement is required to determine the market price of the honey at harvest based upon each drum’s
tested chemical markers (refer note 14).
4.3. Impairment of customer relationship asset
The cash‑generating unit to which the customer relationship asset has been allocated is tested for
impairment when there is an indication that the unit may be impaired. The Board has undertaken value in
use impairment testing and reviewed sensitivity analysis relating to the carrying value of the customer
relationship asset. Judgement is required in determining the extent to which there has been an impairment
in value (refer note 19.1).
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
13
4.4. Inventory net realisable value
Inventories are carried at the lower of cost and net realisable value. Management has identified that based
on near term forecast demand there is currently excess inventory held and therefore there may be issues
in achieving the carrying value of this inventory. They have estimated this excess quantity by grade of
honey and have considered its net realisable value by reference to the likely manner in which it will be
used. There is judgement involved in these estimates (refer note 12).
4.5. Fair value of biological assets
Biological assets are measured at fair value less point-of-sale costs. The fair value of biological assets is
assessed on an annual basis post-harvest, which involves reviewing the number of operational hives in
use and referencing market prices for hives. Judgement is required to determine the fair value of hives
(refer note 15).
4.6. Fair value of biological work in progress
Biological assets are measured at fair value less point-of-sale costs. The growth in the biological work in
progress in the period from harvest to 30 June cannot be reliably measured at fair value due to the
variables in hive growth and honey production between harvest and the reporting date. Therefore, as
required under NZ IAS 41: Agriculture, the cost of agricultural activity (beekeeping costs) in the period to
30 June has been capitalised as biological work in progress to account for this growth (refer note 14).
4.7. Deferred tax
Judgement is exercised in determining the timing and extent of recognition of the benefit of tax losses.
The benefit of tax losses can be recognised as an asset if its recovery is ‘probable’ (more likely than not).
In the absence of any track record of profitability, convincing evidence is needed of how the losses will be
recovered in the future, before any deferred tax asset is recognised. At 30 June 2023 the Group has
recognised the benefit in respect of the tax losses generated to the extent they offset a deferred tax
liability (refer note 8).
4.8. Accounting for leases
Judgement is required in determining whether it is reasonably certain that an extension option will be
exercised. The Group considers all relevant factors that create an economic incentive for it to exercise the
extension. After the commencement date, the Group reassesses the lease term if there is a significant
event or change in circumstances that is within its control and affects its ability to exercise or not to
exercise the option to extend (refer note 17).
The Group has included the extension period as part of those premises leases where it is reasonably
certain an extension option will be exercised.
5. Revenue
20232022
(12 months)(15 months)
NZ$000NZ$000
2,7813,260
Less marketing services provided by customers(1,318)(538)
Revenue from sale of health and wellbeing products1,4632,722
Revenue from sale of honey products5,8185,022
Revenue from agency services602529
Total revenue7,8838,273
Revenue from sale of health and wellbeing products before marketing
services provided by customers
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
14
The details above disaggregate the Group's revenue from contracts with customers into primary markets,
and major product and service lines.
Revenue was generated from the following geographical regions:
Revenue is allocated geographically based upon the jurisdiction in which the revenue is recognised for
taxation purposes.
6. Expenses
The loss for the year includes the following expenses.
20232022
(12 months)(15 months)
NZ$000NZ$000
6,4747,842
USA1,147-
Europe262431
Total revenue7,8838,273
New Zealand
20232022
Note(12 months)(15 months)
NZ$000NZ$000
Salaries(4,380)(7,898)
Employer kiwisaver contributions(106)(163)
Directors' fees29(470)(538)
Accounting and consulting(79)(125)
Shareholder expenses(40)(90)
Depreciation and amortisations:
Depreciation of property, plant and equipment16(600)(986)
Depreciation of right of use assets17.1(421)(695)
Amortisation of customer relationship asset19(1,083)(1,084)
Amortisation of other intangible assets19(3)(7)
(2,107)(2,772)
Depreciation and amortisation are allocated as follows:
Capitalised to biological WIP576647
Included in the operating loss(1,531)(2,125)
Finance expenses:
Interest on lease liabilities26(17)(62)
Interest on borrowings26(577)(579)
(594)(641)
Auditor's remuneration:
For the current year audit(157)(106)
For the prior year audit-(1)
Corporate finance service fee(11)-
For tax advice and returns-(9)
For general accounting advice-(5)
Total auditor's remuneration(168)(121)
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
15
7. Segment information
The Group:
• produces, sells, and markets health and wellbeing products (‘sale of goods’ segment) or acts as an
agent on behalf of other health and wellbeing suppliers (‘agency services’ segment); and
• produces premium manuka honey (‘honey’ segment).
The Group has identified its operating segments based on the internal reports reviewed and used by the
Chief Operating Decision Maker (‘CODM’), being the Board of Directors, in assessing the Group’s
performance and in determining the allocation of resources.
The ‘Operating EBITDA’ measure is stated after depreciation and amortisation capitalised to biological
WIP (note 6).
Head office expenses include costs related to the NZX listing.
Sale of AgencyHoneyHeadTotal
goodsservicesoffice
NZ$000NZ$000NZ$000NZ$000NZ$000
2,7816025,818-9,201
(1,318)---(1,318)
Total external revenue1,4636025,818-7,883
Total inter-segment revenue-----
Total operating EBITDA(2,365)(161)(1,228)(1,392)(5,146)
Finance income--134
Finance expenses--(591)(3)(594)
Amortisation of customer relationship
asset--(1,083)-(1,083)
Depreciation and amortisation(8)(3)(339)(98)(448)
Acquisition expenses---(115)(115)
Fair value loss on harvested honey--(2,223)-(2,223)
Fair value loss on biological assets--(544)-(544)
Restructuring costs--(337)-(337)
Write down of assets held for sale--(128)-(128)
Impairment of customer relationship
asset--(2,360)-(2,360)
Net loss before taxation(2,373)(164)(8,832)(1,605)(12,974)
Income tax benefit-----
Net loss for the year(2,373)(164)(8,832)(1,605)(12,974)
12 months to 30 June 2023
Revenue before marketing services
provided by a customer
Less marketing services provided by
customers
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
16
7.1. Information about major customers
For the 12 months ended 30 June 2023 there were 2 customers who individually accounted for more than
10% of the Group's total sales (15 months ended 30 June 2022: 2 customers). Sales to these customers
were $2,087,994 and $1,308,287 (2022: $2,011,161 and $1,852,980). These customers purchased goods
or agency services.
Sale of AgencyHoneyHeadTotal
goodsservicesoffice
NZ$000NZ$000NZ$000NZ$000NZ$000
3,2605295,022-8,811
(538)---(538)
Total external revenue2,7225295,022-8,273
Total inter-segment revenue-----
Total operating EBITDA(1,913)(310)(1,881)(1,548)(5,652)
Finance income--61319
Finance expenses--(633)(8)(641)
Amortisation of customer relationship
asset--(1,084)-(1,084)
Depreciation and amortisation(20)(8)(889)(124)(1,041)
Acquisition expenses---(368)(368)
Fair value loss on harvested honey--(1,724)-(1,724)
Fair value loss on biological assets--(720)-(720)
Restructuring costs--(494)-(494)
Write down of assets held for sale--(543)-(543)
Impairment of goodwill--(9,120)-(9,120)
Impairment of customer relationship
asset--(780)-(780)
Net loss before taxation(1,933)(318)(17,862)(2,035)(22,148)
Income tax benefit--2,604-2,604
Net loss for the year(1,933)(318)(15,258)(2,035)(19,544)
15 months to 30 June 2022
Revenue before marketing services
provided by a customer
Less marketing services provided by
customers
Sale of AgencyHoneyHeadTotal
goodsservicesoffice
NZ$000NZ$000NZ$000NZ$000NZ$000
Segment assets3,49524322,48273026,950
Segment liabilities69512313,63956015,017
Sale of AgencyHoneyHeadTotal
goodsservicesoffice
NZ$000NZ$000NZ$000NZ$000NZ$000
Segment assets2,25514731,5905,46439,456
Segment liabilities3964314,47144715,357
2022
2023
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
17
8. Taxation
8.1. Income tax recognised in profit or loss
The analysis of the income tax expense is as follows:
8.2. Reconciliation of income tax expense
The charge for the year can be reconciled to the loss before income tax as follows:
8.3. Deferred tax
20232022
(12 months)(15 months)
NZ$000NZ$000
Current income tax
Current income tax charge--
Deferred tax-(2,604)
Total income tax expense/(benefit) recognised in the current year-(2,604)
20232022
(12 months)(15 months)
NZ$000NZ$000
Loss before income tax(12,974)(22,148)
Current year tax at the tax rate of 28% (2022: 28%)(3,633)(6,201)
Non-deductible expenses1882,868
Current tax losses not recognised3,445729
Income tax expense/(benefit)-(2,604)
NZ$000NZ$000NZ$000NZ$000
2023
Deferred tax assets/(liabilities) in relation to:
Customer relationship asset(2,082) 964 - (1,118)
Inventory fair value adjustments1,472 (109) - 1,363
Fair value loss on harvested honey483 526 - 1,009
Write down of assets held for sale152 (116) - 36
Other133 (112) - 21
Deferred tax assets not recognised(2,240) (189) - (2,429)
Tax losses offset against deferred tax liability2,082 (964) - 1,118
- - - -
Opening
balance
Recognised
in loss
Acquisition of
subsidiaries
Closing
balance
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
18
The Group did not recognise deferred income tax assets in relation to the losses disclosed above except
to the extent they offset the deferred tax liability. The losses can be carried forward against future income
subject to meeting the requirements of income tax legislation including those relating to shareholder
continuity and business continuity (note 4.7).
9. Earnings per share
At 30 June 2023, there were no financial instruments that carried any shareholder dilution rights that were
considered to be dilutive (2022: none). The 1,000,000 share options on issue in 2022 (refer note 24) were
not considered to be dilutive due to the Group’s loss.
2022
Deferred tax assets/(liabilities) in relation to:
Customer relationship asset- 522 (2,604) (2,082)
Inventory fair value adjustments at acquisition- (14) 1,486 1,472
Fair value loss on harvested honey- 483 - 483
Write down of assets held for sale- 152 - 152
Other- 54 79 133
Deferred tax assets not recognised- (675) (1,565) (2,240)
Tax losses offset against deferred tax liability- 2,082 - 2,082
- 2,604 (2,604) -
20232022
NZ$000NZ$000
Tax losses
27,03914,735
Potential tax benefit @ 28%7,5714,126
Tax losses for which no deferred tax asset has been recognised
20232022
(12 months)(15 months)
Basic and diluted earnings/(loss) per share (NZ$)(0.009)(0.029)
Loss from continuing operations (NZ$000)(12,974)(19,544)
1,525,112664,695
The losses and weighted average number of ordinary shares used in the calculation of loss per share are as
follows:
Weighted average number of ordinary shares used in the calculation of
basic and diluted earnings per share ('000)
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
19
10. Cash and cash equivalents
The carrying amount for cash and cash equivalents equals the fair value. Cash balances are on call and
earn no interest.
11. Trade and other receivables
There has been no expected credit loss impairment to profit or loss in the period (2022: none).
The Group’s trade receivables aging is as follows:
The standard credit period on sales of goods is 30 or 60 days on the provision of the sale of goods or
rendering of agency services.
In determining the recoverability of a trade receivable, the Group considers any change in the credit
quality of the trade receivable from the date credit was initially granted up to the end of the reporting
period. The Group has 2 main customers who are both assessed as creditworthy. The Group maintains
close working relationships with these customers. The Group does not hold any collateral over these
balances.
The Group determines the expected credit losses on receivables by using a provision matrix, estimated
based on historical credit loss experience based on the past due status of the debtors, adjusted as
appropriate to reflect current conditions and estimates of future economic conditions.
Other Receivables includes amounts due from the sale of assets. These are repayable in instalments over
periods of up to 2 years.
20232022
NZ$000NZ$000
Cash at bank and on hand9135,370
9135,370
20232022
NZ$000NZ$000
Trade receivables1,660913
Other receivables5115
GST receivable41112
Prepayments231169
Total trade and other receivables2,4431,199
NZ$000
CurrentLess than 30
days past due
30 to 60 days
past due
More than 60
days past due
Total
2023
Trade receivables
675551503841,660
Loss allowance
-----
2022
Trade receivables
736872367913
Loss allowance
-----
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
20
12. Inventories
No inventory was written off to profit and loss in the period (2022: nil). Inventory expensed in the period
was $4,767,197 (2022: $4,899,517).
The Group’s inventory net realisable value provision at 30 June 2023 was $2.6 million (2022: $3.0 million).
The change in the provision was reversed to profit or loss in the year upon the sale of the related
inventory.
13. Assets held for sale
20232022
NZ$000NZ$000
Raw materials10,77713,069
Finished goods2,6863,119
Packaging materials1,296605
14,75916,793
20232022
NZ$000NZ$000
Property, plant and equipment93450
Biological assets-613
93 1,063
20232022
NZ$000NZ$000
At 1 July
1,063 -
Reclassified from property, plant & equipment (note 16):
- cost335 744
- accumulated depreciation(70) (104)
Write down of assets held for sale(61) (190)
Net book value reclassified from property, plant & equipment204 450
Reclassified from biological assets (note 15)302 965
Write down of assets held for sale(67) (352)
Net book value reclassified from biological assets235 613
Sale of assets(1,409) -
Balance at 30 June
93 1,063
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
21
14. Biological work in progress
15. Biological assets
The bees biological assets consist of hives and nucs.
The Group is exposed to some risks related to owning bees, primarily the risk of damage from climatic
changes and diseases. The Group has processes in place aimed at monitoring and mitigating those risks,
through hiring of experienced beekeepers, the intensive maintenance of beehives and disease prevention
programmes.
Fair value hierarchy
The Group’s bees are level 3 on the fair value hierarchy, being calculations for which inputs are not based
on observable market data (unobservable inputs).
20232022
NZ$000NZ$000
At 1 July698-
Acquisition of subsidiaries-1,437
Current period beekeeping costs2,3497,239
Fair value loss on harvested honey(2,223)(1,724)
Honey recognised as inventory on harvest(683)(6,952)
Beekeeping costs related to next harvest160698
Beekeeping costs expensed due to restructure(141)-
At 30 June
160698
20232022
NZ$000NZ$000
Bees:
At 1 July1,598 -
Acquisition of subsidiaries-3,283
Reclassified to assets held for sale (note 13)(302) (965)
Fair value loss on biological assets(544) (720)
At 30 June
752 1,598
20232022
number ofnumber of
Hives:
At 1 July8,950 -
Acquisition of subsidiaries- 15,595
Reduction in operational hives(3,047)(2,995)
Hives classified as assets held for sale (note 13)(1,691)(3,650)
Hives included in biological assets at 30 June
4,212 8,950
Nucleus colonies (Nucs):
At 1 July- -
Acquisition of subsidiaries- 3,660
Reduction in operational nucs- (1,360)
Nucs classified as assets held for sale (note 13)- (2,300)
Nucs included in biological assets at 30 June
- -
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
22
The Group has valued the biological assets based on market sales price information and the Group’s own
sales of hives. The fair value per hive is $179 (2022: $179).
16. Property, plant and equipment
NZ$000NZ$000NZ$000NZ$000NZ$000
Cost:
At 1 April 2021
10 - 95 31 136
Additions
81 208 37 1 327
Acquisition of subsidiaries
3,731 968 62 335 5,096
Transferred to assets held for sale
(406) (338) - - (744)
Disposals
(2) (133) - - (135)
At 30 June 2022
3,414 705 194 367 4,680
Additions
31 - 4 - 35
Transferred to assets held for sale
(314) (21) - - (335)
At 30 June 2023
3,131 684 198 367 4,380
Accumulated depreciation:
At 1 April 2021(4) - (35) (6) (45)
Depreciation expense
(660) (210) (68) (48)
(986)
Transferred to assets held for sale
41 63 - -
104
Disposals
- 35 - -
35
At 30 June 2022
(623) (112) (103) (54) (892)
Depreciation expense
(410) (113) (36) (41)
(600)
Transferred to assets held for sale
59 11 - -
70
At 30 June 2023
(974) (214) (139) (95) (1,422)
Carrying amount:
At 30 June 2023
2,157 470 59 272 2,958
At 30 June 2022
2,791 593 91 313 3,788
At 1 April 2021
6 - 60 25 91
Plant &
equipment
Office
equipment
& furniture
Leasehold
improvements Total Vehicles
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
23
17. Leases
17.1. Right-of-use asset
The Group leases warehouse and administration premises, and land used for hive placements.
17.2. Lease liability
Premises Hive
placements
Total
NZ$000NZ$000NZ$000
Cost:
At 1 April 2021226 - 226
Additions296 313 609
Acquisition of subsidiaries934 1,071 2,005
Lease modifications(82) (626) (708)
At 30 June 20221,374 758 2,132
Additions174 186 360
Acquisition of subsidiaries- - -
Lease modifications(332) (224) (556)
At 30 June 2023
1,216 720 1,936
Accumulated amortisation:
At 1 April 2021(50) - (50)
Depreciation expense(371) (324) (695)
At 30 June 2022(421) (324) (745)
Depreciation expense(284) (137) (421)
At 30 June 2023
(705) (461) (1,166)
Carrying Amount:
At 30 June 2023511 259 770
At 30 June 2022953 434 1,387
At 1 April 2021176 - 176
20232022
NZ$000NZ$000
Maturity analysis - contractual undiscounted cash flows
Up to one year356381
One to two years335526
Two to five years156492
More than five years-77
Total undiscounted lease liabilities at 30 June8471,476
Lease liabilities included in the Consolidated Statement of Financial Position
Current334316
Non-current4721,041
8061,357
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
24
At the reporting date the Group had 4 property leases with an average remaining term of 2.6 years (2022:
3.75 years). The Group also had 7 land access leases with an average remaining term of 1.86 years
(2022: 0.75 years).
The average IBR rate is 3.6% (2022: 3.63%).
Short term lease expenses included in operating loss were $1,122,000 (2022: $1,122,000).
18. Goodwill
19. Other intangible assets
20232022
NZ$000NZ$000
Balance at 1 July--
Recognised on acquisition of subsidiary-9,120
Impairment losses for the period (note 19.1)-(9,120)
Balance at 30 June
--
Customer
relationship Website
Trademarks
& domains Total
NZ$000NZ$000NZ$000NZ$000
Cost:
At 1 April 2021- 26 61 87
Additions
- - 23 23
Acquisition of subsidiaries
9,300 - - 9,300
At 30 June 2022
9,300 26 84 9,410
Additions
- - 12 12
At 30 June 2023
9,300 26 96 9,422
Accumulated amortisation and impairment:
At 1 April 2021
- (14) -
(14)
Amortisation expense
(1,084) (7) -
(1,091)
Impairment of intangible asset (note 19.1)
(780) - -
(780)
At 30 June 2022
(1,864) (21) - (1,885)
Amortisation expense
(1,083) (3) -
(1,086)
Impairment of intangible asset (note 19.1)
(2,360) - -
(2,360)
At 30 June 2023
(5,307) (24) - (5,331)
Carrying Amount:
At 30 June 20233,993 2 96 4,091
At 30 June 20227,436 5 84 7,525
At 1 April 2021- 12 61 73
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
25
19.1. Impairment testing for cash-generating units containing goodwill and the customer
relationship asset
Given the financial performance of the Honey segment did not meet internal forecast expectations, the
Board undertook a value in use impairment test at 30 June 2023 and reviewed sensitivity analysis relating
to the carrying value of the customer relationship asset (2022: impairment test as at 31 March 2022 to
assess carrying value of the goodwill and customer relationship assets).
The Group considered the future cash flows arising out of the sale of Manuka Honey through the Honey
segment. As a result of the completion of discounted cashflow modelling, the Board assessed the value of
the Honey CGU as $21.1 million (2022: $29.0 million). The Board concluded that it was appropriate for the
Group to recognise impairments in value in the goodwill and the customer relationship asset arising from
the King Honey acquisition as set out below:
Value in use was determined by discounting the future cash flows generated from the continuing use of
the CGU and was based on the following key assumptions:
Cash flows were projected on actual operating results, the 12-month budget, multi-year forecasts and
business plan.
The discount rate selected reflects the level of uncertainty in relation to the future revenue from the Honey
CGU.
The growth rate applied in years 2029-2037 (years 6 to 14 in the model) to revenue is 3% and to costs is
2-3%. These rates reflect the long-term growth rates of the markets in which the revenues are earned and
the costs expended. These years have been included in the calculation to forecast a tax outflow in the
terminal year where the terminal value has been derived, as existing tax losses are expected to be utilised
against taxable profits in earlier years.
20. Trade and other payables
Trade and other payables are unsecured, non-interest bearing and usually paid within 45 days of
recognition. Therefore, the carrying value of creditors and other payables approximates their fair value.
20232022
NZ$000NZ$000
Impairment losses:
Impairment of customer relationship asset(2,360)(780)
Impairment of goodwill (note 18)-(9,120)
(2,360)(9,900)
20232022
Years assessed in cash projections
2024 - 20282023 - 2027
Anticipated annual revenue growth3% - 20%26% - 39%
Anticipated annual overhead expense increase3%2%
Pre-tax discount rate18.2%16.5%
Terminal growth rate3%3%
20232022
NZ$000NZ$000
Trade payables946482
Accruals593626
Other payables238658
1,7771,766
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
26
21. Borrowings
The Group has two bank loans from the Bank of New Zealand. A customised average rate loan facility
(CARL) of $2,908,420 (2022: $3,015,980) and a fixed rate loan of $4,125,809 (2022: $4,286,125). The
loans were taken out on 30 June 2021 and are for five years, ending 29 June 2026. The loans are secured
over all property of Me Today Manuka Honey Limited, the parent company of King Honey Limited and a
subsidiary of Me Today Limited.
The CARL facility monthly repayments consist of a fixed principal repayment plus interest based on a
floating rate that is adjusted monthly. The average annual interest on the CARL facility rate during the
reporting period was 6.58% (2022: 3.91%). Interest on the fixed rate loan is fixed at 2.51% per annum and
the loan is repaid by monthly instalments over the term of the loan. The Group had a repayment holiday
from June 2022 to August 2023. The bank has also agreed to suspend its earnings-related covenants until
31 August 2023 at which stage covenants will be re-assessed in line with the FY24 budget. The Group
was compliant with applicable covenants at 30 June 2023.
Under the terms of the sale and purchase agreement for the acquisition of King Honey it was agreed that
$5,000,000 of the purchase price would be left payable to the vendors, the Jarvis Trust, as a subordinated
note. As at 30 June 2023 the subordinated loan was repayable in three years from the acquisition date of
30 June 2021 and is classified in the Consolidated Statement of Financial Position as a current liability.
The note is secured over all property of Me Today Manuka Honey Limited. This security interested ranks
behind any security interest in favour of the Bank of New Zealand pursuant to the bank loan agreements
noted above, but ahead of any other indebtedness of Me Today Manuka Honey Limited. Subsequent to
the reporting date the parties have agreed to extend the repayment date of the subordinated note for nine
months to 31 March 2025. A condition of this extension is that the Group cannot increase its indebtedness
with the BNZ above $9.5 million without the consent of the Jarvis Trust. Interest of 4% per annum is
payable annually in arrears until 30 June 2024. Interest of 8% per annum is payable from 1 July 2024
onwards. The extension is subject to Me Today obtaining shareholder approval under NZX Listing Rule
5.2 (related party transactions) or a waiver of that rule.
The Group currently has available overdraft facilities of $5 million (2022: $5 million). The interest rate on
this facility at 30 June 2023 was 9.91% per annum.
20232022
NZ$000NZ$000
Banks loans7,0347,034
Subordinated note5,4005,200
12,43412,234
Current7,248942
Non-current5,18611,292
12,43412,234
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
27
22. Share capital
On 6 July 2022 the Company issued 75,264,609 fully paid ordinary shares for $752,646 as a part
placement of the shortfall from its rights issue undertaken in June 2022. The Company agreed with MTL
Securities Limited to contemporaneously reclassify 39,051,043 of its non-voting shares as quoted shares
to preserve MTL Securities Limited’s holding and control of voting rights at 34.16%. The new shares
issued have consequentially reduced MTL Securities Limited’s economic rights to 44.86%.
On 28 June 2023 the Company issued 17,715,461 fully paid ordinary shares in the favour of BB
Promotions Limited, Sarah Walker, independent directors and a non-executive director. Shares issued to
BB Promotions Limited and Sarah Walker are in accordance with the terms of the relevant agreements for
promotional services.
All voting ordinary shares on issue are fully paid and rank equally with one vote attached to each share.
All non-voting ordinary shares are fully paid.
23. Share based payments reserve
The Group has entered into two Ambassador Agreements for the provision of promotional services. A
portion of the consideration payable for the promotional services is settled by the issue of shares. For one
ambassador, who is a related party, shares are issued twice yearly with a total of 1,244,444 ordinary
shares to be issued each year at an issue price of $0.09 per share. 1,111,111 shares are to be issued
annually under an agreement with a three-year term. For the other ambassador 133,333 shares are
issued annually under an agreement with a two-year term.
All share-based payments were included in promotional expenses.
Voting
ordinary
shares
Non-voting
ordinary
shares
Voting
ordinary
shares
Non-voting
ordinary
shares
'000'000'000'000
Number of ordinary shares:
Ordinary shares as at 1 July1,163,697287,086412,278-
Issue of shares as settlement of purchase price--113,636-
Ordinary shares issued during the period92,980-924,903-
Ordinary shares reclassified as non-voting39,051(39,051)(287,086)287,086
Share buy back and cancellation--(34)-
Ordinary shares as at reporting date1,295,728248,0351,163,697287,086
20232022
20232022
NZ$000NZ$000
Balance as at 1 July77110
Share options granted (note 24)-30
Share options expired (note 24)(13)(26)
Share based payments for promotional services95140
Shares issued in period(159)(177)
Balance at reporting date
-77
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
28
24. Share options
At 30 June 2022 BB Promotions Limited, a related party to the Group (refer note 29.4), held options on
1,000,000 ordinary shares of the Company. Each option could be converted into one ordinary share of the
Company on exercise. No amounts were paid or payable by BB Promotions Limited on receipt of the
options. The options carried no rights to dividends and no voting rights. The options expired during the
2023 financial year.
25. Reconciliation of loss after taxation with cash flow from operating activities
Balance as at 1 July
1,000,000$0.093,000,000$0.09
Granted during the period----
Exercised during the period----
Expired during the period(1,000,000)$0.09(2,000,000)$0.09
Balance at 30 June
--1,000,000$0.09
20232022
Number of
Options
Weighted
average
exercise price
Number of
Options
Weighted
average
exercise price
20232022
NZ$000NZ$000
Share based payments are included in:
Promotional costs9530
30 Jun 2023 30 Jun 2022
(12 months)(15 months)
NZ$000NZ$000
Net loss after taxation(12,974)(19,544)
Adjustments for:
Depreciation and amortisation2,1072,771
Interest on lease liabilities1762
Interest on borrowings577579
Impairment of goodwill-9,120
Impairment of customer relationship asset2,360780
Acquisition costs114367
Fair value loss on biological assets544720
Write down of assets held for sale128543
Share-based payments209242
Income tax benefit-(2,604)
Movements in working capital
(Increase) / decrease in trade and other receivables(1,244)(778)
(Increase) / decrease in inventory2,034(15,859)
(Increase) / decrease in biological work in progress538(698)
Decrease / (increase) in taxation receivable26(12)
Increase / (decrease) in trade and other payables91,139
Movement in working capital on acquisition of subsidiaries-11,446
Net cash outflows from operating activities(5,555)(11,726)
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
29
26. Reconciliation of liabilities arising from financing activities
20232022
NZ$000NZ$000
Borrowings:
At 1 July
12,234-
Cash:
Proceeds from bank borrowings-8,500
Payment of principal on borrowings-(1,466)
Interest paid on borrowings(377)(379)
Non-cash:
On acquisition of subsidiaries
-5,000
Interest on borrowings577579
At 30 June
12,43412,234
20232022
NZ$000NZ$000
Lease liabilities:
At 1 July
1,357193
Cash:
Payment of lease liabilities principal(355)(742)
Interest paid on lease liabilities(17)(62)
Non-cash:
Lease liabilities recognised186609
On acquisition of subsidiaries-2,005
Lease modifications(382)(708)
Interest on lease liabilities1762
At 30 June
8061,357
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
30
27. Subsidiaries and other investments
All subsidiaries are domiciled in New Zealand, with the exception of Me Today EU Limited which is
domiciled in Ireland, Me Today UK Group Limited which is domiciled in England, Me Today USA Inc.
which is domiciled in the United States and Me Today Pty which is domiciled in Australia. All subsidiaries
have a reporting date of 30 June.
28. Financial instruments
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk and
interest rate risk), credit and liquidity risk. The Group’s overall risk management programme focuses on
the unpredictability of financial markets and seeks to minimise potential adverse effects on its financial
performance.
Risk management is carried out under policies approved by the Board of Directors. The Board provides
written principles for overall risk management as well as policies covering specific areas such as interest
rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments.
The Group has entered into a number of non-derivative financial instruments all of which are classified as
financial assets and liabilities at amortised cost. The carrying values of these items approximate their fair
value and represent the maximum exposures for each type of financial instrument. They are listed as
follows:
NamePrincipal activity
20232022
Subsidiaries:
The Good Brand Company LimitedSale of health & wellbeing
products
100%100%
Me Today NZ LimitedProduction & sale of health &
wellbeing products
100%100%
Today LimitedNon-trading entity100%100%
Me Today EU LimitedSale of health & wellbeing
products
100%100%
Me Today UK Group LimitedSale of health & wellbeing
products
100%100%
Me Today Manuka Honey LimitedInvestment in King Honey
Limited
100%100%
King Honey LimitedSale of manuka honey products100%100%
Me Today AU Pty LimitedNon-trading entity100%100%
Manuka Wellness LimitedNon-trading entity100%100%
King Honey Health Products LimitedNon-trading entity100%100%
Pure Manuka NZ LimitedNon-trading entity100%100%
Bee Plus Manuka NZ LimitedNon-trading entity100%100%
Me Today USA Inc.Sale of health, wellbeing and
honey products
100%100%
Other investments:
Bee Plus New Zealand LimitedBrand ownership. Non trading15%15%
Equity holding
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
31
The fair value of cash and cash equivalents and trade receivables are determined to be equivalent to their
carrying value due to the short-term nature of these balances.
The fair value of trade payables and other liabilities, and the subordinated note, are determined to be
equivalent to their carrying value due to the short-term nature of these balances.
The fair value of the bank loans is $6,618,000 (2022: $6,728,000).
The Group does not have any derivative financial instruments (2022: nil).
28.1. Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will
affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control the market risk exposures within acceptable parameters, while
optimising the return on risk. There is minimal market risk.
28.2. Cash flow and fair value interest rate risk
The Group’s interest rate risk arises from interest on borrowings at variable rates. The Group has no
interest-bearing cash and cash equivalent bank accounts.
The fixed rate bank loan and the subordinated note (see note 21) have interest rates that are fixed for the
life of the loan. The BNZ CARL is the only borrowing with a variable interest rate (see note 21). The
Group’s exposure to a change in interest rates is therefore currently limited to the borrowings under the
BNZ CARL facility. The table below shows the impact that a 1% movement in the current interest rate on
the BNZ CARL facility would have on the per annum interest expense.
Note20232022
NZ$000NZ$000
Financial assets at amortised cost
Cash and cash equivalents109155,370
Trade receivables111,660913
Other receivables11511-
Total financial assets3,0866,283
Note20232022
NZ$000NZ$000
Financial liabilities at amortised cost
Trade payables and other liabilities201,7771,766
Banks loans217,0347,034
Subordinated note215,4005,200
Total financial liabilities14,21114,000
FacilityInterest
balanceimpact
2023Rate (+/-1%)
NZ$000NZ$000
BNZ CARL facility2,90829/(29)
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
32
28.3. Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations and arises from cash and cash equivalents, deposits with banks
and the Group’s receivables from customers. The Group’s maximum credit risk is represented by the
carrying value of these financial assets. The credit risk associated with cash transactions and deposits is
managed through the Group’s policies that limit the use of counterparties to high credit quality financial
institutions.
28.4. Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as and when the fall
due. The Group’s liquidity risk management includes maintaining sufficient cash reserves to meet future
commitments. Refer to note 4.1 in relation to going concern.
The following table provides a maturity analysis of the Group’s remaining contractual cash flows relating to
financial liabilities. Contractual cash flows include contractual undiscounted principal and interest
payments.
28.5. Capital risk management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going
concern, so that they can continue to provide returns to shareholders and benefits for other stakeholders
and to maintain an optimal capital structure that reduces the cost of capital.
29. Related parties
29.1. Directors
The names of persons who are directors of the Company are; Grant Baker (Chairman), Hannah Barrett,
Roger Gower, Michael Kerr, Richard Pearson, Stephen Sinclair, and Antony Vriens.
29.2. Key management personnel compensation
Key management personnel compensation is set out below. The key management personnel are all the
directors of the Company.
Directors were paid directors’ fees of $470,000 (15 months to 30 June 2022: $538,000). In the period to
30 June 2023 $70,214 of the remuneration due to the independent directors was settled by the issue of
1,312,266 shares in the Company (15 months to 30 June 2022: $71,572 by the issue of 1,312,266 shares
in the Company). At 30 June 2022 $14,062 was payable to the independent directors and was
subsequently settled by the issue of shares in the Company.
NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000
Non-derivative financial liabilities
2023
Trade and other payables1,777 1,777 1,665 112 - -
Borrowings12,434 13,293 911 6,862 2,498 3,022
Lease liability806 927 242 122 335 228
15,017 15,997 2,818 7,096 2,833 3,250
2022
Trade and other payables1,766 1,766 1,766 - - -
Borrowings12,234 13,290 270 926 7,417 4,677
Lease liability1,357 1,389 386 166 421 416
15,357 16,445 2,422 1,092 7,838 5,093
Payable
2-5 years
Carrying
amount
Contractual
cash flows
Payable
0-6 months
Payable
6-12 months
Payable
1-2 years
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
33
At 30 June 2023 $9,104 was payable to Bakers Consultants Limited, a company owned by Grant Baker,
for directors fees (2022: nil).
At 30 June 2023 $6,563 was payable to Mei Mei Limited, a company owned by Richard Pearson, for
directors fees (2022: $7,000).
Michael Kerr received total remuneration of $250,000 in 2023 in his role as CEO (15 months to 30 June
2022: $281,000).
A company owned by Stephen Sinclair received $125,000 in consulting fees (15 months to 30 June 2022:
$156,250).
29.3. Related entities
MTL Securities Limited is an entity owned and controlled by M & N Kerr Holdings, of which Michael Kerr is
a director, and Velocity Capital, of which Grant Baker and Stephen Sinclair are directors. MTL Securities
Limited holds 34.16% of the voting ordinary shares, and 44.86% of the total voting and non-voting ordinary
shares in Me Today Limited.
29.4. Related party transactions
In the year to 30 June 2023, the Company issued 3,277,150 ordinary shares to each of Antony Vriens,
Hannah Barrett and Roger Gower and 6,117,346 to Richard Pearson, in part settlement of their directors’
remuneration. In the 15 months to 30 June 2022, the Company issued 965,613 ordinary shares to Antony
Vriens, Hannah Barrett and Roger Gower in part settlement of their directors’ remuneration.
The Company issued 712,575 ordinary shares to Roger Gower and 3,411,778 ordinary shares to Antony
Vriens as part of the retail offer to investors on 29 June 2022 for $7,126 and $34,118 respectively.
On 15 June 2020 the Company entered into an Ambassador Agreement with BB Promotions Limited for a
term of three years. BB Promotions Limited is a related party to the Group, as the shareholder and director
of BB Promotions Limited, B Barrett, is married to H Barrett, a director of the Company. Under the terms of
the agreement, BB Promotions Limited agreed to provide promotional services to the Company in
exchange for the payment of $50,000 per annum, the issue by the Company of ordinary shares to BB
Promotions Limited to the value of $100,000 per annum, and the granting of 3,000,000 options to
purchase ordinary shares in the Company (as detailed in notes 24). Share based payments for promotion
services shown in note 23 includes $62,500 in relation to the Ambassador Agreement with BB Promotions
Limited.
Hannah Barrett received $6,250 for providing marketing services to the Group (15 months to 30 June
2022: $18,750).
29.5. Share placement subscription agreement
On 26 November 2021, Me Today, the TW Jarvis (No. 1) Family Trust (“Jarvis Trust”) and MTL Securities
Limited (“MTL”) entered into a share placement subscription agreement under which the Jarvis Trust and
MTL agreed to invest additional cash of $6 million through a share placement, conditional upon
shareholder approval. The shares were issued at 8.8 cents per share, the same issue price for capital
raised as part of the King Honey acquisition and reflecting their respective shareholdings. MTL Securities
agreed to contribute $3.75 million and Jarvis Trust $2.25 million. Shareholders approved the share
placement on 18 March 2022.
On 22 March 2022 the Company issued 42,613,636 fully paid ordinary shares to MTL Securities Limited
and 25,568,182 fully paid ordinary shares to the trustees of TW Jarvis (No. 1) Trust.
Jarvis Trust is a substantial security holder in Me Today and is the previous vendor of King Honey Limited.
MTL is a substantial security holder, and the largest shareholder, in Me Today. MTL is an entity owned
and controlled by M & N Kerr Holdings, of which Michael Kerr is a director, and Velocity Capital, of which
Grant Baker and Stephen Sinclair are directors.
Me Today Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
34
30. Contingent liabilities
There are no contingent liabilities as at 30 June 2023 (2022: nil).
31. Commitments
The Company had no commitments for future capital expenditure as at 30 June 2023 (2022: nil).
32. Events subsequent to reporting date
On 23 August 2023 the Group’s bank confirmed its continuance of existing facilities subject to further
review no later than 31 August 2024 in conjunction with the FY24 audited financial statements and FY25
budget. Facilities will remain on an interest only basis until 31 August 2024. The requirement for an
amortisation programme will be considered at that time in conjunction with the FY25 budget. The bank
also confirmed covenant requirements continue to be amended to extend the suspension of earnings-
related covenants until 31 August 2024.
Subsequent to the reporting date the Board has decided to further reduce beekeeping operations with a
view to reducing total hive numbers to below 2,000.
On 28 August 2023 the Group entered into an agreement with the Jarvis Trust to extend the repayment
date of the subordinated note for nine months to 31 March 2025. A condition of this extension is that the
Group cannot increase its indebtedness with the BNZ above $9.5m without the consent of the Jarvis
Trust. Interest of 4% per annum is payable annually in arrears until 30 June 2024. Interest of 8% per
annum is payable from 1 July 2024 onwards.
BDO Auckland
35
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF ME TODAY LIMITED
Opinion
We have audited the consolidated financial statements of Me Today Limited (“the Company”) and its
subsidiaries (together, “the Group”), which comprise the consolidated statement of financial position as at 30
June 2023, and the consolidated statement of profit or loss and other comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to
the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at 30 June 2023, and its consolidated financial performance and
its consolidated cash flows for the year then ended in accordance with New Zealand equivalents to
International Financial Reporting Standards (“NZ IFRS”) and International Financial Reporting Standards
(“IFRS”).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (“ISAs (NZ)”).
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements section of our report. We are independent of the Group in
accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners
(including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and
Assurance Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
In addition to audit services, our firm provided other services in the areas of corporate finance services. BDO
partners and staff also transact with the Group on normal trading terms throughout the year. The engagement
and trading transactions have not impaired our independence as auditor of the Group. We have no other
relationship with, or interests in, the Company or its subsidiaries.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
Impairment of intangible assets
Key Audit Matter How The Matter Was Addressed in Our Audit
The Group had a customer relationship intangible
asset of $3.9m at 30 June 2023, which is required to
be assessed for impairment indicators as it is a non-
financial asset.
Given the financial performance of the Honey cash
generating unit did not meet internal forecast
expectations, management performed a formal
impairment test to determine the recoverable
amount of the cash generating asset.
We identified the calculation of the recoverable
amount as a key audit matter to our audit due to the
significance of the balance to the financial
statements and the key inputs and assumptions that
are subject to significant management judgement and
estimation uncertainty.
See note 19.1 to the financial statements.
• We obtained management's value in use
calculation prepared at 30 June 2023, and
critically evaluated the key inputs and
assumptions. The key inputs included forecast
revenue, gross margin, costs, working capital
assumptions, tax outflows and discount rate.
• We agreed the forecasts used to the
management approved budget.
• We obtained management’s discount rate
calculation, prepared by an external valuation
expert. We considered the objectivity and
competence of the expert.
• We engaged our internal valuation expert to
review the value in use calculation against
valuation industry techniques and the discount
rate used.
• We compared the carrying value of the assets to
the recoverable amount determined by the
impairment test that calculated the impairment
charge of $2.4m.
BDO Auckland
36
Inventory net realisable value
Key Audit Matter How The Matter Was Addressed in Our Audit
At the reporting date, management is required to
consider if the Group’s inventories are carried at the
lower of cost or net realisable value.
Management has identified that based on near term
forecast demand that there is currently excess
inventory held and that therefore there may be issues
in achieving the carrying value of this inventory.
They have estimated this excess quantity, by grade of
honey, and have considered its net realisable value
by reference to the likely manner in which it will be
used. Management recorded an inventory net
realisable value provision in this respect of $2.6m
(2022: $3.0m).
We identified the determination of the net realisable
value by management as a key audit matter to our
audit due to the significance of the balance to the
financial statements and the significant judgement
involved in determining these estimates.
See note 12 to the financial statements. The Group's
critical accounting estimate and judgement regarding
inventory net realisable value is disclosed in note 4.4
to the financial statements.
• We obtained management’s calculation of the
required net realisable value provision against
the carrying value of inventories. We re-
calculated the excess inventory by grade by
reference to quantity held and forecast demand
which was agreed to management approved
budgets.
• We obtained management’s rationale for the
expected use of this excess inventory and the
net realisable value provision held. We
challenged management with respect to their
rationale and on the existence of other
alternative uses for the inventories.
• We agreed the net realisable values used in the
management calculation to supporting
documentation and re-calculated the net
realisable value provision required.
Other Information
The directors are responsible for the other information. The other information comprises the Market
Announcement on the Me Today results for the year ended 30 June 2023 (but does not include the
consolidated financial statements and our auditor’s report thereon), which we obtained prior to the date of
this auditor’s report, and the Annual Report, which is expected to be made available to us after that date.
Our opinion on the consolidated financial statements does not cover the other information and we do not and
will not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to the directors.
Directors’ Responsibilities for the Consolidated Financial Statements
The directors are responsible on behalf of the Group for the preparation and fair presentation of the
consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the
directors determine is necessary to enable the preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf of the Group for
assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to liquidate the
Group or to cease operations, or have no realistic alternative but to do so.
BDO Auckland
37
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the decisions of users taken on the basis of these consolidated
financial statements.
A further description of our responsibility for the audit of the financial statements is located on the External
Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1.
This description forms part of our auditor’s report.
Who we Report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so
that we might state those matters which we are required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for
the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Chris Neves.
BDO Auckland
Auckland
New Zealand
29 August 2023
---
1
29 August 2023
Me Today results for the year ended 30 June 2023
Me Today Limited (NZX: MEE) today announced its audited Group results for the year ended 30 June
2023.
The Group recorded net revenue of $7.88m and a loss after tax of $12.97m. The operating EBITDA
loss was $5.15m after adding back non-recurring and non-cash items of $7.82m as explained further
below.
Gross revenue for the Group before the costs of marketing services provided by a customer was
$9.20m. This was split between the King Honey business at $5.82m, Me Today branded sales of
$2.78 and agency services revenue at $0.60m.
Given the large holding of Manuka honey, the Group decided to further reduce the size of its
beekeeping operation as announced to the market on 11 July 2023. Once the restructure is
complete the Beekeeping operation will have approximately 1,600 hives operating out of Turangi.
Together with the reduction in beekeeping, the business has continued to reduce expenditure across
its operation in line with its previously stated strategy. As described further below, the Group
continues to create sales opportunities across its three core brands. The sales activity comes from
new customers and repeat business with existing customers.
The Group continues to receive support of its lenders the Bank of New Zealand and the Jarvis Trust.
As part of the acquisition of the King Honey business, the vendor the Jarvis Trust is due repayment of
a $5m subordinated loan on 30 June 2024. The group has agreed with Jarvis Trust to extend the
repayment date of the Jarvis Trust loan to 31 March 2025, subject to all necessary approvals under
the NZX Listing Rules.
With the support of the lenders, the reduction in cost base and the forecast sales the Group believes
it has sufficient funding to meet operational requirements for the coming year. The Group will
continue to review its cost base and make necessary adjustments as required. It is also considering
funding alternatives to lower a part of its term debt which may include the sale of assets or raising
new capital.
As part of the year end audit process the group considered the carrying value of its intangible assets
given the continuing challenging market for selling Manuka honey. The result is the directors have
decided to make a further impairment by writing down the value of the intangible assets associated
with the King Honey asset by an additional $2.36m.
An overview of the activity of the Group for the year is summarized as follows.
Me Today and the Good Brand Company
The strategy in respect to the Me Today brand continues to be the investment into the brand locally
in New Zealand and Internationally.
In New Zealand the brand has a strong national presence in pharmacy and grocery stores with Me
Today stocked in all Countdown stores and partnerships with major pharmacy banners Chemist
Warehouse and Bargain Chemist. Me Today also has a good presence in selected Unichem and Life
Pharmacy stores as well as a number of good independents throughout New Zealand.
2
The international strategy remains focused on the following core markets, US, Japan, Ireland, the
UAE and Australia.
• In Ireland the brand is listed with Chemist Warehouse and Tesco and is also stocked in
selected pharmacy stores around the country.
• In the US the positioning of the brand is in partnership with major Online platforms. The USA
business of Me Today has a logistics hub based out of Arkansas with orders distributed from
this warehouse nationwide in the USA. The brand is also in discussion with bricks and mortar
retailers, and it is fulfilling orders through a west coast broker.
• Repeat orders continue in Japan and the UAE and we continue to develop the brand and
partnerships in these markets.
• In Australia we have an Online presence, and we are in discussions with two large retailers in
respect to a wider listing.
Across all markets Online sales are proving to be a good way of building the brand footprint and
creating interest in the brand to enable access to big box retailers.
Together with the core market strategy the brand continues to invest in new product development.
Launched in the 2023 financial year have been the following new products.
• 3 UMF rated Me Today Manuka Honey products
• 4 Me Today Manuka Honey Lozenges
• 9 new Me Today supplements
• 4 Me Today Manuka Active skincare products
Projects under development for launch in the remainder of the 2023 calendar year include.
• Me Today Super Honey which will see a range of infused honey products launched
From a product development perspective we will continue to see development across the 3 key
product platforms being: Manuka Honey, Supplements and skincare.
The Good Brand Company
The Good Brand Company represents the groups brands being: Me Today and Superlife whilst also
representing 4 other agency brands. The group has invested in people growing the expertise and
skillset of its staff to support the growth of The Good Brand Company’s stable of brands and has
capacity to bring on new agency brands with the right fit.
The King Honey business
King Honey operates a fully integrated Hive to table Manuka honey business. It has production,
storage and a bottling facility in Taupo and operates a beekeeping operation based out of Turangi.
As discussed above the beekeeping operations have been further reduced through the closing of the
Wairarapa unit leaving a 1,600-hive operation managed from Turangi. King Honey has a large
quantity of beekeeping equipment which means that it has the ability to increase hive numbers as
demand requires.
3
King Honey manages the production of the BEE+ and SuperLife brands as well as contract packing on
behalf of a number of other labels.
BEE +
The group continues to have a good relationship with the Bee+ Brand through Access Corporate
Group (ACG) and its brand management division Access Brand Management (ABM). ABM and the
Me Today Group jointly own the Bee+ Mānuka honey brand.
In conjunction with ABM, Me Today has developed new product offerings with the BEE+ brand
which it has produced and delivered during the FY23 year. ABM are committed to the development
of the brand and Me Today are continuing to support ABM in respect to the growth of the brand.
SuperLife
SuperLife provides the Group with a Mānuka honey brand that competes in different parts of the
market to both Me Today and BEE+. It has customer and distributor relationships across a number of
international markets. The opportunities within these markets continue to change as the sell-
through rate of products is established.
The largest opportunity for SuperLife continues to be the relationship with a US grocery chain. Sell
through has been positive for FY23 with sales into the US for SuperLife more than NZD $1m for the
2023 financial year. Range extension and new product development opportunities exist with this
retailer.
Outside NZ and the USA, the focus markets for SuperLife are Germany, Romania and the UAE with
sales and reorders into these markets over the past six months.
The key aspects of the Group’s consolidated financial statements for the year to 30 June 2023 is
explained further below:
• The Operating EBITDA loss for the Group was $5.15m, split between the business divisions
as follows.
o The Me Today sale of goods and agency services segment operating EBITDA loss was
$2.53m.
o The King Honey segment operating EBITDA loss was $1.23m.
o The listed company and shared services operating costs were $1.39m.
Operating EBITDA excludes one-off and non-cash items amounting to $7.82m from the net loss after
tax of $12.97m.
The $7.82m of expenses consisted of the following.
• Loss on Harvested Honey $2.22m
• Finance Costs $0.59m
• Fair Value loss on Biological Assets $0.54m
• Depreciation and Amortisation
not capitalised to biological assets $0.45m
• Amortisation of the customer relationship asset $1.08m
• Impairment of customer relationship asset $2.36m
4
• Restructuring & Acquisition costs $0.45m
• Write Down of Assets held for sale $0.13m
Total Expenses deducted from EBITDA $7.82m
Further explanation of these are provided below.
o Loss on Harvested Honey
As advised earlier in the year the 2023 Harvest was significantly impacted by the adverse
weather events in early 2023. The total yield achieved from the hive placements was 61
tonnes of honey. The yield was down 50% on what is expected from an average season. In
addition, the quality in terms of active manuka factor, of the Manuka honey harvested was
also significantly lower meaning the value of the honey harvested was much less than
anticipated. These factors resulted in a loss on harvest of $2.22m.
o Impairment of the Customer Relationship Asset
The Group completed a valuation of intangibles acquired at acquisition. Customer
relationship assets were separately identified and valued at $9.3m at acquisition
date. The Group has determined 8 years as the appropriate useful life for this asset
resulting in an annual amortisation charge of $1.08m.
In addition, as part of the year end audit process the directors completed a
discounted cashflow valuation of the King Honey cash generating unit. Following the
completion of this assessment a decision has been taken to write down the
intangible asset by a further $2.36m.
o Closure of beekeeping branches and Consolidation of the Taupō Production Facility
The following costs have been incurred as a result of the decision to reduce the size
of the beekeeping operation and the consolidation of the Taupō Production Facility.
• The reduction in hive numbers has resulted in a biological asset fair value
loss of $0.54m.
• Property, plant and equipment and biological assets with a combined
carrying value of $0.57m have been identified as assets held for sale. These
have been assessed at fair value resulting in a write down of $0.13m.
$0.09m remain unsold as 30 June 2023.
• Restructuring costs of $0.337m have been incurred in relation to closing
beekeeping branches and consolidating the Taupō Production Facility.
5
The Group's outlook for the year ahead remains challenging. However, the Group is confident that it
has the right strategies in place to reduce costs and improve sales across its brands. The Group will
continue to review its options for funding and will make further announcements as appropriate.
For further information, please contact:
Grant Baker
Chairman, Me Today Limited
021 729 800
Michael Kerr
Chief Executive Officer, Me Today Limited
021 836 451
michael@metoday.com
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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