Corporate Vision June 2017

26 CORPORATE VISION / June 2017 , Procal Dairies commenced business in 2003 and is a leading Australian and family owned dairymanufacturing and distribution business producing and sellingmilk, creamand yoghurt products. As a proud winner of the Australian CFO Top 25 - 2017’s Leading Beverage Manufacturing CFO award, we invited Craig Pound to tell us more about the firm’s work in his ownwords. Food for Thought The business has been built largely upon a team of owner driver distributors who deliver daily to over 4,000 cafes, restaurants, food service outlets, catering companies and food manufacturers located in Australia’s two largest metropolitan markets – Melbourne and Sydney. It is the largest independent dairy supplier in these two markets. The company has a small but growing presence in both the local retail and export markets with the supply of more niche styled dairy products. This award means a great deal for both Procal Dairies and myself and it is in no small part a recognition of all the hard work the company and its staff and distributors have put in where the business was established with just $150,000 in shareholder capital with turnover growing from zero to $65m over 14 years employing 120 staff and 45 distributors with a factory capable of producing 120 million litres annually. In its first 6 years of existence, Procal Dairies operated solely as a distributor of dairy products which were manufactured by third parties. It did not commence manufacturing its own products until 2009 when brand new purpose built factory premises in the northern outskirts of Melbourne were completed. Funding for this investment was exclusively procured through the banks during the lead up to and in the aftermath of the GFC where the shareholders/directors were not required to pledge private assets as collateral. The key for Procal in obtaining funding on favourable terms during that time was the experience of the directors and senior management team in being able to construct a robust business case and clearly present a fundamentally sound medium to long term P & L projection and cash flow model. Starting off by supplying the food service and route business in Melbourne and Sydney, one of Procal’s critical success factors has been not to have an over reliance with any one customer with no one customer ever occupying more than 5 - 7% of the company’s total turnover. This is one of the reasons why the business has not had a major focus in grocery where, in Australia’s concentrated grocery market, the two largest supermarket chains account for over 70% of total grocery turnover. Apart from having a deep understanding of the business’s figures, the main attributes of a CFO are to participate and contribute to the development of a business strategy as well as to manage the process and measure its progress against pre-determined milestones. Being a major contributor in maintaining strong relationships with key business stakeholders whether they be banks, suppliers, customers, distributors or shareholders is also extremely important. It is also about building a strong and committed administration and finance team who have a strong work ethic and are willing to learn and improve their skills. Through the commitment, dedication and hard work of our people, Procal has won several prestigious industry awards in the past 12 months including the 2017 Victorian Manufacturer of the Year Award in the Food and Fibre category. In just the past week, Procal products were awarded the highest scoring winner in the both the Cultured Dairy Products and the Stirred Yoghurt categories in the 2017 Dairy Industry Australia Awards. This in addition to numerous highest scoring and gold medal winner awards over the past 5 years with our fresh milk, cream as well as the natural, smooth and Greek yoghurt products. For me as CFO in the past 12 months, a significant personal achievement has centred around a role in cementing key supplier relationships in a clearly difficult 1706CV06