Download the Prospectus
Pre Money Equity Valuation
$201,900,000
Estimated Close
2020-11-24
Issue Type
IPO
Lead Manager
Bell Potter Securities Ltd, Morgans Corporate Ltd
Type of Securities
Shares
Date First Lodged
30/10/2020
Offer Costs $
$5,600,000
Market Cap Max
$201,900,000
Key Executives
Neil Kearney (NEC), Lance Giles (MD and CEO), Stuart Nash (NED), Julie McPherson (NED), Andrew Duff (NED)
Company Address
Unit 4, 52 Pritchard Road, Virginia QLD 4014
Exchange
ASX
Chairman's Letter

DEAR INVESTOR
On behalf of the Board, it is my pleasure to offer you the opportunity to become a shareholder of Youfoodz Holdings Limited.
Founded in 2012, Youfoodz is based in Brisbane, Queensland and has grown to have a substantial share of the growing
Australian fresh, ready-made meals market. Youfoodz specialises in the production and distribution of high quality and
affordable fresh, ready-made meals and other convenience food products for residential (home delivery), retail and
corporate customers. The Company’s products are marketed and distributed through an omni-channel sales model to a
database of more than 850,000 home delivery customers via a direct-to-consumer offering (B2C) and via a businessto-business offering to major supermarkets, independent grocers, petrol and convenience, corporate and government
customers (B2B).
Youfoodz operates three production facilities in Brisbane and has developed a scalable, proprietary in-house technology
system to optimise production and supply-chain management across its manufacturing centres. The Company’s three
facilities produce more than 350,000 ready-made meals, 80,000 snacks and 25,000 drinks per week on average1
.
A key strength of Youfoodz’ business model is its speed of delivery. Youfoodz offers next day delivery for B2C customers in Brisbane and Melbourne.
The Company is currently in the process of implementing next day delivery in Sydney which is expected to launch in 1H FY2021.
Strong underlying growth in the uptake of fresh ready-made meals is expected to continue in the medium-term, driven by a shift in consumer
preferences away from traditional home-cooking and the increased accessibility of healthy, convenient and high-quality food products. For the period
FY2016 to FY2022F, sales of chilled ready-made meals in Australian and New Zealand are anticipated to increase at a compound annual growth rate
(CAGR) of 11.3%2
.
Youfoodz has approximately 460 employees and is led by Founder and CEO, Lance Giles. Key management personnel are supported by a highly
experienced Board of Directors, with a demonstrated track record in the food industry, financial and legal expertise as well as corporate strategy and
corporate governance experience.
Youfoodz is forecasting FY2021F net revenue of $149.9 million and has a well-defined strategy to continue to grow its revenue organically by capturing
a greater market share in both the B2C and B2B segments of the ready-made meal industry.
Youfoodz is seeking to raise $70 million under the Offer, which will be used primarily to fund general corporate purposes including marketing and
working capital to fund the Company’s growth strategy, fit-out of a new, purpose-built manufacturing facility, repayment of a Shareholder Loan and to
pay for the costs of the Offer. Each of the Non-Executive Directors of Youfoodz intend to subscribe for New Shares under the Offer. On Completion of
the Offer, successful Applicants will hold approximately 27% of the Shares and Existing Shareholders will hold approximately 73% of Shares.
This Prospectus contains detailed information about the Offer, the ready-made meals industry in which Youfoodz operates, the Company’s operations,
the historical and forecast financial information position of Youfoodz and key personnel. An investment in Youfoodz is subject to a range of risks,
including arrangements with B2B customers, integrated supply chain, relationship with suppliers, quality of ingredients, proposed new, purpose-built
manufacturing facility, the reliance on Youfoodz’ website, database, IT and logistics/warehouse systems, food safety and contamination, the cost
of Youfoodz’ inputs and operations, compliance with applicable laws and regulations and risks associated with operating in a competitive industry.
For more information about the key risks associated with an investment in Youfoodz refer to Section 5 of this Prospectus.
I encourage you to read this Prospectus in detail paying particular attention to the Company’s growth strategy as well as the risks associated with the
Offer before making an investment decision.
On behalf of the Board of Directors, I look forward to welcoming you as a Shareholder of Youfoodz.
Yours sincerely,
Neil Kearney
Chair