Tassal Group (TGR) 2015 AGM Report

Company/ASX Code : Tassal Group Limited (TGR)
Venue :
2pm The Westin (Executive Room II)
205 Collins St
Melbourne, Victoria
Monitor : Mr John Quinn
AGM Details / NoM : Wednesday 28th October, 2015
# of Attendees : Approximately 60
# Holdings represented by ASA : 57
Value of Proxies : $1.5 million
# Shares Represented by ASA : 351,339
Market Capitalisation : $615 million

Formal addresses

Chairman Allan McCallum gave an upbeat presentation on the company's performance over the past 12 months. NPAT was up 21.8% over FY14 results, EBITDA was up and importantly, dividends were up to 14c per share, up 21.7% over the FY14 payout. He quickly moved on to presenting details of the De Costi seafood acquisition.  TGR purchased this business on 1 July 2015. The acquisition springboards Tassal from a salmon supplier to a vertically integrated salmon and seafood business - now the market leader in Australia.  The expanded business now employs 1200 people. 

CEO Mark Ryan outlined the growth strategy and the focus on domestic growth. Consumers are prepared to pay a premium for the Tassal products due to their sustainability credentials and 'gold-standard' certification. The Australian domestic market accounts for approximately 70% of their total revenue.

Further optimisation of the supply chain and synergies associated with the De Costi take-over will see capacity expansion and operational efficiencies resulting in further revenue growth. This acquisition has been immediately EPS accretive.

Questions were raised relating to the gearing ratio of the expanded business as the De Costi acquisition was debt funded. The chairman did not provide the revised gearing ratio.

We asked the company if they would consider including a table of 'actual remuneration' in the FY16 annual report and if the company would review their policy on director shareholdings whereby individual directors would be encouraged to have 'skin in the game'.  The company said these items would be considered.

Other questions related to the suitability of the venue and the supply of various food types at the Tassal retail outlet in Kew.


The remuneration report received little discussion. One question was asked relating to the level of franking credits, and that dividends were only franked to 50%. The CFO answered that as the company has been in growth phase, tax deductions for inputs result is a lower level of tax paid by the company hence reduced franking availability. This was likely to change with the acquisition of De Costi Seafoods as the nature of the business changes.

Review of the REM report in the FY15 annual report indicates salaries and STI / LTI awards are reasonable and generally comply with ASA guidelines.  The remuneration report was passed with greater than 98% in favour.

Allan McCallum was re-elected as a director along with new director Raelene Murphy. Both candidates addressed the meeting prior to their election.

The final resolutions related to granting of performance rights to the CEO Mark Ryan. It was noted that the quantum of these awards are reasonable and that the targets are challenging.  This resolution was passed with more than 95% in favour.

This company is monitored by Mr John Quinn. Mr Rod McKenzie attended the AGM on behalf of the ASA.