Pillar 4 – Prosperity

EMPLOYMENT AND WEALTH GENERATION

Rate of employment

Employment and job creation metrics are important precursors to demonstrate a Company’s progress to achieving broad societal goals. Reporting on this type of information captures the net contribution that Pental makes towards employment, taking into account both the number of new hires and the turnover of employees.

During the 12 months of FY 2019-20, the Company appointed 41 new staff (includes internal promotions), of the new staff hired:

  • 13 identified as female and 28 identified as male.
  • 1 male was appointed to a manager role, 0 females were appointed to a manager role.

During the 12 months of FY 2019-20, 7 female and 9 male permanent/ongoing full time employees resigned.

  • 43.8% of employees who resigned were women and 56.2% were men.
  • 0% of all managers who resigned were women.
  • 43.8% of all non-managers who resigned were women.

For further information, please refer to Pental’s 2019-20 WGEA report (link below).

See also: WGEA Report 2019-20

Economic contribution

Pental Limited has not received any financial assistance from government bodies during the FY
ending 26 June 2022.

The detailed financials can be reviewed in Pental Limited Financial Report for the year ended 26 June 2022 (see link below).

We will disclose further information on the activities or investments related to economic contribution in a future report.

See also: Financial Report FY22

Financial investment contribution

Pental is targeting growth through strategically suitable acquisitions to complement its organic growth. As such, Pental acquired Hampers with Bite business on 1 September 2021. Hampers With Bite Pty Ltd (HWB) is a Melbourne-based online hamper and gifting specialist. Its range of premium hampers and gifts are targeted at affordable prices focusing on corporate clients and gifts to family and friends.

Prior to acquisition by the Group, HWB grew from an approximately $10 million revenue with an EBIT of $1 million EBIT business in FY19 to an approximately $24 million revenue business in FY21 with an EBIT of approximately $5 million. HWB continued its strong growth trajectory into FY22. Under Pental’s ownership, from 1 September 2021 to 26 June 2022, HWB business delivered strong revenue of $31.649 million with an EBIT contribution of $6.509 million, underpinned by a strong Christmas season across both B2B and B2C channels.

Pental also made a capital expenditure commitment of $4,000 in FY22 for plant and equipment for the upgrade and modernisation of the Shepparton manufacturing facility.

Share based payment transactions: The Executive Variable Incentive Plan (EVIP) grants performance rights over shares in the Company to certain employees. The fair value of the performance rights granted under the EVIP is recognised as an employee expense with a corresponding increase in equity.

Dividend payments: The total dividend for the 2022 financial year is 3.0 cents per ordinary share (2021: 2.6 cents), representing a payout ratio of 69.0% of the full-year underlying NPAT1 (2021: 63.2% of the underlying NPAT) and consists of:

  • Interim fully franked dividend of 1.3 cents per ordinary share, which was paid on 23 March 2022;
  • Proposed final fully franked dividend of 1.70 cents per ordinary share, payable to shareholders on 23 September 2021, with a record date of 5 September 2022.

See also: Financial Report FY22

INNOVATION OF BETTER PRODUCTS AND SERVICES

Total R&D expenses

Pental’s final strategic pillar is continuous manufacturing improvement to support profitable growth through capital investment, along with cost savings and delivering high quality, trusted products.

At the Shepparton plant we continue to focus on improving productivity and line efficiency through labour reduction initiatives and CAPEX strategies to reduce changeover times, increased line availability and ongoing preventative maintenance programs. The installation of a new filling line at Pental’s Shepparton manufacturing site last year has enabled the production and development of products that are more earth friendly and sustainable for the market. This investment has also enabled Pental to participate in tendering of contract manufacturing opportunities that were previously not possible.

Pental has made a significant investment over the last two financial years in upgrading the infrastructure at its Shepparton plant mainly through the upgrade of its fire protection systems and traffic management improvement initiatives with safety of our team being our primary focus.

The R&D activities conducted at Pental include research, efficacy testing, stability testing and laboratory sampling. For further details on expenditure for Pental’s continuous manufacturing improvement, please refer to the Financial report (link below).

See also: Financial Report FY22

COMMUNITY AND SOCIAL VITALITY

Total tax paid

Pental Limited’s disclosure of total tax paid is outlined in the Financial Report for the year ending 26 June 2022 (see link below).

See also: Financial Report FY22