Bega Cheese (BGA) H1 2025 earnings summary

Executive summary

• Achieved strong 1H FY2025 results with revenue up 3.1% to $1,782.1 million and normalised EBITDA up 44% to $110.3 million, reflecting successful execution of strategy, innovation, and cost-out programs.

• Net profit attributable to members rose 14% to $30.2 million; normalised NPAT surged 170% to $35.9 million.

• Interim fully franked dividend increased 50% to 6.0 cents per share, with DRP reactivated.

• Leverage ratio improved to 1.3x from 1.9x, reflecting strong cash performance and working capital management.

• Manufacturing rationalisation, including the sale of the Leeton site, resulted in a $7.7 million negative EBIT impact.

Financial highlights

• Net revenue increased 3.1% year-over-year to $1,782.1 million; normalised EBITDA rose 44% to $110.3 million.

• Normalised profit after tax surged 170% to $35.9 million; statutory NPAT up 14% to $30.2 million.

• Basic EPS (normalised) more than doubled to 11.8 cents; statutory EPS up 14% to 9.9 cents.

• Gross margin improved to 22% from 20% in the prior period, mainly driven by the Bulk segment.

• Dividend payout ratio at 80% of statutory EPS, supported by strong franking credits.

Outlook and guidance

• FY2025 normalised EBITDA guidance reaffirmed at $190–$200 million, expecting to reach the upper end.

• Branded segment expected to remain resilient; Bulk segment earnings weighted to 1H due to seasonal milk intake.

• Pricing environment remains challenging; continued investment in brands, innovation, and efficiency planned.

• Capital expenditure for the full year anticipated at $75–90 million, focused on growth and efficiency.

• Continued focus on cash optimisation and cost-saving initiatives to offset inflation.