Bega Cheese (BGA) H1 2025 earnings summary

Executive summary

• Achieved strong 1H FY2025 results with normalized EBITDA of AUD 110.3 million, up 44% year-over-year, driven by brand focus, cost savings, and bulk business recovery.

• Revenue increased 3.1% year-over-year to $1,782.1 million, with normalised NPAT up 170% to $35.9 million and statutory NPAT up 14% to $30.2 million.

• Dividend increased to 6.0 cents per share, up 50% year-over-year, reflecting improved earnings and confidence in future performance.

• Strategic plan execution continues, with focus on core brands, innovation, and operational efficiency.

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

Financial highlights

• Net revenue increased 3.1% year-over-year to $1,782.1 million; normalized EBITDA up 44.2% 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 11.8c; statutory EPS improved to 9.9c.

• Gross margin expanded to 22%, mainly driven by the Bulk segment.

• Net debt reduced to $207.2 million, leverage ratio at 1.3x; ROFE improved to 7.9%.

Outlook and guidance

• Reaffirmed FY2025 normalised EBITDA guidance of $190–200 million, expecting to reach the upper end of the range.

• Challenging consumer environment anticipated to persist; increased investment in innovation and brands planned.

• Capital expenditure to accelerate in the second half, targeting $75–90 million for the full year.

• No further movement in farm gate milk pricing expected this year; potential for improved opening prices next year.

• On track for FY2028 targets: EBITDA $250 million+ and ROFE >10%.