Bega Cheese (BGA) H1 2025 earnings summary

Executive summary

• Achieved strong 1H FY2025 results with 3% revenue growth to $1,782.1 million, driven by branded segment growth, bulk business recovery, and continued execution of the strategic plan.

• Normalised EBITDA rose 44% to $110.3 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 from 4.0 cents, reflecting improved earnings and confidence in future performance.

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

• Innovation, cost savings, and focus on high-value categories supported performance despite challenging consumer sentiment.

Financial highlights

• Net revenue increased 3% year-over-year to $1,782.1 million; normalised EBITDA up 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.

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

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.

• Capital expenditure to accelerate in 2H, targeting $75–90 million for the full year.

• Continued focus on cash optimisation, cost-saving initiatives, and investment in innovation and brands.

• Leverage ratio expected to improve to around 1.0x by year-end.