Bega Cheese (BGA) H1 2026 earnings summary

Executive summary

• Delivered strong 1H FY2026 results, with both Branded and Bulk segments achieving improved profitability and progress ahead of strategic plan targets, driven by operational transformation, manufacturing consolidation, and a focus on high-value product mix.

• Revenue increased by 5.0% year-over-year to $1,871.3 million, with significant growth in branded milk, milk-based beverages, yoghurt, juice, and international branded sales.

• Transformation initiatives included reducing manufacturing sites, automation, and exiting non-core businesses, supporting long-term operational savings.

• New product launches in high-protein, lactose-free, and 'better for you' categories are meeting evolving consumer needs and driving branded business growth.

• Staff engagement improved despite organizational changes, and the company is positioned for further domestic and international growth with a strong balance sheet.

Financial highlights

• Net revenue rose 5.0% year-over-year to $1.87bn; normalised EBITDA up 20.9% to $133.4m; statutory EBITDA up 14.1% to $124.7m.

• Profit after tax increased 55.3% to $46.9m; normalised PAT up 45.1% to $52.1m; basic EPS up 55.6% to 15.4c.

• Gross margin improved to 22.4%, up 0.6 points year-over-year.

• ROFE reached 10.2%, nearly tripled from FY23.

• Interim dividend increased to 7.0c per share, fully franked.

Outlook and guidance

• FY2026 normalised EBITDA guidance raised to $222–227 million, with strong momentum in branded business and on track to exceed $250 million EBITDA by FY2028.

• Aggressive capital allocation toward growth, especially in yogurt and milk-based beverages, with up to $110 million annual CapEx planned.

• Expecting acceleration in branded EBITDA and margin expansion in FY27 as major investments deliver returns.

• Bulk segment profit expected to normalize to $30–40 million long-term, with most profit in first half.

• Seasonal factors and market conditions may affect proportional full-year results.