Bega Cheese (BGA) H2 2024 earnings summary

Executive summary

• Delivered 4% revenue growth in FY2024, with branded business now 86% of group revenue and strong international expansion; margin expansion supported by cost savings and efficiencies.

• Statutory EBITDA rose 15% to $165.1 million, with branded segment profitability surging and offsetting bulk segment challenges.

• Organizational realignment, targeted acquisitions, and integration of Tasmania and Betta Milk improved efficiency and agility.

• Strategic focus on innovation, sustainability, and circularity projects, including emissions reduction and expanded recycled packaging.

• Strategic review of Peanut Company of Australia underway.

Financial highlights

• Net revenue $3.52bn, up 4% year-over-year; branded revenue up 6%.

• Normalised EBITDA $164.1m (+2%), statutory EBITDA $165.1m (+15%).

• Net debt reduced to $162.4m (down 20%), leverage ratio improved to 1.3x.

• Final fully franked dividend of 4.0cps, total FY2024 dividend 8.0cps, up 7%.

• Operating cash flow improved to AUD 134 million, with over 80% cash conversion.

Outlook and guidance

• FY2025 group normalised EBITDA guidance: $190–$200 million.

• Branded segment expected to deliver mid-single digit EBITDA growth, with minimal price increases.

• Bulk segment profitability to be restored as farm gate milk prices align with global commodities.

• Strategic plan targets $250 million+ normalised EBITDA by FY2028, with branded EBITDA margin aspiration of 10% and ROFE >10%.

• Focus remains on cash optimisation, cost savings, and leveraging restructuring benefits.