Bega Cheese (BGA) H2 2024 earnings summary

Executive summary

• Delivered strong financial results in FY2024, with 4% revenue growth and significant Branded segment expansion, now representing 86% of group external revenue.

• Branded business outperformed expectations, driving growth and resilience through innovation, marketing, and international expansion.

• Major organisational realignment and integration of acquisitions, including Betta Milk and Tasmania, improved efficiency and agility.

• Strategic asset rationalisations, including sale of Leeton juice facility and Canberra site, streamlined operations.

• Sustainability initiatives advanced, targeting 40% emissions reduction by 2030, net zero by 2050, and expanded recycled packaging.

Financial highlights

• Net revenue reached $3.52 billion, up 4% year-over-year; Branded revenue up 6%.

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

• Net debt reduced to $162.4 million, leverage ratio improved to 1.3x.

• Fully franked dividend of 8.0 cents per share, up 7% from prior year.

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

Outlook and guidance

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

• Branded segment expected to deliver mid-single digit EBITDA growth; Bulk segment profitability to be restored as farm gate milk prices realign.

• Focus on productivity, cost management, and efficiency improvements to drive earnings.

• Strategic plan targets $250 million+ normalised EBITDA and ROFE >10% by FY2028.

• Continued emphasis on cash optimisation and leveraging restructuring benefits.