Bega Cheese (BGA) H2 2026 earnings summary

Executive summary

• Achieved strong growth in both Branded and Bulk segments, with increased profitability and revenue year-over-year, outperforming the previous strategic plan and aligning with the refreshed S31 Strategic Plan.

• Transformation and efficiency programs, including site closures, consolidations, automation, and technology investments, delivered significant operational efficiencies and improved profitability.

• Strategic focus on health, wellness, and protein innovation, with 'better for you' products and premiumization supporting margin expansion and aligning with consumer trends.

• International business, especially in Southeast Asia, continues to outperform, with capacity constraints being addressed through major investments.

• Strong balance sheet and cash flow position the company for further organic and inorganic growth.

Financial highlights

• Net revenue reached $3.8 billion, up 6.7% year-over-year, near the top end of guidance.

• Normalised EBITDA grew 11.7% to $225.6 million; statutory EBITDA up 22% to $202.3 million.

• Normalised profit after tax was $69.0 million, up 36%; statutory profit after tax was $54.8 million, reversing a prior year loss.

• EPS (normalised) increased 36% to 22.6c; statutory EPS rose to 17.9c.

• Dividend increased by 21% to 14.5c per share, fully franked.

Outlook and guidance

• FY2027 normalised EBITDA guidance set at $240–$245 million, with a target of $310 million+ by FY2031.

• Branded segment expected to accelerate, offsetting a forecast $5–10 million decline in bulk business in H1.

• Normalised EPS growth projected to be just over 25c.

• Major capacity expansions in yogurt, cream cheese, and milk-based beverages to come online in 2028, supporting further growth.

• Operational efficiencies from automation and consolidation to deliver savings in FY2027.