Bega Cheese (BGA) H1 2026 earnings summary

Executive summary

• Delivered strong first half results with 5% revenue growth and significant profit improvement, reflecting successful execution of a multi-year transformation strategy and operational focus.

• Streamlined operations by reducing manufacturing sites, consolidating Strathmerton, exiting peanut processing, and automating logistics, while increasing output.

• Invested in growth areas such as yogurt and milk-based beverages, launching high-protein, lactose-free, and 'better for you' products to meet evolving consumer needs.

• Achieved significant improvement in staff engagement despite organizational changes.

• Positioned for further growth domestically and internationally, with a strong balance sheet and reduced leverage.

Financial highlights

• Net revenue rose 5.0% year-over-year to $1,871.3 million; normalised EBITDA up 20.9% to $133.4 million.

• Net profit after tax increased 55.3% to $46.9 million; basic EPS up 45% to 17.1c.

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

• ROFE reached 10.2%, nearly tripled from FY23.

• Interim dividend increased 17% to 7.0c per share, fully franked.

Outlook and guidance

• FY2026 normalised EBITDA guidance raised to $222m–$227m, up from previous $215–220m; on track to exceed $250m 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 project completions may affect proportional full-year results.