Bega Cheese (BGA) H2 2024 earnings summary

Executive summary

• Achieved 4% revenue growth in FY2024, driven by 6% growth in the branded segment and strong international expansion.

• Branded business now represents 86% of group revenue, with margin expansion from cost savings and efficiencies.

• Completed major organisational realignment, targeted acquisitions, and integration of Tasmania acquisition.

• Sustainability initiatives and circularity projects are integral to long-term strategy, including emissions reduction and recycled packaging.

• Strategic review of Peanut Company of Australia underway, with focus on innovation and operational efficiency.

Financial highlights

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

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

• Net debt reduced to AUD 162.4 million (down 20%), leverage ratio at 1.3x.

• Fully franked dividend of 8.0cps, up 7% from prior year.

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

Outlook and guidance

• FY25 group normalised EBITDA guidance: AUD 190–200 million.

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

• Bulk business forecasted to return to profitability as farmgate milk prices realign with commodity prices.

• Strategic plan targets AUD 250 million+ normalised EBITDA by FY28, with branded EBITDA margin aspiration of 10% and ROFE >10%.

• Focus on growth in core categories, cost management, and efficiency to drive earnings.