The big cheese in Australia's dairy, drinks and spreads business, has significantly boosted its statutory half-year profit from $7.3m to $26.5m for the six months to December 23.
Bega Group has posted a 263 per cent after-tax improvement on the same period a year earlier.
The group's revenue grew 3pc to $1.7 billion, including 8pc growth in its branded product segment, which enjoyed a $66.6m (153pc) lift in earnings before interest, tax amortisation and depreciation.
However, bulk dairy segment EBITDA fell $55m as prices for global commodities stayed well below Australian farmgate milk prices.
The name behind a big portfolio of national brands, ranging from Vegemite and Zoosh sauces to Dairy Farmers, Farmers Union, Dare and Masters milks will pay a four cents a share dividend in April.
Bega Group's share price responded to the better than expected result, jumping from $3.53 to break $4 - its highest point since August 2022.
Last October its share price was as low as $2.53.
The sale and re-lease of Bega's Port Melbourne Vegemite factory, and the sale of its Canberra Milk plant and its half share in plant-based Vitasoy beverages enabled net debt to be pruned from about $321m to $251m.
However, restructuring costs after the acquisition of Tasmania's Meander Valley Dairy and Betta Milk operations, investments in infrastructure and capital costs relating to a pre-Christmas surge in trade receivable expenses offset some of the one-off savings.
The one-off earnings and costs meant Bega's normalised profit performance was more subdued than its statutory result - a 41pc rise from $9.4m to $13.3m for the half year.
"The profit result reflected the importance of the diversity of the group with strong performance in branded products more than offsetting the decline in the bulk segment," the company said.
It noted strong branded segment performance demonstrated continuing consumer demand in the categories where Bega products were prominent.
Bega has maintained its forecast for a full year EBITDA between $160m and $170m.
Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
