Bega Group says innovation, cost savings and a focus on high-value categories were behind its Branded business’ growth in a challenging consumer environment for 1H FY25. Its Bulk business also made a recovery.
Statutory earnings before interest, tax, depreciation and amortisation (EBITDA) of $109.3 million, up $23.2 million or 27 per cent on the prior comparative period (pcp).
Profitability in the Branded segment increased with normalised EBITDA of $104.2 million, up eight per cent pcp.
Snapshot
Profitability in the Branded segment increased on the prior comparative period with normalised EBITDA of $104.2 million, up eight per cent pcp.
Chair Barry Irwin told investors its result was achieved during a challenging trading environment with lower discretionary consumer spend and downtrading across sales channels and products.
Bulk segment statutory EBITDA was $24.4 million compared to a statutory EBITDA loss of $5.6 million in the prior year, reflecting the misalignment between global dairy commodities and Australian farmgate milk experienced in the prior year moderated.
The Bulk business further orientated its mix to higher value proteins and also delivered strong cost savings results. Bulk segment earnings are majority 1H FY25 weighted as roughly two thirds of milk intake occurs in the seasonally stronger first half.
The continued focus on cash optimisation and realising the benefits of innovation and cost saving initiatives is expected to offset inflationary impacts and further improve profitability and leverage in FY25.
The group reaffirms its normalised EBITDA of $190 to $200 million in FY2025. The group expects to be at the upper end of this range.
