Bega Cheese has managed to maintain a stable financial performance and reduce debt despite its lengthy legal stoush with Kraft and “unpredictability across the supply chain” within FY20, reporting a 11 per cent increase to its statutory EBITDA to $87.8 million.
Snapshot Bega Cheese FY20:
- Statutory revenue: $1,493 million, up five per cent from FY19
- Statutory EBITDA: $87.8 million, up 11 per cent from FY19
- Net debt: 236.4 million, down 18 per cent from FY19
- NPAT: 31.9 million, up three per cent from FY19
Legal costs and “costs associated with the information systems upgrade activities” totally to 15.2 million and “were normalised” in comparison to FY19, which were around $26 million. In April, Bega finalised its legal stoush with Kraft over its right to use the trade dress currently associated with its peanut butter products.
Bega Cheese executive chairman Barry Irvin said FY20 has been “a year like no other”, citing drought, a competitive milk procurement environment and COVID-19, all as major impacts to the Australia and international food service and retail demand.
“I am particularly proud of this year’s business performance given the circumstances we face, our values and culture always come to the fore in challenging times,” said Irvin.
“As the business faced a difficult trading environment, frightening fires and then the realities of COVID-19, our tems proved themselves to be able to work together to look after one another and adapt and change the business no matter what the challenge.”
Bega reported strong growth in its export business and continued growth in the domestic grocery business, particularly its core spreads category, which included the launch of a number of products, including a new honey range.
It has also successfully completed the commissioning of the $38 million lactoferrin facility at Koroit, Victoria.
Bega Cheese will continue to grow its product range and branded food portfolio into FY21, while ensuring safety within the company and the communities it operates in is its top priority amid the COVID-19 environment.
“It has been important to ensure we remain focused on both managing the challenges of the current year and in addition we continue to build the business for future success, said CEO Paul van Heerwaarden.
“The strong cash generation and associated debt reduction combined with a successful process improvement program position us well. We have continued to invest in new produxts, markets, technology, infrastructure and our people, all of which will contribute to the success of the busines sin future years."
Bega Cheese was #25 on Food & Drink Business' Australia's Top 100 Food & Drink Companies 2019 Report.
