Bega Group reported a 45 per cent surge in profit to $52 million in the first half of FY26, with EBITDA up 21 per cent to $133.4 million. The group lifted its FY26 guidance to $222-227 million and said it’s on track to exceed its FY2028 strategic plan EBITDA target of $250 million.
The result was supported by continued momentum in Bega’s branded portfolio, particularly in growth categories such as protein dairy, yoghurt and milk-based beverages, alongside improved returns in the Bulk segment from higher-value mix and nutritionals, and ongoing cost and network efficiency programs.
Snapshot
- Revenue: $1.87b, up 5% on prior corresponding period (pcp);
- EBITDA: $133.4m, up 20.9% pcp;
- NPAT: $52.1m, up 45.1% pcp; and
- Dividend: 7.0cps, up 16.7% pcp.
Branded categories lead earnings growth
Bega’s Branded segment remained the core earnings driver, delivering normalised EBITDA of $112.5 million, up eight per cent on the prior corresponding period (pcp).
The group continues to shift its mix toward higher-value branded categories, with gains in protein dairy, yoghurt, and milk-based beverages, while also expanding in “better for you” products.
That mix improvement, combined with pricing discipline and category execution, helped support margin expansion in the half.
The company also flagged growth in foodservice and international branded sales, indicating branded momentum is not solely dependent on domestic grocery volumes. Double-digit revenue growth was recorded for Branded International business in the half.
At group level, gross margin improved to 22.4 per cent (from 21.8 per cent), while normalised EBITDA margin increased to 7.1 per cent, reflecting stronger operating leverage and product mix.
Bulk rebounds, but brand remains the strategic focus
Bega’s Bulk segment delivered a stronger contribution, with EBITDA rising to $41.1 million from $24.4 million, supported by improved commodity conditions, milk supply and higher-value product mix.
But the strategic significance of the half sits more in the Branded business and Bega’s ability to convert category growth into earnings while continuing to reshape its manufacturing footprint, particularly in the current environment, where branded suppliers are balancing retail pricing pressure, private label competition and input cost variability.
Bega’s 1H performance suggests its portfolio strategy is gaining traction in categories where consumers are still spending for function and convenience, including high-protein and dairy-based formats.
Site consolidation
The company has continued to progress manufacturing and network efficiency initiatives, including work linked to site consolidation and automation investments at the Laverton distribution centre. It reported more than a 25 per cent reduction in its nationwide warehouse and depot network locations.
