Bega Cheese Ltd. reported a 36% increase in normalized profit after tax to A$69.0 million for the 2026 fiscal year, surpassing its return on funds employed target two years ahead of schedule. The company, which operates under the STRENGTH strategic plan running through 2026, achieved a 10.0% ROFE, up from 8.4% in the prior year, meeting its original FY2028 guidance.
Normalized earnings per share rose 36% to 22.6 cents, while normalized EBITDA increased 12% to A$225.6 million. Net revenue grew 6.7% to A$3.8 billion, driven by a 2% volume increase and pricing adjustments across its portfolio. The leverage ratio remained stable at 0.8 times, with total dividends rising 21% to 14.5 cents per share, fully franked.
The branded segment generated external revenue of A$3.22 billion, up 5.7%, with normalized EBITDA of A$220.7 million. The bulk segment reported external revenue of A$552.0 million, a 12.5% increase, and normalized EBITDA of A$53.2 million. Milk intake rose approximately 7% in a stable market environment.
Market share gains were recorded in milk-based beverages (43%), spreads (26%), and water ice (92%), while yogurt and fresh white milk held second positions at 24% and 15%, respectively. Wellness-related product sales surged to A$95 million, up from A$20 million in the prior year, with key brands including Dairy Farmers, Farmers Union, and Dare expanding into high-protein variants.
Operational efficiency initiatives advanced, including the consolidation of the Strathmerton cheese site into Ridge Street in the Bega Valley, completed in June 2026. The company also sold primary peanut processing sites at Kingaroy and Tolga, realizing savings ahead of schedule, and commissioned automation at its largest distribution center in Laverton during the second half of FY2026.
For FY2027, Bega guided to normalized EBITDA of A$240 million to A$245 million, with branded EBITDA expected to increase by at least A$25 million. Bulk EBITDA is anticipated to decline by A$5 million to A$10 million in the first half before stabilizing. Capital expenditure is forecast at A$110 million. Longer-term targets under the S31 strategic plan include normalized EBITDA of A$310 million or more by FY2031, revenue of A$4.3 billion to A$4.7 billion, and a normalized EPS range of 37 to 39 cents.
