Bega Cheese Ltd reported a 6.7% year-over-year rise in net revenue to AUD 3.7 billion–3.8 billion for the second half of fiscal 2026, driven by branded dairy growth and operational efficiencies. Underlying EBITDA increased nearly 12%, with branded EBITDA reaching AUD 221 million, exceeding April guidance by AUD 1 million–6 million. Return on funds employed climbed 1.6 percentage points to 10%, achieving the company’s FY2028 target two years ahead of schedule.
The dairy group lifted its full-year dividend by 21% to AUD 0.145 per share, yielding 2.16% and marking a 62.5% increase over the prior 12 months. Net leverage improved to 0.8 times from 1.3 times in April guidance, while the debt-to-equity ratio stood at 0.48 and the current ratio at 1.28. Milk intake rose nearly 7% to approximately 1.4 billion liters in a stable market environment.
For fiscal 2027, Bega forecast EBITDA of AUD 240 million–245 million, up AUD 15 million–20 million from FY2026. Branded EBITDA is expected to grow by at least AUD 25 million, though bulk EBITDA is projected to decline by AUD 5 million–10 million as commodity pricing normalizes. Capital expenditure for FY2027 is set at AUD 110 million, primarily allocated to expand yogurt, cream cheese and milk-based beverage capacity.
Executives highlighted cost savings of about AUD 37 million from restructuring projects, including the consolidation of Strathmerton and Ridge Street sites and automation at Laverton. Barry Irvin, executive chairman, stated the company is "well on its way" to becoming a great Australian food business, while CEO Pete emphasized the continued execution of the "simplify and focus" strategy to enhance efficiency and asset utilization.
Shares rose 4.16% to AUD 6.26, nearing the 52-week range of AUD 4.93–6.72, with a reported P/E ratio of 237.5.
