Bega Cheese keeps FY guidance amid challenging environment
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The news: Bega Cheese has retained its full-year earnings guidance despite a challenging consumer environment and warning it will not be able to offset inflationary pressures with price increases.
The numbers: The group still expects full year earnings to be in the range of $190 million to $200 million, and said it is on track for the FY28 target for EBITDA of $250 million. It expects mid-single-digits percentage growth in its branded segment EBITDA for FY25.
The context: The Vegemite and Dairy Farmers brand owner told shareholders ahead of its annual general meeting that it is seeing a very challenging consumer environment with shoppers increasingly looking for more value.
Chief executive Peter Findlay warned this issue would only increase over the next few months, with more people cutting back on out-of-home eating.
The group is forecasting very little in the way of price increases for its products this year and said it will instead have to find cost savings and efficiencies across its business to curb inflationary costs.
What they said: “We believe that it will not be possible to offset inflationary pressures with price increases in FY25, therefore earnings will have to be driven through productivity and efficiency improvements,” Findlay said.
The source: ASX announcement
