Bega shares lift on ‘clean’ FY25 result, EBITDA growth prospects
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More news: Shares in Bega Group were up in afternoon trade after the food and drinks company posted year-on-year group EBITDA growth of 23% and came in higher than expected for the bulk business.
Bega’s share price had lifted 7.8% to $5.65 at 2:38pm AEST.
UBS analysts said Bega had posted a “clean in-line cash backed result with FY26 guidance right in-line with consensus”. The analysts also highlighted an “important comment” from Bega that it is on track to beat its FY28 EBITDA target of $250 million.
The analysts also said the cash inflow of $165 million is “a good cash outcome” and said the step up in capital spend is “helping drive cost efficiencies across the Bega network”.
The group EBITDA margin came in at 5.7%, which was higher than the 5.5% expected by UBS.
What they said: “Clean result. Should be well received given recent share price underperformance,” the UBS research note reads.
Bega swings to $9m statutory loss for FY25
The news: Dairy producer Bega Cheese posted a statutory loss of $8.5 million for the 2025 financial year, down from the $30.5 million profit generated in FY24, as the company was hit by costs relating to facility closures.
The numbers: Analysts had expected Bega's net profit after tax to be $30.64 million, according to Visible Alpha data.
Normalised EBITDA grew 23% to $202 million, topping its guidance range of $190 million and $200 million, and above consensus estimates of $200.67 million.
The company declared a final dividend of 6 cents per share fully franked, taking total dividends to 12 cents per share, up from 8 cents per share a year earlier, and above average forecasts of 11 cents per share.
Bega guided normalised EBITDA in the range of $215 million and $220 million for the 2026 financial year.
The context: The normalised items include "the completed sale and exit of juice primary processing at Leeton NSW, planned closure and consolidation of cheese packaging and processing capacities at Strathmerton Victoria into the Ridge Street facilities in Bega NSW, and the impairment of plant and equipment associated with the announced closure of peanut processing operations in Kingaroy and Tolga in Queensland".
Bega's Bulk business returned to profit in FY25 as farm gate milk prices aligned more closely with higher global dairy commodity pricing. The higher commodity prices enabled two Victorian milk price increases in FY25.
