Bega balances closures and growth

Following the acquisition of Betta Milk in Tasmania, Bega made the strategic decision to close two legacy sites and consolidate them into the Lenah Valley facility in Hobart.

They have also closed the Bega Canberra site and announced the closure of two Peanut Company of Australia sites.

The meeting heard that despite these changes, the company was continuing to grow, and chairman Barry Irvin hinted that future growth could be organic and through acquisitions.

“A strong balance sheet positions us well for future growth, whether it be organic or by acquisition, and we are very positive about the opportunities ahead,” Mr Irvin said.

“Despite these structural changes, our business has continued to grow, volume has increased over this period.

“What we have built is a more consolidated and efficient footprint that enables us to make important decisions around automation and capital allocation.

“This positions us strongly for future competitiveness, both domestically and internationally.”

Chief executive officer Pete Findlay said the “difficult decisions” that had been made and a reduction in about 450 roles, the company was simultaneously increasing business capacity, which reflected the efficiency gains and sharper capital focus these changes enable.

The company reported net revenue of $3.5 billion, and a $50 million after tax profit.

On farm gate milk prices, Mr Findlay said it was important to highlight the realignment he had seen between farm gate milk pricing and commodity pricing.

“I’m particularly pleased with our competitiveness at the farm gate both last year and this year, even in an environment where milk production has declined slightly, we have successfully increased our milk acquisition,” Mr Findlay said.

“That is a direct result of the dedication and hard work of our farm services team and our ability to offer a highly competitive farm gate milk price, while still delivering strong returns.

“It is a testament to the strength of our relationships and the efficiency of our model and we are very proud of that achievement.”

Mr Findlay said he had long been a strong advocate for the functional benefits of dairy, benefits that resonate with both Australian consumers and those in key international markets.

“Dairy continues to be a powerful vehicle for delivering daily health and wellness outcomes, and we are well-positioned to lead in that space,” he said.

He said a $36 million reduction in net debt, reflecting disciplined financial management and strong cash flow performance

“We believe we are on track to exceed our EBITDA target of $250 million by FY2028,” Mr Findlay said.

“We are pleased to provide guidance for FY2026 with a normalised EBITDA range of $215 million to $220 million, further evidence of our strategic momentum and delivery capability.”

The meeting elected Patria Mann and Janette Kendall to the board and passed the remuneration report.