The company has announced $165 million earnings before interest, taxes, depreciation and amortisation (EBITDA) with a total revenue of $3.5 billion for 2024-25.
Bega executive chairman Barry Irvin reported strong volume growth in branded white milk, yoghurt and spreads, the successful launch of branded high protein products and the implementation of cost savings.
This included the news of the closure of the Strathmerton cheese packaging factory and the transfer of production to Bega Valley by the end of the 2026 financial year.
The financial reports disclose the shift will save the company about $30 million annually, and the combined cost of redundancies at Strathmerton and two Queensland peanut production sites are expected to generate one-off redundancy costs of $34 million.
The group received 1.34 billion litres of milk during the year, which represented an increase of one per cent compared to the previous year. The increase in production in NSW offset the reductions in drought-affected areas of southern Australia.
The group spent $3.5 million in supporting farmers through the Better Farms program with projects for animal welfare, effluent management and irrigation and water management.
Export dairy commodity prices improved in the year, and the “realignment” of dairy commodity prices and farm gate prices resulted in a recovery of the bulk segment of the business.
During the year, the company reduced debt by about $36 million.
A fully franked divided of six cents per share was announced, taking the total dividends for the year to 12 cents.
Mr Irvin and CEO Peter Findlay expect continued growth in the branded segment of the business and stable returns in the bulk division.
They anticipate the launch of new retail products during the current year.
The company expects earnings (EBITDA) in the range of $215 million to $220 million at the end of the current year.
Bega Cheese has about 575 suppliers.
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