Skip to main content

Revenue up strongly for Bega Cheese but challenges remain

Dairy and food company Bega says it expects continued challenges to milk supply in the short term as farmers battle drought, but a surge in export earnings has helped it offset challenges facing the dairy industry.

Export revenue, up 17.3 per cent to $230 million and stronger peanut butter and vegemite sales helped Bega deliver a 14 per cent jump in revenue to $741.2 million.

Strong peanut butter sales helped Bega generate much stronger revenue.Credit:Bloomberg

On a statutory basis the company's half year profit jumped 71 per cent to $8.5 million. But on a normalised basis Bega's half year normalised operating profit was down 21 per cent to $15 million. The normalised result was driven down by $9.2 million before tax in costs for legal fees and an information system upgrade across the business.

Bega emerged from a trading halt on Monday morning and its shares were down 6.4 per cent to $3.79 shortly after 10.30am, but had been down 13.1 per cent in earlier trading to $3.52.

Bega had requested a trading halt before the market opened last Thursday, and last closed on Wednesday at $4.05. The company asked for the trading halt warning that it may need to adjust its 2019 results.

On Monday morning the company confirmed that in preparing its latest half year results "errors were identified" in its full year 2019 results.

But Bega said "these errors do not impact the profit and loss for first half financial year 2020 and do not impact the earnings guidance for financial year 2020 communicated to the market in October 2019".

Bega is forecasting full year normalised EBITDA (earnings before interest, tax, depreciation and amortisation) to be in the range of $95 million to $105 million for the current financial year.

On coronavirus, Bega said its supply chain and customer shipments had "not been materially impacted by the virus," and it continued to monitor any potential direct and indirect impacts.

The company has reiterated its earnings guidance issued last October, for normalised EBITDA (earnings before interest, tax, depreciation and amortisation) in the range of $95 million to $105 million.

Source: Read Full Article


Popular posts from this blog

Fears coronavirus will spark divorce surge as couples self-isolate for months

Coronavirus is "very likely" to lead to an increase in marriage break-ups because of people being confined together for long periods in self-isolation, a leading divorce lawyer has said.Baroness Shackleton of Belgravia, whose previous clients have included Sir Paul McCartney, the Prince of Wales, Madonna and Liam Gallagher, revealed the view of the profession as a growing number of households go into voluntary lockdown in a bid to curb the spread of infection.Official health advice states that if one person in a property has a persistent cough or fever, everyone living there should stay at home for 14 days.Nicknamed the "Steel Magnolia" for her skills and charm, Lady Shackleton told peers at Westminster: "The prediction amongst divorce lawyers is that following self-imposed confinement it is very likely that the divorce rate will rise."Our peak times are after long exposure during the summer holidays and over Christmas."One only has to imagine what i…

At Least 23 People Dead in Australia Bushfires As Blazes Continue Raging

SYDNEY (AP) — A father and son who were battling flames for two days are the latest victims of the worst wildfire season in Australian history, and the path of destruction widened in at least three states Saturday due to strong winds and high temperatures.The death toll in the wildfire crisis is now up to 23 people, Prime Minister Scott Morrison said after calling up about 3,000 reservists to battle the escalating fires, which are expected to be particularly fierce throughout the weekend.“We are facing another extremely difficult next 24 hours,” Morrison said at a televised news conference. “In recent times, particularly over the course of the balance of this week, we have seen this disaster escalate to an entirely new level.”Dick Lang, a 78-year-old acclaimed bush pilot and outback safari operator, and his 43-year-old son, Clayton, were identified by Australian authorities after their bodies were found Saturday on a highway on Kangaroo Island. Their family said their losses left them…

Thousands of dangerous drivers with dozens of penalty points still on the road due to bizarre legal loophole – The Sun

RECKLESS drivers with dozens of penalty points still on the road due to a bizarre legal loophole.More than 10,000 Brits still hold their licence despite amassing 12 or more points on their licence.Shockingly, one man has avoided a ban after collecting 66 penalty points, as have another two motorists with 60 points.Drivers who amass 12 or more points on their licence typically are given a lengthy road ban, as well as hefty fines.But some drivers are exploiting the system and escaping punishment by successfully arguing in court that it would cause them "exceptional hardship", such as losing their job.Judges base exceptional hardship on a case-by-case basis, but drivers can dodge a ban by proving it would adversely impact someone who relies on their vehicle.Other motorists are able to continue driving despite accumulating several speeding convictions by simply ignoring their disqualification notice or re-offending after serving a ban.Figures obtained by the Daily Mail reveal me…