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Bega Cheese Ltd Shares Fall 5% On Its Report

Bega Cheese Ltd (ASX: BGA) released its half year financial report to investors today, showing a profit of $36.6 million. 

Bega Cheese Ltd (ASX: BGA) released its half year financial report to investors today, showing a profit of $36.6 million.

Bega is Australia’s biggest cheese company, producing all types of cheese including cream cheese and mozzarella.

Here are the highlights compared to last year:

  • Revenue increased by 14% to $705 million
  • Reported day to day trading, or EBITDA, increased by 46% to $51.7 million (What does EBIT mean?)
  • Reported profit increased by 31% to $20.56 million
  • Dividend increased to 5.5 cents per share

One of the main drivers of Bega’s result was the 22% increase of production volume for the cheese company.

Bega Cheese is ‘in the transition phase of the newly created Bega Foods’ after acquiring Vegemite and Zoosh.

CEO Paul van Heerwaarden said, “The long term strategy and positioning of the company’s business platform is the key to delivering consistent results even in the face of market volatility and aggressive competitor behaviour. We have long held the view that we must expect the challenges and the opportunities in our business to constantly change and we should direct strategy and investment to deal with that change.”

Bega Cheese Ltd shares were trading 4.4% lower at $7.02 on Wednesday, according to Google Finance.

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