Bega Group reports revenue of US$3.53B in its FY25

AUSTRALIA – Bega group, a dairy manufacturer, has reported a revenue of US$3.54 billion compared to US$3.52 billion last year, delivering a strong normalised Group result.

A strong underlying financial performance was impacted by the restructuring costs of several transformational business improvement initiatives that position the Group exceptionally well for the future.

The normalised FY2025 EBITDA of US$202.0 million increased by US$37.9 million or 23% when compared to the prior period.

Normalised items in the current period include; the completed sale and exit of juice primary processing at Leeton NSW, the 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.

Operational highlights of the FY2025 result included: strong volume growth in branded white milk, yoghurt and spreads, the successful launch of branded high protein and ‘better for you’ products, execution of cost savings and continuous improvement programs.

Realignment of dairy commodities and farm gate milk prices, combined with a focus on higher value dairy commodities, returned the Bulk segment to profit, discipline on working capital optimisation, improved operating cashflow and a strong balance sheet with a leverage ratio of 0.8 times, led to the achieved results.

The Group maintained strong market share positions across key categories and continued to grow in foodservice and key Asian markets.

Continued focus on core categories, the success of our branded new product development pipeline, and the full year benefit of business restructuring contributed to the pleasing financial performance. Branded segment normalised EBITDA was US$205.2 million compared to US$199.9 million in the prior year.

The return to profit of the Bulk segment made an important contribution to the FY2025 result. Bulk segment EBITDA was a profit of US$38.7 million compared to an EBITDA loss of US$18.2 million in the prior year.

The Group had consolidated net debt of US$126.1 million as at 30 June 2025, compared to $ US$162.4 million as at 30 June 2024, a reduction of US$36.3 million.

The reduction in net debt was enabled primarily by an increase in operating profit (after adjusting for non-cash items) and a reduction in working capital.

The Group’s normalised EBITDA to net debt leverage ratio decreased from 1.3 times at the end of the prior fiscal year to 0.8 times at 30 June 2025.

Outlook

Subject to normal trading conditions, the Group expects continued growth in the Branded segment and stable returns in the Bulk segment.

The Group’s new product development pipeline will launch several exciting new products in FY2026, supporting further branded growth.

The manufacturing rationalisation initiatives announced are forecast to increase efficiency and effectiveness of the Branded segment and mitigate cost and overhead inflation towards the late stages of FY2026 with full year benefits being realised in FY2027.

The Group provides guidance of a normalised EBITDA in the range of US$215m to US$220m in FY2026.

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