Bega Cheese reports US$202.3M EBITDA in FY2026

AUSTRALIA – Bega Group has achieved statutory earnings before interest, tax, depreciation and amortisation (EBITDA) of US$202.3 million, an increase of $36.8 million or 22% in FY2026.

Branded segment normalised EBITDA was US$157.3 million (A$220.7 million), up US$11.0 million (A$15.5 million), or 8%, compared to the prior period.

Operational highlights of the FY2026 Branded result included: strong volume growth in branded yoghurt, milk-based beverages and white milk; increased demand for high-protein and ‘better for you’ products, supported by higher marketing; savings associated with the exit of primary peanut processing; and international revenue growth of 12%.

The Bulk segment normalised EBITDA was US$37.9 million (A$53.2 million), an increase of US$10.3 million (A$14.5 million), or 37%, compared to the prior period.

This performance reflects Increased integration of bulk ingredients into Bega Group’s Branded product range, growth in milk intake, a higher-value dairy ingredients product mix, stronger sales of nutritional powders, and improved alignment of dairy commodities and farm-gate milk prices, particularly in the first half.

Unallocated (including inter-segment eliminations) recorded a normalised EBITDA of negative US$34.4 million (A$48.3 million), compared to negative US$29.9 million (A$41.9 million) in the prior comparative period.

The result was impacted by payroll inflation, investments in software as a service, and implementation costs associated with a back-office efficiency program which will benefit FY2027.

Bega Group had consolidated net debt of US$108.0 million (A$151.6 million) as at 30 June 2026, compared to US$89.9 million (A$126.1 million) as of 30 June 2025, an increase of A$25.5 million.

The increase reflects a significant capital investment program and restructuring payments of A$37.1 million, mainly associated with manufacturing rationalisation initiatives.

Bega Group’s normalised EBITDA-to-net-debt leverage ratio remained low and constant with the prior financial year at 0.8 times.

Outlook

During FY2026 Bega Group refreshed its strategic plan, extending the target horizon to FY2031, and lifted its ambition to a normalised EBITDA of more than A$310 million for that year.

Marketing investment behind leading Australian brands has increased over the past two years and is expected to fuel growth in core categories and ‘better for you’ products. Demand for protein is expected to continue to elevate through FY2027 and beyond.

Bega Group’s end-to-end supply capability across both segments leaves it well placed to capture this growth. International sales growth is forecast to remain strong with continued focus on Southeast Asia.

Two major initiatives were completed in FY2026: the automation of Bega Group’s largest warehouse in Laverton and the consolidation of cheese packaging and processing at Ridge Street. Bega is expected to deliver significant savings in FY2027.

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