Bega downgrades earning forecast
The lower than forecast result for FY15 reflects the impact of a weaker than expected recovery in global dairy commodity prices.
While February and March saw some recovery, the expected continued improvement in pricing has not occurred and price improvement has not been maintained.
The Bega Cheese business has been impacted by returns from skim milk powder with pricing affecting both the value of sales and stock valuations.
Bega Cheese is pleased with the second half performance of its consumer goods, food service, and value added business platforms, particularly the infant and child nutritional platform.
The new canning and blending plant at Derrimut is performing to expectations having absorbed commissioning, start up costs, and built volume to the point where a third shift has been added.
Bega Cheese has a positive outlook for FY16 with strong growth in the nutritional and consumer goods and food services platforms.