Bega Cheese has reported a half-year revenue increase of 11 per cent, including 4 per cent volume growth in the branded business segment, despite the pressures of lower milk supply and inflation.
The group’s revenue exceeded $1.6 billion, an increase of 11 per cent on year, with growth in branded goods of 13 per cent, reflecting significant price increases and volume growth.
In what the company describes as a challenging first half of the year, it says its increase in earnings and volume demonstrated customer loyalty and continued strong demand for its brand portfolio.
However, the group’s first-half EBITDA was $76.1 million, a decrease on the prior comparative period of $25.6 million or 26 per cent.
The company said the result reflected the importance of the group’s diversification with continued growth and strong performance in the spreads and bulk dairy ingredients categories.
Bulk dairy ingredients revenue grew 2 per cent, benefitting from high-dairy commodity prices but limited by lower milk supply, caused by labour shortages, extensive flooding, high land prices, and the attraction of high prices in other commodities, such as beef.
The company says these headwinds are expected to moderate in the year’s second half and the following year.
