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1H FY2016 Results


Executive Chairman Commentary 1H FY2016 Results

Bega Cheese has announced a normalised 9.9% increase in profit after tax and an EBITDA of $32.9
million, a strong performance in the context of low global dairy commodity prices, significant
increase in global dairy production and continuing sanctions in Russia affecting global supply and

Bega’s strong branded business and product mix continues to deliver relatively stable revenue and
profitability to the company.

The Executive Chairman Barry Irvin said “The company’s focus on moving the business away from
commodities to branded and value added consumer goods continues. The announcement of the
Bega Cheese/Blackmores partnership in infant formula and life stage nutritionals was a further
important step in the branding and the value adding of our nutritionals production. Our
nutritionals platform grew its revenue by 32% in the first half. The link between dairy and the
health and pharmaceutical market sectors is now a major focus in our business development”.

Investment in manufacturing infrastructure, milk supply and a strong balance sheet means the
business is well positioned to support business growth. Infrastructure investments in the first half
have included increased capacity at the Derrimut canning facility, new natural cheese shred and
slice lines at the Ridge Street facility in Bega and value added packaging capabilities for cream
cheese at Tatura. The success of Bega Cheese’s Milk Sustainability and Growth Program was
reflected in a 6% increase in milk supply.

Barry Irvin further commented that, “Bega Cheese’s focus on Australian and international
consumer markets, strong branding and distribution alliances such as Blackmores and investment
in higher value dairy nutritionals means that we are well positioned to take advantage of unfolding
market opportunities”.

February 24, 2016
For further information please contact:
Barry Irvin Executive Chairman Bega Cheese
02 6491 7720