Bega Group has forecast its “normalised” EBITDA will grow by more than a fifth in the Australian group’s financial year.
The Bega and Vegemite brands owner saw its normalised EBITDA increase 2% in the year to 30 June to A$164.1m ($111.6m) and is predicting the metric will reach A$190-200m in the new fiscal year.
In a statement, Bega Group said work on costs and cash would help profits but the company added – with the caveat of “subject to normal trading conditions” – it sees “continued growth” from its branded division and “a significantly improved performance” from its bulk business.
During the year to 30 June, the group’s bulk business generated a statutory EBITDA loss of A$18.2m (compared to a profit of A$38.3m the year before) amid a “disconnect” between global dairy commodities and Australian farmgate milk prices. Bega Cheese said it expects that disconnect to ease in the new year.
The statutory EBITDA from Bega Group’s branded division jumped 48% to A$206.2m. The company pointed to the “resilience” of its brands amid “low consumer confidence and downtrading”.
Group revenue was up 4% at A$3.52bn. Bega Group generates 86% of its external revenue from brands.
The business reported an 11% rise in sales from its brands in international markets to A$257m.
In June, the company started a review of its peanut processing assets in Australia.
This week, Bega Group announced it had secured a “binding agreement” to sell its juice extraction factory in Leeton, New South Wales, to local juice maker Grove Juice.
