Bega Cheese Limited · ASX:BGA
Bega Cheese — H1 FY2025 Earnings Presentation
31 slides from Bega Cheese's earnings presentation, Feb 20, 2025
Slide 1: 1H FY2025 Results Presentation
Bega Cheese Limited 1H FY2025 RESULTS PRESENTATION Barry Irvin – Executive Chairman Pete Findlay – CEO Gunther Burghardt – CFO 20 February 2025
Slide 2: Barry Irvin, Executive Chairman
Barry Irvin Executive Chairman
Slide 3: Our transformation
Our transformation We have built the capability and focus to grow as a leading branded food business. BUILD EXPAND BALANCE STRENGTH 1899-2000 2001-2016 2017-2020 2021-FUTURE • Dairy co-operative based in • Acquisition of Tatura and • New platform with acquisition of • Increased brand portfolio with
Slide 4: Key messages
Key messages – Strong 1H FY2025 Group results with continued successful implementation of Strategic Plan – Resilient Branded performance driven by focus on key categories and savings programs – Bulk business recovery – Continued refinement of Branded assets and footprint – Financial performance – St
Slide 5: Performance highlights
Performance highlights Strong progress on all key financial metrics in 1H FY2025 when compared to 1H FY2024. Net revenue EBITDA Profit after tax Basic EPS $110.3m 44% $35.9m 170% 11.8c 170% $1.8bn 3% Normalised Normalised Normalised $109.3m 27% $30.2m 14% 9.9c 14% Statutory Statutory S
Slide 6: Pete Findlay CEO, Gunther Burghardt CFO
Pete Findlay CEO Gunther Burghardt CFO
Slide 7: Our vision, purpose and values continue to shape and sustain our growth
Our vision, purpose and values continue to shape and sustain our growth 1H FY2025 Results Presentation 7
Slide 8: Strategy 2028 priorities
Strategy 2028 priorities Protect and grow the core Invest behind our ‘power brands’ to drive marketplace participation and growth Grow Branded business Win on the street – Core domestic grocery Improve competitiveness by leveraging our distribution and – Chilled distribution network servicing petrol
Slide 9: 1H FY2025 strategy highlights
1H FY2025 strategy highlights Branded innovation − Dare and Farmers Union high protein offers − Strong growth in better for you offers - lactose free extensions, no sugar added, protein − Strong growth in pouched yoghurt – kids focus Increased investment behind power brands − Eight brand campaigns c
Slide 10: 1H FY2025 strategy highlights
1H FY2025 strategy highlights International revenue growth − 1H FY2025 record sales in South East Asia. − Increased in ‘on the ground’ presence in Singapore, Thailand and Dubai including In-house Chef based in Malaysia covering SEA sales. − Direct model in China with select key retailers. Domestic F
Slide 11: Consumer trends
Consumer trends Four key consumer trends continue to shape portfolio and activation priorities Better Value Functional Demographic Sustainability Health Evolution Cost of living pressures see Continuing desire for Australia trends towards Sustainable solutions consumers shift to seek better function
Slide 12: Market leading brands in growth categories
Market leading brands in growth categories Category Category Bega’s Market Category Bega Brands size $m annual growth share position – Our eight ‘power brands’ contribute >70% of Fresh white 2,148 0% 12% 3 milk branded revenue Yoghurt 1,998 9% 24% 2 – Iconic Australian brands with enduring appeal Mi
Slide 13: Portfolio innovation lead growth
Portfolio innovation lead growth Expanded portfolio in core categories Evolving the portfolio to respond to consumer Functional Health preferences: – Meeting demand for protein No Sugar added – Promotion health with No Lactose Free Sugar Added offers – Providing new Lactose Protein Free options for
Slide 14: Core brand growth
Core brand growth Focused Brand investment enabled growth – 125 year anniversary of Dairy Farmers ‘Start with OOMPH’ campaign launch including TV advertising and out of home campaign – Dare ‘A Dare Fix’ll Fix it’ campaign TV, retail media and out of home campaign and ‘R U OK’ instore brand activity
Slide 15: Manufacturing network
Manufacturing network Continuous focus on streamlining and simplifying Key 1H FY2025 Initiatives: – Sale of Leeton juice primary processing facility in October 2024 further simplified our supply network – Strategic review of Peanut Company of Australia (PCA) underway – Reduced over 25% of coolrooms
Slide 16: Farm gate milk price and commodity returns
Farm gate milk price and commodity returns Victorian Milk Price and Commodity Value $11.00 Key themes: $10.00 – Bulk business recovering, however, still not at $9.00 long term historic levels $8.00 – In response to normalising commodity prices, Bega has increased its Victorian milk price $7.00 range
Slide 17: Refreshed sustainability strategy
Refreshed sustainability strategy Our strategy has evolved to meet our sustainability ambitions for the future Our sustainability ambition CIRCULARITY COMMUNITY COLLABORATION Leading in circularity Making a positive and Working together with through our practices, lasting impact by our producers and
Slide 18: Financial key messages
Financial key messages Group normalised EBITDA $110.3 million, higher by $33.8 million (+44%) compared to 1H FY2024. Branded EBITDA $104.2 million, higher $7.4 million (+8%) − Strong growth in Yoghurt, Spreads, Foodservice and International. − Growth in Grocery and Foodservice offset reduced foot
Slide 19: Profit and loss
Profit and loss Normalised 1H 1H Statutory 1H 1H +/- % +/- % $ millions FY2025 FY2024 $ millions FY2025 FY2024 Net Revenue 1,782.1 1,728.0 3% Net Revenue 1,782.1 1,728.0 3% EBITDA 110.3 76.5 44% EBITDA 109.3 86.1 27% D&A (46.0) (42.9) 7% D&A* (52.7) (42.9) 23% EBIT 64.3 33.6 91% EBI
Slide 20: Key performance measures
Key performance measures $ millions unless otherwise stated 1H 1H Key points (Normalised) FY2025 FY2024 Change Net Revenue Growth vs prior year 3.1% 3.2% (0.1) ppts − Revenue growth 3.1%, similar to the growth achieved in prior year. Gross margin (% of Net Revenue) 21.8% 20.2% 1.6 ppts EBIT
Slide 21: Bulk turnaround and Branded growth
Bulk turnaround and Branded growth Normalised EBITDA ($ millions) 1H FY2024 to 1H FY2025 30.0 (0.4) 110.3 (3.2) 7.4 76.5 1H Branded Bulk Unallocated Inter- 1H FY2024 segment FY2025 elimination 1H FY2025 Results Presentation 21
Slide 22: Segment performance
Segment performance Inter- Unallocated segment ($ million) Branded Bulk overheads elimination Group total External revenue * 1,522.2 259.9 - - 1,782.1 Growth vs 1H FY2024 % 1% 18% - - 3% Normalised EBITDA 104.2 24.4 (16.5) (1.8) 110.3 Increase/(decrease) vs 1H FY2024 7.4 30.0 (0.4) (3.2) 33
Slide 23: Reconciliation of normalised result
Reconciliation of normalised result Consolidated Per Manufacturing period ended 29 December 2024 financial footprint Normalised ($ million) statements rationalisation* outcome Revenue 1,782.1 - 1,782.1 Cost of sales (1,393.0) - (1,393.0) Gross Profit 389.1 - 389.1 EBITDA 109.3 1.0 110.3 Dep
Slide 24: Balance sheet
Balance sheet 1H FY2025 2H FY2024 Balance Sheet* $m $m Key points Cash 57.8 65.6 Trade and other receivables 309.8 350.9 − Net debt of $207m, a seasonal increase of $44m Inventories 404.5 358.1 against 2H FY2024. Property, plant and equipment 656.9 673.4 − Leverage ratio of 1.3x is equal to th
Slide 25: Cash flow
Cash flow 1H FY2025 1H FY2024 Key points Cashflow $m $m Receipts from customers 1,879.0 1,798.5 − Operating cashflow +$24m excluding Payments to suppliers and employees (1,825.9) (1,785.5) the reduction in the use of Trade Receivable Net proceeds from Trade Receivables Facility (35.2) 6.3 Facil
Slide 26: Outlook
Outlook The Group reaffirms its guidance of a normalised EBITDA of $190 to $200m in FY2025. The Group expects to be at the upper end of this range. Challenging consumer environments expected to continue through 2H FY2025 Increase in A&C investments to support innovation and our brands Planne
Slide 27: Barry Irvin, Executive Chairman
Barry Irvin Executive Chairman
Slide 28: Thank you & questions
Bes, THANK YOU & QUESTIONS
Slide 29: Appendix - glossary
Appendix - glossary Term Definition Basic EPS Basic earnings per share calculated by dividing net profit (or loss) after tax by the weighted average number of ordinary shares outstanding during the period CMV Commodity Milk Value, an indicator that is based on a weighted basket of spot prices of maj
Slide 30: Disclaimer
Disclaimer This presentation contains a summary of information about Bega Cheese Limited ACN 008 358 503 (BGA) and its subsidiaries (Bega Group). The information does not purport to be complete and should be read in conjunction with other BGA ASX announcements. The presentation may contain statement
Slide 31: bega.com.au
bega.com.au