AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
Bega Cheese states that rising input costs may bring down its normalised EBITDA in FY23.
The dairy firm’s EBITDA may stand in the range of AU$160 million to AU$190 million.
For the half year ended 26 December 2021, Bega Cheese reported a record revenue.
Australian dairy firm Bega Cheese Ltd (ASX:BGA) on Thursday said that rising input costs may bring down its normalised earnings before interest, tax, depreciation and amortisation (EBITDA) in FY23, compared to its earnings guidance for FY22.
The cheese and vegemite maker issued a warning that surging prices of milk in June and July would cut down its EBITDA to the range of AU$160 million to AU$190 million, versus the guidance range of AU$175 million to AU$190 million in FY2022 announced in April.
While several higher input costs have been passed to retail and wholesale markets, Victorian farmgate milk prices have now surged 30% over FY2022 prices, Bega Cheese said in its latest update released on Thursday morning.
In April this year, the ASX-listed firm had informed the market about the challenges it was facing due to COVID-19, flood, Russia-Ukraine war, and the impact of COVID-19 lockdowns on product deliveries to the China via the Port of Shanghai.
What does FY23 look like for Bega Cheese?
Sounding a cautionary note for FY23, Bega Cheese stated that its performance in the ongoing financial year might be dented by “delays in timing of some of these higher product prices and the finalisation of secured milk volumes during July”.
“The company’s strong brand portfolio, extensive chilled distribution network, Australian and international product mix, and customer profile positions it well to recover the higher costs associated with the increase in farm gate milk prices through both the global commodity market and the retail and food service markets,” the company added.
Bega Cheese’s 1H FY2022 earnings
For the half year ended 26 December 2021, Bega Cheese reported a record revenue and increased profits despite facing challenges on account of COVID-19. The company’s revenue rose 113%. The acquisition of Lion Dairy and Drinks resulted in doubling the size of the company. The company’s normalised profit reported a 20% rise to AU$35.5 million in the past six months.
"Our revenue is at a record high for the first half up to $1.5 billion and with a statutory EBITDA of $97.2m, normalised to $106.4m,” Bega Cheese’s Chairman Barry Irvin had then said.
Bega Cheese’s share price snapshot
On Wednesday, the stock of Bega Cheese closed at AU$3.55, down 0.28%. The share price has fallen over 36% on a year-to-date (YTD) basis. The share price saw a dip of over 34% during the past year. The share price has slipped nearly 32% in the past six months. Bega Cheese’s shares fell more than 21% in the past month.
