Key Highlights

  • The Chair told the AGM that FY2026 revenue grew almost 7% and profit after tax rose 36% to $69 million, while the fully franked dividend increased 21%.
  • CEO Pete Findlay reported return on funds employed of 10%, up 1.6 percentage points, a leverage ratio of 0.8 times and EBITDA growth of almost 12%.
  • Operating cash flow was $129.3 million, capital expenditure was $109.8 million, and FY2027 EBITDA guidance of $240 million to $245 million was confirmed.
  • Shareholders voted by poll on the remuneration report, the election of Peter Margin and Terry O'Brien, and proportional takeover provisions in the constitution.

Bega Cheese Limited (ASX:BGA), referred to at the meeting as Bega Group, used its Annual General Meeting on 21 October 2026 to set out its FY2026 figures and plans for FY2027. The Chair put revenue growth at almost 7% and profit after tax growth at 36% to $69 million, with return on funds employed at 10% and a fully franked dividend 21% higher. CEO Pete Findlay confirmed EBITDA guidance of $240 million to $245 million. Shareholders then voted by poll on four resolutions.

Profit, Returns and Cash Flow Figures for FY2026

The Chair said milk pool supply grew 7% during the year, alongside the revenue, profit and dividend figures. Findlay said return on funds employed rose 1.6 percentage points to 10%, meeting the company's 2028 target ahead of schedule. The leverage ratio fell to 0.8 times, and EBITDA (earnings before interest, tax, depreciation and amortisation) rose almost 12% year on year, giving a double-digit compound annual growth rate over the first three years of the strategy.

Findlay said the company grew EBITDA, revenue and margins at the same time, with net revenue growth driven by volume, product mix and pricing. The cash flow slide showed operating cash flow of $129.3 million, capital expenditure of $109.8 million and fully franked dividends of $37.3 million. Management said results are best judged on a normalised basis that removes one-off events, and the material normalisations this year related to manufacturing footprint rationalisation, particularly the closure of Strathmerton and the sale of Peanut Company of Australia.

Brands, Foodservice and Southeast Asia Under Simplify and Focus

The Chair said the company's model rests on owning everyday brands that hold number one or number two positions in their categories, running an operating network and maximising value from the approximately 1.4 billion litres of milk it buys each year. Findlay said the strategy, developed in the latter part of FY2023 around the principle of simplify and focus, is three years into a five-year plan, and that the company has refreshed its 2028 outlook through to 2031. The branded business performed well in yoghurt, milk-based beverages, spreads and cream cheese, particularly in international markets, helped by the Better For You innovation pipeline.

Foodservice grew 6%, below the prior year's rate and against subdued consumer sentiment. The international branded business continued to perform well, particularly in Southeast Asia, although supply constraints during parts of the year, linked to the Middle East conflict and demand above medium-term expectations, limited the company's ability to meet the market fully. The bulk business premiumised much of its portfolio and increased value-added protein offerings, while nutraceuticals and infant nutrition continued to perform well.

Marketing spend across the five power brands rose by $9 million. Project Thrive, a consumer-led innovation roadmap built on research done in 2025, will guide product development over the next five to ten years around five themes: gut health and wellbeing, weight wellness, everyday performance, treat and reward, and long-term consumer transformation.

Plant Changes and the FY2027 Guidance

Findlay said the transformation since 2023 included moving production from Canberra to Penrith, integrating the Betta Milk acquisition into Lenah Valley, selling the Leeton juice extraction site and the Queensland peanut processing assets, and closing Strathmerton, with volume moved to Ridge Street, Bega within 14 months. Findlay said Ridge Street doubled production capacity and a corporate head office restructure reduced costs by more than $20 million annually. The company also repurchased and reconfigured the Tatura dryer for protein valorisation.

For FY2027, Findlay confirmed EBITDA guidance of $240 million to $245 million, with first-half earnings relatively flat and growth weighted to the second half, driven primarily by the Branded business. The company plans capital expenditure of approximately $110 million to expand manufacturing capacity, and investment in yoghurt, cream cheese and milk-based beverages will continue through FY2027, with projects coming online in FY2028.

The Four Resolutions Put to a Poll

Bega Cheese Limited (ASX:BGA) put four resolutions to a poll: adoption of the remuneration report for the year ended 30 June 2026, the re-election of Peter Margin, the election of Terry O'Brien, and a special resolution to amend the constitution to insert proportional takeover provisions. The Chair said undirected proxies would be cast in favour of each motion. Poll results were not available before the meeting closed and were due to be announced to the ASX and published on the company website later that day.