Key Highlights

  • Revenue increased 6.7% to $3.775 billion, while statutory EBITDA rose 22.2% to $202.3 million.
  • Normalised PAT increased 35.8% to $69.0 million, with normalised EPS rising 36.1% to 22.6 cents.
  • Net Debt increased 20.2% to $151.6 million, although Leverage remained at 0.8 times.
  • Bega declared a fully franked final Dividend of 7.5 cents per share, taking FY26 dividends to 14.5 cents per share.

Bega Cheese (ASX: BGA) surged +5.57% to $6.34 AUD today, rewarding the company's impressive 36% profit increase. Strong branded segment growth and improved bulk Earnings overshadowed rising net debt concerns. The company reported higher Revenue and profitability for the financial year ended 30 June 2026, with growth across both its Branded and Bulk segments. Group revenue increased $235.6 million, or 6.7%, to $3,774.6 million from $3,539.0 million in FY25. Statutory EBITDA rose 22.2% to $202.3 million, while statutory EBIT increased $79.8 million to $106.9 million.

Statutory profit after tax was $54.8 million, compared with a loss of $8.5 million in the previous year. Normalised PAT increased 35.8% to $69.0 million from $50.8 million, while normalised EPS rose 36.1% to 22.6 cents from 16.6 cents.

Branded segment remains the largest earnings contributor

The Branded segment recorded normalised EBITDA of $220.7 million, an increase of $15.5 million, or 8%, from FY25. Growth was supported by higher volumes across branded yoghurt, milk-based beverages and white milk.

Demand for high-protein and products positioned around health and nutrition also increased, alongside higher Marketing investment. Bega Group additionally benefited from savings following its exit from primary peanut processing. International revenue increased 12%, with overseas markets remaining part of the company's growth strategy.

Bulk earnings rise 37%

The Bulk segment delivered normalised EBITDA of $53.2 million, up $14.5 million, or 37%, year on year. The increase reflected greater integration of bulk ingredients into Bega's branded product range, higher milk intake and a higher-value dairy ingredients mix.

Sales of nutritional powders also increased. Bega said the alignment between dairy Commodity prices and farm-gate milk prices improved, particularly during the first half of FY26, contributing to the segment's result.

Costs and restructuring affect unallocated earnings

Unallocated normalised EBITDA was negative $48.3 million, compared with negative $41.9 million in FY25. The deterioration reflected Payroll inflation, software-as-a-service investments and implementation costs linked to a back-office efficiency program.

Bega also incurred costs associated with the closure of its Strathmerton site and the consolidation of cheese packaging and processing at its Ridge Street Facility in Bega. The company also recorded costs related to its exit from primary peanut processing, including the sale of facilities in Kingaroy and Tolga.

Net debt rises while leverage remains unchanged

Consolidated net debt increased $25.5 million, or 20.2%, to $151.6 million at 30 June 2026 from $126.1 million a year earlier. The increase was associated with a significant capital Investment program and $37.1 million of restructuring payments, primarily related to Manufacturing rationalisation.

Despite the higher debt balance, the normalised EBITDA-to-net-debt Leverage Ratio remained unchanged at 0.8 times. This reflects the increase in earnings alongside the higher net debt position.

Final dividend declared

Bega Group declared a final fully Franked Dividend of 7.5 cents per share for FY26. Together with the interim dividend, total dividends declared for the year reached 14.5 cents per share, equivalent to $44.3 million.

The final dividend is scheduled to be paid on 1 October 2026, with the Dividend reinvestment Plan activated for the payment.

FY27 outlook

Bega Group has extended its strategic planning horizon to FY2031 and is targeting normalised EBITDA above $310 million for that year. The company expects continued Demand for protein products, further growth in core categories and ongoing international sales momentum, particularly across Southeast Asia.

Two major initiatives completed during FY26 are expected to contribute savings in FY27: automation of the company's largest Warehouse in Laverton and the consolidation of cheese packaging and processing at Ridge Street in Bega. Subject to normal trading conditions, Bega expects FY27 normalised EBITDA to be between $240 million and $245 million.

Conclusion

Bega Group entered FY27 with higher revenue, improved profitability and continued growth across its Branded and Bulk operations. Normalised PAT and EPS recorded double-digit percentage increases, while the company maintained a 0.8-times leverage ratio despite higher net debt. The Business also declared a 7.5-cent final dividend, taking full-year dividends to 14.5 cents per share. At the same time, restructuring and investment costs increased unallocated expenses, leaving FY27 execution and the delivery of targeted operational savings as important factors in the company's next financial period.