Highlights

  • Bega Cheese (ASX:BGA) reported normalised EBITDA of $225.6 million in FY26, up 12%.
  • Normalised net profit after tax increased 36% to $69.0 million, while statutory profit recovered to $54.8 million.
  • The company achieved its 10% return on funds employed (ROFE) target around two years ahead of schedule.
  • Bega increased its full-year fully Franked Dividend by 21% to 14.5 cents per share.

Bega Cheese (ASX:BGA) has delivered its FY26 financial results, highlighting continued progress in its turnaround strategy through stronger branded performance, improved margins and operational efficiency gains.

The consumer staples company reported higher Earnings across the year, supported by growth in its branded portfolio, recovery in bulk dairy operations and ongoing Manufacturing network improvements.

FY26 Performance

Bega reported net Revenue of $3.8 billion in FY26, representing growth of 6.7%.

Normalised EBITDA increased 12% to $225.6 million, reaching the upper end of the company’s guidance range.

Normalised net profit after tax rose 36% to $69.0 million, while the statutory result improved significantly, moving to a profit of $54.8 million compared with a loss of $8.5 million in FY25.

The Board declared a fully franked full-year dividend of 14.5 cents per share, representing an increase of 21% compared with the previous year.

Branded Growth

Bega’s branded portfolio remained the key driver of earnings improvement.

The division includes established brands such as Vegemite, Bega cheese, Dairy Farmers, Farmers Union, Dare and Big M, providing exposure to higher-value consumer products.

Improved branded volumes, pricing discipline and a stronger product mix supported earnings growth and contributed to an increase in group EBITDA Margin to 6.0%.

The company continues focusing on strengthening its branded portfolio as a way to create more stable and higher-margin earnings compared with traditional bulk dairy activities.

Bulk Recovery

The bulk dairy division also improved during FY26 after facing previous challenges.

The recovery was supported by improved Commodity pricing conditions and a better relationship between farmgate milk costs and selling prices.

While bulk dairy remains exposed to commodity cycles and lower margins, its recovery contributed positively alongside growth in the branded business.

The combination of stronger branded earnings and improved bulk performance helped accelerate the group’s overall profit recovery.

Operational Improvements

Bega continued progressing its manufacturing rationalisation program during FY26.

The company has focused on simplifying its manufacturing network, consolidating operations and improving efficiency across its production footprint.

These initiatives have helped reduce costs and are expected to provide additional benefits into FY27.

The company also achieved its 10% return on funds employed (ROFE) target approximately two years ahead of schedule, with ROFE improving 1.6 percentage points to 10.0%.

Future Targets

Following the FY26 performance, Bega outlined higher medium-term ambitions.

The company is targeting:

  • Normalised EBITDA of $310 million or more.
  • Revenue between $4.3 billion and $4.7 billion.
  • Earnings per share of 37 to 39 cents.
  • Sustained double-digit ROFE.
  • A 40% carbon reduction target by 2030.

Bega’s FY26 normalised Earnings Per Share were 22.6 cents, meaning the company’s medium-term targets require continued earnings growth and successful execution.

The Balance Sheet remained supportive, with Leverage at 0.8 times, providing flexibility to invest while maintaining Shareholder returns.

Key Risks

Despite improving results, Bega remains exposed to several external factors.

Dairy commodity prices, farmgate milk costs, grocery Demand and input-cost Inflation continue to influence profitability.

The company also needs to maintain momentum across its branded portfolio and successfully deliver further manufacturing efficiencies.

While the turnaround strategy has gained support from FY26 results, achieving medium-term targets will depend on consistent execution.

Outlook

Bega Cheese enters FY27 with improved earnings momentum, stronger margins and a clearer pathway towards its longer-term growth ambitions.

The company’s branded portfolio, operational improvements and conservative balance sheet provide support for continued progress.

Investors will continue monitoring branded growth, manufacturing savings, dairy market conditions and progress towards the upgraded medium-term targets.