Bega Group returned to profit with FY26 statutory PAT of $54.8m

Bega Group recorded statutory profit after tax of $54.8m in FY26. The result followed a programme of manufacturing and supply-chain changes that included closing the Strathmerton plant in Victoria, consolidating cheese cutting, packing and processing at the Ridge Street facility in Bega, and commissioning an automated logistics hub at Laverton.

The Branded division generated normalised EBITDA of $220.7m, an 8% increase. Volumes grew across yoghurt, milk-based drinks and fresh white milk. Sales of branded products in international markets increased by 12%, while demand for high-protein and functional products contributed to margins. The division also recorded early operating efficiencies after Bega left primary peanut processing.

Normalised EBITDA in Bulk ingredients climbed by 37% to $53.2m. The division handled a greater volume of raw milk and shifted its mix towards higher-value dairy ingredients and nutritional powders. During the first half of the financial year, global dairy commodity values became more closely aligned with Australian farmgate milk prices.

Bega also directed more bulk dairy solids into its branded consumer products. This changed the way those materials were processed within the group and improved internal processing margins, according to the company’s reported results. The movement of solids into branded products formed part of the division’s earnings improvement.

The network changes were completed alongside multi-year capital and supply-chain initiatives. Restructuring payments totalled $37.1m and contributed to net debt of $151.6m. Bega’s leverage ratio remained at 0.8 times. The company said the manufacturing and logistics changes were expected to deliver substantial cost savings in FY27.