Bega Cheese profits drop as dairy industry shifts into difficult time
Bega Cheese has not escaped dairy industry troubles announcing a big drop in profits for the 12 months ended the 30 June 2015.
The company announced net profits after tax of $12.4 million, a fall of 81 per cent on record 2014 results.
Bega saw a $29 million reduction in returns from global commodity sales which the dairy producer said significantly impacted results.
Despite the profit drop, Bega Cheese believes it has responded well to falling dairy prices caused by an oversupply of milk globally.
Record 2014 profits also included the sale of Warrnambool Butter and Cheese shares.
Strong revenue growth on consumer packaged goods and nutritional platforms
Bega Cheese’s revenue totalled $1.1 billion, an increase of $43 million.
The company said it saw strong revenue growth in consumer packaged goods and nutritional platforms including its infant formula products. These areas grew by a combined $72 million in revenue.
Bega was able to bring its new infant blending and canning plant in Derrimut Victoria to full production in the 2015 financial year.
Bega looking to the future
Executive Chairman Barry Irvin said forward thinking was helping the company tackle the tough industry conditions.
“Bega Cheese has continued to invest in the future, adding capability and capacity in higher value add consumer goods and nutritional platforms,” said Irvin.
“It is pleasing to see that these strategic investment initiatives have enabled the business to maintain its growth momentum even though the global dairy industry has seen major contraction in the value of dairy commodities.”
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