February 27, 2023
Bega Cheese has reported a slump in profits in its latest half-yearly financial reports despite an increase in revenue.
In a report to the ASX on Thursday, the company reported that its revenue for the six months to December 25, 2022, was $1.675 million, up from $1.507 million in the same period last year.
However, earnings per share slumped from $11.7 million to $3.1 million, a drop of 74 per cent.
The company blamed the timing of farmgate milk price rises, a declining milk supply linked to labour shortages and floods, and inflationary pressure for the hit.
However, it reported continued growth and strong performance of its branded products, including its spreads category.
Bega announced recently it would close its Canberra manufacturing facility, formerly known as Capitol Chilled Foods.
Bega’s share price has dropped from a recent high of $4.04 on January 18 to $3.48 on Monday, but is still ahead of its nine-year low of $3.12 on October 21.
