November 4, 2024
Bega Group’s “strategic review” into its Peanut Company of Australia operations is still under way, chairman Barry Irvin told the group’s AGM last week.
Mr Irvin said Bega was always looking for opportunities to improve efficiency and productivity.
“We have previously announced a strategic review of the Peanut Company of Australia,” Mr Irvin said.
“That review is still under way and we continue to endeavour to simplify our business and make sure that we are driving productivity and efficiency.”
The AGM was told restructuring had made the branded segment of Bega’s business more effective, while at same time gross margins in the bulk-processing side had declined.
“As I have mentioned, we continue to keep our manufacturing footprint under review,” CEO Pete Findlay said.
“This year we have closed our Canberra site, closed two sites in Tasmania, sold our Leeton facility and are continuing to review our two peanut processing sites at Kingaroy and Tolga.
“The focus remains an endeavour to optimise our footprint and deliver better cost per unit out of our business.”
Mr Findlay said Bega’s review of PCA aimed “to achieve a better cost structure for our peanut butter business”.
Bega bought PCA’s operations in Kingaroy – which consists of the famous silos in Haly Street, shelling, sorting and roasting plants and associated facilities – in late 2017.
The review, being conducted by corporate advisory firm Kidder Williams, also covers PCA’s other operations in Gayndah and Tolga.
- Related article: Bega ‘Reviews’ PCA’s Future
