Company Interview / Bega cuts the fat, builds the muscle

Key points:

Focus on protein, gut health and wellness products as primary growth driversFactory consolidation, automation and cost-out programme aimed at lifting marginsStrong milk pool growth and farmer engagement underpin supply security

CEO Pete Findlay outlines a strong year for Bega Group, pointing to a 12% rise in normalised EBITDA to $225.6 million and a 36% lift in normalised profit after tax. Revenue increases to $3.77 billion, supported by a fully franked total dividend of 14.5 cents per share. Findlay states that factory consolidation from 22 to 15 sites and modernisation have lowered unit costs while volumes rise, with headcount reduced by about 900 roles. He adds that FY27 normalised EBITDA is guided in a range of $200–245 million.

Findlay highlights strategic focus on higher-margin, wellness-oriented categories such as yoghurt, milk-based beverages and cream cheese, underpinned by global trends towards protein, gut health and functional nutrition. Milk intake is said to be up 7%, with Bega’s share of the Australian milk pool growing as farmers respond to competitive pricing and perceived industry viability. Asia and the Middle East are described as key engines, with expectations of high-teens to low-20s percentage growth in international branded revenue over coming years.

Capital expenditure of $110 million is directed to lifting yoghurt and cream cheese capacity by about 25% and milk-based beverages by around 10%. Findlay targets EBITDA above $310 million by 2031, contingent on execution, innovation and continued capacity expansion, alongside progressive dividend growth.