Australia: Bega Cheese announces record profit

Australia: Bega Cheese announces record profit

Australian dairy producer Bega Cheese has posted record profit for its 2013/14 financial year, ABC Online and The Business Spectator report.

Bega posted a total net profit of A$66 million ($61 million), up 160 % on the A$25.4 million it booked in 2012/13, much of which was attributed to the company’s sale of Warrnambool to Canadian firm Saputo, after its own failed takeover bid. Bega’s shares in Warrnambool were worth in the region of A$99 million ($92.1 million).

Commenting on the results, Bega’s Executive Chair Barry Irvin said: "We have an extraordinarily strong balance sheet with no net debt. No net debt, in fact cash in the bank".

Bega’s revenue also grew to A$1.06 billion ($0.99 billion) over the year. Mr Irvin said: “The result highlights we have had a revenue growth of six point five per cent mostly on the back of stronger commodity prices and the growth in our infant nutritional business".

Meanwhlie the company continues to eye the Asian market for growth, with the region now accounting for 28% of its sales. Bega chief executive Aidan Coleman said: "There does remain a strong underlying demand for dairy products in Asia. There is a very good base for expansion".

Source: ABC Online / Business Spectator