Shares in Bega Cheese Ltd (ASX: BGA) have hit a new high watermark for the past 12 months after the company delivered a solid rise in net profit.
The company said in a statement to the ASX on Thursday morning that first-half revenue had come in at $1.87 billion, up 5%, while net profit was 55.3% higher at $46.9 million.
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Strength across both major divisions
The company said its Branded Products division delivered a normalised EBITDA of $112.5 million, up 8%.
The company added:
Bega Group fuelled growth in core categories by launching new products to support evolving consumer needs and increased marketing investment to support its leading brands. The company continued to expand sales with growth in grocery, foodservice and international channels in line with strategic objectives. Additionally, the transformational manufacturing initiatives previously announced remain on track with cost savings projected in 2H FY2026 and FY2027.
The company also delivered strong results in its bulk division, with segment EBITDA of $41.1 million, up 68%.
The company said:
This significant improvement is due to a better initial alignment of farm gate milk prices to dairy commodity prices, incremental milk supply, additional toll manufacturing, and a focus on higher value commodities and nutritionals.
Bega declared an interim dividend of 7 cents per share, payable on April 2, up from 6 cents for the same period last year.
The company also upgraded its full-year guidance to a normalised EBITDA range of $222 to $227 million, compared with $215 to $220 million given at the company's annual meeting late last year.
Bega added that it had a strong balance sheet, which positioned it well to invest in future growth plans.
Bega Group had consolidated net debt of $219.8 million as at 28 December 2025, compared to $207.2 million as at 29 December 2024, an increase of $12.6 million. The increase in net debt was primarily from an increase in working capital (partly due to higher milk prices) and a reduction in the utilisation of the Trade Receivable Facility. Bega Group's normalised EBITDA to net debt leverage ratio decreased from 1.3 times at the end of 1H FY2025 to 1.2 times at 28 December 2025.
Bega shares traded as high as $6.37 in early trade on Thursday, which was a 12-month high for the stock, which has improved from $4.85 over the past year.
The shares were changing hands for $6.22, up 2.5% by mid-morning.
Bega was valued at $1.85 billion at the close of trade on Wednesday.
