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1H FY2026 RESULTS PRESENTATION Bega Cheese Limited Barry Irvin – Executive Chairman Pete Findlay – CEO Gunther Burghardt – CFO 19 February 2026 For personal use only
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Barry Irvin Executive Chairman For personal use only
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3 1H FY2026 Results Presentation 3 Our transformation We have built the capability and focus to grow as a leading branded food business. BUILD 1899-2000 • Dairy co-operative based in Bega Valley • Primarily cheese production EXPAND 2001-2016 • Acquisition of Tatura Milk Industries • Investment in scale and capacity • Successful ASX listing • Product expansion into nutritionals, cream cheese, cheese cut and wrap BALANCE 2017-2020 • New platform with acquisition of grocery brand portfolio including Vegemite • Grow Branded business while diversifying milk sourcing • Product expansion into spreads and other non-dairy STRENGTH 2021-2025 • Increased brand portfolio with iconic dairy brands • Extensive distribution network with an expanded customer base • Accelerated investments in innovation and branded growth • Product expansion into beverages, yoghurts and more FUTURE 2026-2030 • Product innovation that responds to the functional health benefits of dairy • Productivity through technology and scale • Grow international branded presence • Expand global sourcing For personal use only
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Gunther Burghardt CFO Pete Findlay CEO For personal use only
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5 1H FY2026 Results Presentation 5 Our vision TO BECOME THE GREAT AUSTRALIAN FOOD COMPANY Our purpose CREATING GREAT FOOD FOR A BETTER FUTURE Our values GROW OUR PEOPLE SUPPORT EACH OTHER INVEST IN OUR FUTURE PASSION FOR THE CUSTOMER AND CONSUMER For personal use only
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6 1H FY2026 Results Presentation 6 Transformation Program instrumental in Bega’s success • Half-way through 5-year Strategic Plan initiated in FY2023: clear momentum and ahead of targets • Major category investments and innovation in protein, lactose free and other ‘better for you’ products • Largest ever Bega manufacturing consolidation program: 22 production sites down to 15 by end FY2026 • Over 25% reduction in nationwide warehouse and depot network locations. Canberra site shutdown and consolidation into Penrith Acquisition of Betta Milk in Tasmania; business restructure to support new strategy International and foodservice expansion, innovation in lactose free, no sugar added Dare and Farmers Union high protein launches; Leeton site sale and Tasmania sites consolidation Cheese site consolidation and Laverton warehouse automation completes 1H FY23 2H FY23 1H FY24 2H FY24 1H FY25 2H FY25 1H FY26 Dairy Farmers protein smoothies launch; My Bega B2B portal roll-out complete Major protein yoghurt launches; Peanut processing asset sale 2H FY26 Morwell yoghurt and MBB capacity and innovation related investments For personal use only
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7 1H FY2026 Results Presentation 7 Key messages • Strong 1H FY2026 results reflect positive progress at the halfway mark of the 2028 Strategic Plan in both Branded and Bulk • Branded performance driven by a focus on key categories and innovation • Recent yoghurt, MBB and milk category protein and “better for you” launches are amongst our largest ever • Recovery in out-of-home consumption, continued foodservice growth • Accelerated international Branded growth inline with strategy • Bulk business: strong milk intake and continued focus on higher value commodities and nutritionals • Successful implementation of transformational and efficiency programs • Further improvement in staff engagement and safety results • Leverage ratio 1.2x (Dec 2025) compared to 1.3x (Dec 2024) • Bega Group is increasing its FY2026 guidance range to $222m to $227m of normalised EBITDA For personal use only
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8 1H FY2026 Results Presentation 8 Performance highlights Strong progress on financial metrics in 1H FY2026 when compared to 1H FY2025. ROFE 10.2% 2.3 ppts EBITDA Margin1 7.1% 0.9 ppts Group 7.0% 0.2 ppts Branded Profit after tax $52.1m 45% Normalised $46.9m 55% Statutory EBITDA $133.4m 21% Normalised $124.7m 14% Statutory Net revenue $1.9bn 5.0% Leverage ratio 1.2x 0.1x Basic EPS 17.1c 45% Normalised 15.4c 56% Statutory Interim Dividend (fully franked) 7.0 cps 17% 1 Normalised. For personal use only
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9 1H FY2026 Results Presentation 9 Strategy 2028 prioritiesFor personal use only
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10 1H FY2026 Results Presentation 10 1H FY2026 operational highlights • New product launches meeting evolving consumer needs with particular focus on high protein and ‘better for you’ products • Increased marketing investment by $7.9 million to support power brands innovation • Double-digit revenue growth for Branded International business in 1H FY2026 • Above market growth in food service as well as some improvements in out-of-home consumption channel growth • Strong Bulk H1 performance with forward-selling of global dairy commodities, continued focus on higher-value commodity mix and additional toll manufacturing • Continued refinement of Branded assets and footprint • Consolidation of Strathmerton cheese packaging and processing site into Bega Valley on track to complete by June 2026 • Peanut Company of Australia (PCA) strategic review finalised with the decision to exit QLD manufacturing sites, with benefits being realised in the current fiscal year • Acceleration of capital investment planned for remaining key manufacturing sites to support growth • Optimisation of chilled distribution network • Laverton warehouse automation progressing; completion expected 2H FY2026 • Warehouse consolidation: sale of Frenchs Forest complete in 1H FY2026 • Software investments in revenue management and robotic process automation For personal use only
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11 1H FY2026 Results Presentation 11 Consumer trends Changing consumer trends continue to shape portfolio and activation priorities Gut health Weight wellness Healthy mind Everyday performance Treat & reward I want strength and vitality I want better overall wellness I want help to manage weight. I want clearer thinking I want to treat myself For personal use only
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12 1H FY2026 Results Presentation 12 Market leading brands in growth categories Category Category size $m Category annual growth Bega’s share Market position Bega Group Brands Fresh white milk 2,272 1% 15% 2 Yoghurt 2,261 13% 24% 2 Milk based beverages 1,211 12% 45% 1 Spreads 804 6% 27% 1 Chilled juice 749 8% 18% 2 Creams and custards 683 4% 8% 4 Water ice 65 -4% 91% 1 Data (retail sales value) sourced from Circana Market Edge 12 months to 28 December 2025 based on data definitions provided by Bega. (Market: AU Grocery Unweighted and Structured Convenience). Excludes Costco, Aldi, local trade and unstructured convenience. For personal use only
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13 1H FY2026 Results Presentation 13 Increased investment to support high growth categories Yoghurt1 (category in kgs) Dec 2022 Dec 2025 ‘22-25 CAGR +6% Milk-based beverages1 (category in litres) Dec 2022 Dec 2025 ‘22-25 CAGR +5% Group capital expenditure (annual average) FY22 -FY25A FY26 -FY28E 1 Retail sales volume sourced from Circana Market Edge 12 months to December based on data definitions provided by Bega. (Market: AU Grocery Unweighted). Excludes Costco, Aldi, local trade, structured and unstructured convenience. $77m $90 -$110m For personal use only
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14 1H FY2026 Results Presentation 14 Gut health Everyday performance Treat & reward Portfolio growth through trend framework Expanded portfolio in core categories Evolving the portfolio to deliver to consumer needs • Expanded our refreshed milk-based beverage portfolio with new Dairy Farmers mango and vanilla protein smoothies and launched Masters 36g protein coffee and chocolate milk in Western Australia. • Launched high protein milk with 18g protein per serve in Dairy Farmers white milk. • Launched the #1 yoghurt brand, Farmers Union Greek Yogurt, into high protein yoghurt with 15g and 16g protein per serve. • Added to the Dare Charged range with strawberry mocha. • Expanded lactose free white milk across the country through local brands, Masters Milk in WA and Betta Milk in Tasmania. • Created our thickest and creamiest Dairy Farmers, elevating the range with indulgent Murray River Salted Caramel and Choc Flakes. For personal use only
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15 1H FY2026 Results Presentation 15 Core brand growth Focused brand investment enabled growth • Dairy Farmers continued it’s ‘Start with OOMPH’ campaign, partnering with Travis Head for the Ashes cricket series to drive the Dairy Farmers range of protein smoothies and white milk. • Dare partnered with the National Rugby League to drive strong awareness of the new Charged and Protein ranges among core consumers, accelerating Dare Protein to be the number one high protein ice coffee. • Farmers Union protein ‘made delicious’ campaign supporting the launch of the best tasting high protein yoghurt, accelerating growth of Farmers Union and putting the number one brand into 39% volume growth in the latest quarter. • Vegemite partnered with the Wiggles to inspire the next generation of Happy Little Vegemites, talking to the benefits of vitamin B, re-recording the jingle and performing live shows to families around the county. • Masters support of MIX 94.5 ‘Milk carton regatta’ to launch Masters new range of 36g protein Iced Coffee and chocolate milk cartons and 2ltr protein white milk. DW/MG For personal use only
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16 1H FY2026 Results Presentation 16 Manufacturing network Continuous focus on streamlining and simplifying Key 1H FY2026 Initiatives: • Completed sale of Kingaroy and Tolga peanut processing sites in December; Bega Group continue to operate Kingaroy facility until June. • Previously announced consolidation of Strathmerton cheese site into Ridge Street in the Bega Valley on- track to be completed in late FY2026. • Currently commissioning significant automation of Laverton distribution centre. • Warehouse consolidation and sale of property in Frenchs Forest NSW in December. Distribution entres Production Sites Depots a anda ingaroy rest ead enrith etheri ar ith e d enah a ey ega agoon idge treets or e he sea trath erton ent ey ort e bourne oroit a isbury atura hite Milk and Milk Based Beverages Milk Based Beverages Hub heese 2 Dairy Powder and Fats Peanuts uice oghurt Spreads 17 6 72 * Site closure planned June 2026 # Kingaroy facility leased to June 2026 For personal use only
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17 1H FY2026 Results Presentation 17 Farm gate milk price and commodity returns Key themes: • Decline in national milk pool, -1.6% in 1H FY2026 versus prior year mostly from drought impacted South Australia and Victoria.1 • Modest single digit growth in the Group’s milk intake in 1H FY2026. • Better initial alignment of dairy commodity prices achieved and focus on higher value dairy commodities and strong performance in nutritionals in 1H FY2026. • Majority of full year Bulk segment profit expectations delivered in 1H FY2026 due to milk seasonality and commodity price trends. • Limited exposure to global commodity prices for the remainder of FY2026. Source: Ever.Ag Insights Victorian milk price and commodity value $A/kg milk solids Average Victorian milk price Aust CMV 1 Source: Dairy Australia For personal use only
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18 1H FY2026 Results Presentation 18 CIRCULARITY Leading in circularity through our practices, industry partnerships and effective use, reuse and recycling of our resources. COMMUNITY Making a positive and lasting impact by supporting our people, their families and our communities. COLLABORATION Working together with our producers and communities to enable sustainable practices, grow domestic economies and deliver great Australian products that people love and trust. Sustainability: Great food for a better future The sustainability strategy focuses on three pillars • Informed by our most material sustainability impacts. • Aligns with our vision of an enduring legacy of our business • Demonstrates our commitment to the United Nations Sustainable Development Goals. For personal use only
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19 1H FY2026 Results Presentation 19 Financial key messages Group normalised EBITDA $133.4 million, higher by $23.1 million (+21%) compared to 1H FY2025 Branded EBITDA $112.5 million, higher by $8.3 million (+8%) compared to 1H FY2025 • Strong sales growth in yoghurt, juice, milk-based beverages and white milk. Spreads in slight decline due to deletion of retail honey • Solid growth in grocery and foodservice. Branded international revenue growth 13% to $150m in 1H FY2026 • Higher brand marketing by $7.9 million behind key brands and innovation Bulk segment EBITDA returns improve to $41.1 million in 1H FY2026, higher by $16.7 million compared to 1H FY2025 • A well-positioned product mix particularly from cream cheese, milk protein concentrate and lactoferrin, increased milk supply and additional toll manufacturing. Manufacturing rationalisation and warehouse automation • Sale of primary peanut processing assets at Tolga and Kingaroy, Queensland • On track to consolidate cheese processing from Strathmerton to Bega by end FY2026 • Laverton automation underway in 1H FY2026 and will complete in 2H FY2026 Net debt at $219.8 million, slightly up ($12.6 million) on 1H FY2025 from higher working capital (cost of inventory) and lower utilisation of the Trade Receivable Facility (TRF) by $15m Leverage ratio of 1.2x, below 1H FY2025 from increased earnings in 1H FY2026 For personal use only
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20 1H FY2026 Results Presentation 20 Profit and loss Key points • 1H FY2026 net revenue +5.0% with growth of 4.8% in Branded and 5.9% in Bulk. • Normalised EBITDA +14% with Bulk and Branded contributing an incremental $16.7m and $8.3m respectively. • Lower finance costs reflect interest rate reduction. • Normalised profit after tax (PAT) +45% and normalised EPS higher by 45% to 17.1 cents per share for the first half. Normalised Statutory $ millions $ millions Net revenue 1,871.3 1,782.1 5.0% Net revenue 1,871.3 1,782.1 5.0% EBITDA 133.4 110.3 20.9% EBITDA 124.7 109.3 14.1% D&A* (45.9) (46.0) (0.2)% D&A* (46.6) (52.7) (11.6)% EBIT 87.5 64.3 36.1% EBIT 78.1 56.6 38.0% Net finance costs (15.5) (16.7) (7.2)% Net finance costs (15.5) (16.7) (7.2)% Profit before tax 72.0 47.6 51.3% Profit before tax 62.6 39.9 56.9% Tax (19.9) (11.7) 70.1% Tax (15.7) (9.7) 61.9% Profit after tax 52.1 35.9 45.1% Profit after tax 46.9 30.2 55.3% Basic EPS (cents per share) 17.1 11.8 45.2% Basic EPS (cents per share) 15.4 9.9 55.6% * includes impairment +/- %1H FY2026 1H FY2025 +/- % 1H FY2026 1H FY2025 For personal use only
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21 1H FY2026 Results Presentation 21 Key performance measures Key points • Gross margin at 22.4% and ahead of prior year. • Leverage ratio improvement to 1.2x from increased earnings. Modest increase in net debt mostly from higher working capital and lower utilisation of the TRF. • ROFE up by +2.3 percentage points and now double digit at 10.2%. • 17% increase in 1H FY2026 fully franked interim dividend declared to 7.0 cents. $ millions unless otherwise stated (Normalised) Net revenue growth vs prior year 5.0% 3.1% 1.9 ppts Gross margin (% of net revenue) 22.4% 21.8% 0.6 ppts EBITDA 133.4 110.3 20.9% Depreciation and amortisation (45.9) (46.0) (0.2)% Net finance costs (15.5) (16.7) (7.2)% Profit after tax 52.1 35.9 45.1% Basic EPS (cents per share) 17.1 11.8 45.2% Dividends per share (cents per share) 7.0 6.0 16.7% Net debt 219.8 207.2 6.1% Leverage ratio (times) 1.2 1.3 (0.1) times Return on funds employed (%)* 10.2% 7.9% 2.3 ppts0.056 * calculated on 12 month rolling basis 1H FY2026 1H FY2025 Change For personal use only
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22 1H FY2026 Results Presentation 22 Both Branded and Bulk profitability improved in 1H FY2026 Normalised EBITDA ($ millions) 1H FY2025 to 1H FY2026 1H FY2025 Branded Bulk Unallocated Inter- segment elimination 1H FY2026 110.3 8.3 (1.7) 133.416.7 (0.2)For personal use only
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23 1H FY2026 Results Presentation 23 Segment performance Branded • Strong growth in volume and net revenue, particularly in yoghurt, milk and culinary. Above average growth in discounters and across wholesalers as well as improved trading conditions in foodservice. International revenue growth double digit. • Manufacturing rationalisation on processed cheese and primary peanut processing on track. Bulk • Positive product mix, increased milk supply and additional toll manufacturing. • Forward selling of dairy commodities and product mix achieved strong returns in 1H FY2026. Unallocated overheads • Payroll inflation, software SaaS costs and M&A activity. External revenue* 1,596.0 275.3 - - 1,871.3 Growth vs 1H FY2025 % 4.8% 5.9% - - 5.0% Normalised EBITDA 112.5 41.1 (18.2) (2.0) 133.4 Increase/(decrease) vs 1H FY2025 8.3 16.7 (1.7) (0.2) 23.1 * excludes inter-segment sales from Bulk to Branded Group total($ million) Branded Bulk Unallocated overheads Inter- segment elimination For personal use only
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24 1H FY2026 Results Presentation 24 Reconciliation of normalised result Consolidated period ended 28 December 2025 ($ million) Revenue 1,871.3 - 1,871.3 Cost of sales (1,456.4) 4.5 (1,451.9) Gross profit 414.9 4.5 419.4 EBITDA 124.7 8.7 133.4 Depreciation, amortisation and impairment (46.6) 0.7 (45.9) EBIT 78.1 9.4 87.5 Net finance costs (15.5) - (15.5) Profit before income tax 62.6 9.4 72.0 Income tax expense (15.7) (4.2) (19.9) Profit for the period 46.9 5.2 52.1 Basic earnings per share - cents 15.4 17.1 Normalised outcome Per Financial Statements Manufacturing footprint rationalisation* * includes planned closure and relocation of Strathmerton Victoria to Ridge St. Bega NSW and sale of primary peanut processing assets at Kingaroy and Tolga in Queensland.For personal use only
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25 1H FY2026 Results Presentation 25 Balance sheet Key points • Net debt of $220m, an increase of $94m from June and reflects a seasonal increase in working capital of $153m. • Leverage ratio of 1.2x improved compared to 1.3x in 1H FY2025 driven by increased earnings. • Receivables higher $146m with seasonal sales peak in Q4 and lower TRF utilisation of $45m. • Inventory higher $81m from both seasonal factors and higher value of inventory. • Payables higher by $74m due to seasonal suppliers and timing of purchases. • PP&E reduction to $655m reflects sales of Kingaroy, Tolga, depreciation, partially offset by capex. 1H FY2026 2H FY2025 $m $m Cash 75.2 120.9 Trade and other receivables 343.2 196.8 Inventories 447.5 366.3 Property, plant and equipment 654.8 657.8 Right-of-use assets 142.7 148.5 Intangible assets 467.1 472.4 Total Assets 2,186.8 2,040.7 Trade and other payables 529.2 455.0 Borrowing (net of costs) 294.1 246.0 Lease liabilities 189.7 193.6 Provisions 147.7 148.1 Total Liabilities 1,177.7 1,060.5 Net Assets 1,009.1 980.2 Net Debt (219.8) (126.1) * Key balances represented only Balance Sheet* For personal use only
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26 1H FY2026 Results Presentation 26 Cash flow Key points • Operating cashflow $5m excluding the reduction in the use of TRF facility by $45m and despite seasonal inventory build. • While capital & intangible expenditure increased versus 1H FY2025, a larger increase is expected in 2H due to manufacturing consolidation and yoghurt capacity initiatives. • Sale of Frenchs Forest and PCA assets occurred in 1H FY2026. Sale of Leeton site occurred in 1H FY2025. • Dividends paid increased to 6.0 cps (+2 cps on 1H FY2025). Receipts from customers 1,903.1 1,879.0 Payments to suppliers and employees (1,879.4) (1,825.9) Net proceeds from Trade Receivables Facility (45.0) (35.2) Net interest and other costs of financing paid (15.5) (16.7) Income tax paid (3.7) (12.3) Operating activities (40.5) (11.1) Investments in new PP&E and intangibles (40.4) (30.4) Net proceeds from sale of PP&E and intangibles 20.3 18.9 Investing activities (24.6) (11.5) Net proceeds of borrowings 48.0 37.0 Principal elements of lease payments (9.9) (11.0) Dividends paid to shareholders (17.1) (11.2) Financing activities 19.4 14.8 Net increase/(decrease) in cash and cash equivalents (45.7) (7.8) * Key balances represented only Cashflow 1H FY2026 $m 1H FY2025 $m For personal use only
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27 1H FY2026 Results Presentation 27 Outlook • Strong Branded new product development pipeline and continued benefits from roll-out and marketing support of recent innovation. • Cost management programs in supply chain / logistics and procurement supporting profit growth with Laverton warehouse automation to complete in 2H FY2026. • Strathmerton closure on track for June 2026, and benefits of Kingaroy and Tolga exits being recognised earlier than expected. • An increase in capital expenditure planned for 2H FY2026 to unlock the next phase of growth. • Majority of full year Bulk segment profit expectations delivered in 1H FY2026 due to milk seasonality and commodity price trends. • Bega Group are increasing its FY2026 guidance range to $222m to $227m of normalised EBITDA. • On track to exceed EBITDA target of $250 million by FY2028. For personal use only
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Barry Irvin Executive Chairman For personal use only
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THANK YOU & QUESTIONS For personal use only
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30 30 Appendix - glossary Term Definition Basic EPS Basic earnings per share calculated by dividing net profit (or loss) after tax by the weighted average number of ordinary shares outstanding during the period CMV Commodity Milk Value, an indicator that is based on a weighted basket of spot prices of major commodities such as cheese, butter, skim milk powder and whole milk powder converted to an Australian dollar-denominated value of milk D&A Depreciation and amortisation (including impairment) Dairy solids Dairy solids are the non-water portion of a dairy product and is a term commonly used to describe dairy ingredient inputs in manufacturing. These solids include components such as proteins, fat, lactose and minerals EBIT Earnings before interest and tax EBITDA Earnings before interest, tax, depreciation and amortization (including impairment) EBITDA margin EBITDA divided by net revenue Funds employed Sum of net assets and net debt 1H, 2H 1H refers to the first half of the Australian financial year – July to December, 2H refers to the second half of the Australian financial year - January to June Leverage ratio Net debt divided by EBITDA after adjusting for leases in both the numerator and the denominator Material items Items of income or expense which have been determined as being sufficiently significant by their size, nature or incidence and are disclosed separately to assist in understanding the Group’s financial performance MBB Milk based beverages Net debt Net debt is calculated by subtracting total cash and cash equivalents from total short-term and long-term debt Normalised Result excluding one-off material items that do not reflect the underlying performance P&C Petrol and convenience stores Return on funds employed (ROFE) EBIT as a percentage of average funds employed YOY Year on year For personal use only
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This presentation contains a summary of information about Bega Cheese Limited ACN 008 358 503 (BGA) and its subsidiaries (Bega Group). The information does not purport to be complete and should be read in conjunction with other BGA ASX announcements. The presentation may contain statements relating to future events or circumstances, including future performance, earnings, costs, returns, prices, potential business growth, industry growth or other trend projections. Such forward looking statements are based on assumptions and involve risks and uncertainties that are outside the control of or unknown to Bega Group, its officers or employees. Actual results, performance or achievement may vary materially from that anticipated in forward looking statements. Aspects of the presentation may also assume the success of Bega Group’s business strategies. The success of the strategies is subject to uncertainties and contingencies beyond Bega Group’s control, and no assurance can be given that the anticipated benefits from the strategies will be realised. Bega Group undertakes no obligation to update any forward looking statements included in this presentation, whether as a result of new information, future events or otherwise, except as required by applicable law or any relevant regulatory authority. The release, publication or distribution of the Information in jurisdictions outside of Australia may be restricted by law and any such restrictions should be observed. The Information does not constitute investment, legal, accounting regulatory, taxation or other advice and does not take account of individual circumstances or investment objectives. Individuals a should form their own opinions and conclusions on such matters and seek their own investment, legal and taxation advice. Disclaimer 31 For personal use only
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begagroup.com.au For personal use only