Bega Cheese (ASX:BGA) - CEO, Paul van Heerwaarden
CEO, Paul van Heerwaarden
Source: Hot Copper
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  • Bega Cheese (BGA) releases its audited FY21 results with the period highlighted by a transformational acquisition
  • The company generated statutory revenue of $2.07 billion, up 39 per cent over the prior corresponding period
  • As of June 30, Bega had consolidated debt of $325 million, up from the $231 million as of June 30, 2020
  • This is primarily due to the $528 million acquisition of Lion Dairy and Drinks in November
  • Shares in Bega are down a slight 0.36 per cent on the market and are trading at $5.49 at 11:47 am AEST

Bega Cheese (BGA) has released its audited FY21 results with the period highlighted by a transformational acquisition.

The company generated normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) of $141.7 million in FY21, up 38 per cent from the prior corresponding period (pcp).

Furthermore, statutory revenue was up 39 per cent over the pcp to $2.07 billion.

As of June 30, Bega had consolidated debt of $325 million, up from the $231 million as of June 30, 2020.

This increase is due to the $125 million of net proceeds from borrowings used to partially fund the acquisition of Lion Dairy and Drinks.

This acquisition totalled $528 million and was primarily funded by a $393 million capital raising.

Upon completion, Bega’s annualised revenue more than doubled to $3 billion and employees grew to over 4000.

Executive Chairman Barry Irvin commented on the acquisition.

“Our capacity to be agile and change, while remaining confident in the core direction and strategy was again tested and on display in FY2021 as we executed the acquisition of Lion Dairy and Drinks,” Mr Irvin said.

Bega also experienced a softening in demand for its infant formula due to changes in the Chinese market regarding shifts in customer preferences and a weakened Diagou (overseas personal or professional shopper) channel.

Bega will continue to focus on unlocking value through the growth of its branded products in domestic and international markets.

While products and the channel mix is impacted by COVID-19, there is still a strong growth momentum.

CEO Paul van Heerwaarden said the company was working towards becoming the next great Australian food company.

“Strategic acquisition, product innovation and disciplined capital management have over the past year accelerated our progress towards the goal of becoming the great Australian food company,” Mr Van Heerwaarden said.

“Investment in our people, products, processes, communities and supplier relationships will brings us even closer to achieving that vision as we continue to develop a business for the future, whilst navigating the challenges of today.”

BGA was down a slight 0.36 per cent on the market, trading at $5.49 at 11:47 am AEST.

BGA by the numbers
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