Good summary, the result on the face of it looks terrible, put simply a 30% increase in farmgate price all basically which occurred in a very short period was always going to slant the result as it takes time for the price increase to be passed on. It would appear that this has been mostly passed on with some still to come, but in the process of happening.
No one wishes(especially us farmers) for the farmgate price to drop to much as it is a double edged sword, to low and people will continue to leave or not grow farm herds. Labour is returning, input costs have generally stabilised so one feels that maybe the farm gate price has peaked, especially compared to international prices, for example New ealand sits in the mid $7 on an overall basis.
Synergies are going well, with more consolidation to come improving costs.
Plant based is still a key market for them following on from Vitasoy and seems they have some plans in mind.
Been a tough couple of years for the company with a mile of obstacles during a rather larger transition phase, one hopes we are near the end of the tough times and close to the dawn of a new growth era.
The results conference was informative, recommend a listen if a chance arises.
BGA Price at posting:
$3.40 Sentiment: Hold Disclosure: Held
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(20min delay)