Ann: Trading Update and Sale of Port Melbourne Site, page-2

Previous media publicity suggested BGA would receive A$150 million for its Port Melbourne, Victoria site sale, so '$114.6 million' is a significant reduction. However, at least it's sold, although we don't yet know how much the lease each year will be.

Being 'comfortable' with EBITDA guidance (at the 'low end'), so about $160 million is one thing, but NPAT will be far lower.

The cost of milk solids per kilogram obviously remains a major concern. BGA doesn't suggest there's any end in sight to this. Maybe our one saviour is the prospect of Canadian-owned Saputo withdrawing from the market given its ongoing losses.

How does one encourage more dairyfarmers to (re)enter production? Seems very difficult. Other farming lacks the early rises.

It's good to see shoppers accepting BGA's growing stable of brands.

On balance however, I reckon 'Mr Market' won't like this update and may well send shares down another three to five per cent.

The question (after the 1200 briefing today) is whether given the ongoing drop in the SP, it's already been priced in.