BGA does not believe its return on funds employed is as high as it ought be.
As consumer sentiment turns for the better, BGA is optimistic it'll benefit.
Re 2H 25, the pricing environment will remain challenged. 1H usually represents about 51 per cent of the result for branded products. BGA will see $205 million in EBITDA plus or minus a few million.
Re milk solids prices, the second tier processors had only responded a month after Bega, Fonterra and Saputo had initiated prices. Not much further movement this year is expected, but there may be a change upwards in FY 26.
BGA wants a three year payback for capex projects.
It has sold about 60 to 70 per cent of its bulk products this year. It is 'first half loaded': recovery from factories is higher during the Spring flush. BGA is reasonably happy with sales.
In 1H 25, there was $24 million in profit in bulk. A small profit in this segment should occur in 2H 25.
BGA Price at posting:
$6.27 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)