Ann: 1HFY21 Results Presentation, page-2

A good result with net profit growing significantly in 1H 21 despite a revenue decline of 4.5 per cent. BGA says it has transitioned to a 'more profitable sales mix.'

The result is in no way indicative of full year results as it predates the aquisition of Lion Dairy and Drinks that was completed on 25 January 2021.

Very pleasing to see BGA peanut butter increasing its market share, and overall the spreads category rising to a huge 30.9 per cent share by value, up 13.6 per cent. This helps BGA in negotiations with the likes of WOW, COL, MTS' IGA and so on.

That lovely 'Simply Nuts' peanut butter - a lunch favourite for me, and a quality product - doubled sales and has a good market share. This suggests BGA can be successful with new product launches. No wonder it's trying to get more Queensland growers interested in peanuts in suitable areas such as the Atherton Tablelands and Kingaroy, Queensland.

The dairy nutritionals subsector coming under pressure does not seem to have an end point. More explanation is required.

EPS rose to 9.6 cents for the half year against 4.0 cents in the pcp, so again a good metric.

Media has reported there'll be more rationalisation following BGA's LD & D takeover, such as possible closure of the Chelsea plant in Melbourne. This will help BGA to deliver with lower costs.

It mentions strong competition for milk solids in northern Victoria. 'The Weekly Times' has been critical of BGA, NZ-owned Fonterra and politically correct 'Coon Cheese' owner Canadian Saputo for not increasing the price per kilogram from A$6.40, but all processors are declining to comment. BGA has to be able to secure supply.