Ann: Trading Update FY2022, page-2

Normalised EBITDA in 1H 22 was $106.4 million so the range indicated for the full FY22 of $175 - $190 million represents a second half decline of somewhere between 21.4 and 35.5 per cent in EBITDA for 2H 22 compared to 1H 22.

Displeasing but can't be helped. The leverage ratio will decrease from 2.2 to 2.0 times which I assume is good.

BGA doesn't explicitly state it but as of today, intermodal trains are at full tilt between Melbourne-Sydney-Brisbane, Melbourne-Adelaide-Perth/Darwin and Sydney and Parkes to Perth/Darwin on the national standard gauge network.

Previously, the vital Trans Australia Railway was closed between Port Augusta, SA and Kalgoorlie, WA for 24 days due to huge flooding with road transport between those two points partly substituted, but unable to move the huge quantities of groceries including BGA chilled and spreads that rail operators Pacific National and SCT Transport normally do.

The Sydney - Brisbane line north of Coffs Harbour was closed a couple of times due to flooding and resultant landslides or similar problems, while even the Melbourne to Sydney rail rail had to shut down between Campbelltown (Sydney suburb) and Moss Vale for a few days recently due to a cutting at Picton (c.80km south of Sydney) proving troublesome.

Thankfully for the time being, no such disruptions.

The mooted ending in NSW and Victoria of those idiotic government overreach regulations requiring seven days' isolation for COVID-19 close contacts will hopefully end what employers allege across various sectors is employees taking a seven day paid holiday, no questions asked. This will presumably help BGA and its contractors reduce absenteeism.

Let's not forget BGA is on a three year journey to incorporate the former Lion Dairy and Drinks operation. Despite COVID-19, this appears to be on track, and BGA remains profitable albeit many of its products are low margin.