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Bega’s ‘strong’ balance sheet may lead to Asian expansion

Australian dairy manufacturer, Bega expects its profit for the 2015 fiscal year to be largely in line with performance from fiscal 2014.

At the company’s annual general meeting this morning, executive chairman at Bega, Barry Irvin said that profit is expected to be in line with the $42.1m it reported the year prior. He also said that the company is in an excellent position to support expansion due to its “very strong” balance sheet, The Mercury reports.

Following the failed bid for Warrnambool Cheese and Butter earlier in the year and its subsequent sale of WCB shares for $99m, Bega has announced that it plans to expand into Asia in addition to investing in projects such as its $25m Milk Sustainability and Growth Program.

Earlier in the year, Irvin admitted that uncertainty relating to the impact of Russia's sanctions on some Australian agriculture products – including dairy – could have an impact on the processors export numbers.

“We have designed a business model that, while affected, has some capacity to manage through such circumstances as has been demonstrated in the past,” Irvin said at the time.

“There does remain a strong underlying demand for dairy products in Asia. There is a very good base for expansion using the new capacities that we have created.”

 

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