Bega Cheese predicts a profit drop
ASX-listed dairy group Bega Cheese yesterday announced that its anticipated profits range for 2014 – 2015 of between $25 – 28 Million has been downsized to a profit of between $21 – 24 Million.
The Australian cheese manufacturer blamed a weaker than expected recovery from the earlier drop in global dairy commodity prices.
Bega Cheese says it had recovered ground in profitability during February and March 2015 but this has not continued.
Skim milk powder returns have been Bega’s biggest problem with current price for the skim milk powders affecting sales and stock valuation.
The manufacturer was happy with the second half performance of its consumer goods, food service and value added business platforms, mainly its infant nutritional products. Bega expects further growth in consumer and nutritional markets as the company enters the 2015 – 2016 financial year.
Bega Cheese also says that it’s new canning and blending plant in Derrimut, Victoria is operating as planned and that operational hours have been increasing.