Full Year 2024 Bega Cheese Ltd Earnings Call Transcript
Key Points
- Strong performance from the branded business, with market-leading brands and significant investment in key growth strategies.
- Revenue growth of 4% and brand growth of 6%, demonstrating resilience in uncertain times.
- Successful organizational realignment, making the branded business more effective and the bulk business more agile.
- Record year in branded international business, with significant growth in Southeast Asia and Northern Asia.
- Strong cash generation, resulting in a year-end leverage ratio of 1.3 times and a final dividend of $0.04 per share.
- Significant challenges from external factors such as COVID-19, cost increases, and shifts in global commodity markets.
- Disconnect between farm gate milk prices and global commodity prices, impacting financial performance.
- High cost inflation of 3.5%, driven by labor, energy, and commodity prices.
- Ongoing challenges in the bulk business, with a $61 million year-over-year drop in earnings.
- Pressure from major retailers, potentially leading to more aggressive promotional activity and pricing strategies.
Thank you and welcome, everyone. I'm delighted to present this year's annual results, and particularly in the context of what's been a challenging three years where we've had many external factors beginning with COVID, then beginning with significant cost increases, followed by in the year that we're currently in a major shift in global commodity markets that have certainly challenged the business. But I think what is pleasing is that we have been able to continue to execute on strategy. We have strengthened our balance sheet. And as we look forward, we see great opportunity for this business as we execute over the next four to five years in terms of that transition to a brand business.
If I was to go to the presentation, I will just go to slide 3, which is titled overview. And I will give you a brief overview and then hand to initially at CEO, Pete Findlay, and then, CFO, Gunther Burghardt.
So in overview, I guess I touched on it, the really strong performance this year has come from our branded business, and it is living
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