Whey to go: Bega’s profit soars

BEGA Cheese’s full-year profit has soared to $139 million following the sale of two infant formula assets that helped fund its Vegemite splurge.

Sales revenue for the 12 months to June 30 rose 2.6 per cent to $1.23 billion, but it was the $177.8 million Bega received from Mead Johnson for a spray dryer and formula finishing plant that helped lift net profit almost fivefold from 2016’s $28.8 million. The proceeds from that deal helped fund Bega’s $450 million purchase of brands including Vegemite (completed on July 4, after the reporting period).

Chairman Barry Irvin emphasised the continued growth and profitability of Bega’s core dairy business even in volatile times, which has made dairy co-operative Murray Goulburn a possible takeover target for its rivals.

Bega will pay a fully-franked 5¢ final dividend. Its shares closed 1¢ lower at $6.48.