Vegemite spreads Bega profit

BEGA Cheese’s first-half net profit has risen by more than 31 per cent after the dairy processor boosted its milk intake and enjoyed a revenue boost from buying Vegemite back from foreign ownership.

Bega’s net profit for first half lifted to $20.6 million, partly due to favourable seasonal conditions and more dairy farmers starting to supply the group.

Bega processed 456 million litres of milk, up from 347 million litres a year earlier, with most of the extra milk going through the processing facility at Tatura in Victoria.

Bega’s acquisition of the Mondelez grocery business, which included Vegemite, was finalised in July and boosted revenue in the half-year by $137 million, taking overall group revenue to $705.2 million, up 13 per cent.

The Mondelez deal was key to the company’s strategy of diversifying its operations.