Following a review of forecast full year earnings, Bega Cheese has revised its full year earnings forecast downward from the previously announced range of $25-$28 million, to $21-$24 million, impacted by returns from skim milk powder.
“The lower than forecast result for FY15 reflects the impact of a weaker than expected recovery in global dairy commodity prices,” the company said.
However, Bega Cheese said that it had a positive outlook for FY16 with strong growth in the nutritional, consumer goods and food services platforms.
“Bega Cheese has been pleased with the second half performance of its consumer goods, food service, and value added business platforms, particularly the infant and child nutritional platform,” the company said.
“The new canning and blending plant at Derrimut is performing to expectations having absorbed commissioning, start-up costs, and built volume to the point where a third shift has been added.”
In February, Bega Cheese said that while first half earnings (EBITDA) of $31.3 million was lower than the previous year, the success of the strategic initiatives of the business were reflected in an 8% increase in revenues to $552.5 million, strong growth of both international consumer packaged goods and the nutritional business.