Bega Cheese has reported rising profit and revenue for the six months to December but has warned of a more challenging second half.
The dairy company's profit after tax for the first half rose by 8.2 per cent to $15.7 million and revenue rose 10 per cent to $621 million.
Bega Cheese, which recently bought Mondelez International's Australia and New Zealand grocery and cheese business, pointed to growth in private label business, an improvement in global dairy commodity prices and increased sales in the nutritional business.
“I am very pleased to present a strong first half performance, particularly in the context of the recent upheaval in the Australia and dairy industry, a highly competitive retail environment and significant disruption in infant formula supply channels in to China,” Bega Cheese's executive chairman Barry Irvin said.
He also said that the second half of the financial year would be more challenging. He said the outlook expressed at the company's latest annual general meeting that its full year profit would be in line with the previous year, before the impact of provisions, still stood.
Bega Cheese's recently appointed CEO Paul van Heerwaarden said: “While nutritionals is experience challenges this year, the ingredients market is improving rapidly.
“We always remain alert to changes in the market and supply and demand dynamics endeavouring to position ourselves to be agile enough to meet challenges and respond to opportunity.”
