Profit statements

Bega Cheese Australian shares dip as COVID-19 impact triggers earnings warning

December 23 (Reuters) – Shares of Bega Cheese (BGA.AX) fell to their lowest level in four months on Thursday after the company warned of an impact on its 2022 tax profits due to stiff competition for the supply of dairy products in Australia, high world prices and the impact of the coronavirus.

The warning sent the cheesemaker’s shares down 9.3% to A $ 5.10 in their worst intraday session since March 2020.

The Company expects Normalized EBITDA for FY2022 to be in the range of A $ 195 million to A $ 215 million ($ 140.67 million to A $ 155.10 million) , lower than Refinitiv’s consensus estimate of A $ 221.8 million.

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Bega said the impact of COVID-19 has been “vast and significant,” ranging from market disruption in Australian restaurant channels due to lockdowns to cost increases and major shortages across the country. Supply Chain.

The supply of farm-gate milk to the Australian dairy industry remains stable or declining despite positive seasonal conditions, with stiff competition for supply, the company said.

“Expect the upward pressure on farm gate milk prices to continue for the remainder of the year,” Bega said in a statement.

($ 1 = 1.3862 Australian dollar)

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Report by Arundhati Dutta in Bangalore

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