Bega Cheese’s strong brand and a move into infant formula has helped it rise above the global fall in dairy prices.
Today it posted a 139.5% rise in half year profit to $14.499 million on a 1.6% rise in revenue to $561.37 million.
Bega says its modest rise in revenue was achieved via an increase in infant and nutritional formula sales and a rise in value of its canned goods.
Sales of cream cheese and skim milk powder were also higher.
Executive chairman Barry Irvin says the company is continuing to focus on moving the business away from commodities to branded and value added consumer goods.
“The announcement of the Bega Cheese/Blackmores partnership in infant formula and life stage nutritionals was a further important step in the branding and the value adding of our nutritionals production,” he says.
“The link between dairy and the health and pharmaceutical market sectors is now a major focus in our business development.”
Demand for clean and safe infant formula is booming across Asia and especially in China. Several manufacturers in Australia are quickly increasing production to keep up with demand.
The company declared an interim dividend of 4.5 cents.