Bega Cheese has recorded a $300 million profit turnaround in its latest annual report.
The food company reported a statutory earnings before interest and taxes of $74 million compared to a loss of $233 million the previous year.
Revenue increased to $3.5 billion and net debt fell to $162 million.
Bega shares lifted by about five per cent on the back of the profit announcement.
The company announced on August 26 that it was selling its Leeton juice extraction facility to Grove Juice for about $11 million. Grove will process fruit juice on behalf of Bega Cheese.
The company noted the intense competition for milk supply in the 2023-24 year.
The annual report stated that farm gate milk prices had been “disconnected” from global commodity prices, but in spring the effect on bulk milk was mitigated by acquiring milk from other dairy companies, particularly during high-volume months, and by manufacturing efficiencies.
Farm gate milk prices were becoming better aligned to global commodity prices likely leading to better returns from the bulk milk segment.
Bega purchases more than 1.3 billion litres of milk every year.
Bega has started a major upgrade in automation at its national distribution centre in Laverton.