Bega Cheese (ASX:BGA) cuts dividend

Company News

by Rachael Jones

Bega Cheese (ASX:BGA) today announced its interim financial results for the half year ended 29 December 2019 showing net Profit for the period up 71 per cent to $8.5 million.

The company saw a 14 per cent increase in revenue to $741.2 million.

Underlying earnings have been impacted by reduced milk supply and margins in the dairy industry particularly in Northern Victoria.

A softening in Chinese infant formula demand has resulted in a reduction in volumes at Tatura further reducing earnings in 1H.

While these issues have resulted in a significant decrease in the earnings from the Tatura Milk segment, the Bega Cheese segment has generated a significant increase in earnings.

They declared an interim dividend of 5.0 cents per share, which is a decrease of 0.5 cents per share compared to the prior period.

Shares in Bega Cheese (ASX:BGA) are trading 12.6 per cent lower at $3.54.