Bega Cheese, a former dairy co-operative based on the South Coast of New South Wales, was on track to become a "great Australian food company", its chairman Barry Irvin has claimed.
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Bega, which recently acquired the iconic Australian brand Vegemite when it bought the Mondelez grocery business, on Wednesday unveiled a record statutory profit after tax of $139 million.
"The acquisition of the Mondelez grocery business this year and the opportunities that that will bring us, not only across our entire business but across the food space in general, means that we can now have the aspiration to create a great Australian food company, and indeed we are well on the path to doing that," Mr Irvin said.
"We are of course interested in growing our business and we're of course interested in assets that will enhance the business and indeed grow the profitability of the business. So we are well positioned to respond to any opportunities that may arise. But I would say that that is both in dairy and in food."
Other highlights from the company's full-year results included strong growth in revenue to $1.23 billion while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 7 per cent on a normalised basis to $70.6 million.
The company declared a final dividend of 5?? per share, to be paid on 13 September, for a full-year payout of 10??.
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Mr Irvin said Bega had "a very stable balance sheet", revenue had grown despite global commodities being "in the doldrums", and milk supply to the company had been stable despite industry volatility.
In a conference call, Mr Irvin said a significantly greater number of farmers wanted to supply milk to Bega.
Bega's embattled rival Murray Goulburn earlier this week noted it was having trouble maintaining supply as farmers defected to other processors.
Shares in Bega dropped 1?? on Wednesday to close at $6.48.
Market darling a2 Milk also reported on Wednesday. The New Zealand-based company reported net profit after tax of $NZ90.6 million, a massive 198 per cent rise on the previous year.
A2 Milk's earnings before interest, tax, depreciation and amortisation jumped sharply to $NZ141.2 million. A2 said sales of a2 Platinum infant formula grew strongly in Australia and China.
"Infant formula generated 72 per cent of the company's total revenue for the year - up from 61 per cent in the 2016 financial year," a2 said.
Shares in a2 rose 31?? on Wednesday to $4.81.
