Manufacturing profit briefs - stories you might have missed

Bega focus on strategy in challenging year

Australian owned and led food manufacturer Bega Cheese has continued its strategy to move away from commodity sales to its iconic brands paid dividends in the second half of FY23 following farm gate milk price rises and other cost increases in the first quarter. Conditions saw the company book a non-cash impairment and move to further ‘right size’ its commodity businesses. Bega reported EBITDA of $144.1 million and a loss after tax of $229.9 million on group revenue up 12 percent to $3.4 billion. Normalised EBITDA was $160.2 million and profit after tax $28.5 million. At the end of FY23 net debt was $203.6 million, a drop of 23 percent. CEO Pete Findlay said: “The Bega Group’s combination of leading iconic brands, strategically located milk processing and more flexible manufacturing capacities supported by an extensive cold chain distribution network remains a significant strength of the business. Over the next five years our strategy will deliver great opportunities for business growth.”

Cleanaway sees growth across all segments, new businesses

Cleanaway Waste Management reported a statutory net profit for FY23 down 70.8 percent on the previous year to $23.5 million. Underlying net profit was $148.6 million higher due to costs associated in the write off of its New Chum landfill, an outage at a medical waste facility, IT transformation costs and acquisition and integration costs. Net revenue of $2.97 billion up 13.9 percent was driven by organic growth, price increases and recent acquisitions. The company benefitted from acquisitions of the Sydney Resource Network (SRN) and Global Renewables Holdings (GRL) businesses and improved landfill gas capture. This was partially offset by a tight labour market, inflation and lower cardboard prices. Higher interest rates increased underlying net finance costs by $43.1 million, largely eroding operational profit rises.

PPK transforms into technology commercialisation business

PPK Group saw its loss rise in FY23 following the divestment of its mining equipment business and transformation into a technology incubation and commercialisation business with portfolio investments. The company, which owns a cluster of business involved in the development of boron nitride nanotube (BNNT) products, reported FY23 revenue of $6.35 million, up by 286 percent on the previous corresponding period. Group loss was up from $2.5 million to $7.8 million. Revenues included $5.1 million from new acquisition battery manufacturer PowerPlus Energy, a business synergistic with PPK’s Li-S Energy battery development venture, a partnership with Victoria’s Deakin University. Chair Robin Levison said: “We believe PPK has a tremendous opportunity to benefit from the growing domestic and international demand for on-grid and off-grid energy storage solutions. Together with our investments in Li-S Energy, BNNT Technology and White Graphene, PPK is well positioned to benefit from the transition to a low-carbon economy.”