The Bega Cheese Ltd (ASX: BGA) share price has climbed 5.13% in early trade despite reporting net profit down 59% on the prior corresponding period (pcp).
What did Bega Cheese announce this morning?
For the year ended 30 June 2019 (FY19), Bega reported record revenue figures up 13% on pcp to $1.42 billion as it launched 41 new products and its Farmer's Table and Simply Nuts brands during the year.
Statutory earnings before interest, tax, depreciation and amortisation (EBITDA) fell 3% on pcp to $89.47 million as a significant decrease in Australian milk production and the drought impact weighed on Bega's full-year earnings.
Net profit after tax (NPAT) fell 59% on pcp to $11.82 million with non-recurring costs relating to its Koroit facility acquisition, the closure of its Coburg facility and other one-off items reduced the headline figures.
However, on an underlying basis, Bega reported record EBITDA figures up 5% to $115.4 million, with underlying NPAT down 13% on pcp to $38.3 million.
What about operational highlights?
Bega said it continues to invest in its strategic diversification plan, with the August 2018 Koroit acquisition the cornerstone of its long-term plan.
The Aussie food company said exports now make up 31% of total revenue, while its product breakdown comprises dairy consumer packaged goods (40%), dairy and other ingredients (35%), spreads and other grocery (16%) and nutritionals (9%).
Bega reported production levels up 8% on pcp to 280,405 tonnes as milk intake also increased by 41% on pcp to 1.06 billion litres in FY19.
Despite basic earnings per share (EPS) coming in at just 5.7 in its statutory figures, Bega's normalised EPS rose to 18.5 cents per share.
On the balance sheet side, Bega's net assets surged 30% higher to $825.9 million despite a minor increase in net debt, however, $124 million of that was due to increased intangible assets.
Overall cash flow figures were strong in FY19, with operating cash flow nearly doubling on FY18 numbers to $100.3 million and Bega reporting a net increase in cash of $7.1 million.
Foolish takeaway
Overall, the headline numbers look strong for Bega over the last 12 months as it continues on its path to become "The Great Australian Food Company".
Investors seem to agree, with the Bega share price climbing 5.13% higher in early trade following the result with a market cap of more than $840 million.
However, the Bega share price is still down 20% so far this year and is valued at half what it was just 12 months ago as it has struggled in line with the broader Australian dairy industry.
