Has BGA got its mojo?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 24/02/2024

Has BGA got its mojo?

Half yearly results from Bega show strong sales at $1.7B, fairly good profit (with only farmgate prices & bulk sales limited) and promising forecasts. Page 15 of their presentation shows them as #1 in flavoured milk, yogurt & spreads. Also making huge progress in the route trade. Debt is also coming down after buying drinks division. Is it worth putting them on your Hit List for Growth or Income portfolios? Seems like they’re certainly moving up the Australian market tree. What’s your thoughts Thx Glenn

Answer

Hi Glenn,

Yes, it’s something we’ve looked at multiple times for the Growth Portfolio in particular, with margins being the big driver in their recent result. Their cash generation is still a work in progress, but on the improve and we think they’ve essentially turned the corner, but that’s now reflected in the price after two very strong sessions. We’ll get more interested into pullback where the risk/reward improves back at ~$4.

chart

Bega (BGA)

LAST UPDATED 24/02/2024 09:22

Latest Reports

Weekend report 27/04/2024

Weekend Q&A: Strong inflation crushes hopes of a rate cut in 2024

Afternoon report 26/04/2024

The Match Out: ASX (nearly) gives up week’s gain in tough Friday session

The local market dropped ~100 points on the open, failing to see any reprieve following two weaker sessions out in the US since our close on Wednesday. After dropping back below 7600 the index traded in a reasonably tight 30-point range for the rest of the session, failing to join in on the rally across the region and what’s showing on the US Futures ahead of their Friday session. BHP managed to take 31pts off the market alone today, weakness coming after they lobbed an all scrip bid for Anglo American (AAL LN). Despite the soggy end to the week, the ASX200 finished marginally higher, +8pts / +0.11%.