Full Year 2026 Bega Cheese Ltd Earnings Call

August 20, 2026

Speaker #1: I'll be very brief, but I'll start on page 3. Look, it obviously for me this is a number of years of presenting the Bega Group story, and I think I couldn't be happier with how the company is positioned.

Barry Irvin: I'll be very brief, but I'll start on page 3. Look, obviously for me, this is a number of years of presenting the Bega Group story, and I think I couldn't be happier with how the company is positioned as I speak to you today. As you know, we've had a singular strategy and focus over a long period of time to build from what was a small cooperative into a largely business-to-business style business and a commodity business into a truly branded business with great opportunities in the future. I think probably the most important thing I would say is that this business is in the position where it has wonderful brands, it has great supply chain knowledge.

Barry Irvin: I'll be very brief, but I'll start on page three. Look, obviously, for me, this is a number of years of presenting the Bega Group story, and I think I couldn't be happier with how the company is positioned as I speak to you today. As you know, we've had a singular strategy and focus over a long period of time to build from what was a small cooperative into a largely business-to-business style business and a commodity business into a truly branded business with great opportunities in the future. I think probably the most important thing I would say is that this business is in the position where it has wonderful brands, it has great supply chain knowledge.

Speaker #1: As I speak to you today, as you know, we've had a singular strategy in focus over a long period of time, to build from what was a small cooperative into a largely business-to-business style business and a commodity business into a truly branded business with great opportunities in the future.

Speaker #1: I think probably the most important thing I would say is that this business is in the position where it has wonderful brands, it has great supply chain knowledge in the year that we've just been through, particularly with events such as conflict in the Middle East.

Barry Irvin: In the year that we've just been through, particularly with events such as conflict in the Middle East, we've been able to demonstrate how agile we can be and how we can adjust to great challenges. I think we're very well-positioned for the future. People talk more about this, but where we are today is positioned for opportunity. We know there is more to do, and we know there is great opportunity, not only here in Australia, but internationally and particularly in our near neighbors. So, I think if I moved on to the next page 4, I would reinforce that the vision to become a great Australian food company is well on its way. We have built this company on the basis of values that are very important to us.

Barry Irvin: In the year that we've just been through, particularly with events such as conflict in the Middle East, we've been able to demonstrate how agile we can be and how we can adjust to great challenges. I think we're very well-positioned for the future. People talk more about this, but where we are today is positioned for opportunity. We know there is more to do, and we know there is great opportunity, not only here in Australia, but internationally and particularly in our near neighbors.I think if I moved on to the next page four, I would reinforce that the vision to become a great Australian food company is well on its way. We have built this company on the basis of values that are very important to us.

Speaker #1: We've been able to demonstrate how agile we can be and how we can adjust to great challenges, and I think we're very well positioned for the future.

Speaker #1: People talk more about this, but where we are today is positioned for opportunity. We know there is more to do, and we know there is great opportunity not only here in Australia but internationally, and particularly in our near neighbours.

Speaker #1: So I think if I moved on to the next page, page 4, I would reinforce that the vision to become a great Australian food company is well on its way, and we have built this company on the basis of values that are very important to us.

Speaker #1: And if I was to point you to two—and I think very much reflective in this presentation and will reflect in the future—it is that we've always invested in our future, and we're positioned for some great investment.

Barry Irvin: If I was to point you to two, and I think very much reflective in this presentation and will reflect into the future, it is that we always invest in our future, and we're positioned for some great investment. We've made some great investments this year. We've got great opportunities to make further investments into the future to further improve this business and to meet that strategy that says that we will be the preferred procurer of raw materials from our farmers, particularly our dairy farmers. The way we've been able to grow our milk supply shows that the strategy makes us very, very competitive when it comes to procuring milk from our farmers. We'll have a low-cost infrastructure that can meet the market and our brands, our much-loved brands, will respond to the market.

Speaker #1: We've made some great investments this year. We've got great opportunities to make further investments into the future, to further improve this business, to meet that strategy that says that we will be the preferred procurer of raw materials from our farmers, particularly our dairy farmers, and the way we've been able to grow our milk supply shows that the strategy makes us very, very competitive when it comes to procuring milk from our farmers.

Speaker #1: We'll have a low-cost infrastructure that can meet the market, and our brands, our much-loved brands, will respond to the market. They will respond to the consumer trends that we're seeing in health and wellbeing, in convenience, in value, and we have the brands that can meet and the products that can meet those consumer trends.

Barry Irvin: They will respond to the consumer trends that we're seeing in health and wellbeing, in convenience, in value. We have the brands that can meet and the products that can meet those consumer trends. We have an ever-improving footprint. We're embracing more and more technology to make that footprint even better, and we continue to invest in a business that is extraordinarily well-positioned. That said, I think I'll leave that heavy lifting to Pete, and he'll take you through not only some of those strategic things that I've mentioned, but also the achievements of the year. So Pete, I'll hand over to you.

Speaker #1: We're having ever-improving footprint. We're embracing more and more technology to make that footprint even better, and we continue to invest in a business that is extraordinarily well positioned.

Speaker #1: That said, I think I'll leave the heavy lifting to Pete, and he'll take you through not only some of those strategic things that I've mentioned, but also the achievements of the year that Pete I'll hand over to you.

Speaker #2: To review, Barry, thank you very much for that introduction, and I'll take us through some of the key highlights and how we're thinking about what's happened in FY26, but also how we think that will play out in FY27.

Pete Findlay: Terrific, Barry. Thank you very much for that introduction. I will take us through some of the key highlights and how we are thinking about what has happened in FY 2026, but also how we think that will play out in FY 2027. Gunther Burghardt, our CFO, will jump in to give an overlay of our financial results, and then I will talk about how we are seeing the FY 2027 outlook. Look, if we turn to page 6, which is our key messages, we are very pleased with where we sit at the end of FY 2026.

Speaker #2: Gunther Burghardt, our CFO, will jump in to give an overlay about financial results and then I'll talk about how we've seen the FY27 outlook.

Speaker #2: Look, if we turn to page 6, which is our key messages, we're very pleased with where we sit at the end of FY26. We developed our strategy in the back end of FY23, and it was really about stripping the business back with a mantra of simplifying focus.

Pete Findlay: We developed our strategy in the back end of FY 2023, and it was really about stripping the business back, with a mantra of simplify and focus, and applying that to working on our key channels and categories where we have a right to win, streamlining our asset base to create cost advantage, and turning our assets much harder, so making the business more efficient. It would be fair to say that at this stage, 3 years into that initial 5-year strategy, we feel confident that we are achieving those outcomes and the pillars or the key direction that we set is actually being executed upon well, to the point where we have refreshed our S28 outlook to 2031, and we still feel very confident about those pillars and the direction we are heading in, and we still think there is a lot of opportunity there.

Speaker #2: And applying that to working on our key channels and categories where we had a right to win, streamlining our asset base, to create cost advantage, and turning our assets much harder.

Speaker #2: So making the business more efficient. And to be fair to say, at this stage, three years into that initial five-year strategy, we feel confident that we're achieving those outcomes, and the pillars or the key direction that we set is actually being executed upon well.

Pete Findlay: It would be fair to say that at this stage, 3 years into that initial 5-year strategy, we feel confident that we are achieving those outcomes and the pillars or the key direction that we set is actually being executed upon well, to the point where we have refreshed our S28 outlook to 2031, and we still feel very confident about those pillars and the direction we are heading in, and we still think there is a lot of opportunity there.

Speaker #2: To the point where we've refreshed our 28 outlook to 2031, and we still feel very confident about those pillars, and the direction we're heading in, and we still think there's a lot of opportunity there.

Pete Findlay: The result this year, driven by a really solid branded performance. The key categories we really wanted to focus on was around yogurt, milk-based beverages, spreads, where our strong brands sit, and obviously cream cheese into our international markets. Around those key categories, we were able to get some real lift in better-for-you product innovation, and we continue to see that thematic evolving over the next 5 to 10 years. I will talk about that in a little bit more detail. We are getting really good growth and tailwinds in that specific space, and the team have done an excellent job positioning ourselves to take advantage of those thematics. Our foodservice channel, which we really wanted to dial up 3 years ago when we spoke about our strategies, continued to perform very strongly. We had 6% growth in that channel, which is a little bit lower than last year.

Speaker #2: The result this year, driven by a really solid branded performance, the key categories we really wanted to focus on was around yoga, milk-based beverages, spreads where our strong brands sit, and obviously cream cheese into our international markets, and around those key categories we were able to get some real lift in better-for-you product innovation.

Speaker #2: And we continue to see that thematic evolving over the next 5 to 10 years. I'll talk about that in a little bit more detail.

Speaker #2: But we're getting really good growth and tailwinds in that specific space, and the team have done an excellent job positioning ourselves to take advantage of that and those thematics.

Pete Findlay: We are getting really good growth and tailwinds in that specific space, and the team have done an excellent job positioning ourselves to take advantage of those thematics. Our foodservice channel, which we really wanted to dial up 3 years ago when we spoke about our strategies, continued to perform very strongly. We had 6% growth in that channel, which is a little bit lower than last year.

Speaker #2: Our food service channel, which we really wanted to dial up three years ago when we spoke about our strategy, is continuing to perform very strongly.

Speaker #2: We had 6% growth in that channel, which is a little bit lower than last year, but given the constraints we've been seeing in that channel, around a more subdued consumer sentiment now that we're actually ecstatic and we think that 6% certainly outperformed the market.

Pete Findlay: Given the constraints we have been seeing in that channel around a more subdued consumer sentiment outlook, we think that 6% certainly outperformed the market, and we continue to see good growth and innovation there. We are positive about that channel moving forward, as I said, even with some headwinds around consumer sentiment. Our international branded business continues to perform particularly well, in Southeast Asia. We were actually supply constrained, for some parts of the year due to the Middle East conflict and actually demand running further ahead of our medium-term outlook. We are solving those issues as we speak, but we still achieved 4% growth in that market and we are actually expecting that to ramp up even further in 2026.

Speaker #2: And we continue to see good growth and innovation there, and we're positive about that channel moving forward. As I said, even with some headwinds around consumer sentiment.

Speaker #2: Our international branded business continues to perform particularly well in Southeast Asia. We were actually supply constrained for some parts of the year due to the Middle East conflict and actually demand running further ahead of our medium-term outlook.

Speaker #2: We are solving those issues as we speak. But we still achieved 4% growth in that market, and we're actually expecting that to ramp up even further in 2026.

Speaker #2: We still think that over the next 5 to 10 years, that market offers us significant opportunity. And we'll continue to focus on more and more.

Pete Findlay: We still think that over the next 5 to 10 years, that market offers us a significant opportunity and we will continue to focus on it more and more. Our bulk business had a really strong year, that continues to be the evolution of the work that the business did out of a very tough year back in 2023. We have premiumized a lot of our offering. We have spent a lot of work value-adding to our protein mix, and also integrating that business better into our branded business so that we can continue to find different value pools. Our nutraceuticals and infant nutrition business continues to thrive, so we are beginning to feel better and better about that business and our ability to separate that business from the commodity milk value index, which I will talk to a little bit later on.

Speaker #2: Our bulk business had a really strong year, and that's sort of continues to be the evolution of the work that the business did out of a very tough year back in 2023.

Speaker #2: We've premiumised a lot of our offering. We've spent a lot of work valuating to our protein mix, and also integrating that business better into our branded business so that we can continue to find different value pools.

Speaker #2: Our nutraceuticals and infra-nutrition business continues to thrive, and so we're beginning to feel better and better about that business. And our ability to separate that business from the commodity milk value index which I'll talk to a little bit later on.

Speaker #2: And then, of course, underpinning that growth across the top line and our connection into our markets has continued to be a really strong focus on efficiency programs.

Pete Findlay: Underpinning that growth across the top line and our connection into our markets has continued to be a really strong focus on efficiency programs. That will always be part of our DNA to do things better and smarter. If you look at that, we achieved a terrific return on funds employed result of 10%, up 1.6 percentage points from last year. We have actually achieved our 2028 outcome a couple of years early. Our leverage has dropped to 0.8 times, which continues to give us optionality about reinvestment in the business, either organically or inorganically. I am really pleased with our EBITDA result, which was up nearly 12% year-on-year and represents a double-digit earning CAGR over the first three years of our strategy, which I think we are very pleased about when you look at some of the peers in our sector.

Speaker #2: And that will always be part of our DNA to do things better and smarter, and so if you look at that, we achieved a terrific return on funds employed result of 10%, up 1.6 percent points from last year, and we're actually achieved our 2028 outcome a couple of years early.

Speaker #2: Our leverage has dropped to 0.8 times, which continues to give us optionality about reinvestment in the business, either organically or inorganically, and I'm really pleased with our EBITDA result, which was up nearly 12% year on year.

Speaker #2: And represents sort of a double-digit earning KDI over the first three years of our strategy, which I think we're very pleased about when we look at some of the peers in our sector, and I think sort of outlines the momentum we've built in the business.

Pete Findlay: I think outlines the momentum we have built in the business. If we move to the next slide, which is slide seven, where we are going to have a look at some of our financial metrics. Really pleased that in a year where we were able to grow EBITDA, grow top-line revenue, increase our margins. We are actually able to operate successfully across all those key lines there. Our net revenue was driven by both a growth in volume and growth in price. EBITDA continues to represent that strong double-digit growth, that is flowing through to earnings per share. So we are delivering a growth environment, but at the same time returning more earnings to our shareholders on a per share basis, which is represented in an increased dividend. Return on funds employed is an incredibly important metric to us. We want to turn our assets harder.

Speaker #2: We moved to the next slide, which is slide 7, where we're going to have a look at some of our financial metrics. Really pleased that in a year where we were able to grow EBITDA, grow top-line revenue, increase our margins.

Speaker #2: So we're actually able to operate successfully across all those key lines there. Our net revenue was driven by both a growth in volume and growth in price.

Speaker #2: EBITDA continues to represent that strong double-digit growth, and that's flowing through to earnings per share. So we're delivering a growth environment, but at the same time returning more earnings to our shareholders on a per-share basis, which is represented in an increased dividend.

Pete Findlay: So we are delivering a growth environment, but at the same time returning more earnings to our shareholders on a per share basis, which is represented in an increased dividend. Return on funds employed is an incredibly important metric to us. We want to turn our assets harder.

Speaker #2: Return on funds employed is an incredibly important metric to us. We wanted to in our assets harder, we want to get a better return on all asset employed.

Pete Findlay: We want to get a better return on all asset employed. We feel that if we can outperform our competitors across a capital lifespan, that just continues to build momentum in our business and long-term sustainable growth. It also, just in its nature, drives a lower cost per unit. So, a really important measure that we continue to focus on as a business. We create alignment across our business on that measure all the time. If I move on to the next slide, which is slide eight, it is really about creating our long-term competitive advantage. If I think about our business and what it represents, we want to have mainstream, everyday brands that are ranked number one or number two in their category, that connect well with our consumers. Then we want to underpin that with operational leverage that is best in market.

Speaker #2: We feel that if we can outperform our competitors across a capital lifespan, that that just continues to build momentum in our business and long-term sustainable growth.

Speaker #2: It also just in its nature drives another cost per unit. So a really important measure that we continue to focus on as a business.

Speaker #2: We create alignment across our business on that measure all the time.

Speaker #1: If I move on to the next slide, which is slide 8, and it's really about creating our long-term competitive advantage. If I think about our business and what it represents, we want to have mainstream everyday brands that are ranked number one or number two in their category.

Pete Findlay: If I think about our business and what it represents, we want to have mainstream, everyday brands that are ranked number one or number two in their category, that connect well with our consumers. Then we want to underpin that with operational leverage that is best in market.

Speaker #1: That connect well with our consumers, and then we want to underpin that with operational leverage that's best in market. We want to lower cost per unit, we want better delivery, and better basics for our customers that support those brands that meet their needs.

Pete Findlay: We want a lower cost per unit. We want better delivery and better basics for our customers that support those brands that meet their needs. That is how I sum up our business. That is what I try and achieve. When we look at that front end of the piece, we do have five power brands that deliver number 1 or number 2 market positions in growing categories across this country. We have excellent marketing capability and sales, distribution networks that support that. We are good at dealing with large customers in this marketplace, with major retailers, with food service channels, with distributors, and with small business. We pride ourselves on that. We give them great everyday brands that meet consumers' needs at excellent value. We then underpin that with a really good low-cost, highly efficient operating network.

Speaker #1: That's how I sum up our business. That's what I'm trying to achieve. So when we look at that front end of the piece, we do have five power brands that deliver number one or number two market positions in growing categories across this country.

Speaker #1: We have excellent marketing capability, and sales distribution networks that support that. We are good at dealing with large customers in this marketplace, with major retailers, with food service channels, with distributors, and with small business.

Speaker #1: And we pride ourselves on that. We give them great everyday brands that meet consumers' needs, at excellent value. We then underpin that with a really good low-cost, highly efficient operating network.

Speaker #1: We've got significant scale, across our manufacturing capability that keeps driving our cost per unit down, so we can always go to our customers with a competitive price point.

Pete Findlay: We have significant scale, across our manufacturing capability that keeps driving our cost per unit down, so we can always go to our customers with a competitive price point. We have focused our supply footprint to be able to deliver on time and deliver innovation as it is required, and we continue to accelerate investment in technology and automation. They will always underpin those themes, always underpin our operating network. By bringing or reducing our factories down, we can actually accelerate that. The third thing we do is we always maximize value from our key ingredients. We purchase about 1.4 billion liters of milk, and the ability to use that milk extremely well both across our branded business and our ingredients nutritional business provides excellent value and gives us a competitive advantage.

Speaker #1: We focused our supply footprint to be able to deliver on time and deliver innovation as it's required, and we continue to accelerate investment in technology and automation.

Speaker #1: They will always underpin those themes, always underpin our operating network, and by bringing in or reducing our factories down, we can actually accelerate that.

Speaker #1: The third thing we do is we always maximise value from our key ingredients. We purchase about 1.4 billion litres of milk, and our ability to use that milk extremely well, both across our branded business and our ingredients and nutritional business, provides excellent value and gives us a competitive advantage.

Speaker #1: Our milk intake actually grew by nearly 7% this year in a stable market. Which means that we're offering farmers a competitive proposition because we're able to use those solids to better value, and we're extremely pleased about that.

Pete Findlay: Milk intake actually grew by nearly 7% this year in a stable market, which means that we are offering farmers a competitive proposition because we are able to use those solids to better value, and we are extremely pleased about that. That is where we need to win. That is where we will focus on winning. If we can do that, we will continue to grow our business. If I move to the next page, just underpinning the work we have done around those thematics is the transformation program we have undertaken over the last three years. I am extremely proud of the enormity of the work that we have done, the speed that we have been able to do it in, and the quality of execution.

Speaker #1: That is where we need to win. That is where we will focus on winning, and if we can do that, we will continue to grow our business.

Speaker #1: If I move to the next page, just underpinning the work we've done around those thematics, is the transformation program we've undertaken over the last three years, and I'm extremely proud of the enormity of the work that we've done, the speed that we've been able to do it in, and the quality of execution.

Speaker #1: And so we've undertaken a significant piece of work, and the team have done an outstanding job in delivering that work on time, to broadly meet the outcomes and targets that we set forward.

Pete Findlay: We have undertaken a significant piece of work, and the team have done an outstanding job in delivering that work on time to broadly meet the outcomes and targets that we set forth. We wanted to increase our yoghurt capability and UBP capability back in 2023. We implemented a new pouch line. We put in new packaging capability to speed up our milk-based beverage network in 2023. We closed sites in Canberra, moved 30 million liters of production into our Penrith facility to drive down our cost of production. We acquired the Betta Milk business in Tasmania. We closed both of those sites and integrated those in our Leeton Valley site. We restructured our corporate head office and took out nearly 250 heads, generating more than AUD 20 million of savings, but more importantly, aligned our capability up with our strategy.

Speaker #1: We wanted to increase yogurt capability and EBITDA capability back in 2023. We implemented a new pouch line. We put in new packaging capability to speed up our milk-based beverage network in 2023.

Speaker #1: We closed sites and camera and moved 30 million litres of production into our Penrill facility to drive down our cost of production. We acquired the Better Milk Business in Tasmania.

Speaker #1: We closed both of those sites and integrated those into our leadability site. We restructured our corporate head office and took out nearly 250 heads, generating more than 20 million dollars of savings, but more importantly, lined our capability up with our strategy.

Speaker #1: We increased capability across our international food service business by going and hiring people that could drive that business forward, and that's what's actually we're now seeing the benefits of that from the growth in those channels moving forward.

Pete Findlay: We increased capability across our international food service business by going and hiring people that could drive our business forward. We are now seeing the benefits of that from the growth in those channels moving forward. We innovated in lactose free and no sugar added to start our wellness transitional journey. In H1 2025, we actually started to launch protein into our milk-based beverages, which has driven significant growth. We sold our Leeton site for juice extraction and actually created a far better cost to serve for our business. We repurchased our dryer at Tatura at the time and actually regeared up to drive protein valorization in our ingredients and nutritional business, which has delivered this year in spades, and we think will continue to deliver in years ahead. We launched our Dairy Farmers protein smoothies, packed out of Woodville Park.

Speaker #1: We innovated the lactose-free and no sugar added at the start of our wellness transitional journey, and in the first half of 25 we actually started to launch protein into the milk-based beverages, which has proven significant growth.

Speaker #1: We sold our leading site for juice extraction and actually created a far better cost of service for our business. We repurchased our dryer to cure at the time and actually regeared up to drive protein valorisation in our ingredients and nutritional business, which has delivered this year in spades, and we think will continue to deliver in years ahead.

Speaker #1: We've launched our Dairy Farmers Protein Smoothies piece out of Redwood Park. We rolled out a new sales portal across all of our customer base that was digitally enabled.

Pete Findlay: We rolled out a new sales portal across all of our customer base that was digitally enabled. It has enabled us to get closer to our customer. We invested in an infant formula canning plant to gain access to that and maintain our infant formula business, which continues to thrive today. We got out of our peanut processing asset business, which enabled us to have a far more competitive footprint in peanut butter. We launched protein, which was completely replumbing our yogurt facility and which is driving a lot of our yogurt growth at the moment, which has been incredibly successful. We closed our Strathmerton site and pushed all of that volume into our Ridge Street site, and that was done within 14 months, and at the cost of about AUD 55 million and will deliver AUD 30 million of savings to the business in 2027.

Speaker #1: It's enabled us to get closer to our customer, and we invested in an infant formula canning plant to gain access to that and maintain our infant formula business, which continues to thrive today.

Speaker #1: We got out of our cleanup process and asset business, which enabled us to have a far more competitive footprint in peanut butter. We launched protein, which was completely replumbing our yogurt facility, and which is driving a lot of our yogurt growth at the moment, which has been incredibly successful.

Speaker #1: We closed our Strathmerton site and pushed all of that volume into our Ridge Street site, and that was done within 14 months and at the cost of about 55 million dollars, and we'll deliver 30 million dollars of savings to the business in 2027.

Pete Findlay: We closed our Strathmerton site and pushed all of that volume into our Ridge Street site, and that was done within 14 months, and at the cost of about AUD 55 million and will deliver AUD 30 million of savings to the business in 2027.

Speaker #1: But what we're really excited about is it actually opens up volume for our Southeast Asian market by giving us a globally competitive footprint. And I'm pleased to say that over FY 2027, we'll make substantial investments in yogurt, cream cheese, and milk-based beverages, which all link to either our wellness trends or expansion in the Southeast Asia, and we'll come online in 2028 and provide us with significant growth platforms.

Pete Findlay: What we are really excited about is it actually opens up volume for our Southeast Asia market by giving us a globally competitive footprint. I am pleased to say that over FY 2027, we will make substantial investments in yogurt, cream cheese, and milk-based beverages, which all link to either our wellness trends or expansion into Southeast Asia and will come online in 2028 and provide us with significant growth platforms. All of that has been done by the team here. It has been done, as I said, on time, and at budget. It has created the outcomes we want. It has exposed us to growth in new markets, and we are extremely excited and pleased with our ability and track record that we have created to do that work. If I move on to the next slide, which is slide 10, I will just talk about some of the work we have done across our strategy.

Speaker #1: All of that has been done by the team here. It's been done as I said, on time, and at budget. It's created the outcomes we want.

Pete Findlay: It has created the outcomes we want. It has exposed us to growth in new markets, and we are extremely excited and pleased with our ability and track record that we have created to do that work. If I move on to the next slide, which is slide 10, I will just talk about some of the work we have done across our strategy.

Speaker #1: It's exposed us to growth in new markets, and we're extremely excited and pleased with our ability and track record that we've created to do that work.

Speaker #2: If I move on to the next slide, which is slide 10, I'll just talk about some of the work we've done across our strategy.

Speaker #2: Obviously, significant launches focused on high protein and better for you products. We've increased marketing spend over that time, so whilst delivering double-digit earnings spend, we've actually invested in our brands, our five power brands, we've grown our international business, we've employed new expertise in those markets, both across sales, market insights, market building, and our distribution networks.

Pete Findlay: Obviously, significant launches focused on high protein and better-for-you products. We have increased marketing spend over that time, so whilst delivering double-digit earnings spend, we have actually invested in our brands, our five power brands. We have grown our international business. We have employed new expertise in those markets, both across sales, marketing insights, market building, and our distribution networks. We have gone above and beyond in our food service market, as I said, achieving 6% growth. We have continued to create new formats. One of the benefits of this manufacturing footprint is that we now believe we have incredibly competitive products to offer into that food service market, and we think we can continue to grow that even over the short term with headwinds facing that channel. The bulk business, we are incredibly pleased with that. We continue to integrate more of our bulk business into our branded business.

Speaker #2: We've gone above and beyond in our food service market. As I said, achieving 6% growth. We've continued to create new formats. And one of the benefits of this manufacturing footprint is that we now, we believe, we now believe we have incredibly competitive products to offer into that food service market, and we think we can continue to grow that, even over the short term, with headwinds facing that channel.

Pete Findlay: One of the benefits of this manufacturing footprint is that we now believe we have incredibly competitive products to offer into that food service market, and we think we can continue to grow that even over the short term with headwinds facing that channel. The bulk business, we are incredibly pleased with that. We continue to integrate more of our bulk business into our branded business.

Speaker #2: The bulk business that we're incredibly pleased with that, we continue to integrate more of our bulk business into our branded business. So a lot of that bulk business improvement you see is actually caused by the bulk business selling more fat products into our growing branded business, particularly in Southeast Asia.

Pete Findlay: A lot of that bulk business improvement you see is actually caused by the bulk business selling more B2B products into our growing branded business, particularly in Southeast Asia. What we are really excited about is the integration now of our protein into our branded business. As we are seeing the growth in our protein branded products that you will see on shelf, a lot of that protein enhancement will be supplied by our bulk ingredients and nutritional business. We are really pleased about that. Our infant formula business continues to do really well, and we continue to be a total manufacturer of choice in that bulk business, and we actually picked up some money there. We feel like we are beginning to really utilize that asset base better. As other businesses have retreated, we have kept our capacity and we are beginning to successfully monetize that.

Speaker #2: And what we're really excited about is the integration now of our protein into our branded business. So as we're seeing the growth in our protein branded products that you'll see on shelf, a lot of that protein enhancement will be supplied by our bulk ingredients and nutritional business.

Speaker #2: So really pleased about that. And we from formula business continues to do really well, and we continue to be a tall manufacturer of choice in that bulk business, and we actually picked up some money there and we feel like we're beginning to really utilise that asset base better.

Pete Findlay: Our infant formula business continues to do really well, and we continue to be a total manufacturer of choice in that bulk business, and we actually picked up some money there. We feel like we are beginning to really utilize that asset base better. As other businesses have retreated, we have kept our capacity and we are beginning to successfully monetize that.

Speaker #2: So as other businesses have retreated, we've kept our capacity and we're beginning to successfully monetise that. Our manufacturing footprint has gone incredibly well. We did the Strathmerton to Ridge Street change out within 14 months, which was an exceptional effort by the team.

Pete Findlay: Our manufacturing footprint has gone incredibly well. We did the Strathmerton to Ridge Street changeover within 14 months, which was an exceptional effort by the team. We did that at a time when we were shipping product out of Europe through the Middle East, so an enormous amount of work has gone in there to make sure that that all worked properly. We have obviously closed the PCA sites. We are actually accelerating capital investment at our key sites. Morwell is continuing to undergo a significant transformation, as is our Tatura site around its cream cheese capability. Our chilled distribution network, we continue to optimize through the automation in Laverton and also closing down further sites like Frenchs Forest, which we will sell this year and realize some money. Software investment and AI continues to move ahead, both at an operational point, but also how we are looking at the market.

Speaker #2: We did that at a time when we were shipping product out of Europe through the Middle East. So an enormous amount of work has gone in there to make sure that that's all worked properly.

Speaker #2: We've obviously closed the PCI sites. We're actually accelerating capital investment in our key sites, so more or less continuing to undergo a significant transformation.

Speaker #2: As is the aperture site around this cream cheese capability. And our chill distribution network, we continue to optimise, through the automation and labour and also closing down further sites like French's Forest, which we'll sell this year, and realise some money.

Pete Findlay: Our chilled distribution network, we continue to optimize through the automation in Laverton and also closing down further sites like Frenchs Forest, which we will sell this year and realize some money. Software investment and AI continues to move ahead, both at an operational point, but also how we are looking at the market.

Speaker #2: Software investment and AI continues to move ahead, both at an operational point, but also how we're looking at the market. So really pleased to say that we're delivering excellent AI initiatives across our pricing, promotion, our marketing, our back office, and in our factories.

Pete Findlay: Really pleased to say that we are delivering excellent AI initiatives across our pricing, promotion, our marketing, our back office, and in our factories. We will unashamedly continue to do that over the next 2 to 3 years. We look on the movement in AI and automation as a significant opportunity for us to continue to drive cost and efficiency in our business and get closer to our customer. If I can move on to the next slide, which is slide 11. We did relaunch or reinvigorate our strategy, taking it out to 2031. The good news is that we will continue to focus on the key elements or thematics of our S28 strategy. We will continue to grow our core brands and categories. In particular, we will have a key driver around milk-based beverages and yogurt, and the wellness pieces attached to them.

Speaker #2: And we will unashamedly continue to do that over the next two to three years. And we look on the movement in AI and automation as a significant opportunity for us to continue to drive cost and efficiency in that business and get closer to our customer.

Speaker #1: If I can move on to the next slide, which is slide 11. We did relaunch or reinvigorate our strategy taking it out to 2031.

Speaker #1: The good news is that it will continue to focus on the key elements or thematics of our 2028 strategy. We will continue to grow our core brands and categories, in particular, we'll have a key driver around milk-based beverages and yogurt, and the wellness pieces attached to them.

Pete Findlay: The good news is that we will continue to focus on the key elements or thematics of our S28 strategy. We will continue to grow our core brands and categories. In particular, we will have a key driver around milk-based beverages and yogurt, and the wellness pieces attached to them.

Speaker #1: Our treats our spreads will focus on treat and wellness as well. And of course, our cream cheese category, which is growing at double-digit growth into Southeast Asia.

Pete Findlay: Our spreads will focus on treat and wellness as well. Of course, our cream cheese category, which is growing at double-digit growth into Southeast Asia. We will invest around those core brands. Our Win on the Street business, as I said, with our cost reduction in place, and our focus of our team and the expertise we have built into the back office and our distribution networks, we think we can continue to win in food service. That will provide a significant plank for us moving forward. Also, our ability to operate well with multi-site owners at the lower end of the market. Sorry, the lower end of the market from a turnover point of view, individual turnover point of view, we think also continues to be a hunting ground for us. We are geared up to take those opportunities.

Speaker #1: And so we will invest around those core brands. When on the street business, as I said, with our cost reduction in place, and our focus of our team, and the expertise we've built into the back office and our distribution networks, we think we can continue to win the food service and so that will provide a significant flank for us moving forward.

Speaker #1: And also, our ability to operate well with multi-site owners at the lower end of the market sorry, the lower end of the market from a turnover point of view, individual turnover point of view, we think also continues to be a hunting ground for us.

Speaker #1: And so we're geared up to take those opportunities. International, I'm actually couldn't be more excited about the international business. I'm extremely pleased with the capability we've bought, brought into the company.

Pete Findlay: International, I actually couldn't be more excited about the international business. I'm extremely pleased with the capability we've brought into the company. Very excited about the capacity we'll unlock at the start of FY 28. I see a significant run ahead of us, both in Southeast Asia and in the Middle East. We're focused on cream cheese, processed cheese, yogurt at this stage. Certainly unlocking that yogurt capability, and cream cheese capability at the beginning of FY 28 will give ourselves a significant leg up into that Southeast Asian market and Middle East market, where we're probably currently constraining demand. Streamlining our sites. We've done some terrific work there. Potentially more work to go. We always want to challenge ourselves to be the most competitive producer in this market. Potentially with overseas expansion, to have something that's competitive against regional manufacturing.

Speaker #1: Very excited about the capacity we'll unlock at the start of FY28. And so I see a significant run ahead of us, both in Southeast Asia and the Middle East.

Speaker #1: We'll focus on cream cheese, processed cheese, yogurt, at this stage. And certainly, unlocking that yogurt capability and cream cheese capability at the beginning of FY28 will give ourselves a significant leg up into that Southeast Asian market and Middle East market.

Speaker #1: We will probably currently constrain demand. Streamlining our sites. We've done some terrific work there. Potentially more work to go. We always want to challenge ourselves to be competitive, to be the most competitive producer in this market, and potentially, with overseas expansion, to have something that's competitive against regional manufacturing.

Speaker #1: So we still think that there's work to do with streamlining our sites. And the team are very focused on that in the background. And obviously, securing solids.

Pete Findlay: We still think that there's work to do with streamlining our sites. The team are very focused on that in the background. Obviously securing solids. We're really happy with the fact that we've been able to grow our milk pool over the last two years in a stable milk pool environment. We think there will probably be a good chance of growing our milk pool again in FY 2027. We continue to look for other sources of solids internationally to help sustain our growth into our international markets and help some of our large customers here in Australia where they want to use international solids. We believe we're a supplier of choice in that scenario. Obviously, safety remains incredibly important to us, quality, and other pieces of everything we do.

Speaker #1: We're really happy with the fact that we've been able to grow our milk pool over the last two years in a stable milk pool environment.

Speaker #1: We think that we'll probably be a good chance of growing our milk pool again in FY2027. But we continue to look for other sources of solids internationally to help sustain our growth into our international markets.

Speaker #1: And help some of our large customers here in Australia where they want to use international solids. And we believe we're a supplier of choice in that scenario.

Speaker #1: Obviously, safety remains incredibly important. There was quality other things everything we do. We need to continue to evolve our people, not only to take direct advantage of the opportunities in the front-facing part of our business, but also to ensure that our business is AI-enabled and to take full advantage of those efficiencies we can drive through that change that we're seeing.

Pete Findlay: We need to continue to evolve our people, not only to take direct advantage of the opportunities in the front-facing part of our business, but also to ensure that our business is AI-enabled and to take full advantage of those efficiencies we can drive through that change that we're seeing. If we move to the next slide, which is slide 12. The consumer continues to make very deliberate decisions around the products they want to buy and eat and drink, and how they create lifestyle outcomes for them. We're seeing this trend globally. That's why we're also seeing significant shifts in the marketplace around ownership as we see traditional consumer goods companies buying or involving themselves into these segments. in 2025, we carried out an extensive market research on key trends and thematics driving consumer behavior.

Speaker #2: If we move to the next slide, which is slide 12. This you have the consumer continues to make very deliberate decisions around the products they want to buy and eat and drink.

Speaker #2: And how they create lifestyle outcomes for them. And we're seeing this trend globally.

Speaker #1: That's why we're also seeing significant shifts in the marketplace around ownership as we see traditional consumer goods companies buying or involving themselves into these segments.

Speaker #1: In 2025, we carried out an extensive market research on key trends and thematics driving consumer behaviour. And this has really helped us develop a roadmap for consumers.

Pete Findlay: This has really helped us develop a roadmap for consumers. We've called this project Thrive. We think that this will direct a lot of our product innovation across our key brands and categories. These five points are things that we think about all the time. We don't think that this is going to be an overnight trend. We think that this will evolve over the next five to 10 years. It's really important that we're a part of it. We look at those trends and in particular, we think about gut health. That's really about wellbeing. There's some significant science now around having a healthy gut and the vagus nerve, which attaches the gut to the mind, which creates wellness around mood and overall wellbeing.

Speaker #1: And we call this project Thrive. And we think that this will direct a lot of our product innovation across our key brands and categories.

Speaker #1: And so these five points are things that we think about all the time. We don't think that this is going to be an overnight trend.

Speaker #1: We think that this will evolve over the next 5 to 10 years. And it's really important that we're a part of it. And so we look at those trends and in particular, we think about gut health.

Speaker #1: And that's really about wellbeing, there's some significant science now around having a healthy gut and the vagus nerve, which attaches the gut to the mind, which creates wellness around mood and overall wellbeing.

Speaker #1: 51% of customers in Australia are already regularly choosing food and drink that specifically supports gut health. And 72% of Australians have now heard of the gut-mind connection.

Pete Findlay: 51% of customers in Australia are already regularly choosing food and drink that specifically supports gut health, and 72% of Australians now heard of the gut-mind connection. We are seeing this real rise of probiotics and fiber in everyday new everyday diets, and we just think that this is going to continue to grow. In fact, digestive health is growing at nearly 40% in the US and 79% of beverages. There is actually 79% in US beverages that support mood enhancement. We think that this trend is here to stay and will continue to accelerate. We are very cognisant of that. We think our yogurt and our milk-based beverages play into that space very strongly. Weight wellness is also key. People are moving into weight wellness far more. Body health is actually becoming just as important as body image.

Speaker #1: So we're seeing this real rise of probiotics and fibre in the everyday diets. And we just think that this is going to continue to grow.

Speaker #1: In fact, digestive health is growing at nearly 40% in the US. And 79% of beverages sorry, there's actually 79% in US beverages that support mood enhancement.

Speaker #1: So we think that this trend is here to stay. And we'll continue to accelerate. So we're very cognizant of that. We think our yogurt and our milk-based beverages play into that space very strongly.

Speaker #1: Weight wellness is also key. People are moving into weight wellness far more. Body health has actually become just as important as body image. And people are seeing that if they carry less weight throughout their life, it actually helps their health outcomes as they get older.

Pete Findlay: People are seeing that if they carry less weight throughout their life, it actually helps their health outcomes as they get older, both from an organ health perspective and a joint health perspective. That is why we are seeing a rise of GLP-1 drugs and our products with high protein, dense nutrient ingredients actually play significantly into that space. We are seeing weight wellness become a real trend, and our protein yogurts and protein beverages are really playing to that, and we think we have some terrific innovation around that. Obviously, everyday performance, I have talked about lifespan and health span, I have talked about muscle retention, and I have talked about that now becoming a thematic across all age groups in the past, and that continues to grow.

Speaker #1: Both from an organ health perspective and a joint health perspective. That's why we're seeing a rise of GLP-1 drugs. And our products with high protein tend to nutrient ingredients, actually place significantly into that space.

Speaker #1: So we're seeing weight wellness become a real trend. And our protein yogurts and protein beverages are really playing to that. And we think we have some terrific innovation around that.

Speaker #1: Obviously, every day performance. I've talked about lifespan and health span. I've talked about muscle retention. And I've talked about that now becoming a thematic across all age groups.

Speaker #1: In the past, and that continues to grow. So we've moved from sports enhancement to just everyday enhancement across all age groups wanting to have a high protein diet and maintain their balance, and maintain their active lifestyles.

Pete Findlay: We have moved from sports enhancement to just everyday enhancement across all age groups wanting to have a high-protein diet and maintain their muscle skeletal strength, maintain their balance, and maintain their active lifestyles. Treat reward continues to be important. Treat reward is probably moving to how can I have a healthy treat? How can I have a small indulgent outcome in my everyday routine that doesn't break the bank, doesn't break the health bank, and we continue to play in that space around some of our dessert yogurts, our healthy desserts, ramping up some of the treat varieties around our peanut butter, and we are seeing really good growth there. That is something that we will continue to focus on. Really strong thematics playing out globally.

Speaker #1: And then treatment reward continues to be important. Treatment reward is probably moving into how can I have a healthy treat? How can I have a small indulgent outcome in my everyday routine that doesn't break the bank, doesn't break the health bank?

Speaker #1: And we continue to play in that space around some of our dessert yogurts, our healthy desserts, ramping up some of the treat varieties around our peanut butter and we're seeing really good growth there.

Speaker #1: So that's something that we continue to focus on. So really strong thematics playing out globally. We think we're really well placed for that. And we're actually investing heavily in that space over the next couple of years to continue to drive really good growth in our business.

Pete Findlay: We think we are really well-placed for that, and we are actually investing heavily in that space over the next couple of years to continue to drive really good growth in our business. If I move to the next slide, I won't spend too long other than to say those thematics that I talked about before are playing across our key categories. You can see the unbelievable growth there. That is both volume and price. As we are stepping up the wellness trends and we are adding functional outcomes, we are actually able to charge more for those products. We are seeing both a really nice balance of growth in volume and price, and of course, we play really strongly across those key categories with either number 1 or number 2 positions. If I move on to slide 14, just really touching on that protein.

Speaker #2: If I move to the next slide, I won't spend too long other than to say those thematics that I talked about before are playing across our key categories.

Speaker #2: You can see the unbelievable growth there. That is both volume and price. So as we're stepping up the wellness trends and we're adding functional outcomes, we're actually able to charge more for those products.

Speaker #2: So we're seeing both a really nice balance of growth in volume and price. And of course, we play really strongly across those key categories with either number one or number two positions.

Pete Findlay: We are seeing both a really nice balance of growth in volume and price, and of course, we play really strongly across those key categories with either number 1 or number 2 positions. If I move on to slide 14, just really touching on that protein.

Speaker #1: If I move on to slide 14, just really touching on that protein. We've done a huge amount of work across MBB, white milk, and yogurt across those core brands.

Pete Findlay: We have done a huge amount of work across MBB, White Milk, and yogurt across those core brands. In 2025, we sold AUD 20 million of product associated with those key thematics calling out protein and gut health. In 2026, we sold AUD 95 million of product with those key trends. In 2027, we will go close to doubling that again. Some of that is from our traditional products, but a lot of it is incremental growth. We are really excited about that, which is why we are investing in those key factories around that space. If I move on to slide 15, obviously, we are doing some really good work in market. We have increased our marketing spend by AUD 9 million, focusing on communicating those functional benefits to our customers and consumers across our key five brands.

Speaker #1: In 2025, we sold 20 million dollars of product associated with those key thematics, calling our protein and gut health. In 2026, we sold 95 million dollars of product with those key trends.

Speaker #1: And in 2027, we'll go close to doubling that again. Now, some of that is from our traditional products, but a lot of it is incremental growth.

Speaker #1: And so we're really excited about that, which is why we're investing in those key factories around that space.

Speaker #2: If I move on to slide 15, obviously, we're doing some really good work in market. We've increased our marketing spend by 9 million dollars.

Speaker #2: Focusing on communicating those functional benefits to our clients across to our customers across our consumers across our key five brands. We're doing that in a really targeted way through social media.

Pete Findlay: We are doing that in a really targeted way through social media, and are very happy with the reach we are getting and the communication of that message, which is reflecting now in our growth around those categories. If I move on to page 16, the manufacturing network continues to be really important to us. That Ridge Street site was really a microcosm of how we think about things. We have closed our Anula site that was under capacity. We have reinvested state-of-the-art technology into another site. We have doubled its volume. We have made it globally competitive, and we think that that site is now future-proofed for the next decade to grow with our expansion in that area. That really reflects what we are trying to do at Morwell. It reflects what we have tried to do with our Woodville Park footprint and our White Milk footprint.

Speaker #2: And very happy with the reach we're getting and the communication of that message, which is reflecting in our growth around those categories.

Speaker #1: If I move on to page 16, the manufacturing network continues to be really important to us. That rich street side was really a microism of how we think about things.

Speaker #1: We've closed down an older site that was under capacity. We've reinvested a state-of-the-art technology into another site. We've doubled its volume. We've made it globally competitive.

Pete Findlay: We have doubled its volume. We have made it globally competitive, and we think that that site is now future-proofed for the next decade to grow with our expansion in that area. That really reflects what we are trying to do at Morwell. It reflects what we have tried to do with our Woodville Park footprint and our White Milk footprint.

Speaker #1: And we think that that site is now future-proof for the next decade to grow without our expansion in that area. That really reflects what we're trying to do at Moorwell.

Speaker #1: It reflects what we've tried to do with all park, footprint, and our milk footprint. That project was done in 14 months. The rich street project.

Pete Findlay: That project was done in 14 months, the Ridge Street project. It was an unbelievable effort by the team. It has been executed superbly, and I am really pleased with that muscle memory that we have built around those sorts of projects and our ability to do more of those projects into the future. You will see there a photo on that slide of our new pouch line that we have released. That was also executed in just over 12 months, and we are really excited about the work we are going to be doing at Morwell right now that will actually have us ready for another significant expansion in 2028.

Speaker #1: It was an unbelievable effort by the team. It's been executed superbly. And I'm really pleased with that sort of that muscle memory that we've built around those sorts of projects and our ability to do more of those projects into the future.

Speaker #1: You'll see there a photo on that slide of our pouch of our new pouch line that we put in. That was also executed in just over 12 months.

Speaker #1: And we're really excited about the work we're going to be doing at Moorwell right now that we'll actually have us ready for another significant expansion in 2028.

Speaker #1: So really pleased about the way we've been able to execute operationally.

Pete Findlay: So really pleased about the way we have been able to execute operationally. If I go to the next slide, which is slide 17, and that is a slide that we often talk about, and it is still very relevant to our business, but it is relevant from a point of view about what we are doing about the relationship that we have with that chart. So that is the commodity milk values of the Victorian milk price there. You will see the blue line represents the return on a commodity value index, which is the total market index, and the red line is actually our farm gate milk price. In the past, when those lines dispersed, particularly when the blue line fell well below the red line, we would feel fairly significant pain.

Speaker #2: If I go to the next slide, which is slide 17. And that's a slide that we often talk about. And it's still very relevant to our business.

Speaker #2: But it's relevant from a point of view about what we're doing about the relationship that we have with that chart. So that's the commodity milk value for the Victorian milk price there.

Speaker #2: You'll see the blue line represents the return on a commodity value index, which is the total market index. And the red line is actually our farm-grade milk price.

Speaker #2: In the past, when those lines dispersed, particularly when the blue line fell well below the red line, we would feel fairly significant pain. And look, we still have some attachments to that blue line, but we've done a huge amount of work to actually create a buffer against that.

Pete Findlay: And look, we still have some attachment to that blue line, but we've done a huge amount of work to actually create a buffer against that. That's probably reflected in the results that you see in our bulk business now, where commodities did actually pull away. But because we've worked ourselves into higher protein, higher-value protein assets, we're doing more with our protein, we're selling more lactoferrin, we've found better homes for our fat in our rabbit network. We are actually buffering ourselves from that blue line significantly. We will continue to work towards that over the next few years as we grow in some formula business, as we ramp up our drying capacity, through the MSD2 dryer that'll be bought back off Mead Johnson.

Speaker #2: And that's probably reflected in the results that you see in our bulk business now, where commodities did actually fall away. But because we've worked ourselves at a higher protein, higher value protein assets, we're doing more with our protein.

Speaker #2: We're selling more lacto-ferritin. With our better homes for our fat and our rapid network, we are actually buffering ourselves from that blue line significantly.

Speaker #2: And so we will continue to work towards that over the next few years, as we go in from formula business, as we ramp up our drying capacity through the MSD2 dryer that we bought back off Mead Johnson.

Speaker #2: And so we will continue to move further and further away from that value commodity index. And that will become a smaller part of our business.

Pete Findlay: And so we will continue to move further and further away from that blue commodity index, and that will become a smaller part of our business. We're extremely excited about that. So the bulk business was a great result, but what was really pleasing, it was done in line with a fairly significant gap to that farm gate milk price. What I would also say is that we've actually increased our milk pool by our milk intake by nearly 7% in a stable milk environment. I think what that reflects is farmers are voting with their actions or their feet. We have more farmers wanting to come and join us because they see our cost as a sustainable cost they can grow their businesses with. Our existing farmers, in many cases, are actually growing their milk pool for the same reason.

Speaker #2: And so we're extremely excited about that. So the bulk business was a great result. But what was really pleasing was done in line with a fairly significant gap to that farm-grade milk price.

Speaker #1: What I would also say is that we've actually increased our milk pool by our milk intake by nearly 7% in a stable milk environment.

Speaker #1: I think what that reflects is farmers are voting with their actions or their feet. We have more farmers wanting to come and join us because they see our cost as a sustainable cost.

Speaker #1: They can grow their businesses with. And our existing farms, in many cases, are actually growing their milk pool for the same reason. So I remain extremely bored about the industry.

Pete Findlay: So I remain extremely buoyed about the industry. I'm really pleased our farmers are happy to supply us to the point where they're giving us more milk. I think it's creating a sustainable environment for both us and them. I would say that as I get out and talk to farmers, the majority or the overwhelming sentiment about our industry is extremely positive. Thank you for that. I'll now throw to Gunther Burghardt to push through our key financial metrics.

Speaker #1: I'm really pleased that our farmers are happy to supply us to the point where they're giving us more milk. I think it's creating a sustainable environment for both us and them.

Speaker #1: And I would say that as I get out and talk to farmers, the majority or the overwhelming sentiment about our industry is extremely positive.

Speaker #2: Thank you for that. I'll now throw to Gunther Burghardt to push through our key financial metrics.

Speaker #1: Fantastic. Thank you very much, Pete. And I'll go to slide 19. I'll be very brief. I think Pete's covered this well. As Pete mentioned, we got together and I'll cast our minds back to April when we had our investor day.

Gunther Burghardt: Fantastic. Thank you very much, Pete, and I'll go to slide 19. I'll be very brief. I think Pete's covered this well. As Pete mentioned, we got together, and I'll cast our minds back to April when we had our investor day. Not only did we refresh and extend our time horizon to F31, we also gave more detail in April about how FY 26 would land. I want to refer back to a few call-outs from that investor day. One of the things we said is that our net revenue would be between AUD 3.7 billion and AUD 3.8 billion, and we came right near the top end of that guidance. Pete called out yogurt is growing very strongly year-over-year in milk-based beverages.

Speaker #1: And not only did we refresh and extend our time horizon to F31, we also gave more detail in April about how F26 would land.

Speaker #1: And I want to refer back to a few callouts from that investor day. One of the things we said is that our net revenue would be between 3.7 and 3.8 billion.

Speaker #1: And we came right near the top end of that guidance. Pete called out yogurt as growing very strongly year over year and milk-based beverages.

Speaker #1: And in our bulk business, cream cheese, infant formula, and milk protein concentrate all had strong double-digit growth in Q4 compared to the prior year, which helped us get to the top end of that revenue guidance.

Gunther Burghardt: In our bulk business, cream cheese, infant formula, and milk protein concentrate all had strong double-digit growth in Q4 compared to the prior year, which helped us get to the top end of that revenue guidance. Back in April, we also said our branded segment would grow from AUD 205 million in the previous year to a range of between AUD 215 million and AUD 220 million. Since reported, we exceeded the top end of that range and delivered AUD 221 million, again, on the strength of those core franchises. Even with legacy categories like fresh white drinking milk performing very well and strength in culinary creams in our food and service area, that was very pleasing. We outlined our bulk segment would land at AUD 50 million to AUD 55 million.

Speaker #1: Back in April, we also said our branded segment would grow from 205 million in the previous year to a range of between 215 and 220 million.

Speaker #1: Please report it exceeded the top end of that range and delivered 221 million. Again, on the strength of those core franchises. But even with legacy categories like fresh white drinking milk performing very well, and strength in culinary creams in our food service area.

Speaker #1: So that was very pleasing. We outlined our bulk segment would land at 50 to 55 million, and it landed near the top of that at 53 million.

Gunther Burghardt: It landed near the top of that at AUD 53 million, which was excellent. The truth is, we could have over-delivered that profit by several million more, but in June, we decided to set aside AUD 6 million in our unallocated overheads, for an efficiency program, which is going to benefit us in FY 27 and beyond. Pete talked about our AI programs and our general efficiency programs. So we did set aside inside our results AUD 6 million for that. We did not normalize that cost because we tend to have an efficiency program in our back office every year. The things we are most proud about, as Pete mentioned, is really our return on funds employed and our leverage. In April, we called it 1.3x leverage and significantly beat that with a 0.8 result, keeping that in line with the previous year. So that is an excellent result.

Speaker #1: Which was excellent. The truth is we could have overdelivered that profit by several million more. But in June, we decided to set aside 6 million dollars in our unallocated overhead for an efficiency program, which is going to benefit us in F27 and beyond.

Speaker #1: And Pete talked about our AI programs, and our general efficiency programs. So we did set aside inside our results 6 million for that. We did not normalize that cost because we tend to have an efficiency program in our back office every year.

Speaker #1: The things we're most proud about, as Pete mentioned, is really our return on funds employed in our leverage. In April, we call it 1.3 times leverage and significantly beat that with a 0.8 result, keeping that line from previous year.

Gunther Burghardt: The things we are most proud about, as Pete mentioned, is really our return on funds employed and our leverage. In April, we called it 1.3x leverage and significantly beat that with a 0.8 result, keeping that in line with the previous year. So that is an excellent result.

Speaker #1: So that's an excellent result. Pete's going to talk in a couple of minutes about our F27 outlook. And you will have seen from the deck that we have a high level of confidence in delivering another 15 to 20 million of EBITDA growth next year.

Gunther Burghardt: Pete is going to talk in a couple of minutes about our FY 27 outlook, and you will have seen from the deck that we have a high level of confidence in delivering another AUD 15 million to AUD 20 million EBITDA growth next year. That is going to be H2-weighted. In H1 of the year, we expect our bulk business to come off a little bit, perhaps about AUD 10 million. But we expect our branded growth to accelerate, and that will at least offset any declines in bulk in H1. So you will see a lot of our profit growth coming in H2 of the year.

Speaker #1: That is going to be back halfway. In the first half of the year, we expect our bulk business to come off a little bit, perhaps about 10 million dollars.

Speaker #1: But we expect our branded growth to accelerate. And that will at least offset any declines in bulk in H1. So you'll see a lot of our profit growth coming in the second half of the year.

Speaker #1: In terms of things like depreciation and amortization, for those of you looking forward to F27, we're expecting around 98 to 99 million dollars of depreciation and amortization.

Gunther Burghardt: In terms of things like depreciation and amortization, for those of you looking forward to FY 27, we are expecting around AUD 98 million to AUD 99 million of depreciation and amortization, and we are expecting a normalized effective tax rate of between 28% and 29% for next year. All of those things come together and say that we should have normalized DPS growth just in double digits, a little over AUD 0.25. So another great year of growth ahead of us, and we are very confident in that. As you move forward to page 20, really only two figures I am going to touch on this page. One is the gross margin. It did come down a little bit, and even though core categories like yogurt were very strong in terms of margin growth, I will remind people, we do have a cheese, a natural cheese, a processed cheese toll manufacturing business.

Speaker #1: And we're expecting a normalized effective tax rate of between 28 and 29 percent for next year. All of those things come together. And say that we should have normalized EPS growth just into the double digits, a little over 25 cents.

Speaker #1: So another great year of growth ahead of us. And we're very confident in that. As you move forward to page 20, really only two figures I'm going to touch on on this page.

Speaker #1: One is the gross margin. It did come down a little bit. And even though core categories like yogurt were very strong in terms of margin growth, I'll remind people we do have a cheese, a natural cheese, a processed cheese toll manufacturing business.

Gunther Burghardt: One is the gross margin. It did come down a little bit, and even though core categories like yogurt were very strong in terms of margin growth, I will remind people, we do have a cheese, a natural cheese, a processed cheese toll manufacturing business.

Speaker #1: Cheese prices did drop along with butter prices over the last 12 months. And they offset some of the growth and gross margin in our core business.

Gunther Burghardt: Cheese prices did drop along with butter prices over the last 12 months, and they offset some of the growth in gross margin in our core business. We are very confident that gross margin will continue to climb higher, in FY 27 and beyond, particularly given the scope of the cost savings that Pete outlined in his presentation. Our dividend is AUD 0.145, up 21%, and we have well over AUD 100 million of franking credits in the bank, to allow great future dividends. I know this has been a very important theme, in this results season. I can skip over slide 21. On slide 22, you see a little bit more detail on the segments. There are really just two things I would call out that have not been said already. I do want to reflect on the good balanced delivery.

Speaker #1: We're very confident that gross margin will continue to climb higher in F27 and beyond, particularly given the scope of the cost savings that Pete outlined in his presentation.

Speaker #1: Our dividend at 14.5 cents up 21%. And we have well over 100 million dollars of franking credits in the bank to allow great future dividends.

Speaker #1: And I know this has been a very important theme in this results season. I can skip over slide 21. And on slide 22, you see a little bit more detail on the segments.

Speaker #1: But it's really just two things I'd call out that haven't been said already. I do want to reflect on the good balance delivery, both our branded and our bulk segment, both grew EBITDA by about 15 million dollars each, which is very strong.

Gunther Burghardt: Our branded and our bulk segments both grew EBITDA by about AUD 15 million each, which is very strong, and it shows the balance and the importance of those two segments in our business. The revenue growth for the group is 6.7%. That was about 2% in volume, and the remainder was product mix and mix between our categories and, of course, prices which recovered cost and inflation. That is how that revenue growth breaks down. As you look into FY 27, yes, we do expect our Nutritionals and Ingredients business to go back a little bit, and Pete talked about the commodity chart at the end of his presentation. You might see it go backwards AUD 5 to 10 million, but we do expect a dramatic acceleration in our branded business, so at least AUD 25 million. That is going to be very positive.

Speaker #1: And it shows the balance and the importance of those two segments in our business. The revenue growth for the group at 6.7%, that was about 2% in volume.

Speaker #1: And the remainder was product mix and mix between our categories. And of course, prices which recovered cost inflation. And so that's how that revenue growth breaks down.

Speaker #1: As you look into F27, yes, we do expect our nutritionals and ingredients business to go back a little bit. And Pete talked about the commodity chart at the end of his presentation.

Gunther Burghardt: As you look into FY 27, yes, we do expect our Nutritionals and Ingredients business to go back a little bit, and Pete talked about the commodity chart at the end of his presentation. You might see it go backwards AUD 5 to 10 million, but we do expect a dramatic acceleration in our branded business, so at least AUD 25 million. That is going to be very positive.

Speaker #1: So you might see it go backwards 5 to 10 million. But we do expect a dramatic acceleration in our branded business. So at least 25 million dollars.

Speaker #1: So that's going to be very positive. The next slide is slide 23. And that shows the normalization of our results. And in our earnings call the half year and last year, people asked for a little bit more detail on this one.

Gunther Burghardt: The next slide is slide 23, and that shows the normalization of our results. In our earnings call for H1 and last year, people asked for a little bit more detail on this one. The manufacturing footprint rationalization, we had AUD 22 million of one-time costs. AUD 13 million of that was to achieve the Strathmerton to Ridge Street project that Pete talked about. Within that AUD 13 million, about AUD 7.5 million was employee costs, and the remainder was other one-time transition costs and inventory costs of achieving that site consolidation. The remaining AUD 9 million related to our PCA exit, our peanut processing exit in Queensland. That was AUD 3 million lost on the sale, AUD 3 million of employee costs, and AUD 3 million of other transition and inventory costs.

Speaker #1: So the manufacturing footprint rationalization, we had 22 million of one-time costs. 13 million of that was to achieve the Strathmerton to Ridge Street project that Pete talked about.

Speaker #1: And within that, 13 million about 7.5 million was employee costs. And the remainder was other one-time transition costs and inventory costs of achieving that site consolidation.

Speaker #1: The remaining 9 million related to our PCAX, our peanut processing exit in Queensland. That was 3 million loss on the sale, 3 million of employee costs, and 3 million of other transition and inventory costs.

Speaker #1: I'm going to speak the balance sheet on slide 24 and finish off with a couple of comments on cash flow in slide 25. And I would just say this.

Gunther Burghardt: I am going to skip the balance sheet on slide 24 and finish off with a couple of comments on cash flow in slide 25. I would just say this, not only did we step up our CapEx to AUD 110 million in FY 26, we also had AUD 37 million cash cost to achieve our various supply footprint initiatives. In spite of this, we delivered a 0.8 leverage. We will continue to have great investment in growth initiatives going into FY 27, but we will deleverage further to 0.7 times or better. We are very pleased to see the continued strength of our cash flows and our balance sheet. You have seen in this period, Pete mentioned the Frenchs Forest sale. As we are investing more in CapEx, we are taking bits of property that are no longer needed, we are recognizing cash from those.

Speaker #1: Not only did we step up our capital expenditure to 110 million in FY26, we also had 37 million dollars of cash costs to achieve our various supply footprint initiatives.

Speaker #1: And in spite of this, we delivered a 0.8 leverage. We will continue to have great investment in growth initiatives going into F27, but we will deleverage further, to 0.7 times or better.

Speaker #1: So we're very pleased to see the continued strength of our cash flows and our balance sheet. You've seen in this period, Pete mentioned the French's forest sale.

Gunther Burghardt: You have seen in this period, Pete mentioned the Frenchs Forest sale. As we are investing more in CapEx, we are taking bits of property that are no longer needed, we are recognizing cash from those.

Speaker #1: So as we're investing more in CAPEX, we're taking bits of property that are no longer needed. We're recognizing cash from those. You are going to see more of that in F27.

Gunther Burghardt: You are going to see more of that in FY 27. Our net CapEx investment is not as great as our gross CapEx investment in our growth initiatives. We are very confident next year we will have over AUD 0.25 of normalized DPS, and Pete is going to talk about the outlook for FY 27. Back to you, Pete.

Speaker #1: So our net CAPEX investment is not as great as our gross CAPEX investment in our growth initiatives. So we are very confident next year we will have over 25 cents of normalized EPS, and Pete is going to talk about the outlook for F27.

Speaker #1: Back to you, Pete.

Speaker #2: Well, thank you, Gunther. So I think we've got a strong 2027 outlook at 240 to 245 million dollars. That's in light of significant cost increases incurred by the Middle East, which we factored into that number.

Pete Findlay: Well, look, thank you, Gunther. I think we have got a strong 2027 outlook at AUD 240 million to AUD 245 million. That is in light of significant cost increases incurred by the Middle East, which we have factored into that number. I think it will be driven off a really strong branded new product development pipeline, both across yogurt-based beverages. Obviously, the cost brinks that we have put in place over the last couple of years will bear fruit, being the closure of the Strathmerton site, and the Lismore logistics program that we carried out last year. We have got some really good work being done around our Nutritionals business, in the bulk business there, which we are very excited about. We have actually going to invest AUD 110 million on growth capacity for FY 2028.

Speaker #2: I think it'll be driven off a really strong branded new product development pipeline. Both across yogurt, milk-based beverages, obviously the cost bricks that we've put in place over the last couple of years, last couple of years, will bear fruit being the closure of the Strathmerton site.

Speaker #2: And the lavender logistics program that we carried out last year. We've got some really good work being done around our nutritionals business in the bulk business there, which we're very excited about.

Speaker #2: And we've actually gone to invest 110 million dollars on growth capacity for FY2028. So this year will be underpinned by a fair bit of cost efficiency, but we're really excited about the growth trajectory with our innovation and our capacity unlocks that will happen towards the very back end of 2027, the start of 2028.

Pete Findlay: This year will be underpinned by a fair bit of cost efficiency, but we are really excited about the growth trajectory of our innovation and our capacity unlocks that will happen towards the very back end of 2027 or start of 2028. We remain extremely excited about the business outlook, about our S28 strategy, and the opportunities that we have ahead of us. I would just really like to thank the board and our team for their very hard work and alignment. Our people have done an amazing job of transitioning the business over the last couple of years. It has been a huge amount of discretionary effort. I would like to thank our customers for their continued support and consumers for wanting to buy our product. We really look forward to working and meeting all of their needs in the future.

Speaker #2: So we remain extremely excited about the business outlook, about our 310 million dollar strategy, and the opportunities that we have ahead of us. I just really like to thank the board and our team for their very hard work and alignment, our people have done amazing job of transitioning the business over the last couple of years.

Speaker #2: It's been a huge amount of discretionary effort. I'd like to thank our customers for their continued support and the consumers for wanting to buy our product.

Speaker #2: And we really look forward to working and meeting all of their needs in the future. And I'd like to thank our shareholders for their support.

Pete Findlay: I would like to thank our shareholders for their support. I guess now I open this up to any questions.

Speaker #2: I guess now I open this up to any questions.

Speaker #3: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Julia de Sterke with Morgan Stanley. Please go ahead.

Speaker #3: If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Julia Dysturk with Morgan Stanley. Please go ahead.

Speaker #4: Good morning, guys. Thanks very much. Just wanted to start with your outlook in the branded business. And how you're thinking about pricing power there, given the structural growth tailwinds that you guys have spoken to today, continuing the benefit the category and the significant innovation pipeline that now seems to be baked in over the next couple of years.

Julia de Sterke: Good morning, guys. Thanks very much. Just wanted to start with your outlook in the branded business and how you are thinking about pricing power there, given the structural growth tailwinds that you guys have spoken to today, continuing to benefit the category and the significant innovation pipeline that now seems to be baked in over the next couple of years.

Speaker #2: Yeah. So we've sort of worked with our customers to get our pricing set pretty early in the year. And so we're reasonably comfortable with that.

Pete Findlay: Yeah. We have sort of worked with our customers to get our pricing set pretty early in the year. We are reasonably comfortable with that, and that sort of sets us up for that number that we have talked about. We do keep a close eye on geopolitical events and spikes, and for the current climate, we try not to be knee-jerk to those headwinds. We think that we are well-priced in market. We do a lot of work around our promotional effectiveness, so making sure that we turn up to our customers, our consumers with value. Then how we think about the next couple of years is we are going to be bringing on a lot of capacity in those growth areas. That capacity will also bring synergies with it, operational synergies with it. We will ensure that we always remain competitive.

Speaker #2: And that sort of sets us up for that number that we've talked about. We do keep a close eye on geopolitical events and spikes and falls of the curve around that.

Speaker #2: We try not to be knee-jerk to those headwinds. So we think that we're well priced in the market. We do a lot of work around our promotional effectiveness, making sure that we turn up to our customers, our consumers with value.

Speaker #2: And then how we think about the next couple of years is we're going to be bringing on a lot of capacity in those growth areas.

Speaker #2: That capacity will also bring synergies with it, operational synergies with it. So we will ensure that we always remain competitive. And we think that the dairy cabinet is actually pretty well priced.

Pete Findlay: We think that the dairy cabinet is actually pretty well priced. If you go back to those basic themes we have, we want to have number one, number two mainstream brands that really meet our consumer needs, and we want to have the best operational footprints supporting them. We think that we will continue to be competitive, and that we will continue to be able to grow our margin off the back of those tailwinds.

Speaker #2: So if you think, if you go back to those basic themes we have, we want to have number one, number two, mainstream brands that really meet our consumer needs.

Speaker #2: And we want to have the best operational footprint supporting them. And so we think that we'll continue to be competitive. And that we'll continue to be able to grow our margin off the back of those tailwinds.

Speaker #4: Got it. Very helpful. And then just secondly, just your comments around tracking ahead of your previous S28 strategic plan. I guess looking forward into 28, what now is giving you more confidence on that trajectory there that's kind of leading you to make those comments?

Julia de Sterke: Got it. Very helpful. Secondly, just your comments around tracking ahead of your previous S28 strategic plan. Looking forward into 2028, what now is giving you more confidence on that trajectory there that is leading you to make those comments? Is it around earlier than expected supply chain, or is it around some of the growth that you are seeing in the branded business?

Speaker #4: Is it around kind of earlier than expected supply chain, or is it around some of the growth that you're seeing in the branded business?

Speaker #2: Well, look, probably both. I think. So certainly, we anticipate to try a bit 250 million dollars by 2028. We're obviously going to be very close to that this year.

Pete Findlay: Well, look, probably both, I think. Certainly, we anticipate to trim it, AUD 250 million by 2028. Well, obviously, we are going to be very close to that this year. I would say that we are seeing better branded growth than what we would have thought three or four years ago. The protein and wellness piece is just playing out much more aggressively than what we thought. Why I get really confident about 2028 is that we will be bringing on increased, more than 25% yogurt capacity at the start of 2028 to meet those needs. We are currently constraining the market both here and overseas. We are bringing on more than 20% cream cheese capacity to meet real tailwinds in Southeast Asia at the beginning of 2028. We are bringing on MBB capacity.

Speaker #2: But I would say that we're seeing better branded growth than what we would have thought three or four years ago. But the protein and wellness piece is just playing out much more aggressively than what we thought.

Speaker #2: Why I get really confident in 2028 is that we'll be bringing on increased more than 25% yogurt capacity at the start of 2028 to meet those needs.

Speaker #2: We're currently constraining the market both here and overseas. We're bringing on more than 20% cream cheese capacity to meet real tailwinds in Southeast Asia at the beginning of 2028.

Speaker #2: And we're bringing on MBB capacity. That's what that 110 million dollars is going towards effectively those three categories. Throughout this year, it's a really set us up for expansion in 2028.

Pete Findlay: That is what that AUD 110 million is going towards, effectively those three categories throughout this year to really set us up for expansion in 2028. So we are really excited about that. So that for me is definitely stronger than what we thought. I have mentioned the protein growth during my presentation. We have got Gut Health coming into that as well. We do not see that going anywhere, based on what we are seeing overseas. So we think there is growth there. Of course, with that growth, your cost add initiatives actually end up paying more than what you think because you are driving volumes through a more optimized network. In actual fact, every dollar of growth, and that is how we think about every dollar of growth in a more optimized network actually drops more to the bottom line.

Speaker #2: So we're really excited about that. So that thematic is definitely stronger than what we thought. I mentioned the protein growth during my presentation. We've got Gut Health coming into that as well.

Speaker #2: We don't see that going anywhere based on what we're seeing overseas. So we think there's growth there. And of course, with that growth, your cost out initiatives actually end up paying more than what you think.

Speaker #2: Because you're driving volume through a more optimized network. So in actual fact, every dollar of growth, and that's how we think about it, every dollar of growth in a more optimized network actually drops more in the bottom line.

Speaker #2: So to be fair to say, if we hadn't made those optimizations, decisions a couple of years ago, we'd be still getting growth now, but we wouldn't be seeing the size of the benefit.

Pete Findlay: It would be fair to say if we had not made those optimization decisions a couple of years ago, we would still be getting growth now, but we would not be seeing the size of the benefit. So that is how we think about it. I think the 2031 strategy is very much underpinned around capacity and growth in these key areas.

Speaker #2: So that's sort of how we think about it. But I think the 2031 strategy is very much underpinned around capacity and growth in these key areas.

Speaker #4: Excellent. Thank you.

Julia de Sterke: Excellent. Thank you.

Speaker #3: Thank you. Your next question comes from Phil Kimber with ENP Capital. Please go ahead.

Operator: Thank you. Your next question comes from Phil Kimber with E&P Capital. Please go ahead.

Speaker #5: Hey guys. I just wanted to maybe go through those building blocks that you went through, Gunther, to sort of get the earnings growth. The bulk business, you're sort of saying down 10-ish, not down towards sort of 30 level or?

Phil Kimber: Hey, guys. I just wanted to maybe go through those building blocks that you went through, Gunther, to sort of get the earnings growth. The bulk business, you're sort of saying down 10-ish, not down towards that sort of 30 level or?

Speaker #2: I would say 5 is this year we delivered 53 billion in bulk fill. And so I would figure it's down 5 to 10. And I think branded will be up about 25 million.

Pete Findlay: I would say 5. This year we delivered AUD 53 million in bulk, Phil, so I would figure it's down 5 to 10, and I think branded will be up about AUD 25 million.

Speaker #5: And just to understanding the drivers of that, I mean, is that brand where are the 30-odd is the 30 million an annualized number of cost savings or is that the total amount?

Phil Kimber: And just understanding the drivers of that, is that brand? Where are the 30 odd? Is the AUD 30 million an annualized number of cost savings or is that the total amount? Because I think the project's basically finished earlier than expected or completed earlier than expected in June 2026. So is that AUD 30 million you get AUD 30 million?

Speaker #5: Because I think your projects basically finished earlier than expected or completed earlier than expected in June 26. So is that 30 million you get 30 million effectively in 2027?

Speaker #2: Yeah, that's right, Phil. And that's what gives us so much confidence in next year. We do have cost inflation every year. So if you look at cost inflation, the 30s some odd million of savings that peaked to talk about is a gross number.

Barry Irvin: Yeah, that's right, Phil. That's what gives us so much confidence into next year. We do have cost inflation every year. So if you look at cost inflation, the 30 some odd million of savings that Pete talked about is a gross number. That's going to underline a lot of our profit growth going into next year. So even if we have some Middle East headwinds, and even if we have some FX headwinds as it goes north AUD 0.70, that AUD 37 million of cost savings is going to offset cost inflation, it's going to offset FX movements, and it's going to enable us to grow at least AUD 25 million in branded EBITDA or more.

Gunther Burghardt: Yeah, that's right, Phil. That's what gives us so much confidence into next year. We do have cost inflation every year. So if you look at cost inflation, the 30 some odd million of savings that Pete talked about is a gross number. That's going to underline a lot of our profit growth going into next year. So even if we have some Middle East headwinds, and even if we have some FX headwinds as it goes north AUD 0.70, that AUD 37 million of cost savings is going to offset cost inflation, it's going to offset FX movements, and it's going to enable us to grow at least AUD 25 million in branded EBITDA or more.

Speaker #2: And that's going to underline a lot of our profit growth going into next year. So even if we have some Middle East headwinds and even if we have some FX headwinds as it goes north 70 cents, that 37 million of cost savings is going to offset cost inflation.

Speaker #2: It's going to offset FX movement. And it's going to be able to enable us to grow at least 25 million in branded EBITDA or more.

Speaker #5: Yeah. And that's a bit, I guess I was trying to get so is that growth in branded that where all the cost savings are ending up or are they also partly ending up in the bulk business and that's why it's only down 5 to 10?

Phil Kimber: Yeah. That's a bit, I guess, I was trying to get to, is that growth in branded, is that where all the cost savings are ending up or are they also partly ending up in the bulk business and that's why it's only down 5 to 10, whereas I think normally you've said, I know you've been conservative, but you were sort of saying a AUD 30 to 40 million range for bulk over the medium term for Lemke?

Speaker #5: Whereas I think normally you've said I know you've been conservative, but you were sort of saying a 30 to 40 million range for bulk over the medium term from memory.

Speaker #2: Yeah, that's right. And I would say a couple of things most of the cost savings, when you think about it, the two big projects that will benefit branded next year is that cheese consolidation, which is almost entirely branded.

Barry Irvin: Yeah, that's right. I would say a couple things. Most of the cost savings, when you think about it, the two big projects that'll benefit branded next year, is that cheese consolidation, which is almost entirely branded. The PCA savings actually came early, which was great in FY 26. We got some benefit this year. Then we're going to get, of course, the leverage and automation, and that's worth several million dollars of savings. That project is finished in Q4. So that really underlines why we're so confident in that AUD 25 million plus, Phil, and I hear your word, conservative, and I hope you're right there. But, we've certainly got a lot of our bricks in place for next year, as you said in your question, Phil.

Gunther Burghardt: Yeah, that's right. I would say a couple things. Most of the cost savings, when you think about it, the two big projects that'll benefit branded next year, is that cheese consolidation, which is almost entirely branded. The PCA savings actually came early, which was great in FY 26. We got some benefit this year. Then we're going to get, of course, the leverage and automation, and that's worth several million dollars of savings. That project is finished in Q4. So that really underlines why we're so confident in that AUD 25 million plus, Phil, and I hear your word, conservative, and I hope you're right there. But, we've certainly got a lot of our bricks in place for next year, as you said in your question, Phil.

Speaker #2: And the PCA savings actually came early, which was great in F26. We got some benefit this year. And then we're going to get then we're going to get, of course, the Laverton automation.

Speaker #2: And that's where several million dollars of savings that project just finished in Q4. And so that really underlines why we're so confident in that 25 million plus fill.

Speaker #2: And I hear your word conservative, and I hope you're right there, but we've certainly got a lot of our bricks in place for next year, as you question.

Pete Findlay: Barry, it's Pete.

Pete Findlay: Phil, it's probably.

Phil Kimber: It's Barry here.

Barry Irvin: It's Barry here.

Speaker #2: Probably just worth adding that if we looked at the bulk performance last year, we did see a strong realignment. As Pete said, there is still some exposure to those local commodity prices.

Barry Irvin: It's probably just worth adding that if we looked at the bulk performance last year, we did see a stronger alignment. As Pete said, there is still some exposure to those global commodity prices, and at the beginning of last year, we saw a strong alignment in farm gate milk price to those global commodity prices. It obviously fell away through the year, but that strong alignment at the beginning was obviously advantageous and probably largely describes the change to more within the range that we expected the format. Having said that, I think what Pete was saying that we're still getting good performance out of it, but there is some impact by that.

Speaker #2: And at the beginning of last year, we saw a strong alignment in Palmgate milk price to those global commodity prices. It obviously fell away through the year, but that strong alignment at the beginning did give was obviously advantageous and probably largely describes the change to more within the range that we expected to perform at.

Speaker #2: But having said that, I think we're happy what Pete was saying that we're still getting good performance out of it. But there is some impact by that change.

Speaker #5: Yeah. And can I just last clarifying point? I wasn't sure if I was getting out and I can't hear as well. Did you say just slightly under 25 cents of EPS?

Phil Kimber: Yeah. Can I just, last clarifying point. I wasn't sure if I was, I'm getting old and I can't hear as well. Did you say, just slightly under AUD 0.25 of EPS? I thought you then said slightly over.

Speaker #5: I thought you then said slightly over.

Speaker #2: No, slightly over. Slightly over.

Barry Irvin: No, slightly over.

Phil Kimber: Yeah.

Barry Irvin: Slightly over.

Speaker #5: That's what I thought. Sorry, I just wanted to clarify that. Thanks, guys.

Phil Kimber: Yeah. That's what I thought. Sorry, just wanted to clarify that. Thanks, guys.

Speaker #6: Thanks, Phil.

Barry Irvin: Thanks, Phil.

Speaker #3: Thank you. Your next question comes from AJ Maraswamy with McQuarrie. Please go ahead.

Operator: Thank you. Your next question comes from Ajay Meraswami with Macquarie. Please go ahead.

Speaker #6: All right. Morning, team. Thanks for taking my question. First one from me is just around the Eastern market customers. We're seeing a little bit of range rationalization happening and given your brand's sort of sitting in that number one and number two in the category, can you give us a bit of color around whether you're seeing any additional allocation on shelters?

Ajay Meraswami: Morning, team. Thanks for taking my question. First one from me is just around your supermarket customers. We are seeing a little bit of range rationalization happening, and even your brands are sitting in that number one and number two in the category. Can you give us a bit of color around whether you are seeing any additional allocation on shelf as they rationalize range? Or how is that playing out at the moment?

Ajay Mariswamy: Morning, team. Thanks for taking my question. First one from me is just around your supermarket customers. We are seeing a little bit of range rationalization happening, and even your brands are sitting in that number one and number two in the category. Can you give us a bit of color around whether you are seeing any additional allocation on shelf as they rationalize range? Or how is that playing out at the moment?

Speaker #6: Are they rationalized range or how is that sort of playing out at the moment?

Speaker #2: We've worked really closely with the majors, around that. We continually have to work with them to make sure that we've got a really competitive offering, both from a functional point of view, new news point of view, and pricing point of view.

Pete Findlay: Well, we work really closely with the majors around that. We continually have to work with them to make sure that we have got a really competitive offering, both from a functional point of view, new news point of view, and pricing point of view. That is something that we are really aligned on with all the big players. We are really happy with our shelf space. We think we have been able to solidify our key brands on the shelf, with actually all of our large suppliers, and we are really happy with our relationship with them at the moment and how we are working with them.

Speaker #2: And so that's something that we're really aligned on with all the big players. And we're really happy with our shelf space. So we think we've been able to solidify our key brands on the shelf with actually all of our large suppliers.

Speaker #2: And we're really happy with our relationship with them at the moment and how we're working with them.

Speaker #6: Thanks. And then secondly, just on the international business, the growth there pretty strong around 12%. And just looking at your pack, it's about 9% of your branded revenue.

Ajay Meraswami: Thanks. Secondly, just on the international business, the growth there, pretty strong around 12%, and just looking at your package, about 9% of your branded revenue. Can you just give us a bit of color around the profit contribution and what it is relative to the rest of the branded business and how much operating leverage could be in there if you guys continue to deliver this type of growth into 2027?

Ajay Mariswamy: Thanks. Secondly, just on the international business, the growth there, pretty strong around 12%, and just looking at your package, about 9% of your branded revenue. Can you just give us a bit of color around the profit contribution and what it is relative to the rest of the branded business and how much operating leverage could be in there if you guys continue to deliver this type of growth into 2027?

Speaker #6: Can you just give us a bit of color around the profit contribution and what it is relative to the rest of the branded business and how much operating leverage could be in there if you guys continue to deliver this type of growth into 27?

Speaker #2: Yeah. So it's I don't like to quite talk about don't like we don't usually divulge our international margins except to say that we're very happy with them.

Pete Findlay: Yeah. I don't like to quite talk about. We don't usually divulge our international margins except to say that we're very happy with them, and that we want to continue to grow that part of the business because it is delivering solid margins. We think that the branded business overseas will continue to do well, but we're really looking forward to unlocking capacity in 2028. So it would be fair to say that we could sell more yogurt, more cream cheese if we had the capacity, and we're really excited about those extensions that are coming to our business because, at the moment, we're probably constraining that growth. But that growth will be more, if we have more product to supply.

Speaker #2: And that we want to continue to grow that part of the business because it is delivering solid margins. We think that the brand of business overseas will continue to do well.

Speaker #2: But we're really looking forward to unlocking capacity in 2028. So it would be fair to say that we could sell more yogurt, more cream cheese if we had the capacity.

Speaker #2: And we're really excited about that, those extensions that are coming to our business because at the moment, we're probably constraining that growth. But that growth could be more if we have more product to supply.

Speaker #6: Thank you.

Ajay Meraswami: Thank you.

Ajay Mariswamy: Thank you.

Speaker #3: Thank you. Your next question comes from Josh Kannourakis with Baron Joey. Please go ahead.

Operator: Thank you. Your next question comes from Josh Kanterakis with Barrenjoey. Please go ahead.

Speaker #6: Hi, Barry. Pete and Gunther, can you guys hear me okay?

Josh Kanterakis: Hi, Barry, Pete, and Gunther. Can you guys hear me okay?

Josh Kannourakis: Hi, Barry, Pete, and Gunther. Can you guys hear me okay?

Speaker #2: We can. Got you, mate.

Pete Findlay: We can. Roger that.

Speaker #6: Great. First one, just maybe for Barry or Pete, just in terms of from the milk supply environment and going outwards, like obviously we've had quite a bit of consolidation domestically.

Josh Kanterakis: Well, first one, just maybe, for Barry or Pete, just in terms of from the milk supply environment and going outwards, like obviously we've had quite a bit of consolidation domestically. I think, from the commodity perspective, it looks like some of your other big competitors are a little bit more exposed to maybe some of the cheese commodity elements, which obviously haven't been as strong as protein. I'm just wondering, that backdrop, I guess, hasn't been present for a while. Does that create a more rational environment going forward? What are you sort of seeing in terms of the milk supply environment ecosystem and competitive dynamics going forward?

Josh Kannourakis: Well, first one, just maybe, for Barry or Pete, just in terms of from the milk supply environment and going outwards, like obviously we've had quite a bit of consolidation domestically. I think, from the commodity perspective, it looks like some of your other big competitors are a little bit more exposed to maybe some of the cheese commodity elements, which obviously haven't been as strong as protein. I'm just wondering, that backdrop, I guess, hasn't been present for a while. Does that create a more rational environment going forward? What are you sort of seeing in terms of the milk supply environment ecosystem and competitive dynamics going forward?

Speaker #6: And I think from the commodity perspective, it looks like some of the other big competitors are a little bit more exposed to maybe some of the cheese commodity elements, which obviously haven't been as strong as protein.

Speaker #6: I'm just wondering, that backdrop, I guess, hasn't been present for a while. Does that create a more rational environment going forward? What are you sort of seeing in terms of the milk supply environment ecosystem and sort of competitive dynamics going forward?

Speaker #2: So Josh, I think I'd say two things. We would still see competition from milkers being pretty willing as we came into this year. I mean, I think for some of the bigger players, it's important for them to retain milk because if you your mix is working against you in a particular year, it's very hard to win it back.

Barry Irvin: Josh, I think I'd say two things. We would still see competition for milk as being pretty willing as we came into this year. I think, for some of the bigger players, it's important for them to retain milk because if you lose it, even if your mix is working against you in a particular year, it's very hard to win it back. I think we've seen that in prior years. I think what probably makes us feel very positive is that in each of the regions we're operating in, we've seen sometimes the larger players, and sometimes it is in fact a market disruptor, that are active in supply.

Speaker #2: And I think we've seen that in prior years. So I think what probably is make us feel very positive is that in each of the regions we're operating in, we've seen sometimes the larger players and sometimes it is, in fact, a market disruptor.

Speaker #2: That are active in supply and we find that our mix and the fact that we're a fully integrated right food brand sees us able to compete against all comers, if you like, and compete well.

Barry Irvin: We find that our mix and the fact that we are a fully integrated right food brand sees us able to compete against all comers, if you like, and compete well, and that is what has really been demonstrated in the last few years, in fact. To sort of refer to Pete's comment earlier, I have often talked about the fact that we have somewhat two speed, where you have young people in the industry that are investing strongly and growing really quickly, and then you have some people who do not have succession to their properties, and they have been leaving, and that has been part of the impact of why we have seen supply a little constrained. There is no question that as we move around our supply base, we have a number of suppliers that are increasing their production significantly, which is what we want to see.

Speaker #2: And that's what's really been demonstrated in the last few years back. But so and to sort of refer to Pete's comment earlier, I often talked about the fact that we've got somewhat to speed where you've got young people in the industry that are investing strongly and growing really quickly, and then you've got some people who don't have succession for their properties and they've been leaving and that's been part of the impact of why we've seen supply a little constrained.

Speaker #2: There's no question that as we move around our supply base, we've got a number of suppliers that are increasing their production significantly, which is what we want to see.

Barry Irvin: There is no question that as we move around our supply base, we have a number of suppliers that are increasing their production significantly, which is what we want to see.

Speaker #2: And we've also been able to attract a number of large suppliers that see a great strategic alignment with us in terms of what they're trying to do.

Barry Irvin: We have also been able to attract a number of large suppliers that see a great strategic alignment with us in terms of what they are trying to do. I would say in terms of milk procurement this year and the previous year, it has been reasonably willing. It has been at the top end of the market, but it has not been irrational. It has not been at that level of irrationality that we experienced a few years ago. We do see, and we saw again this year, some traders and some players removing themselves from the market because they have had experiences that have demonstrated that they actually cannot be irrational. I think we are in a pretty good position in terms of procurement.

Speaker #2: But I would say in terms of milk procurement, this year and the previous year, it's been reasonably willing. It's been at the top end of the market, but it hasn't been irrational.

Speaker #2: It hasn't been at that level of irrationality that we experienced a few years ago. And we do see and we saw again this year some traders and some players removing themselves from the market because they've had experiences that have demonstrated that they actually can't be irrational.

Speaker #2: And so I think we're in a pretty good position in terms of procurement.

Speaker #6: Great. Thanks, Barry. And then just in terms of one for Pete and Gunther perhaps, obviously significant step up, which you observed in marketing investment this year, sounds like you're sort of continue that.

Josh Kanterakis: Great. Thanks, Barry. Just in terms of one for Pete and Gunther, perhaps. Obviously, a significant step-up, which you absorbed in marketing investment this year. Sounds like you will continue that. Can we just talk a little bit about into the next 12 months in terms of some of the product development and maybe some of the innovation focus that is coming out as well, and what we should be expecting to see?

Josh Kannourakis: Great. Thanks, Barry. Just in terms of one for Pete and Gunther, perhaps. Obviously, a significant step-up, which you absorbed in marketing investment this year. Sounds like you will continue that. Can we just talk a little bit about into the next 12 months in terms of some of the product development and maybe some of the innovation focus that is coming out as well, and what we should be expecting to see?

Speaker #6: Can we just talk a little bit about into the next 12 months in terms of some of the product development and maybe some of the innovation focus that's coming out as well?

Speaker #6: And what we should be expecting to see?

Speaker #2: I don't want to give too much away, Josh, and I was the marketing team will kill me.

Pete Findlay: I do not want to give too much away, Josh, or what is the market.

Josh Kanterakis: Yeah

Josh Kannourakis: Yeah

Barry Irvin: people will kill me.

Pete Findlay: people will kill me.

Speaker #6: Yeah.

Josh Kanterakis: Yeah.

Josh Kannourakis: Yeah.

Speaker #2: But what I will say is that we're continuing to we've actually got some really good product offerings as I said, very much focused around those five key themes that we talked about.

Barry Irvin: But what I will say is that, we are continuing to. We have actually got some really good product offerings, as I said, very much focused around those five key themes that we talked about. Some of it has proven to be very successful overseas. Some of it is pretty much cutting edge. But it will be addressing all the sorts of functional needs that consumers are after around better lifestyle outcomes, longevity, health outcomes, fitness outcomes. So, we have got some really good product. And we have actually spent a fair bit of time and effort getting our factories ready to do that. So we had to spend, because the Morwell plant was built back in the 1990s. It is a fantastic facility, but it was built around fruit-flavored yogurt.

Speaker #2: Some of it is proven to be very successful overseas. Some of it's sort of pretty much cutting edge. But it'll be addressing all the sorts of functional needs that consumers are after around better lifestyle outcomes, longevity, health outcomes, fitness outcomes.

Speaker #2: So we've got some really good product. And we've actually spent a fair bit of time and effort getting our factories ready to do that.

Speaker #2: So we had to spend the more we'll plan for school back in the '90s was a fantastic facility, but it was built around it was built around fruit-flavored yogurt.

Speaker #2: So we've done a huge amount of effort in and work around getting that ready to be able to dose protein. Low sugar. Low macro sort of products.

Barry Irvin: So we have done a huge amount of effort and work around getting that ready to be able to dose protein, low sugar, low macro sort of products. And now we are really excited about running with that. It is the same with our milk-based beverage capability. So we have got a lot of capability there to add around the core of those products that will bring those functional benefits to life. So, really, really pleased with our suite of initiatives that we have got going forward. And you will see some really good news on shelf in October, November, around MBB and then some terrific stuff launching around yogurt and MBB again in March, April. It has all been pre-sold to major customers, and we are really excited about it.

Speaker #2: And now we're really excited about running with that. It's the same with our milk-based beverage. Capability. So we've got a lot of capability there to add around the add around the core of those products that will bring those functional benefits to life.

Speaker #2: So really, really pleased with our suite of initiatives that we've got going forward. And you'll see some really good news on shelf in October, November around MBB.

Speaker #2: And then some terrific stuff launching around yogurt and MBB again in March, April. It's all in pre-sold. Major customers, and we're really excited about that.

Speaker #6: Great. And maybe another way to ask that, if we look at sort of the product release new product release on cadence, I guess, versus '26 is sort of '27 similar, less, more based on where you're sort of sitting today?

Josh Kanterakis: Great. And maybe another way to ask that is if we look at sort of the product release, new product release on, cadence, I guess, versus 2026, is 2027 similar, less, more, based on where you are sort of sitting today?

Josh Kannourakis: Great. And maybe another way to ask that is if we look at sort of the product release, new product release on, cadence, I guess, versus 2026, is 2027 similar, less, more, based on where you are sort of sitting today?

Speaker #2: Probably a bit more, Josh. Probably a bit more. Which we're pleased with. Probably a little bit more we think we've probably played a little bit of catch-up on protein.

Barry Irvin: Probably a bit more, Josh. Probably a bit more.

Josh Kanterakis: Yep.

Josh Kannourakis: Yep.

Barry Irvin: Which we are pleased with. Probably a little bit more. We think, we have probably played a little bit of catch up on protein. We are extremely happy with our results particularly in milk-based beverages, where we have made significant ground very, very quickly. In fact, probably far better than what we initially thought. Now I think that with some of our launches, we have the ability to probably step out in front of the market.

Speaker #2: We're extremely happy with our results in particularly the milk-based beverages where we've made significant ground very, very quickly. In fact, probably far better than what we initially thought.

Speaker #2: And now I think that with some of our launches, we have the ability to probably step out in front of the market.

Speaker #6: Yeah. Great. And final one, just for Gunther, obviously a bit of in terms of investment, software investment that you sort of talked about and AI-related investment in the period, Gunther.

Josh Kanterakis: Yeah. Great. Final one, just for Gunther. Obviously a bit of, in terms of investment, software investment, that you have talked about, an AI-related investment, in the period, Gunther. How should we think about that, in terms of, I guess, the line items going forward? I know you have got, you obviously guided to broadly in terms of where we are next year. But as we look over the next few years, what are some of the opportunities for Bega as a group across implementing some of those new and next-gen AI and automation products?

Josh Kannourakis: Yeah. Great. Final one, just for Gunther. Obviously a bit of, in terms of investment, software investment, that you have talked about, an AI-related investment, in the period, Gunther. How should we think about that, in terms of, I guess, the line items going forward? I know you have got, you obviously guided to broadly in terms of where we are next year. But as we look over the next few years, what are some of the opportunities for Bega as a group across implementing some of those new and next-gen AI and automation products?

Speaker #6: How should we sort of think about that in terms of, I guess, the line items going forward? I know you've got a you obviously guided to broadly in terms of where we are in next year, but as we look over the next few years, what are some of the opportunities for Bega as a group across implementing some of those new and next-gen sort of AI and automation products?

Speaker #2: Yeah. Yeah, that's a great question, Josh. We've been very excited about that. Pete talked about the revenue management strategic revenue management software that we implemented last year.

Gunther Burghardt: Yeah, it is a great question, Josh. We have been very excited about that. Pete talked about the strategic revenue management software. That was the fastest returning project that Bega has ever implemented. We had probably AUD 2 to 3 million of software implementation costs in our OpEx in the last year, and we think it will be a similar amount as we get into FY 27, and we are very excited about the potential for that, not only for efficiency, but also for capability, Josh. Really finding the workforce, embracing that, and that is accelerating for us. Very exciting and AUD 2 to 3 million is what I would expect, but that is broadly similar year over year, and we are actually assuming that our unallocated overheads are probably fairly similar year over year, plus or minus a few million.

Speaker #2: That was the fastest returning project that Bega has ever implemented. We had probably two to three million dollars of software implementation costs in our opex in the last year.

Speaker #2: And we think it will be a similar amount as we get into F-27. And we're very excited about the potential for that, not only for efficiency but also for capability, Josh.

Speaker #2: So really finding the workforce, embracing that, and that's accelerating for us. So very exciting. And two to three million is what I'd expect, but that's broadly similar year over year.

Speaker #2: And we're actually assuming that our unallocated overheads are probably fairly similar year over year, plus or minus a few million.

Speaker #6: Great. Thanks all. I'll pass it on to someone else.

Josh Kanterakis: Great. Thanks, I'll pass it on to someone else.

Josh Kannourakis: Great. Thanks, I'll pass it on to someone else.

Speaker #1: Thank you. Once again, if you wish to ask a question, please press star one. Your next question comes from Jonathan Snape with Bell Potter.

Operator: Thank you. Once again, if you wish to ask a question, please press star one. Your next question comes from Jonathan Snape with Bell Potter. Please go ahead.

Speaker #1: Please go ahead.

Speaker #6: Yeah. Hey guys, can you hear me okay?

Jonathan Snape: Yeah. Hey, guys. Can you hear me okay?

Speaker #2: Can you all still hear me?

Gunther Burghardt: Yeah.

Pete Findlay: Can hear you well, Snapey.

Speaker #6: Thanks. Thanks. You might need a pin for just two interesting numbers out here. So look, I just want to go through, I guess, branded and then bulk real quickly.

Jonathan Snape: Thanks. You might need a pen for this, going to throw some numbers at you. I just want to go through, I guess, branded and then bulk real quickly. If I look at branded, it looks like you got AUD 30 million cost out from Strathmerton and you got 8 from Laverton. If I am looking through your portfolio, I am seeing mid-single digit price increases were pushed through and you play similar numbers in Dare. Farmers Union was high single, low double digit. Your white milk was similar to that as well.

Speaker #6: But if I look at branded, it looks like you're a 30 million bucks to cost out from Strathmere and you've got eight from Lavatin.

Speaker #6: And if I'm looking through your portfolio, right, like I'm seeing kind of mid-single digit, price increases have pushed through in your. A similar kind of numbers in there.

Speaker #6: Farmers Union was high single, low double digit. White milk was kind of similar to that as well. But it's indexing kind of well north of 2% on the branded portfolio, which is that's not an immaterial tailwind year on year.

Jonathan Snape: It is indexing well north of 2% on the branded portfolio, which is an immaterial tailwind year-on-year, in your branded portfolio, which when a water fall all the way down, means you must be assuming some fairly hefty cost inflation, like well north of AUD 100 million in that business to do AUD 20 million growth. I guess the first question is, am I doing the bridges right there? Are you able to, I guess, the second component of that, isolate down where those costs are? Is it coffee, sugar, diesel, HDPE, LDPE, those kind of things? Maybe I will do that one first, then go to bulk.

Speaker #6: In your branded portfolio, which kind of went a waterfall all the way down means you must be assuming some fairly hefty cost inflation like well north of $100 million.

Speaker #6: In that business to do 20 million growth. So I guess the first question is, am I kind of doing the bridges right there that and then are you able to, I guess, the second component of that, isolate down where those costs are?

Speaker #6: Is it like coffee, sugar, diesel, HDP, LDP, those kind of things? So maybe I'll do that one first and then go to bulk.

Speaker #2: Yeah. Yeah, it's a great question, Josh. And it's fair to say we've been a little bit conservative in areas like diesel and resin. So resin costs really spiked in April and May when the Middle East conflict started.

Gunther Burghardt: Yeah, it is a great question, Jonathan, and it is fair to say we have been a little bit conservative in areas like diesel and resin. Resin costs really spiked in April and May when the Middle East conflict started. They have come off a little bit since that time, but they both remain elevated. If you look at terminal gate diesel prices, they are still well over AUD 2 a liter. Resin prices are certainly still above where they were before the conflict started at the end of February. Resin and diesel are part of that cost. Coffee remains elevated. Those are the sorts. Of course there is labor cost inflation, which you have every year in the sites that continue. Those are sort of the four or five call-outs in terms of what is inflationary.

Speaker #2: They have come off a little bit since that time, but they both remain elevated. So if you look at terminal gate diesel prices, they're still well over $2 a liter.

Speaker #2: And resin prices are certainly still above where they were before the conflict started at the end of February. So resin and diesel are part of that cost.

Speaker #2: Coffee remains elevated. And those are the sorts of and of course, there's labor cost inflation, which you have every year in the sites that continue.

Speaker #2: So those are sort of the four or five callouts in terms of what's inflationary. And then you're right in terms of what our savings are, the 37 million.

Gunther Burghardt: You are right in terms of what our savings are, the AUD 37 million. Of course, currency, Jonathan, probably about AUD 10 to AUD 13 million currency impact, that is going sort of 64 or 65 cents and we are, I think this morning, at a little over 71 cents, Jonathan.

Speaker #2: So and of course, currency Jonathan, probably about 10 to 13 million dollars currency impact. That's going sort of 60, 4, 65 cents, and we're I think this morning at a little over 71 cents, Jonathan.

Speaker #6: Yeah. But the pricing's rise. You've been getting mid to high single digit in some of those core portfolio brands. And holding okay by the looks of it.

Jonathan Snape: Yep. But the pricing's right. It's like you've been getting mid to high single digit in some of those core portfolio brands.

Gunther Burghardt: Yeah.

Jonathan Snape: They're holding okay by the looks of it.

Speaker #2: Yeah, that's right. And the pricing has gone well, and we've been seeking to recover our a big portion of our costs with that pricing.

Gunther Burghardt: Yeah, that's right. The pricing has gone well and we've been seeking to recover a big portion of our costs with that pricing. As Pete said earlier, we're confident as that's gone into the retailers. If you're looking at it going, it may be a little conservative. Listen, we love to underpromise and overdeliver, Jonathan, no question. But we're pretty comfortable in AUD 25 million plus.

Speaker #2: And as Pete said earlier, we're confident as that's gone into the retailers. And so if you're looking at it going, it may be a little conservative.

Speaker #2: Listen, we love to under-promise and over-deliver, Jonathan. No question. But we're pretty comfortable in 25 million plus. Jonathan, I reckon your pricing might be a little bit high.

Pete Findlay: Jonathan, I think your pricing might be a little bit high. There's a volume driver there as well.

Speaker #2: You might as a volume driver there as well.

Speaker #6: Yeah, absolutely. Yeah.

Gunther Burghardt: Yeah, absolutely. When you think of it, Jonathan, obviously farm gate milk is an element of inflation. Last year in FY 26, farm gate milk was up several percentage points nationally. This year it is a little closer to that similar cost year-over-year. For that reason, you will not see as much milk-related pricing that we are putting into the market. But in some of our core categories that are driven by protein, yes, there is some price we put into the market.

Speaker #2: I think some of the. When you think of it, Jonathan, obviously Farmgate Milk is an element of inflation. Last year in F-26, Farmgate Milk was up several percentage points nationally.

Speaker #2: This year it's a little closer to that similar cost year over year. So for that reason, you won't see as much milk-related pricing that we're putting into the market.

Speaker #2: But in some of our core categories that are driven by protein, yes, there is some price we put into the market.

Speaker #6: Yeah. And if I look at your bulk business, it does look like you've decoupled from milk fat pricing at the bare minimum in the returns you're getting.

Jonathan Snape: Yep. If I look at your bulk business, it does look like you have decoupled from milk fat pricing at the very bare minimum in the returns you are getting. But even when I look at it, like what a normal skim bucket would get, you seem to be getting high double-digit higher, like returns relative to what a normal one would get.

Speaker #6: But even when I look at it, what a normal skim bucket would get, you seem to be getting high double digit higher like returns relative to what a normal one would get.

Speaker #6: So with skim kind of matching up 600 bucks a ton next year, are you still seeing those premiums hold, or are they coming a little bit in your thinking?

Gunther Burghardt: Yeah.

Jonathan Snape: With skim matching up AUD 600 a ton next year, are you still seeing those premiums hold or are they coming a little bit in your thinking? Have you taken out some of the one-off IMF restocking gains you would have got this year into next year's assumptions?

Speaker #6: And if you kind of taken out some of the one-off IMF restocking gains you would have got this year, into next year's assumptions?

Speaker #2: Yeah. So we've been pretty conservative on skim. Jonathan, so we're sort of moving further and further away from skim. So our fat strategy is very much aligned to our branded business.

Pete Findlay: Yes, we have been pretty conservative on skim, Jonathan. We are sort of moving further and further away from skim. Our fat strategy is very much aligned to our branded business. So cream cheese or into branded products through our food service business where we achieve better returns. Our protein strategy has really been transitioning as much skim into MPC as we can. We have opened up some really good markets in the US and in Australia, and they are continuing to evolve with protein consumption generally as an ingredient. We have decoupled a fair bit of skim. The other thing is, because of the quality of our skim and because of the experience and long-term connections we have with customers, we tend to do a bit better than GDT. We have been working really hard on that.

Speaker #2: So cream cheese or into branded products through our food service business where we achieve better returns. And then our protein strategy is really being moving our transitioning as much skim into MPC as we can.

Speaker #2: We've opened up some really good markets in the US and in Australia. And they're continuing to evolve with protein consumption generally as an ingredient.

Speaker #2: And so we've decoupled a fair bit of skim. The other thing is, because of the quality of our skim and because of the experience and long-term connections we have with customers, we tend to do a bit better than GD2.

Speaker #2: So we've been working really hard on that. And then, of course, we're experiencing some slightly better lactoferrin pricing than what we thought. And our infant formula business continues to grow.

Pete Findlay: Then, of course, we have experienced some slightly better lactoferrin pricing than what we thought, and our infant formula business continues to grow. We have been working pretty hard around that, around our drying capability, around our acquisition of a stake in the Snow Brand infant formula, Kanu.

Speaker #2: And we've been working pretty hard around that, around our drying capability, around our acquisition of a stake in the snow brand infant formula canyon planted to Chura.

Speaker #2: And so we're offering a really good integrated infant nutritionals business. And that's growing as well. So we're actually trying to decouple ourselves from skim as much as possible from that traditional sort of GTT skim play.

Jonathan Snape: That is good. It looks like you got the return per liter is double-digit improved year-on-year relative in a premium sense to the skim basket.

Speaker #2: And the other thing, Jonathan, I'd mention is Phil asked for his questions about the 30 to 40 million range in bulk because of the changes we've made to that business.

Speaker #2: Nutritionals, cream cheese, lactoferrin, we now think it's 30 to 50 million or more. So we've sort of taken the range up in our nutritionals business and so just want to make that point on the call.

Speaker #6: Yeah. Yeah. No, that's it. It looks like you got the return per liters double digit improved year on year relative premium cents to the skim basket.

Speaker #6: That's what I was kind of worrying about. That premium still holding.

Pete Findlay: Yeah.

Jonathan Snape: That is why I was kind of wondering if that premium is still holding.

Speaker #2: Yeah, the premium put in a huge amount of work over three or four years to claw that value index up. Jonathan, I hope it stays because there's been a huge amount of work and a bit of capital investment.

Pete Findlay: Yeah. The team have put in a huge amount of work over three or four years to claw that value index up, Jonathan, and I hope it stays because it has been a huge amount of work and a bit of capital investment. We think it sets us up to make that a far more robust business. I know that has always been a concern of everyone, so that has been very much a focus of ours to premiumize our business as much as possible.

Speaker #2: So we think it sort of sets us up to make that a far more robust business. I know that's always been a concern of everyone.

Speaker #2: So yeah, that's been very much a focus of ours to premiumize that business as much as possible. And integrate it. And integrate it, yes.

Jonathan Snape: And integrated.

Speaker #2: So the fat piece, the fat piece into our branded business, protein into high-value products, but. Where I'm at, Jonathan, is if our protein business continue our branded protein business continues to grow, I actually think the integration of those two businesses, not just through fat, but through protein, will create significant opportunities for us and hamstring the guys who are working on that very, very closely.

Pete Findlay: And integrated. Yes. So the fat piece into our branded business, protein into higher value products. But where I am at, Jonathan Snape, is if our branded protein business continues to grow, I actually think the integration of those two businesses, not just through fat but through protein, will create significant opportunities for us. And Hamish and the guys are working on that very closely.

Speaker #6: Yeah. And look, just one last one. On the balance sheet, and obviously the debt came in materially better than where people were thinking, and it looks like you're utilizing less of the off-balance sheet facilities as well.

Jonathan Snape: Yes. Look, just one last one. On the balance sheet, obviously the debt came in materially better than where people were thinking, it looks like you are utilizing less of the off-balance sheet facilities as well. So, probably the operating cash flow is probably understated, I guess, relatively to what it would have been.

Speaker #6: So probably the operating cash flow is probably understated, I guess, to relatively what it would have been. It's probably the first time in a long time you've had a lazy balance sheet, if I can use that term.

Pete Findlay: Yeah.

Jonathan Snape: It is probably the first time in a long time you have had a lazy balance sheet, if I can use that term. How far or where would you gear this thing up to if the right opportunity came up? Would you be talking 2.5x EBITDA? Would that be about as far as you would want to take it if the right target for you to take

Speaker #6: How far or where would you gear this thing up to if the right opportunity came up? Would you be talking two, two and a half times EBITDA?

Speaker #6: Would that be about as far as you'd want to take it if the right target reattended?

Speaker #2: Jonathan, as much as I think what's the saying that most of the financial institutions put out? Don't pass performance. Past performance isn't an indication of future outcomes.

Pete Findlay: Jonathan, as much as I think, what is the saying that most of the financial institutions put out? Past performance isn't an indication of future outcomes. I think you can look at our past performance and know that for the right investment, internal or external, we will gear that balance sheet pretty hard because we actually believe in gearing up and then knocking it down quickly. So 2.5 plus, it has never frightened us in the past. It would not frighten us in the future. I think we have got a much stronger business now than what we did when we were actually gearing up for expansion in the past. As you know by our behavior, we are responsible in how we think about value and how we deploy. We are alert to it.

Barry Irvin: Jonathan, as much as I think, what is the saying that most of the financial institutions put out? Past performance isn't an indication of future outcomes. I think you can look at our past performance and know that for the right investment, internal or external, we will gear that balance sheet pretty hard because we actually believe in gearing up and then knocking it down quickly. So 2.5 plus, it has never frightened us in the past. It would not frighten us in the future. I think we have got a much stronger business now than what we did when we were actually gearing up for expansion in the past. As you know by our behavior, we are responsible in how we think about value and how we deploy. We are alert to it.

Speaker #2: I think you can look at our past performance and know that we're for the right investment, internal or external, we'll gear that balance sheet pretty hard because we actually believe in gearing it up and knocking it down quickly.

Speaker #2: So two and a half plus is never frightened us in the past. It wouldn't frighten us in the future. I think we've got a much stronger business now than what we did when we were actually gearing up for expansion in the past.

Speaker #2: And yeah, so but as you know by our behavior, we're responsible in how we think about value and how we're deploying. We're alert to it.

Speaker #2: We're very pleased. We've got a strong balance sheet because of positions us to take opportunity and we're alert to those opportunities.

Barry Irvin: We are very pleased we have got a strong balance sheet because it positions us to take opportunity, and we are alert to those opportunities.

Speaker #1: I think what I would say, just reiterating what Barry said, we have the way this is shaping up with the categories we play in and the channel growth we're seeing both here and overseas I think we're going to have significant internal both organic and non-organic opportunities.

Pete Findlay: I think what I would say, just reiterating what Barry said, the way this is shaping up with the categories we play in and the channel growth we are seeing both here and overseas, I think we are going to have significant internal, both organic and non-organic opportunities. As they come up, we will go after them very aggressively.

Speaker #1: And so as they come up, we'll go after them very aggressively.

Speaker #6: All right. Thanks, Lucas.

Jonathan Snape: All right. Thanks a lot, guys.

Speaker #4: Thank you. Your next question comes from Richard Barwick with CLSA. Please go ahead.

Operator: Thank you. Your next question comes from Richard Barwick with CLSA. Please go ahead.

Speaker #5: Good afternoon, guys. Thanks for taking the question. Just sort of following on from the last piece of discussion there. In terms of what types of acquisitions you might consider, do you I mean, do you have preferences?

Richard Barwick: Good afternoon, guys. Thanks for taking the question. Just flowing on from the last piece of discussion there. In terms of what types of acquisitions you might consider, do you have preferences? I guess the options would be, would you be pursuing brands that are reliant on the major supermarkets, for instance? Would you have a preference for brands that you would be taking international or ones that have a bigger proposition through food service? Is there a way to frame up the way, the options that you would be finding more attractive or ones you would steer away from, I guess is what I am-

Speaker #5: So I guess the options would be would you be pursuing brands that reliant on the major supermarkets, for instance? Would you have a preference for brands that you'd be taking international or ones that have bigger proposition through food service?

Speaker #5: Is there a way to sort of frame up the way the option that you'd be finding more attractive are ones you'd steer away from?

Speaker #5: I guess is what I'm asking.

Speaker #2: I think we've probably said this publicly before, so I'm happy to sort of repeat it and I'll throw it in papers and do some addition.

Barry Irvin: I think we have probably said this publicly before, so I am happy to repeat it, and I will throw to Peter for some addition. As I said in my opening comments, we fundamentally see this business as very well-structured at the moment, and the fact that we have got an end-to-end business is what we have worked towards for many years. The way we think about this now is either focus on scale so-

Speaker #2: But we fundamentally see everything in my opening comments, we fundamentally see these businesses very well structured at the moment and the fact that we've got an end-to-end business is what we work towards for many years.

Speaker #2: So the way we think about this now is either focus on scale so bigger, more of what we currently do, or adjacency. So if your question is branded, for example, we work as Pete Outlined very closely.

Barry Irvin: Bigger, more of what we currently do or adjacency. If your question is branded, for example, we work as Pete outlined very closely. We own big brands. We work largely with the retailers. We have got a skill set in that area. We would add in that area. It is scale of what we currently do, and when you think about some of the things that Pete talked about, that can be both in Australia and internationally, as we get very excited about that international growth. Equally it can be adjacency to what we do because I think what we want to do is utilize the agility and the skills that the business has developed to be able to respond to opportunities where we see them. Pete?

Speaker #2: We own big brands. We work largely with the retailers. So we've got a skill set in that area. We would add in that area.

Speaker #2: So it's scale of what we currently do. And when you think about some of the things that Pete talked about, that can be both in Australia and internationally.

Speaker #2: As we get very excited about that international growth, but equally, it can be adjacency to what we do because I think what we want to do is utilize the agility and the skills that the business has developed to be able to respond to opportunities where we see them that people are.

Speaker #1: Yeah, I mean, very much obviously aligned with Barry's comments. But if you go back to that page, Richard, creating long-term competitive advantage. We run mainstream everyday brands with a competitive moat around them.

Pete Findlay: Yeah, I mean, very much obviously aligned with Barry's comments. But if you go back to that page 8, Richard, creating long-term competitive advantage. We run mainstream everyday brands with a competitive moat around them and relentless execution around them. So we would buy something that would help us build our long-term competitive advantage. That doesn't fit into that very basic

Speaker #1: And related execution around them. So would we buy something that would help us build our long-term competitive advantage? So that's really doesn't fit into that very basic number one, number two brands.

Pete Findlay: and relentless execution around them. So we would buy something that would help us build our long-term competitive advantage. That doesn't fit into that very basic

Speaker #2: That's one number two brand that we can operationally leverage. And that becomes pretty attractive. Sort of probably less channel-specific, but if it fits those parameters, we would look at it.

Barry Irvin: number one, number two brands

Pete Findlay: number one, number two brands that we can operationally leverage.

Pete Findlay: Yeah.

Barry Irvin: Yeah.

Pete Findlay: That becomes pretty attractive. Probably less challenging this year, but if it fits those parameters, we would look at them.

Speaker #5: Okay. And then thank you. The second one for me, are you able to give any sort of breakdown, if you're just talking broad proportions, on the composition of the brand revenue?

Richard Barwick: Okay, thank you. The second one for me, are you able to give any sort of breakdown, if you are just talking broad proportions, on the composition of the branded revenue, so AUD 3.2 billion? Where I am thinking here is, again, a mix across what you might call major retail or food service or international or any other breakdown that you would care to talk to. Because where I am going with this is if I look at your branded revenue growth, +5.7%, that is obviously a great number. But if I compare that to slide 13 and look at the sort of the growth rates in the categories that you are competing in, I know that slide only talks to basically the main supermarket businesses, and there is a lot that is not included.

Speaker #5: So 3.2 bill. And what I'm thinking here is, again, a mix across what you might call major retail or food service or international or any other breakdown that you'd care to talk to.

Speaker #5: Because where I'm going with this is, if I look at your branded revenue growth plus 5.7%, that's obviously a great number. But if I compare that to the slide 13 and look at the sort of the growth rates in the categories that you're competing, and I know that slide only talks to basically the main supermarket businesses, and there's not a lot that's not included, but if you take a really crude blended average of the growth rates there, you're looking at more like 10%, so I'm wondering are there areas that you're competing whereby those growth rates on that slide 13 are not being achieved elsewhere?

Richard Barwick: But if you take a really crude blended average of the growth rates there, you are looking at more like 10%. So I am wondering, are there areas that you are competing whereby those growth rates on that slide 13 are not being achieved elsewhere?

Speaker #2: Yeah, that's right. And I think when you think about the 3.2 billion you talked about there, Richard, don't forget that we do still have a sort of a cheese and cotton wrap business.

Gunther Burghardt: Yeah, that is right. I think when you think about the AUD 3.2 billion you talked about there, Richard, do not forget that we do still have a sort of a cheese cut and wrap business. I referred to that with the retailer brands. That one was down a little last year. What a timely thing to have the Strathmerton and Ridge Street consolidation, because that is going to bring some profit back into that business. So there is AUD 600 million to AUD 700 million in retailer-owned brands out of AUD 3.2 billion. Once you take that off, you have about AUD 2.5 billion, which we call our sort of our core branded business. Of that, you have a little around AUD 300 million, which is the international branded components of that business.

Speaker #2: And I referred to that retailer brands. That one was down a little last year. And so what a timely thing to have the Stratford and to Ridge Street consolidation because that's going to bring some profit back into that business.

Speaker #2: So there's six or seven hundred million in retailer-owned brands out of the 3.2 billion. And then once you take that off, you've got about 2.5 billion, which we call our sort of our core branded business.

Speaker #2: Of that, you've got a little around 300 million, which is the international branded components of that business. So you're left with 2.2 billion, Richard, which is what we'd call domestic branded.

Barry Irvin: You are left with 2.2 billion, Richard, which is what we call domestic branded.

Speaker #2: In that, well over a billion dollars would be with what we call the national customers, discounters, grocers, etc. And then you're left with sort of several hundred million dollars, which would be independent food service, local trade, and those kind of channels.

Richard Barwick: Yeah

Barry Irvin: Well over AUD 1 billion would be with what we call the national customers, discounters, grocers, et cetera. Then you are left with sort of several hundred million dollars, which would be independent food service, local trade, and those kind of channels. So that gives you a rough breakdown.

Speaker #2: So that gives you a rough breakdown.

Speaker #1: And so, Richard, I would say that that food service channel, that's some of those unstructured customers. They're doing pretty tough. And so this is down to this bit of consumer sentiment that's hurting them.

Pete Findlay: Richard, I would say that that food service channel local-

Pete Findlay: That is some of those unstructured customers, they are doing it pretty tough.

Richard Barwick: Yeah.

Pete Findlay: There's no doubt that there's been a bit of consumer sentiment that's hurting them.

Richard Barwick: Yep

Pete Findlay: We still feel we've got a good offering in that space. The other thing is, if I'm brutally honest, we've been capacity constrained. We're probably capacity constrained at the moment. Our yogurt, cream cheese businesses are actually growing faster than what we thought, which is why we're spending AUD 110 million on boosting capacity this year. I think that if they continue to have those thematics, the growth in FY 28 could probably get a tick up.

Speaker #1: But we still feel we've got a good offering in that space. And so the other thing is, if I'm brutally honest, we've been capacity-constrainted.

Speaker #1: We're probably capacity-constrained at the moment. Our yogurt in the cream cheese businesses are actually growing faster than what we thought, which is why we're spending 110 million dollars on boosting capacity this year.

Speaker #1: So I think that if they continue to have those thematics the growth of FY28 could probably get a sort of a tick up.

Speaker #2: And I think the last thing I'd say, Richard, is the retailer brand cheese that we do or the totaling for cheese, that shows up in retailer market share as not being so it's very important to understand that.

Barry Irvin: I think the last thing I'd say, Richard, is the retailer brand cheese that we do or the tolling for cheese, that shows up in retailer market share as not being there. It's very important to understand that. That's their brand.

Gunther Burghardt: I think the last thing I'd say, Richard, is the retailer brand cheese that we do or the tolling for cheese, that shows up in retailer market share as not being there. It's very important to understand that. That's their brand.

Speaker #2: What's their brand?

Speaker #5: Don't say that again, sorry, Gunther. What was the last one?

Richard Barwick: Say that again, sorry, Gunther. What was the last point?

Speaker #2: If we told, for example, cotton wrap or shredded or sliced cheese for retailers like natural cheese, that's a brand. So it shows up in their market shares.

Gunther Burghardt: If we toll, for example, cut and wrap or shredded or sliced cheese for retailers, like natural cheese.

Gunther Burghardt: If we toll, for example, cut and wrap or shredded or sliced cheese for retailers, like natural cheese. That is brand, so it shows up in their market shares. We do not report on that, it is not our brand.

Gunther Burghardt: That is brand, so it shows up in their market shares. We do not report on that, it is not our brand.

Speaker #2: We don't report on that because it's not our brand. That went backwards a little bit last year.

Richard Barwick: Got it. Okay.

Gunther Burghardt: That business went backwards a little bit last year.

Speaker #5: Yeah. Okay. All right. No, that's really helpful. Just trying to reconcile a few of the moving parts here, but that's really good. Thank you.

Richard Barwick: Yeah. Okay. All right. No, that's really helpful. I am just trying to reconcile a few of the moving parts there, but that's really good. Thank you.

Speaker #4: Thank you. There are no further questions at this time. Oh, pardon me. We do have a question from Belinda Moore with Morgan. Please go ahead.

Operator: Thank you. There are no further questions at this time. Oh, pardon me. We do have a question from Belinda Moore with Morgans. Please go ahead.

Speaker #6: Sorry, gentlemen. Just if I could clarify your first half 27 comments. Were you saying as a group, it would be flat with branded obviously up, but bulk down?

Belinda Moore: Sorry, gentlemen. Just if I could clarify your H1 2027 comments. Were you saying as a group it would be flat with branded obviously up but bulk down? That's my first question. And just how fully hedged are you for 2027? And I suppose in that H1 2027 for bulk, I think you had some extra milk trading opportunities. Are they there this year? Thank you.

Speaker #6: That's my first question. And just how fully hedged are you for 27? And I suppose in that first half, 27 for bulk, I think you had sort of some extra milk trading opportunities.

Speaker #6: Are they there this year? Thank you.

Speaker #2: Yeah, Belinda. So just let me start with your H1 question. So if you remember in our bulk business, we had a really strong 41 million dollars of EBITDA in the bulk business in the first half of F26.

Gunther Burghardt: Yeah, Belinda. Let me start with your H1 question. If you remember in our bulk business, we had a really strong AUD 41 million of EBITDA in the bulk business in the H1 of FY 26.

Speaker #2: And as Pete said, the year started with very strong commodity prices in F26 well aligned to FarmGate Milk. But the fact and cheese and butter dropped through that second half of the year.

Gunther Burghardt: Pete said the year started with very strong commodity prices and FY 26 well aligned to farm gate milk, but the fats and the cheese and butter drop through that H2 of the year. We do expect a AUD 5 to 10 million drop in the profitability of the bulk business in the H1, but that will be at least offset by an increase in our branded business. The programs that Pete talked about, the consolidation into Ridge Street, the new automated warehouse at Laverton, they are ramping up in this Q1 of the year, and then they hit their full run rates by the end of the Q1. By the time you get into H2, you really see an acceleration in the branded business growth, and that is why we are very confident in the full year brand and being at least AUD 25 million higher.

Speaker #2: So we do expect a 5 to 10 million drop in the profitability of the bulk business in the first half. But that will be at least offset by an increase in our branded business.

Speaker #2: And the programs that Pete talked about, the consolidation into Ridge Street, the new automated warehouse at Laverton, they're ramping up in this first quarter of the year.

Speaker #2: And then they hit their full run rates by the end of the first quarter. So by the time you get into H2, you really see an acceleration in the branded business growth.

Gunther Burghardt: By the time you get into H2, you really see an acceleration in the branded business growth, and that is why we are very confident in the full year brand and being at least AUD 25 million higher. That is a combination of the price we did take, but it is really underlined by cost savings. H1 is broadly flat, plus or minus AUD 5 million, with bulk down and branded up.

Speaker #2: And that's why we're very confident in the full-year brand of being at least 25 million higher. That's a combination of the price we did take, but it's really underlined by cost savings.

Gunther Burghardt: That is a combination of the price we did take, but it is really underlined by cost savings. H1 is broadly flat, plus or minus AUD 5 million, with bulk down and branded up.

Speaker #2: So first half is broadly flat plus or minus 5 million with bulk down and branded up.

Speaker #4: Thank you. That's all the time we have for our question and answer session. I'll now hand back to Mr. Irvin for closing remarks.

Operator: Thank you. That is all the time we have for our question and answer session. I will now hand back to Mr. Urban for closing remarks.

Speaker #1: Thank you, everyone. And I'll read right. Pete, thank you to our shareholders and indeed, we've got a number of suppliers and customers that we all closely acknowledge in terms of and of course, our staff and our team put this together.

Barry Irvin: Thank you, everyone, and I will reiterate Pete's thank you to our shareholders. Indeed, we have got a number of suppliers and customers that we are all closely acknowledging. Of course, our staff and our team who pulled this together. At the end of a day like today and results like this, I always try and see whether I can describe appropriately the team. I think I would probably say, I hope what the listeners have noted is the energized executors that you have in the room, and I think they are a reflection of the entire team in that we see the opportunity, we have the agility to respond to it, and the whole team is very energized in terms of how we might take those opportunities. Thank you all very much for listening.

Speaker #1: I always at the end of a day like today and results like this, I always try and see whether I can describe appropriately the team.

Speaker #1: I think I'd probably say I hope what the listeners have noted is the energized executors that you have in the room and they remain and I think they're a reflection of the entire team in that we see the opportunity.

Speaker #1: When you have the agility to respond to it and the whole team is very energized in terms of how we might take those opportunities.

Speaker #1: So thank you all very much for listening. Thank you all very much for your support. And of course, seeing a number of you on the roadshow.

Barry Irvin: Thank you all very much for your support, and we will look forward to seeing a number of you on the roadshow. Thank you.

Speaker #1: Thank you.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.

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Full Year 2026 Bega Cheese Ltd Earnings Call

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