Bega Cheese

ANALYSIS OF CHIEF OPERATING OFFICER’S REVIEW OF OPERATIONS AND ACTIVITIES

According to the chief operating officer’s review of operations and activities bega cheese limited’s new business model has shown strong performance and also providing good price to the farmer suppliers. He also discussed in his review about the effects of climate on the prices of dairy products in New Zealand, Australia, USA and Northern Europe resulting fall in the commodity prices in the first half of the year and then increase in the second half of the year. Also the merger with Tatura Milk and Bega Cheese has resulted in better investment of resources and capital in packaging, making nutritional products etc.
The CEO has also mentioned in his review that the earnings per share(EPS) has increased by 31% compared to last year(2012) and due to which the board has announced a dividend of 4.0 cents per share making the full year dividend of 7.5 cents per share. Overall the year 2013 has been a very good year for Bega cheese

limited generating 8% sales growth and achieving record revenue of $1010 million. The company has made brilliant strategies to satisfy its customers and clients by providing a product mix and better dairy based products.
The company’s Net benefit after assessment was $25 million.

This is a solid result given the inside rebuilding and authoritative advancement executed throughout the year. It is hard to believe that premium charges declined over the former year, reflecting not just the late Reserve Bank base premium rate changes, additionally enhanced saving money game plans and solid obligation administration controls inside the Group. The Group reports its business in two working sections being Bega Cheese and Tatura Milk. Bega Cheese had a solid bring about 2013 determined by expanded deals and solid generation volumes in quick moving buyer products (FMCG). Income increased by 12% from $614 million to $690 million, with residential contract bundling interest helping most of the increment. Despite the fact that drain supply volumes were solid, less drain was utilized as a part of cheddar generation as the Group looked to build benefit by utilizing milk solids within higher edge

items.
According to me the Group has been reliable in its concentrate on key business stages which revolve around newborn child and growing up wholesome dairy items, cream cheddar and the cut, pack and transformed shopper cheddar items. In 2013 they attained income of $1,010 million. This increment of pretty nearly $77 million was produced from development over the majority of our key business stages. It is decently recorded that there is proceeding with development sought after for newborn child and kid nutritious dairy items in China, especially for items made and completely bundled in nations, for example, Australia. The Group is keeping on experiencing expanding interest for its newborn child and growing up nutritionals and has as of late published that it is putting resources into a baby recipe canning office in Australia to take care of the demand for canned wholesome powders. Security dependably is a centre estimation of the Group. Their yearning is to operate in a zero damage way and accept that the individual wellbeing of our workers is our most elevated working necessity. While they have made huge advancement in security administration frameworks and procedures we perceive that we have somehow to go to accomplish our focus of zero damage. We have additionally executed a wellbeing perception program that obliges all senior staff to embrace standard security perceptions in our operations throughout the year. This has been effective in raising the mindfulness and responsibility to wellbeing and in addition giving solid perceivability of supervisors inside the working units