Bega Cheese Ltd

BGA: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$2.50	Lncws	Hsfgmnzt

Bega Cheese's Souring Guidance Wasn't Unexpected

Angus Hewitt

Apr 20, 2022

We maintain our AUD 5.20 fair value estimate for shares in no-moat Bega Cheese following a trading update. Given elevated pandemic-related costs, rising input costs, and supply chain disruptions, Bega has lowered its fiscal 2022 EBITDA guidance to AUD 175 million to AUD 190 million, from AUD 195 million to AUD 215 million previously. We make no changes to our fiscal 2022 EBITDA forecast of AUD 190 million, which now sits at the top of the firm's amended guidance range.

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