Bega makes ‘pessimistic’ forecast on consumers, posts 35 per cent profit jump

Massive food company Bega says grocery prices will keep going up as the effects of the Middle East oil crunch wash through the Australian economy.

Bega Group owns Vegemite, yoghurt brands Farmers Union and Yoplait, Pura, Masters and Dare flavoured milks, Zooper Dooper icy poles and Mildura chilled juices.

The company delivered full-year financial results on Thursday, with a 35.8 per cent jump in profits to $69m, following the removal of staff and infrastructure costs of shutting a Victorian cheese factory.

Bega flags in its annual report that grocery prices will continue rising.

“Consumer sentiment has improved from the extreme low of the fuel crisis as the shock eases, but it remains pessimistic,” the company says in its annual report.

“There is an improved assessment of household finances, but consumers are more downbeat on economic expectations.

“We have not seen the full impact of the ongoing conflicts in the Middle East flowing through to consumer food prices, and we expect it to affect the shopping habits of a significant proportion of Australian consumers.”

Alongside fuel prices shooting up because of the closure of the Strait of Hormuz, the petrochemicals which make a host of packaging have also risen with the closure of the waterway.

Bega says it continues to promote its value products in response, as well as offering sales prices and streamline its own operations.

Originally published as Bega makes ‘pessimistic’ forecast on consumers, posts 35 per cent profit jump