Bega Cheese Ltd
BGA: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$4.10 | Gxkbz | Kbfgcpz |
Bega's Brands Are Holding Strong Despite a Weakening Consumer
Business Strategy and Outlook
Despite Bega Group's strategic shift toward a more diverse product offering, we expect dairy products to continue to represent the majority of sales over the next decade, exposing the firm to commodity pricing and volatile input costs. In our view, Bega has not carved an economic moat required to consistently generate economic profits, and we expect its powerful customers to limit margin growth potential.