Beston Global Foods reported a lift of 34% YOY in net sales from its continuing operations in FY23 to $170m with group trading EBITDA a loss of $1.7m. It was an improvement on FY22 trading EBITDA, a loss of $16.2m in. Beston’s gross margins from continued operations jumped 175% YOY to $26m in FY23. Record high group revenue was attributed to pricing and improved product mix performance, while gross margin performance was driven by productivity gains, product mix and pricing performance against a record milk price.
Beston’s dairy division reported trading EBITDA of $4.1m with lactoferrin sales rising 172% YOY to 21.5t in FY23 as the company produced 18.4t. Beston collected 152m litres of milk from South Australian farmers during the financial year and paid a record farmgate price of $9.84kgMS. Beston’s mozzarella production remained stable compared to the prior year with domestic multi-year supply agreements with retailer Woolworths renewed while exports to China and southeast Asia remain on track. Sales of retail cream cheese jumped 165% YOY in FY23.
Beston’s expects to reduce operating costs by up to $5m in FY24 compared to the prior year. Milk supply is expected to grow to 160m litres in FY24 with farmgate milk prices at $9.33kgMS. As a third lactoferrin extraction column becomes operational in October 2023, production for FY24 is expected to lift to 20t while sales are expected to total 22.5t for the year.