The Bega Cheese Ltd (ASX: BGA) share price was trading 5.95% higher today. Over the past month, shares of Bega Cheese have pushed 18% higher. For comparison, the S&P/ASX 200 (INDEXASX: XJO) has risen 4% in the same time.

About Bega Cheese

Bega is one of Australia’s largest dairy businesses and has been producing dairy products since 1900. These days it usually sells more than 1 million packs of cheese a day across a variety of brands. Its brands include Bega, Vegemite, ZoOSh and Dairymont. It also owns Tatura, a producer of infant formula and cream cheese.

What’s Happened?

Bega Cheese has not released any announcements this morning, but it was reported yesterday afternoon that planned strikes at the Bega Cheese manufacturing facility have been called off.

News emerged last week that hundreds of workers from the Australian Manufacturing Workers’ Union (AWMA), as well as two other unions, were threatening to walk off the job unless their demands for a 3% pay increase was approved.

The action followed Bega’s FY19 report where the company announced 2.7% pay rises for its Board of Directors and 2.5% pay rises for workers. Other conditions were also renegotiated including sick leave and domestic violence support for employees.

With conditions renegotiated and set to go to a formal vote in the next few weeks, the plans for industrial action have been cancelled.

Buy, Hold or Sell?

Bega announced positive results in its FY19 report, revealing revenue growth of 13% and milk intake up 41%. However, net profit after tax (NPAT) fell 13% to $38.3 million.

While its good to see the pay issues resolved and a better outcome for workers, Bega doesn’t top my list for potential investments. I think there are better options for growth like the companies in the free report below.


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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

Disclosure: At the time of publishing, Max does not have a financial interest in any of the companies mentioned.