/ CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED
2016 2015
Notes $’000 $’000
Revenue 5 1,195,967 1,112,630
Cost of sales (1,042,595) (991,538)
Gross profit 153,372 121,092

Other revenue 5 6,032 6,519

Other income 5 1,415 1,312
Distribution expense (49,781) (46,112)
Marketing expense (11,166) (10,685)
Occupancy expense (3,582) (3,659)
Administration expense (53,328) (48,596)
Finance costs 6 (3,835) (3,644)
Share of net profit of joint venture 24 773 207
Profit before income tax 39,900 16,434

Income tax expense 7a (11,121) (4,026)

Profit for the year 28,779 12,408

Other comprehensive income/(expense):

Items that may be reclassified to profit or loss
Cash flow hedges 311 (742)
Change in the fair value of other financial assets (184) -
Total other comprehensive income/(expense) 127 (742)

Total comprehensive income for the year 28,906 11,666

Profit attributable to owners of Bega Cheese Limited 28,779 12,408

Total comprehensive income for the year attributable to owners of Bega Cheese Limited 28,906 11,666

2016 2015
Cents Cents
Earnings per share for profit attributable to ordinary equity holders of the parent:
Basic and diluted earnings per share 3 18.9 8.1

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

38  /  BEGA CHEESE LIMITED 2016  /  FINANCIAL STATEMENTS

/ CONSOLIDATED BALANCE SHEET

CONSOLIDATED
2016 2015
Notes $’000 $’000
ASSETS
Current assets
Cash and cash equivalents 19 9,658 10,284
Trade and other receivables 8 143,673 119,508
Derivative financial instruments 9 545 967
Inventories 10 192,398 194,889
Current tax assets - 2,941
Total current assets 346,274 328,589

Non-current assets
Other financial assets 9 729 -
Property, plant and equipment 11 219,944 209,706
Deferred tax assets 7d 10,329 11,230
Intangible assets 12 7,903 1,797
Investments accounted for using the equity method 24 1,495 1,097
Total non-current assets 240,400 223,830

Total assets 586,674 552,419

LIABILITIES
Current liabilities
Trade and other payables 13 156,044 139,081
Derivative financial instruments 15 1,583 993
Borrowings 14 15,235 11,474
Current tax liabilities 5,056 1,186
Provisions 16 31,335 26,553
Total current liabilities 209,253 179,287

Non-current liabilities
Borrowings 14 47,500 57,500
Provisions 16 2,083 2,966
Total non-current liabilities 49,583 60,466

Total liabilities 258,836 239,753

Net assets 327,838 312,666

EQUITY
Share capital 17a 103,942 103,942
Reserves 18a 21,058 20,931
Retained earnings 202,838 187,793
Capital and reserves attributable to owners of Bega Cheese Limited 327,838 312,666
Total equity 327,838 312,666

The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.

BEGA CHEESE LIMITED 2016  /  FINANCIAL STATEMENTS  /  39

 / CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Share-based Capital Available Transactions with

Share payment profits Hedging for sale non-controlling Retained
capital reserve reserve reserve reserve interests earnings Total

Consolidated $’000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Balance as at 1 July 2014 103,642 811 33,959 187 - (12,567) 188,356 314,388

Profit for the year - - - - - - 12,408 12,408

Other comprehensive (expense)
- - - (742) - - - (742)
for the year
Transactions with owners in their
capacity as owners:
- Issue of shares relating to incentives
300 (300) - - - - - -
(note 17, 31)
- Share-based payments relating
- (373) - - - - - (373)
to incentives (note 31)
- Other share scheme movement
- (44) - - - - - (44)
(note 31)
- Dividends provided for or paid
- - - - - - (12,971) (12,971)
(note 4)
Balance as at 30 June 2015 103,942 94 33,959 (555) - (12,567) 187,793 312,666

Balance as at 1 July 2015 103,942 94 33,959 (555) - (12,567) 187,793 312,666

Profit for the year - - - - - - 28,779 28,779

Other comprehensive income
- - - 311 (184) - - 127
for the year
Transactions with owners in their
capacity as owners:
- Dividends provided for or paid
- - - - - - (13,734) (13,734)
(note 4)
Balance as at 30 June 2016 103,942 94 33,959 (244) (184) (12,567) 202,838 327,838

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

40  /  BEGA CHEESE LIMITED 2016  /  FINANCIAL STATEMENTS

/ CONSOLIDATED STATEMENT OF CASH FLOWS

CONSOLIDATED
2016 2015
Notes $’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers inclusive of goods and services tax 1,241,063 1,160,805
Payments to suppliers and employees inclusive of goods and services tax (1,174,917) (1,164,837)
Interest and other costs of financing paid (3,835) (3,437)
Income taxes paid 7f (3,331) (9,876)
Net cash inflow/(outflow) from operating activities 19 58,980 (17,345)

CASH FLOWS FROM INVESTING ACTIVITIES

Tax paid on sale of shares in listed company 1c - (18,336)
Interest received 239 301
Dividend received 5 -
Payments for property, plant and equipment 11 (33,956) (18,729)
Payments for intangible assets 12 (5,733) -
Payments for shares in listed companies (992) -
Proceeds from sale of property, plant and equipment 428 89
Joint venture distributions received 375 259
Net cash (outflow) from investing activities (39,634) (36,416)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings 14,000 48,500
Repayment of borrowings (20,238) (114)
Dividends paid to members 4 (13,734) (12,971)
Net cash (outflow)/inflow from financing activities (19,972) 35,415

Net (decrease) in cash and cash equivalents (626) (18,346)

Cash and cash equivalents at the beginning of the year 10,284 28,630
Cash and cash equivalents at the end of the year 19 9,658 10,284

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

BEGA CHEESE LIMITED 2016  /  FINANCIAL STATEMENTS  /  41