Bega Cheese (ASX:BGA) has increased its dividend for the year ending June, following a rise in sales, profits, and a reduction in debt. This positive outcome comes despite the ongoing challenges faced by many companies over the past year.

The company's board has set the full-year dividend at 8 cents per share, up from 7.5 cents. The final dividend is 4 cents per share, a 33% increase from the previous year's 3 cents.

Although Bega previously lowered its interim dividend for 2023-24, the board has demonstrated confidence in the company's performance by raising the total payout to shareholders for the year.

Despite weak consumer demand, inflation, and other challenges, Bega successfully increased its revenue and earnings in 2023-24. The company anticipates a similar performance in the upcoming financial year.

The positive tone of the report led to a significant increase in Bega's share price, jumping over 7% to a daily high of $4.57. While this is just below the 52-week high of $4.60, it remains well short of the all-time high of $6.47 reached in March 2021.

Revenue for the year to June increased by 4% to over $3.5 billion, and EBITDA rose by 15% to just over $165 million.

The company's bulk dairy business incurred an $18 million statutory loss, a significant decline from the $38 million profit recorded the previous year. Bega attributed this loss to the disconnect between global dairy market prices and Australian farmgate prices.

A notable achievement was the reduction of debt by $41 million to just over $162 million.

Looking ahead, Bega Cheese expects continued growth in its Branded segment and an improved performance from the Bulk segment in FY2025. The company forecasts a substantial increase in EBITDA to between $190 and $200 million for 2024-25, representing a growth rate of 15% to 21%.