Luxury foods manufacturer Maggie Beer Holdings will consider selling its two dairy businesses which have underperformed due to Covid-19 impacts, Russia’s invasion of Ukraine and staff and supply chain problems.
The company’s Maggie Beer Products and Hampers and Gifts Australia continue to perform well with sales up 19.3 per cent and 25.6 percent respectively compared to the previous corresponding period in the financial year to date for April.
E-commerce sales are up 165.6 per cent in the year to date.
The company said it was on track to achieve its net sales target for the year of between $95 and $100 million.
Trading EBITDA is now expected to exceed $9.25 million.
The Barossa Valley company in a market update said it had decided St David Dairy and Paris Creek Farms were non-core and would consider a sale.
The businesses have been hit by skill shortages, staff churn increased training costs and increased milk haulage and distribution prices
This has cost the loss of some customers due to supply and delivery issues.
The launch of Paris Creek branded milk was delayed due to retail disruption together with floods in the eastern states.
The dairy assets will reduce trading EBITDA profit by $2.8 million.
Picture: Paris Creek Farms
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