Maggie Beer sales slump post Covid-19

A rise in sales during Covid-19 pandemic lockdowns has not lasted into Q1 FY22 for prestige food manufacturer Maggie Beer Holdings.

The Barossa Valley company reported that Q1 FY22 sales were down 22.1 percent compared to the previous corresponding period which were boosted as consumers remained at home where they spent more time cooking.

However sales were nonetheless higher in the latest quarter compared to FY21, a quarter also boosted by Covid-19 lockdowns.

In an update for investors Maggie Beer said it managed to increase gross margins from the first quarter following a “positive impact of price increases and cost controls”.

The company expects margin growth to remain strong though it warned of inflation headwinds with elevated costs of freight and raw materials already evident.

The company ended Q1 in a strong financial position with net cash of $5 million, having divested its two non-core dairy businesses to focus on Maggie Beer branded foods and its fast-growing e-commerce and hampers and gifts businesses.

It has a higher than expected level of inventory, which should shield it from supply chain disruptions to sales in the Christmas season.

“The [Maggie Beer] group has everything in place for a great Christmas.

“Grocery retail has performed well so far in the (financial year) and the group is expecting strong sales across its key entertaining and cooking categories over Christmas.”

Picture: Maggie Beer Farm shop