Maggie Beer slims down, moves online

Maggie Beer achieved close to $100 million in sales for the year ended June 30 as its e-commerce and Hampers & Gifts Australia powered its latest results.

The Tanunda, Barossa Valley company, which is divesting itself of its two dairy company assets which underperform the Maggie Beer brand, reported $10.3 million in trading EBITDA on net sales of $98.3, figures at the upper end of the company’s earlier guidance to investors.

In the past two years Maggie Beer has transformed its sales channels with e-commerce channels now dominant, accounting for $49.8 million in sales in FY 22.

The company is executing its decision to concentrate on Maggie Beer brands and its Hampers business, with its Paris Creek Farms and St David Dairy dairy businesses in the process of being divested.

The board has approved a $17.5 million non-cash write down of the dairy assets, based on the range of offers it has received for the two dairy brands.

This resulted in a group statutory loss of $12.3 million.

The company is proposing a one cent per share return in capital in lieu of its FY22 dividend.

Maggie Beer Ceo Chantale Millard said: “Our continuing operations achieved 22 percent net sales growth in FY22, with a healthy 53 percent gross margin.

“The successful integration of Hampers & Gifts Australia is realising substantial benefits, as Maggie Beer Holdings successfully transitions to a diversifies portfolio with 66 percent of revenue now coming from e-commerce and the remaining 34 percent from the retain grocery channel.

“The Hampers & Gifts…acquisition, integration and synergies have exceeded our expectations and we have an attractive scalable platform for future growth.”

Maggie Beer sales in retail grocery outlets were up 11.2 percent to $26.6 million, while Maggie Beer products online sales were $4.5 million.

Picture: Maggie Beer

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