In a market update, Maggie Beer Holdings (MBH) chair, Sue Thomas, says the company’s cost of doing business “remains too high” and it needs to cut costs. With its audited 1H25 results due on 26 February, Thomas’ comments follow a board-led strategic review of the business.
The review follows a bruising FY24 in which the company lost its CEO, CFO, and reported a $28.2 million loss.
At the AGM in November, Thomas, told shareholders the board acknowledged the company must focus on earnings growth, capitalise on its “incredible” brand equity, and provide “proof points, not promises” to win back investor confidence.
The review has already triggered a restructure that resulted in the interim CEO and CFO, Penny Diamantakiou, leave the business. Neither role will be refilled, with the heads of its business units reporting directly to the board instead.
Snapshot: Unaudited results
- Total sales: Up 5.5-6% on previous corresponding period (pcp);
- trading earnings before interest, taxes, depreciation, and amortisation (EBITDA): down 7-8% pcp; and
- closing cash: $11m
Thomas said the second half will see the company continue to simplify operations and administration through structural change and redundancies.
“Divisional heads will be appointed to our eCommerce operations (Hampers & Gifts) and Maggie Beer Products (MBH), with each responsible for cost management, profit, and strategy – reporting directly to the board,” Thomas said.
The structure would enable a focus on costs, core products, and customers, she said, with the board reporting on anticipated cost savings and more details of the strategic review in its 1H25 results announcement.
With no CEO or CFO, group finance managers will jointly lead the finance team.
Board member, Tom Kiing will step into an executive role to oversee the transition and implement cost savings in the eCommerce business while leading the search for a permanent head of the division. King has a 6.1 per cent stake in the company.
Meanwhile, new director Mark Lindh will head the search for a head of MBP and run the business in the interim. He joined the board on 13 January and is also working on the sale of Paris Creek Farms.
