Maggie Beer Holdings reported $88.7 million in revenue for FY23, a 1.4 per cent drop on last year, and wrote down Hampers & Gifts (HGA) by $12.5 million.
Snapshot
- Net sales: $88.7m, down 1.4% pcp
- Maggie Beer Products: up 1.9%
- Hampers & Gifts Australia: down 7.5%
- Paris Creek Farms: up 10.5%
- Trading EBITDA: $4.2m (FY22: $10.5m)
NPAT: $0.46m - includes reversal of contingent consideration for HGA of $14m, offset by non-cash impairment of HGA goodwill of $12.5m.
CEO Kinda Grange said, “Our operating results for FY23 were consistent with the trading update provided in May and reflect the continued effect of rising interest rates and inflation impacting consumer spending, shifting consumer habits in online shopping, together with higher freight and labour costs impacting costs of doing business during the period.
“Within that environment we remained focused on operational discipline while continuing to invest in key areas of our business to strengthen and expand our brands to generate further revenue opportunities. This is reflected in retail channel revenue growth and online channel share growth.”
MBH bought HGA in 2021 for $40 million with a $14 million contingent consideration for the vendors if the business reached certain performance targets.
MBH put that back into the business and also reduced the HGA’s value from $63.6 million to $51.1 million.
“The marketplace challenges and shifting consumer habits we experienced during the year have served as catalysts for us to re-frame our strategy during the year,” Grange said.
Grange said the company was in a strong financial position with net assets of $85.7 million and positive operating cashflow of $6.5 million.
“Our 5-year strategy is focused on unlocking value across MBH, optimising and unifying our assets, expanding the Maggie Beer brand, and building scale in our e-commerce platform as we further diversify our categories.
“This 5-year strategy supports our aspiration to create a $300 million net sales revenue business with strong margins and return on assets,” she said.
