Maggie Beer records $4m loss in December half

The interim FY25 financial report for Maggie Beer Holdings was a continuation to its lacklustre FY24 performance, recording a $4.4 million loss with further write downs and losses on its Paris Creek Farms dairy business. Former CEO, Chantale Millard, has been brought in as a key advisor while the company looks for a new CEO, a role unfilled since Kinda Grange resigned in July last year. 

In early February, the company announced newly appointed director, Mark Lindh, would replace Sue Thomas as chair, with Thomas staying on the board. Lindh said it was part of a “broader board renewal process” focused on strong corporate governance and independence.

Snapshot

• EBITDA: $3m, down 16.8% pcp;
• Total sales: $54.4m, up 5.8% pcp;

MBH did report a 5.8 per cent uptick in continuing operations, Hampers and Gifts (HGA) sales increased six per cent on the prior corresponding period (pcp), and Maggie Beer Products (MBP) was up 5 per cent.

Lindh said the company is forecasting to deliver annualised cost reductions in the range of $3.5 million to $4 million.

“This is through the simplification of its operations including organisational structure, group margin improvements, labour alignment, along with overhead and inventory management. Continued operations targets annualised gross margin saving of $1.5 million and Cost of Doing Business savings of $2.0 million to $2.5 million.

“The financial focus in the second half will be on delivering targeted annualised cost reductions of up to $4 million to improve earnings in both the short and longer term whilst maintaining continued growth in the revenue of both the E-Commerce Hampers and South Australian headquartered business units,” Lindh said.

While HGA sales were up and its B2B business increased 15 per cent, earnings before interest, tax, depreciation, and amortisation (EBITDA) was down due to labour costs and marketing and freight costs increasing in line with sales.

Paris Creek Farms recorded a five per cent drop in net sales pcp, but gross margin improved due to reducing SKUs and less bulk milk sales.