A focus on ecommerce and acquisitions has paid dividends for Maggie Beer Holdings (MBH), with the company recording a FY21 net profit after tax of $1.9 million compared to a lost of $14.8 million in FY20.
CEO and managing director Chantale Millard said the company now has a large premium ecommerce business that can be quickly scaled as its retail grocery business grows.
Key highlights
- NPAT of $1.9m compared to NLAT of $14.8m in FY20;
- trading EBITDA up 177% to $3.1m;
- successful integration of Hampers & Gifts Australia (HGA);
- pro-forma F21 combined results of $86.7m in net sales and $12m trading EBITDA; and
- Maggie Beer Products (MBP) net sales up 23% to $25.6m, with cheeses recording 50% growth on FY20;
Net sales in the business were up 18.8 per cent to $52.9 million, with group sales increasing by 62 per cent in July 2021 compared to July 2020.
It expects growth to accelerate in Q2 FY22 in line with the seasonality of HGA and MBP’s ecommerce and retail business and new product launches in August and September.
In April, MBH acquired HGA for $40 million. The ecommerce gourmet hamper business, operating as The Hamper Emporium and Gifts Australia, recorded a FY21 1H revenue of $36.4 million and EBIDTA of $9.07 million.
On a full year basis HGA’s net sales were up 98 per cent to $36m with Q4FY21 net sales up 26 per cent on Q4FY20.
The marketing teams of HGA and MBP have been fully integrated and MBP’s ecommerce business was relocated to Sydney in July. A new ERP system has also been implemented.
The turnaround of its Paris Creek Farm brand is ongoing, with its FY21 trading EBITDA $0.6m higher than FY20, narrowing its loss to $0.3m. St David Dairy saw net sales increase 10 per cent but its trading EBITDA slightly down due mainly to raw milk sales. New supplier arrangements and improved costs will deliver savings in FY22.
Millard said the business has a clear path to sustained earnings and revenue growth, with a push toward $100 million in revenue over the next 12 months.
