Maggie Beer Holdings says Goulburn Valley Creamery has signed a binding, unconditional Share Sale and Purchase Agreement for dairy asset St David Dairy for $1.6 million.
MBH announced in May it was looking to offload dairy assets after a strategic review deemed them non-core assets.
MBH managing director and CEO Chantale Millard said St David Dairy was an iconic Melbourne brand and MBH was pleased the sale would see all staff remain for a seamless transition.
Goulburn Valley Creamery said it would invest in the business and brand.
New St David Dairy CEO Mancel Hickey said, “I am incredibly pleased to be taking on the leadership of a business that I know extremely well, with a positive future that I am passionate about.
“We will strengthen St David Dairy’s reputation for high quality, great tasting products with a refreshed approach to our range, customer service and overall way of doing business.
“I want to ensure the company’s proud tradition and position as Melbourne’s only micro-dairy is maintained and thrives for years to come.”
SDD was sold as a going concern with all staff (and entitlements) transferring with the business.
FY22 results
With a heightened focus on core premium food and gifting brands - Maggie Beer Products and Hampers & Gifts Australia, Maggie Beer Holdings has reported FY22 results at the upper end of its earnings guidance.
MBH achieved $98.3 million in net sales and $10.3 million in trading EBITDA.
Snapshot
- Trading EBITDA: $11.3m, up 397%
- NPAT: $7.5m, up 167%
- Ecommerce: $49.8m, up 32%
- Continuing operations: 22% net sales growth
- Gross profit margin: 53%, up 5.7%
The MBH board approved a $17.5 million non-cash write down and impairment of its Dairy Assets in FY22, based on the range of offers received for them. This resulted in an overall loss from Discontinued Operations of $19.8 million and a Group statutory loss of $12.3 million.
Millard said the successful integration of Hampers & Gifts Australia (HGA) was “realising substantial benefits”, with 66 per cent of revenue coming from ecommerce and the remaining 34 per cent from the retail grocery channel.
MBH has a digital audience of more than 900,000 consumers and HGA has a Net Promoter Score of 74.
MBH said despite a challenging retail market, Maggie Beer Products retail grocery sales were up 11.2 per cent to $26.6 million due to new products and increased ranging.
Millard said, “We are well positioned to grow in FY23. With 66 per cent of our revenues coming from the higher margin ecommerce channel, we have successfully de-risked our portfolio and go-to-market channels and built a platform for sustained future growth.”
