- Maggie Beer (MBH) sees its net sales increase by 133.8 per cent to $64.52 million for the half-year ending December 31, 2021
- Trading earnings before interest, taxes, depreciation and amortisation grew to $9.8 million while net profit after tax increased to $5.5 million after a $400,000 loss in H1 FY21
- During the half MBH completed the integration of Hampers & Gifts Australia (HGA), with HGA’s net sales increasing by 28.6 per cent
- MBH remains on track to meet its group revenue guidance target of $100 million for FY22
- Shares in MBH are down 0.85 per cent and trading at 58.5 cents
Maggie Beer (MBH) has seen its net sales increase by 133.8 per cent to $64.52 million for the half-year ending December 31, 2021.
Trading earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 438.2 per cent to $9.8 million while net profit after tax (NPAT) increased to $5.5 million after a $400,000 loss in the prior corresponding period.
The company said the financial results reflects the strong underlying trading position of its four premium brands and the integration of Hampers & Gifts Australia.
“The first half saw the integration of HGA into the MBH Group completed successfully and on time, substantially diversifying our revenue and gross margin between e-commerce, grocery retail and food service, which has enabled us to deliver strong revenue and earnings growth in a very challenging market,” CEO and Managing Director Chantale Millard commented.
“The first half was continually challenged by persistent COVID-19 headwinds, which increased costs and disrupted international and national supply chains.”
HGA Integration
During the half, MBH completed the integration of Hampers & Gifts Australia (HGA).
HGA’s e-commerce net sales grew by 28.6 per cent to $34.7 million over the half, showcasing its ability to continue to achieve strong growth.
The Hamper Emporium, which makes up 75 per cent of HGA’s net sales, saw customers increase by 31.1 per cent and saw repeat customer purchase rate increase by 56.6 per cent.
In Q4 FY22, HGA will launch its new range of Mother’s Day, homewares and pamper hampers which will expand its premium gifting range.
It will also launch cheese and entertaining hampers in March.
Maggie Beer Products
Maggie Beer Products (MBP) net sales grew by 24.7 per cent to $18.2 million, driven by the launch of new products and uplift in its e-commerce sales.
MBP’s retail grocery sales grew by 9.7 per cent while its e-commerce sales grew by 174.1 per cent.
Paris Creek Farms
Paris Creek Farms (PCF) sales were down 12.3 per cent in the half, however, when excluding the private label business discontinued in March 2021, sales grew by 9.3 per cent.
The expansion into the eastern states will improve PCF’s brand awareness and increase sales.
St David Dairy
Despite ongoing COVID challenges, St David Dairy’s (SDD) sales were up 7.6 per cent over H1 FY21 to $4.8 million in H1 FY22.
Lockdowns and restrictions in Melbourne and Sydney affected sales and stifled growth.
COVID-19
COVID-19 continued to cause disruption in the half, resulting in increased supply chain costs and negatively impacted sales to food service and cafes due to staff shortages.
Despite this, MBH saw growth across its channels, customers and brands.
Outlook
MBH remains on track to meet its group revenue guidance target of $100 million for FY22.
Additionally, the company will continue to invest in and scale up its business in the second half to capitalise on growth opportunities and create long-term shareholder value.
Shares in MBH were down 0.85 per cent on the market and were trading at 58.5 cents at 1:43 pm AEDT.