Key points
- Increased sales offset by ongoing operating costs
- Simplifying operations and administration to reduce costs
- Appointing divisional heads for E-Commerce and Maggie Beer Products
- Penny Diamantakiou to leave the business
Full summary
Maggie Beer Holdings Ltd (MBH) has provided an update on its Board-led strategic review of company operations and trading for the first six months of FY25. MBH Chairperson Sue Thomas stated that while sales have increased, ongoing operating costs have offset this growth. The Board review has highlighted the need to materially cut the company's cost of doing business. To address this, MBH will simplify its operations and administration through streamlining its structure, reducing senior executive roles and head office headcount. Divisional heads will be appointed to the E-Commerce (HGA) and Maggie Beer Products businesses, each responsible for cost management, profit, and strategy, reporting directly to the Board. This new structure is aimed at enabling a focus on costs, core products, and customers, while being reflective of the company's current market capitalisation. The strategic review is also progressing the sale of the Paris Creek Farms business. MBH expects to provide further details on the strategic review, including anticipated cost savings, at the upcoming Half-Year results announcement.
Guidance
On a preliminary unaudited basis, the company expects to report: total sales from continuing operations increased by between approximately 5.5% and 6% on the previous corresponding period, and trading EBITDA from continuing operations declined by between approximately 7% to 8% from the previous corresponding period.