Maggie Beer Holdings Posts 3.7% Sales Growth but Losses Widen to $24.3M
Maggie Beer Holdings reported a 3.7% rise in net sales to $75.9 million for FY25, driven by retail growth and hamper sales, yet posted a larger overall loss of $24.3 million, impacted by goodwill impairment and discontinued operations.
- Net sales increased 3.7% to $75.9 million
- Loss from continuing operations narrowed to $14.2 million
- Gross margin declined due to lower-margin e-commerce growth and stock provisions
- Trading EBITDA fell to a loss of $0.7 million from a prior profit
- Paris Creek Farms sold, contributing $10.1 million loss from discontinued operations
Sales Growth Amidst Operational Challenges
Maggie Beer Holdings Ltd has reported a modest increase in net sales for the fiscal year ended 30 June 2025, reaching $75.9 million, up 3.7% from the previous year. This growth was primarily driven by Maggie Beer Products’ retail segment, which saw a 3.0% rise fueled by stronger sales in cheese, paste, and crackers, alongside improved channel management. Hampers and Gifts Australia also contributed with a 5.3% increase in net sales, supported by higher sales volumes despite a flat average order value.
Margin Pressure and Rising Costs
Despite top-line growth, the company’s gross margin contracted by 1.6 percentage points to 47.4%. This was largely due to the expansion of the e-commerce hamper business, which grew volume but at lower-than-average margins, compounded by a $0.9 million stock provision in the second half of the year. Additionally, internally produced retail products experienced margin compression from increased labor and overhead costs.
Trading EBITDA swung into negative territory, posting a loss of $0.7 million compared to a $1.9 million profit in FY24. The decline was attributed to delayed recovery of input costs, higher freight expenses driven by volume, and elevated advertising and personnel costs related to organizational restructuring, Christmas campaign execution, and the completion of a Shopify migration project.
Balance Sheet and Discontinued Operations Impact
The company’s balance sheet showed signs of strain, with net assets falling sharply from $57.8 million to $33.5 million. This was driven by an $8.3 million impairment of goodwill and a $10.1 million loss from discontinued operations following the sale of Paris Creek Farms in June 2025. Net tangible assets also declined to $15.4 million from $28.0 million the prior year. Despite these challenges, Maggie Beer Holdings maintained a net cash position of $1.0 million at year-end and remains debt-free.
Outlook and Strategic Considerations
The company did not declare any dividends for the year, reflecting ongoing investment and restructuring efforts. While revenue growth in core product lines and hampers signals underlying demand strength, the margin pressures and losses highlight the challenges of managing cost inflation and strategic transitions. The completion of the Shopify migration and channel management improvements may offer operational leverage going forward, but the impact on profitability remains to be seen.
Investors will be watching closely for further clarity on cost recovery strategies, margin improvement initiatives, and the company’s approach to balancing growth with profitability in a competitive food and beverage market.
Bottom Line?
Maggie Beer Holdings’ revenue growth masks deeper profitability challenges, setting the stage for a critical turnaround phase.
Questions in the middle?
- How will Maggie Beer Holdings address ongoing margin pressures and cost inflation?
- What strategic plans are in place to leverage the completed Shopify migration for improved profitability?
- Will the company resume dividends once profitability stabilizes, or continue reinvesting in growth?