Maggie Beer has reported a statutory loss of $24.3 million for this fiscal year, but says its turnaround strategy is now complete and is positioned for profitable growth next year.
The loss included a $10.1 million impairment from the sale of Paris Creek Farms; goodwill impairments of $8.3 million across two divisions; and one-off restructuring and legal costs.
Group sales rose 4 per cent to $76.3 million, with revenue growth in both Hamper & Gifts (up 5 per cent) and Maggie Beer Products (up 2 per cent).
Chair Mark Lindh said the divestment of Paris Creek Farms would strengthen the group’s financial position and sharpen its focus.
“The group expects the sale to deliver greater medium-to-long-term benefits in improved cashflow, decreased costs and sharper strategic focus on our two core business units,” he said.
The company also delivered $1.8 million in annualised savings in the second half through cost reductions, with a further $1.7 to $2.2 million budgeted for next year.
Meanwhile, inventory for continuing operations fell 13.5 per cent, while gross margin eased slightly to 47.4 per cent.
Lindh said investments in e-commerce platforms and the cost-out program would support a stronger performance in the year ahead.
“We believe these necessary changes, which have been implemented in the last six months, have the group well-positioned for a strong first half next year,” he added.
“Our focus now is very much on driving profitable growth.”
Maggie Beer ended this fiscal year debt-free and has secured a finance facility of up to $10 million.
