South Australian food personality Maggie Beer’s business makes $2m loss
MAGGIE Beer Products has posted a full year loss of $2.13 million and had its value revised down by almost two thirds based on expected future earnings.
MAGGIE Beer Products has posted a full year loss of $2.13 million and had its value revised down by almost two thirds based on expected future earnings.
Primary Opinion, the company which bought 48 per cent of Maggie Beer Products from South Australian food visionary Maggie Beer in July last year said its $15 million investment was now worth just $5.5 million.
“The group assessed the carrying amount of its investment in MBP for indicators of impairment such as unexpected poor performance for this financial year,’’ the company said.
“Subsequently, an internal valuation of MBP was performed to determine the group’s share of the enterprise value.
“The earnings forecasts included an estimate of revenue growth from volume growth and new product launches, with gross margins falling marginally after accounting for change in channel mix.’’
Maggie Beer’s Barossa-based company is famed for its ice creams, quince paste and other gourmet foods such as verjuice, vinegars and sauces.
Primary Opinion’s new managing director Laura McBain, who recently joined from infant formula manufacturer Bellamy’s, said last week Maggie Beer was an “iconic brand, and Maggie is one of Australia’s favourite chefs”.
“I am looking forward to working with the Maggie Beer team to explore its opportunities for growth, and working to build other opportunities for Primary Opinion.”
Today Ms McBain reiterated that turning around the company was a priority.
“It has only been a few weeks since joining the board of Primary Opinion, and in that time the
board and I have focused on working closely with the Maggie Beer team to increase our
understanding of their future growth trajectory and how we can assist Maggie Beer Products to
achieve positive outcomes that reflect the premium nature of its’ brand and place in the Australian food industry,’’ she said in a statement to the ASX.
“As we pivot toward our future potential, we are focused on the opportunities within the Australian food and beverage industry and how we can help to transform a variety of products and brands to reach their possibilities.’’
Primary Opinion said its own full year loss had increased to $10.29 million — including the Maggie Beer writedown — from $1.826 million in 2016, as revenue doubled to $30,692.