Growing Maggie Beer sales trim first-half loss

Maggie Beer’s growing appeal through COVID-19 and the ‘buy local’ momentum continue to drive the turnaround at her namesake business.

Maggie Beer at her Barossa Valley property. Photographer: Pete Thornton

Popular Australian chef and author Maggie Beer remains the “engine room” of her namesake listed sharemarket business, which reported a lower first-half loss of $367,000.

The results marks a sharp turnaround from the $14.3m loss in the previous corresponding period for Maggie Beer Holdings in which Ms Beer, along with her husband Colin, now hold a 3 per cent share.

The group, backed by significant shareholders Ellerston Capital and Geoff Wilson, reported revenues of $27.8m to the end of December, compared to $23.2m in the corresponding half.

All three of the MBH businesses – Maggie Beer Products, Paris Creek Farm and St David Dairy – reported revenue and sales growth.

Maggie Beer Products.

Maggie Beer Products’ revenue increased to $14.6m, up from $11.4m, on strong sales of cheese – it’s best performer – cooking stock, fruit paste and pate.

Chief executive Chantale Millard said the core business, Maggie Beer Products, was growing strongly, including a 167 per cent jump in e-commerce sales.

“Maggie is absolutely the engine room of the business and having her support as director and ambassador is crucial.

“I am expecting, all things remaining the same, we could see net profits flowing through over the next six to 12 months.”

Maggie Beer Holdings chief executive Chantale Millard.

Memberships to the Maggie Beer Food Club now exceed 60,000 amid growing website and social media traffic, boosted by Maggie’s impromptu daily video series during the national COVID-19 lockdown last year.

Product innovation and direct to consumer marketing and sales remain a focus for the business with a new MBP soup range to be launched in Woolworths stores in April and new yoghurt and cheese lines for Paris Creek and St David Dairy.

“It’s a strong result for us, but we are cognisant that there is still uncertainty in the economic outlook as JobKeeper winds down in March,” Ms Millard said.

“Despite this uncertainty we remain confident of continuing to deliver double-digit net sales growth.

“We have a busy and exciting second half in front of us alongside our disciplined approach to working capital and cash management.”

The group is supported by a strong balance sheet with net assets of $51.4m and a cash balance of $6.3m.

Shares in Maggie Beer Holdings, valued at $88m, were up 1.2 per cent at 43c.