It’s been an exciting year for the premium food and beverage producer. Here are the details
The post Maggie Beer (ASX:MBH) share price soars on $54 million revenue appeared first on The Motley Fool Australia. –
Right now, the Maggie Beer share price is up by 4.88% to 43 cents.
Maggie Beer share price jumps on 177% increase to EBITDA
Here’s how the premium food and beverage producer and retailer performed during FY21:
Total revenue up 18.1% to around $53.8 million
Net profit after tax (NPAT) of $1.9 million, up from a $14.8 million loss in FY20
Trading earnings before interest, tax, depreciation, and amortisation (EBITDA) of $3.1 million, up 177% on that of FY20
Net sales of $52.9 million – up 18.8%
According to Maggie Beer, its NPAT increase was primarily due to growth in its retail and e-commerce products.
The company’s net sales increase was underpinned by Maggie Beer Products‘ 23% sales growth. The brand brought in around $25 million in FY21.
The company’s newest addition, Hampers & Gifts Australia, earned it around $2 million.
Maggie Beer repaid a $400,000 loan in full over the year.
Finally, the company ended the period with $13.5 million of cash, $1.6 million of lease liabilities, and $3 million in undrawn debt facilities.
What happened in FY21 for Maggie Beer?
Perhaps the most exciting happening for Maggie Beer in FY21, was actually becoming Maggie Beer.
The company had previously traded as Longtable Group Ltd, under the ticker LON. Longtable was officially renamed Maggie Beer in July 2020.
Also exciting was the company’s acquisition of Hampers & Gifts Australia.
Unfortunately, COVID-19 hit the company hard. Its Melbourne-based St David Dairy segment was worst affected. Though, it still ended the year with a 10% revenue growth.
The company is also in the middle of a strategic review into its Paris Creek Farms business. The review is an attempt to unlock greater value from the segment.
What did management say?
Maggie Beer’s CEO & managing director Chantale Millard commented on the results, saying:
[FY21] has seen us well and truly shift from “fix it” mode to “growth” mode and successfully create the foundations for sustained future growth…
We are excited about the future of the group, as we push towards group revenue of $100 million over the next 12 months.
Maggie Beer’s chair Reg Weine also commented on the results boosting the company’s share price today. He said:
The 2021 financial year was a pivotal year… The group achieved a positive net profit, reflecting the underlying strength of our premium brands, diversified business model, tight cost control and focus on continuous improvement and innovation. Reflecting the strength of our brands, these results were achieved through a period of unprecedented challenges brought on by the evolving global COVID-19 pandemic.
We continue to benefit from the consumer shift to on-line purchasing through growth in our Maggie Beer Food Club and our direct-to-consumer channel, with MBP’s e-commerce sales increasing 103% year on year.
What’s next for Maggie Beer?
Here’s what may drive the Maggie Beer share price during FY22:
According to the company, FY22 will see it growing its retail grocery businesses. It plans to launch new products and increase its marketing.
Additionally, Maggie Beer stated Hampers & Gifts Australia saw 36% more sales in July 2021 than it had during the previous comparable period. Meanwhile, Maggie Beer Products’ e-commerce net sales also grew by 90% in July.
The company is hoping to deliver group revenue of $100 million in FY22, with a trading EBITDA of between $13.5 million and $15.5 million. Though, the company’s outlook is subject to COVID-19.
Maggie Beer share price snapshot
The Maggie Beer share price has fallen 12% year to date. However, it has gained 59% since this time last year.
Should you invest $1,000 in Maggie Beer Holdings right now?
Before you consider Maggie Beer Holdings, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Maggie Beer Holdings wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.