Australian company Maggie Beer Holdings has recently announced the sale of its dairy subsidiary, Paris Creek Farms, to local group Katoomba Global Foods for A$500,000 ($325,710). This decision comes as part of Maggie Beer Holdings’ strategy to dispose of non-core assets and simplify its operating structure.
The sale of Paris Creek Farms aligns with the company’s broader goal to streamline its portfolio, reduce complexity, and focus on high-growth, high-value areas of the business. Paris Creek Farms is known for its diverse product portfolio, which includes milk, butter, cheese, and flavoured yogurt.
In a stock exchange filing, Maggie Beer Holdings stated that several parties had expressed interest in acquiring Paris Creek Farms, leading to the decision to divest the business. The company cited a significant impact on earnings at Paris Creek Farms in FY24 as a key factor in the divestment.
The sale of Paris Creek Farms is expected to result in annualised cashflow savings of approximately A$2.2m for Maggie Beer Holdings. Mark Lindh, chair of the company, described the sale as an important step in their strategy of simplification and accelerated profitability.
The transaction with Katoomba Global Foods is set to be completed by next week. Katoomba Global Foods is a Victoria-based company that specializes in manufacturing and distribution, supplying global brands such as Al Wadi, Maggi, and Pangkarra.
Maggie Beer Holdings also owns two other business units: Maggie Beer Products and Hampers & Gifts Australia (HGA). The sale of Paris Creek Farms will allow the company to sharpen its strategic focus on its core premium brands, particularly Maggie Beer Products.
In February, Maggie Beer Holdings eliminated the roles of joint interim group COO and CFO as part of a strategic review aimed at boosting profits. The company is focused on reducing the cost of doing business and improving margins to drive profitability.
In the first half of fiscal year 2025, ending 31 December 2024, Maggie Beer Holdings reported total sales of A$54.4m, a 5.8% increase from the same period in 2024. While Maggie Beer Products and HGA experienced sales growth, Paris Creek Farms saw a 5% decline in net sales due to various factors.
The group’s EBITDA fell 16.8% in the first half to A$3m, with gross margins remaining flat at 50.9%. Despite these challenges, Maggie Beer Holdings remains focused on its strategic goals and is committed to driving growth and profitability in the future.
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