The Maggie Beer Holdings Ltd (ASX: MBH) share price has this morning surged 22.7%. This came following the company's announcement it will be launching a range of plant-based meals in Coles. The launch will increase the company's presence in the $1 billion Australian prepared meals market.
Formerly known as Longtable Group, the company recently changed its name to Maggie Beer Holdings at a general meeting held on 16 July 2020.
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Coles agreement
In mid-October this year, Maggie Beer Holdings will launch new incremental ranging of 3 'Maggie's Food for Life' ready to eat meals in approximately 400 Coles supermarkets nationally. The plant-based meals target the fast growing, prepared and plant-based meals category.
Additionally, the announced launch of the range in a major supermarket is an important step in the company's growth strategy.
Prior to the announcement, Maggie Beer prepared meals had been launched in independent supermarkets in the H1 FY20.
FY20 preliminary trading update
On 9 July 2020, Maggie Beer provided an unaudited trading update. In the update, the company announced strong sales in May and June this year and advised it is on track to achieve positive earnings before interest, tax, depreciation and amortisation (EBITDA) in FY20. This represents an increase of approximately $5.3 million compared to FY19.
The group's cash position has increased from $5.1 million at the end of December to $7.2 million at the end of FY20. Additionally, it is well funded by $10.2 million in cash reserves and undrawn debt facilities.
Net sales in FY20 have increased approximately 3.5% compared to the prior corresponding period despite challenging conditions due to summer bushfires and the COVID-19 pandemic.
Maggie Beer is continuing to work on its eCommerce presence with an an improved digital marketing plan and continued growth generated by the 'Cooking with Maggie' series which, at the time of the update, had over 4.4 million views on social media websites, Facebook and Instagram. Additionally, it will include a new website launch in FY21.
About the Maggie Beer share price
The company's mission is to be a leader in meeting the expectations of discerning consumers with new, high-quality food and beverage experiences. According to Maggie Beer, "This means being at the forefront of mainstream trends, but not side-tracked by fads, recognising that opportunities arise locally & internationally". The Maggie Beer share price is currently trading at 26.5 cents which represents a gain of more than 20% in today's trade. The Maggie Beer share price is up 56% in year to date trading and the company has a market capitalisation of around $52 million.
