The Maggie Beer Holdings Ltd (ASX: MBH) share price has had a massive year, jumping up more than 160% in the past 12 months.
Shares in the Maggie Beer Group – which encompasses Maggie Beer products, Paris Creek Farms and Saint David Dairy brands – went up 3.5% yesterday on a positive trading update, but flopped more than 8% in opening trade today. At the time of writing, the Maggie Beer share price has regained some lost ground, now trading at 42 cents, down 1.8%.
Let's take a closer look at what's happening.
What did the Maggie Beer quarterly release say?
In yesterday's release, the company said it had achieved record sales and booming growth across multiple initiatives during the first half of FY21. E-commerce sales increased by 167%, net sales powered up 20%, and the cash position has increased $1.2 million compared to the prior corresponding period.
Commenting on the progress, Maggie Beer Group CEO Chantale Millard said:
It is fantastic for the group to have such a strong start to FY21 and the team have done a tremendous job managing the growth over the past 6 months. We are looking forward to continuing this trend, by supplying premium Australian products to our consumers.
Maggie Beer presently holds a cash balance of $6.3 million following the $1.2 million gain realised in the first half of FY21.
Coles partnership helps along the way
Following the announcement of a partnership with Coles Group Ltd (ASX: COL) last August, the Maggie Beer share price has continued to find its way upward. Coles agreed to launch a range of plant-based meals across approximately 400 Coles locations nationwide.
The day this news was announced, the Maggie Beer share price jumped 23%.
Capitalising on growth opportunities
According to yesterday's update, Maggie Beer will continue to focus on growth as we enter 2021. The company's market cap has reached $86.1 million and the company has roughly 207 million shares outstanding.
Maggie Beer expects its cash holdings to increase further when incoming third quarter payments quarter for the second quarter trading period are received.
Said Ms Millard: "With our strong cash and balance sheet position, we are well-placed to capitalise on our growth opportunities."