The Maggie Beer Holdings Ltd (ASX: MBH) share price is soaring today after the company released its results for financial year 2021 (FY21).
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 Paris Creek Farms brand earned Maggie Beer around $16 million, while its St David Dairy segment brought in roughly $9 million.
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.
