The hunt for the perfect Christmas gifts has begun as people start circulating their wishlists. And from the looks of it, hampers featuring festive must-haves are all the rage among shoppers.
Call it nostalgia or faith—many people opt for the premium gifting and food and beverage products by Maggie Beer Holdings (ASX: MBH). Maggie Beer is a renowned chef, author and judge in the Great Australian Bake-off. She is known for her Christmas specials, and her brand name carries a lot of credibility among Aussie customers.
Specialising in hampers and other carefully curated products, the Company’s popularity among shoppers is no joke. In November 2022, MBH reported net sales growth of 3.8% on November 2021 and achieved 22.7% growth over November 20 on a pro-forma basis.
Comprising three brands—Maggie Beer Products, Paris Creek Farms and Hampers & Gifts Australia (HGA) acquired in 2021—the Company is witnessing a boost in demand online and offline with end-of-year festivities commencing. MBH’s eCommerce net sales increased by 3.1% in November 22, and its retail grocery net sales continued to perform well increasing by 6.2% in November 22, with key entertaining and cooking categories expected to perform well over Christmas.
At the end of November 2022, Q2 FY23 net sales are 3.3% ahead of Q2 FY22, with the key December trading period still to come.
Evidently, the Company is reaping the rewards of its multiple marketing campaigns on TV, radio and the like that started in October focussing on Black Friday, Cyber Monday and Christmas gifting. HGA launched its chilled cheese and entertaining hampers in March 22, and it has achieved over $1.1 million in sales, growing by 105% in Q1 FY23 compared to Q4 FY22.
In keeping with growing demand, the Group is now exploring additional verticals to complement its premium branded food and beverage and gifting portfolio.
That said, it hasn’t all been smooth sailing for MBH in the past year. The Company was progressing with the sale of its remaining Dairy Asset of Paris Creek Farms. Unfortunately, even though it received a highly conditional and nonbinding offer, the bidder called the deal off. The nonbinding offer also included a cheese offtake agreement that would have provided MBH with the security of supply for speciality cheese
Plus, in October 2022, its CEO Chantale Millard resigned after eight years on the job. MBH is currently interviewing new candidates and plans on announcing the new CEO before Christmas. Till then, Millard will continue to support the business in the role into the New Year to ensure a smooth transition to the new CEO.
Following approval by its shareholders at the 2022 annual meeting, MBH is pleased to have paid its 1c per share Return of Capital, in lieu of a dividend, to shareholders on November 25, 2022. As per its report, this payment reflects the Board’s confidence in the Company’s core business, its strong balance sheet and the cash position of $6.9 million as of November 30, 2022.
Alinda is a Business Reporter for The Sentiment
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