MAGGIE BEER UPS PRICES TO COVER COSTS
MAGGIE Beer Holdings, the listed food and hamper seller backed by Maggie Beer, has ratcheted up prices for its branded foods to counter the pressure on its profits driven by rising freight and raw commodity costs.
The company said despite a slide in sales growth over the first quarter of fiscal 2023, the second quarter had been stronger to give the company greater confidence heading into Christmas.
However, the foods business was still battling inflationary pressures and it had taken the decision to lift prices to protect margins.
Maggie Beer Holdings, whose businesses include Maggie Beer branded food, Paris Creek Farms and a recently acquired hampers and gift business, provided a trading update at its annual general meeting on Tuesday where outgoing chief executive Chantale Millard said it remained resilient and could weather the current volatile economic climate.
Unveiling trading for the first quarter, she said net sales were down 22.1 per cent against the first quarter of 2022, although last year its sales were boosted by Covid19 lockdowns. Net sales were better by 10.4 per cent on the first quarter of 2021.
Ms Millard said gross margins had increased by 1.7 per cent in the first quarter to 52.7 per cent, showing the positive impact of price increases and cost controls.
Maggie Beer Holdings had also started the new financial year in a strong balance sheet position with $5m in cash, no drawn debt and cashflow set to accelerate over the busy Christmas period. Inventory levels remained higher than this time last year, to protect against supply chain disruptions and ensuring Maggie Beer Holdings was well placed to respond to demand over Christmas.
As at the first quarter Maggie Beer Holdings had 900,000 active subscribers across its business databases.