Halo Food has divested its weight-loss food business, The Healthy Mummy, to Mosh, a local Australian hair loss and healthcare company. This strategic move comes as Mosh recently launched its own female-focused brand, Moshy.
Mosh will acquire The Healthy Mummy from Halo for A$588,540 ($383,500). The subsidiary, known for its nutrition weight-loss products such as smoothies, meals, and snacks, was initially put up for review in March before the current extension.
All employees of The Healthy Mummy brand will remain under its operation. Additionally, Halo and Mosh have entered into an “arms-length and exclusive manufacturing agreement” for the future production of The Healthy Mummy powders, including smoothies and weight-loss shakes. This agreement has an initial term of 18 months.
Notably, Halo originally purchased The Healthy Mummy for around A$20m. However, an impairment of A$11.3m was made at the end of the year until 31 May 2023 due to softer sales in the e-commerce and digital business. This impairment played a role in the strategic review carried out by Halo.
The divestiture of The Healthy Mummy follows Halo’s recent decision to conduct a strategic review for all of its business units and factories based in New Zealand.
In the fiscal year ending on 31 March, Halo Food recorded preliminary revenue of A$83.9m, representing a 40% increase compared to the previous year. Contract manufacturing in Australia accounted for A$53.7m, the New Zealand dairy business accounted for A$12.7m, and branded sales amounted to A$3.6m.
As for the previous financial year, sales amounted to A$59.9m, marking an 18% increase. Furthermore, EBITDA turned from a A$2.3m loss in the prior year to a A$2.3m profit.