New Zealand-based food and beverage company, Halo Food, has made the decision to enter voluntary administration following an unsuccessful strategic review. The company, formerly known as Keytone Dairy, had initiated the review in May to explore various options, including divestment, mergers and acquisitions, and partnerships.
Despite appointing administrators and receivers, the review did not yield the desired outcomes and financial support for the company was withdrawn. As a result, Halo Food announced in a filing with the Australian Securities Exchange that it will no longer proceed with its scheduled annual general meeting on 31 August.
Earlier this month, Halo Food had sold its subsidiary, The Healthy Mummy weight-loss business, to Australian company Mosh for A$588,540. This sale came after the subsidiary had undergone a review in March, which later expanded to include all of Halo Food’s operations and businesses. The company believed that the underlying businesses’ value may be greater than the current market value.
In addition to The Healthy Mummy, Halo Food owns other brands such as Tonik protein bars and shakes, targeted towards the Australian market, and Gran’s Fudge. The company also acquired the Australian milk powder and UHT dairy drinks manufacturer, Omniblend, in 2019. Furthermore, Halo Food serves as a contract manufacturer for various brands in Australia and New Zealand, as well as a supplier of private-label products.
With manufacturing facilities in Sydney and Melbourne, Australia, and Christchurch, New Zealand, Halo Food generated preliminary revenue of A$83.9m for the fiscal year ending 31 March. This marked a 40% increase compared to the previous year, with the Australian contract manufacturing accounting for A$53.7m, the New Zealand dairy business contributing A$12.7m, and branded sales totaling A$3.6m. The company’s sales in the previous year amounted to A$59.9m, reflecting an 18% growth. EBITDA also improved, resulting in a profit of A$2.3m compared to a loss of A$2.3m in the prior year.
To oversee the administration process, Rahul Goyal, Kate Conneely, and Michael Korda of KordaMentha have been appointed as administrators, while KPMG, led by David Hardy, Ryan Eagle, and Emily Seeckts, will act as receivers.
