Maggie Beer Holdings has announced the elimination of the joint interim group COO and CFO positions as part of an ongoing “strategic review” aimed at enhancing profitability.
These organizational changes arise as the Australian company seeks to “reduce the cost of doing business” and “improve margins.” This strategic review is crucial for the company’s financial health.
As a result of the new divisional structure, Penny Diamantakiou, who held the roles of joint interim group COO and CFO, will depart from the company. Maggie Beer Holdings confirmed in a stock-exchange filing that these positions will not exist in the revamped organizational framework.
Furthermore, this restructuring will lead to adjustments in the finance team’s leadership. The current group finance managers will now share management responsibilities within this team.
Regarding this decision, Maggie Beer Holdings chairperson, Sue Thomas, stated, “This new structure enables us to focus on costs, core products, and customers while being reflective of the company’s current market capitalisation.”
In addition to these organizational shifts, director Tom King will transition into an executive position to manage the transition and implement cost-saving strategies, particularly in the e-commerce division.
He will also lead the search for a new divisional head in this area, as the company indicated.
Meanwhile, director Mark Lindh will oversee the recruitment process for the head of Maggie Beer Products and help manage that division in the interim.
To streamline operations and reduce headcount, the food and beverage producer will establish divisional heads for its business units, including e-commerce (Hampers & Gifts Australia), operations, and Maggie Beer Products.
Financially, Maggie Beer Holdings projects a 5.5% to 6% increase in total sales from continuing operations for the first half of FY25.
However, trading EBITDA is anticipated to decline by 7% to 8% compared with the same period last year.
Thomas noted that while sales have improved for the half-year, rising operational costs continue to pose a challenge.
“While we are pleased with the positive sales results to 31 December 2024, the trading period has reinforced the board’s view that our cost of doing business remains too high. Despite some cost increases driven by factors beyond our control, the board review has highlighted that we can and must significantly reduce our business costs.”
“In the second half, MBH will simplify its operations and administration by streamlining its structure, cutting senior executive roles, and reducing head office headcount.”
The company also disclosed that it has received interest from several parties looking to acquire its Paris Creek Farms unit, a bio-dynamic organic dairy processing and manufacturing business.
Given that Paris Creek Farms has significantly impacted earnings, Maggie Beer Holdings has decided to divest this business for financial recuperation.
Currently, the company operates through three business segments: Maggie Beer Products, Paris Creek Farms, and Hampers & Gifts Australia (HGA).
