Maggie Beer Holdings has decided to eliminate the roles of joint interim group COO and CFO as part of an ongoing “strategic review” to boost profits.
The changes come as the Australian company aims to “reduce the cost of doing business” and “improve margins”, as part of the review.
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The new divisional structure will see joint interim group COO and CFO Penny Diamantakiou leave the business.
Her roles will not be part of the new organisational structure, Maggie Beer Holdings said in a stock-exchange filing.
The revamp also involves changes to the leadership of the finance team, which will now be jointly managed by the current group finance managers.
Commenting on the decision, Maggie Beer Holdings chairperson Sue Thomas said: “This new structure enables us to focus on costs, core products and customers while being reflective of the company’s current market capitalisation.”
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By GlobalDataAs part of the restructuring, director Tom King will step into an executive role, overseeing the transition and driving cost-saving measures, particularly within the e-commerce division.
He will also lead the search for a new divisional head for this area, the company said.
Meanwhile, director Mark Lindh will take charge of the recruitment for the head of Maggie Beer Products and assist in the interim management of that division.
To reduce executive roles and headcount, the food and beverage products maker will appoint divisional heads to its business units, e-commerce (Hampers & Gifts Australia) operations and Maggie Beer Products.
In terms of financial performance, Maggie Beer Holdings expects to report a 5.5% to 6% increase in total sales from continuing operations for the first half of FY25.
However, trading EBITDA is forecasted to decline by 7% to 8% compared to the previous corresponding period.
Thomas said increased sales for the half had been offset by ongoing operating costs.
“Whilst we are pleased with the positive sales results to 31 December 2024, the trading period has only reinforced the board’s view that our cost of doing business remains too high. Whilst some cost increases are driven by factors outside of our direct control, the board review has highlighted that we can and need to materially cut our cost of doing business.
“In the second-half, MBH will therefore simplify its operations and administration through streamlining its structure, reducing senior executive roles and head office headcount.”
The company also revealed that several parties have expressed interest in acquiring its another business unit Paris Creek Farms, a bio-dynamic organic dairy processing and manufacturing company.
Maggie Beer Holdings decided to divest this business as its earnings were “significantly impacted by the loss” at Paris Creek Farms in FY24.
The company currently operates through three business segments, Maggie Beer Products, Paris Creek Farms and Hampers & Gifts Australia (HGA).
