Maggie Beer’s very difficult year, with personal health problems and continued grief over the death of her daughter, has taken a new turn and her company has suffered a loss of $28.2 million.
In August, Ms Beer was rushed to hospital after a fall at her Barossa Valley home left her with fractures and bruises.
At the time, a relative posted online that ‘Col, her husband, was there and she is now in the excellent hands of her doctors, who are confident she will make a full recovery. It might take a while.’
Earlier this month, the celebrity chef, 79, posted a video to Instagram revealing she was slowly recovering and hoping to get back to normal soon.
Mrs. Beer also mourns the death of Saskia, the eldest of her two daughters, who died unexpectedly in her sleep in February 2020 at the age of 46.
‘Nothing gets you through the rawness. Nothing,” she said last year. ‘No one wants to experience this.
“The help is to understand that you will never overcome grief, but it will come with you and you will continue to live your life, eventually finding joy again.”
Maggie Beer Holdings, the gourmet food company of which she is a director, lost its CEO Kinda Grange and chief financial officer Craig Louttit in recent months.
Maggie Beer (pictured) has had a very difficult year, with personal health problems and continued grief over the death of her daughter
The celebrity chef (pictured) posted a video to Instagram last week in which she revealed she was slowly recovering and hoped to get back to normal soon
And now it has announced a massive annual loss of $28.2 million.
The company said it would write down the value of Paris Creek, its milk and yogurt business, by $4.6 million and is considering selling it along with Hampers & Gifts, the online operation for which it paid $40 million in 2021.
The huge loss came despite a 0.8 percent rise in sales revenue to $89.3 million in the 12 months to June 30.
The sales increase was even greater for the Maggie Beer range of ice cream, cheese, cooking stock and pate, which rose by 6.3 percent.
The financial loss was the result of write-downs on the value of Hampers&Gifts, Paris Creek and legal costs.
The company’s shares have taken a huge hit over the past two and a half years, falling from 58¢ in February 2022 to just 6.4¢ at the end of last week.
As a result, the company’s total value has fallen by almost 90 percent in that time, from $200 million to $23 million.
Graeme Hughes from Griffith University in Brisbane said the losses occurred despite Maggie Beer Holdings having “a strong brand reputation and a loyal customer base”.
“Potential reasons for this struggle include over-diversification, high costs, operating in a niche market and increasing competition from both established brands and new entrants to the gourmet food market,” Hughes told Daily Mail Australia on Tuesday.
He said the company’s expansion into new areas such as lifestyle and garden products “may have diluted the focus on its core gourmet food offering.”
“Additionally, the higher pricing of Maggie Beer products during cost-of-living pressures could limit the company’s market reach and leave it vulnerable in the economic downturn.”
Mr Hughes said while Australia’s gourmet food market is growing, “it remains a niche segment, meaning the company’s revenue stream can be sensitive to fluctuations.”
A family member assured Maggie Beer’s legion of followers (pictured) that she is in the best possible medical hands and will likely make a full recovery
The company’s chairman, Sue Thomas, acknowledged that the results were disappointing.
“Maggie Beer Holdings has an absolute focus on returning the business to profitability and capitalizing on our two biggest assets,” she said, referring to the “iconic Australian brand” and Hampers & Gifts.
Despite the enormous value the company placed on it, Hampers & Gifts’ goodwill value – the value of a company’s reputation, branding and customer loyalty – was reduced by $13.7 million in the accounts released on Friday.
The company this year settled a legal dispute with the former owners over earn-out payments Australian Financial Statement reported.
The company previously looked to sell its premium milk and dairy products business from Paris Creek Farms, but was unable to get a high enough bid.
Maggie Beer (left) is pictured with her daughter Saskia, who died suddenly in her sleep in February 2020 at the age of 46
Maggie Beer (pictured) has given her fans a health update, almost two months after she was rushed to hospital following a horrific fall at her Barossa Valley home
A family member took to Instagram to update fans on the 79-year-old chef’s progress following her fall
Ms Grange, who served as CEO for 17 months before stepping down on August 13, claimed Paris Creek Farms could become a much stronger player over time.
Under her leadership, Maggie Beer Holdings wanted to broaden the business into lifestyle, entertainment and garden products.
Two weeks after she quit two months ago, the company also announced that Mr. Louttit had also left as Chief Financial Officer.
Ms Beer received $157,104 for serving as the company’s brand ambassador for the 12 months to June 30.
The business she started in 1979 with a store next to her Pheasant Farm restaurant in South Australia’s Barossa Valley was sold to the Longtable Group in two deals in 2016 and 2019.
In July 2020, Longtable Group changed its name to Maggie Beer Holdings “to better reflect the company’s core brand,” it said at the time.
But for now, Ms. Beer is more focused on regaining her health.
“The support I’ve had from the entire community, across Australia, and from friends and family, I’m so grateful and overwhelmed,” she said on her Instagram video last week.
“I’ve come such a long way, but I underestimated the severity of the injuries, so even though I want to tell you how good I feel now, I still have a way to go.”
